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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
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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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3. 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
Describe interorganizational activities, particularly order fulfillment.
Define and classify interorganizational information systems.
Define and classify global information systems.
Identify the major issues surrounding global information systems.
Present demand-driven networks and RFID as supply chain facilitators.
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5. Learning Objectives – cont’d
Explain B2B exchanges, hubs, and directories.
Describe interorganizational integration issues and solutions.
Understand Partner Relationship management and its relationship to collaborative commerce.
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Figure IT 7eU provides opportunity to discuss overview of IT’s role in corporate strategy setting and its intricate importance to performance as business solutions and the resulting profitability. Throughout the “semester” student learning will be evolving surrounding this chart making it good to begin by going back to it to integrate learning.
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.
Click image for homepage.
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11.1 Interorganizational Activities and Order Fulfillment
On demand enterprise – order began when received. Build to order, mass customization.
On demand & real time – entire fulfillment cycle would be primed to respond to real-time conditions.
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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:
Includes inbound, outbound, internal & external movement; return of materials & goods.
Includes order fulfillment. Key aspects are delivery of materials or products at the right time, to the right place, & at right cost.
Article can aid to facilitate discussion of improved productivity & reduced costs thru automation of order fulfillment activities.
Automated Order Fulfillment Increases Distribution Center Productivity by 80%
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Figure 11.1
Informational slide. Typical order fulfillment process is illustrated in this figure.
Order fulfillment and the logistics system.
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11. Problems – Solutions Involve Automation
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
Automation will increase speed, reduce (or eliminate) errors, reduce cost, minimize delays, reduce inventories.
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11.2 Interorganizational Information Systems and Large-Scale Information Systems
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13. 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
B2B trading systems
B2B support systems
Global systems
Electronic funds transfer (EFT)
Groupware
Shared databases
Task students to come with examples.
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11.3 Global Information Systems
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16. Multinational Companies Use Global Information Systems
Companies that operate in several countries….
Headquarters in home country……
These are examples of multinational companies that use global information systems. Companies operate in several countries,
have headquarters in home country, and manufacture/sales/research in other countries.
And……manufacturing sales……….& research in other countries….
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17. Benefits of Global Information Systems
Partners make decisions, monitor transactions & provide controls at a reasonable cost utilizing , 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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20. Benefits of Demand-Driven Supply Networks
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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21. 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
All parts in the partnership must be focused on the goals, profit, strategy for the collaborative body; not just be internally focused. One must not
benefit while another does not for total effectiveness & potential competitive advantage. Discuss the reality of it for most supply chain
agreements. There is almost always one component that will benefit over another.
Real-time demand-driven manufacturing. (Source: People Talk, “Real Time Demand Driven Manufacturing,” 15(3), July-Sept. 2004, pp by 2005, XXPLANE.com, courtesy of Oracle.)
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Figure 11.3
How might RFID improve the supply chain? Because RFID are used by all companies, automatic alerts can be sent within each company
& between companies. No longer need to count inventories. Benefits can go down several tiers within the supply chain.
Rapid checkout in a retail store, eliminating need to scan each item will be future availability.
How radio frequency ID tags smooth supply chains.
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Figure 11.4
RFID transmits real time information about location of merchandise.
RFID at retailers used to locate merchandise, control inventory, prevent theft, & expedite processing of relevant information.
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.
Links are to YouTube videos that give visual examples of RFID applications & uses. These are helpful to stimulate discussion & critical thinking
by students.
How RFID works
RFID Chips-how they work
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Figure 11.5
Informational slide. A system of several interconnected public exchanges is shown in this figure. In this example, there are 3
interconnected exchanges. In other cases there may be only 1 exchange for an entire industry.
Web-based supply chain involving public exchanges.
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Figure 11.6
Refer to IT at Work, Asite is organizational example of electronic hub. A structure of an electronic hub is shown in this figure.
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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29. 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
E-supply chain is based on integration & collaboration. The core idea of this model is that an e-supply chain is based on integration
& collaboration. The supply chain processes are connected, decisions are made collectively, performance metrics are based on
common understanding, information flows in real time & the only thing a new partner needs in order to join the SRM system is
a Web browser.
Supplier relationship management (SRM). (Source: B. Schecterle, “Managing and Extending Supplier Relationships, “ People Talk, April-June 2003, courtesy 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.
Click image for hot link to home page. Refers to IT At Work, 11.4.
Why does the company need such an elaborate program? How would you justify it? Describe the major features of the CRM/PRM program.
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11.7 Managerial Issues
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Top Managerial Issues
Web pages require language translation
System selection
Partners’ collaboration
New infrastructures
Globalization
Partner & supplier relationship management
Using ERP
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