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

Chapter9 Interorganizational and Global Information Systems

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 3 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

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 4 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

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 5 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)

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 6 Types of Interorganizational Systems B2B trading systems Global systems Electronic funds transfer (EFT) Groupware Integrated messaging Shared databases Systems that support virtual corporations.

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 7 Electronic data interchange (EDI) Extranets XML Web services IOSs classification based on the technology

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 8 Overview of IOSs

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 9 Interorganizational systems that connect companies located in two or more countries. 9.2 Global Information Systems

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 10  Cultural difference  Localization  Economic and political differences  Legal issues Issues in global IS design

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 11 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.

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 12 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

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 13 Web-based supply chain involving trading exchanges

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 14 Electronic Hubs Compared to Traditional Intermediaries

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 15 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

“ Copyright 2005 John Wiley & Sons Inc.” Chapter Electronic Data Interchange (EDI) EDI is a communication standard that enables the electronic transfer of routine documents between business partners.

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 17 Major Components of EDI EDI translators Business transactions messages Data formatting standards

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 18 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

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 19 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

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 20 Reduced cycle time Better inventory management Increased productivity Enhanced customer service Minimized paper usage and storage Increased cash flow Other Benefits of EDI

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 21 Internet-Based EDI Why? Accessibility Reach Cost Use of Web technology Ease of use Added functionality

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 22 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

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 23 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.

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 24 Flexibility Understandability Less specialized Benefits of XML over HTML

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 25 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.

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 26 Retailer- suppliers Product design Collaborative manufacturing Some Areas of Collaboration Using IOSs

“ Copyright 2005 John Wiley & Sons Inc.” Chapter 9 27 All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the United States Copyright Act without express permission of the copyright owner is unlawful. Request for information should be addressed to the permission department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The publisher assumes no responsibility for error, omissions, or damages caused by the use of these programs or from the use of the information herein.