Turban and Volonino
Chapter 11
Interorganizational, Large-Scale
and Global Information Systems
Information Technology for Management
Improving Performance in the Digital Economy
7th edition
John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid
Chair, Graduate School of Business & Professor, Technology
Dallas Baptist University
Copyright 2010 John Wiley & Sons, Inc.
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Chapter Outline
• 11.1 Interorganizational Activities and Order
Fulfillment
• 11.2 Interorganizational Information Systems
and Large-Scale Information Systems
• 11.3 Global Information Systems
• 11.4 Facilitating IOS and Global systems: From
Demand-Driven Networks to RFID
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Chapter Outline (cont’d)
• 11.5 Interorganizational Information
Integration and Connectivity
• 11.6 Partner Relationship Management and
Collaborative Commerce
• 11.7 Managerial Issues
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Learning Objectives
1. Describe interorganizational activities, particularly
order fulfillment.
2. Define and classify interorganizational information
systems.
3. Define and classify global information systems.
4. Identify the major issues surrounding global
information systems.
5. Present demand-driven networks and RFID as
supply chain facilitators.
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Learning Objectives – cont’d
6. Explain B2B exchanges, hubs, and directories.
7. Describe interorganizational integration
issues and solutions.
8. Understand Partner Relationship
management and its relationship to
collaborative commerce.
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Figure IT7eU
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Boeing’s 787 Dreamliner
• Problems – Losing market share to major
competitors. Economic recession world-wide.
• Solution – IT to expedite design, reduce
problems, reduce costs, cycle time & assembly
time. Implemented technologies to facilitate
access, sharing, & storage of critical information.
• Results – May be most successful commercial
airplane launch in history.
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11.1 Interorganizational Activities and Order
Fulfillment
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Logistics
• Process of planning, implementing, &
controlling the efficient & effective flow &
storage of goods, services, & related
information from point of origin to point of
consumption.
For much more & an overview on this topic – click the image:
Automated Order Fulfillment Increases Distribution Center
Productivity by 80%
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Figure 11.1
Order fulfillment and the logistics system.
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Problems – Solutions Involve Automation
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Delays in transportation / shipments
Human errors in information sending
Over-or-under stocked inventories
Shipments to wrong places or wrong quantities
Late or wrong reporting on delivery
Slow or incorrect billing
Difficult product/part configuration
Inability of IT systems of 2 organizations to “talk”
to each other
• High cost of expedited shipments
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11.2 Interorganizational Information
Systems and Large-Scale Information
Systems
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IOSs Enable BOTH Partners to….
• Reduce costs of routine transactions
• Improve quality of information flow by
reducing/eliminating errors
• Compress cycle times
• Eliminate paper processing & associated
inefficiencies/costs
• Transfer & processing of information made
easier for users
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Types of IOS
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B2B trading systems
B2B support systems
Global systems
Electronic funds transfer (EFT)
Groupware
Shared databases
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11.3 Global Information Systems
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Multinational Companies Use Global
Information Systems
Companies that operate in several countries….
Headquarters in home
country……
And……manufacturing........sales……….& research in other countries….
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Benefits of Global Information Systems
• Partners make decisions, monitor transactions
& provide controls at a reasonable cost
utilizing email, EDI, web, & extranets.
• ERP can help standardize routine information
world-wide.
• Collaboration enhanced with groupware
software.
• Video teleconferencing & screen sharing are
useful for successful project management.
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11.4 Facilitating IOS and Global Systems:
From Demand-Driven Networks to RFID
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• Problem – increased internet sales made
order fulfillment & after-sale customer service
overwhelming for a small company.
• Solution – outsource delivery to FedEx &
automation of order fulfillment process.
• Results – greater customer satisfaction &
retention.
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Benefits of Demand-Driven Supply Networks
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Lower supply chain costs
Improved perfect-order performance
Reduced days of inventory
Improved cash-to-cash performance
Customer-centric approach
Bullwhip effect is minimized
Probabilistic optimization is used
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Real-Time Demand-Driven Manufacturing
• Quick & efficient response to demand.
• Provides customers with what they want,
when & where they want it.
• Effective communication is essential.
• Partnerships share profit goals, design
responsibility, on-time deliveries & continuous
performance reviews.
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Figure 11.2
Real-time demand-driven manufacturing. (Source: People Talk, “Real Time Demand Driven
Manufacturing,” 15(3), July-Sept. 2004, pp. 14-15. XXPLANATIONS@ by XPLANE@, 2005,
XXPLANE.com, courtesy of Oracle.)
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Figure 11.3
How radio frequency ID tags smooth supply chains.
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Figure 11.4
How RFID works in a manufacturer-retailer supply chain.
(Source: Drawn by E. Turban.)
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RFID
• Size of pinhead, or grain of sand.
• Includes an antenna & chip that contains an
electronic product code (EPC).
• EPC stores more than a barcode.
• Passive tracking device.
• Cost may be too high.
• Atmospheric interference.
How RFID works
RFID Chips-how they work
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Figure 11.5
Web-based supply chain involving
public exchanges.
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Figure 11.6
Electronic hub (bottom) compared to traditional intermediaries
(top). (Source: Drawn by J. Lee & E. Turban.)
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11.5 Interorganizational Information
Integration and Connectivity
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Integrating IS of Merging Companies
• Establish IT leadership team
• Select option with lowest integration risks
• Customer-facing applications must have
priority
• Offer generous incentives to retain top talent
• Maintain high morale
• Use rich communication media to read
emotions & recognize successes
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11.6 Partner Relationship Management and
Collaborative Commerce
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Figure 11.7
Supplier relationship management (SRM). (Source: B. Schecterle, “Managing
and Extending Supplier Relationships, “ People Talk, April-June 2003, courtesy
Copyright 2010 John Wiley & Sons, Inc.
of Oracle Corp.)
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• Problem – low sales & heavy debt
• Solution – CRM software tool customized for
PRM that would track contacts &
communications between Piper & its dealers
& customers.
• Results – industry leader in quality, excellence,
& customer care.
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11.7 Managerial Issues
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Top Managerial Issues
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Web pages require language translation
System selection
Partners’ collaboration
New infrastructures
Globalization
Partner & supplier relationship management
Using ERP
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