Ch09

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Chapter9 Introduction to Information Technology Turban, Rainer and Potter John Wiley & Sons, Inc. Copyright 2005

Transcript of Ch09

Chapter9

Introduction to Information Technology Turban, Rainer and Potter John Wiley & Sons, Inc.Copyright 2005

Chapter9

Interorganizational and Global Information Systems

Chapter 93

“ Copyright 2005 John Wiley & Sons Inc.”

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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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.

9.1 Interorganizational Systems (IOSs)

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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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Electronic data interchange (EDI)

Extranets

XML

Web services

IOSs classification based on the technology

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Overview of IOSs

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Interorganizational systems that connect companies located in two or more countries.

9.2 Global Information Systems

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Cultural differenceLocalizationEconomic and political

differencesLegal issues

Issues in global IS design

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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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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.

9.3 B2B Exchanges and Hubs

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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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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.

9.4 Virtual Corporations and IT Support

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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: 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

The Process of EDI

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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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Reduced cycle time

Better inventory management

Increased productivity

Enhanced customer service

Minimized paper usage and storage

Increased cash flow

Other Benefits of EDI

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Internet-Based EDI

Why? Accessibility Reach Cost Use of Web technology Ease of use Added functionality

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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.

9.6 Extranets, XNL, and Web 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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Flexibility Understandability Less specialized

Benefits of XML over HTML

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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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Retailer- suppliers

Product design

Collaborative manufacturing

Some Areas of Collaboration Using IOSs

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