Introduction to Information Technology
Turban, Rainer and Potter
John Wiley & Sons, Inc.
Copyright 2005
Chapter9
Interorganizational and
Global Information
Systems
Chapter9
Chapter Outline
Interorganizational systems
Global information systems
B2B exchanges and Hubs
Virtual corporations and IT support
Electronic data interchange
Extranets, XML, and web services
IOS Implementation issues
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Learning Objectives
Define and classify IOSs
Define and classify global information systems
Present the major issues surrounding global
information systems
Describe B2B exchanges and hubs
Describe virtual corporations and their IT support
Describe EDI and EDI/Internet and their benefits and
limitations
Describe extranets, XML, and web services
Present major IOS implementation issues
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9.1 Interorganizational Systems (IOSs)
 An information system that supports
information flow among two or more
organizations.
 IOSs have developed in direct response to
two business pressures (drivers): the desire
to reduce costs and to improve the
effectiveness and timeliness of business
processes.
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Types of Interorganizational Systems
 B2B trading systems
 Global systems
 Electronic funds transfer (EFT)
 Groupware
 Integrated messaging
 Shared databases
 Systems that support virtual corporations.
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IOSs classification based on the technology
Electronic data interchange (EDI)
Extranets
XML
Web services
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Overview of IOSs
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9.2 Global Information Systems
Interorganizational systems that connect
companies located in two or more countries.
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Issues in global IS design
Cultural difference
Localization
Economic and political
differences
Legal issues
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Characteristic and problem along
global supply chains
Global supply chains involve supplier and /or
customers in other countries. Some of the
issues in global supply chains are:
 legal issues,
 customs fees and taxes,
 language and cultural differences,
 fast changes in currency exchange rates and
 political instabilities.
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Chapter 9
9.3 B2B Exchanges and Hubs
Two IT innovations that help organizations
communicate, collaborate and trade are B2B
exchanges and Hubs.
 B2B exchanges can be either private (one buyer
and many sellers, or one seller and many buyers)
or public (many seller and buyers).
 Hub is used to facilitate communication and
coordination among business partners,
frequently along the supply chain.
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Web-based supply chain involving
trading exchanges
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Electronic Hubs Compared to
Traditional Intermediaries
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9.4 Virtual Corporations and IT Support
Virtual corporations (VC). An organization
composed of two or more business partners,
in different locations, sharing costs and
resources for the purpose of producing a
product or service; can be temporary or
permanent.
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9.5 Electronic Data Interchange (EDI)
EDI is a communication standard that
enables the electronic transfer of routine
documents between business partners.
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Major Components of EDI
EDI translators
Business transactions messages
Data formatting standards
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The Process of EDI
The process of EDI:




Computers talk to computers
Message are coded using the standards
using a converter
The massage travels over a Van or the
Internet
When received the message is automatically
translated into a business language
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The Benefits of EDI
The benefits of this process are :
Data entry errors are minimized
The length of the message can be shorter
The messages are secured
EDI fosters collaborative relationships
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Other Benefits of EDI
Reduced cycle time
Better inventory management
Increased productivity
Enhanced customer service
Minimized paper usage and storage
Increased cash flow
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Internet-Based EDI
Why?
 Accessibility
 Reach
 Cost
 Use of Web technology
 Ease of use
 Added functionality
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9.6 Extranets, XNL, and Web Services
Extranet: A network that links business partners to one
another over the Internet by providing access to certain
areas of each other’s corporate intranets.
XLM (eXtensible Markup Language): A simplified
version of the general data description language,
SGML; used to improve compatibility between the
disparate systems of business partners by defining the
meaning of data in business documents.
Web services: Universal, prefabricated business
process software modules, delivered over the Internet,
that users can select and combine through almost any
device enabling disparate systems to share data
services.
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XML Differ from HTML
The purpose of HTML is to help build web
pages ad display data on web pages.
The purpose of HTML is to describe data and
information . It dose not say how the data will
be displayed .
XML can be used to send complex message
that include different files.
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Benefits of XML over HTML
 Flexibility
 Understandability
 Less specialized
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IOS Implementation issues
Partner relationship management (PRM):
all of the efforts made to apply customer
relationship management (CRM) to
relationship with business partners.
Supplier relationship management (SRM):
All of the efforts made to apply CRM to
relationships with suppliers.
Collaborative commerce (c-commerce):
non-selling/buying electronic transaction
between and among organizations.
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Some Areas of Collaboration Using IOSs
Retailer- suppliers
Product design
Collaborative manufacturing
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