Chapter 11 Interorganizational, Large-Scale and Global Information Systems Information Technology for Management Improving Performance in the Digital Economy 7 th edition John Wiley & Sons, Inc. Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University Tu rb an an d Vo lo ni no 11-1 Copyright 2010 John Wiley & Sons, Inc.
Chapter 11 Interorganizational, Large-Scale and Global Information Systems Information Technology for Management Improving Performance in the Digital Economy.
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Copyright 2010 John Wiley & Sons, Inc.
Chapter 11
Interorganizational, Large-Scaleand Global Information Systems
Information Technology for ManagementImproving Performance in the Digital Economy
7th editionJohn Wiley & Sons, Inc.
Slides contributed by Dr. Sandra ReidChair, Graduate School of Business & Professor, Technology
Dallas Baptist University
Turban and
Volonino
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Copyright 2010 John Wiley & Sons, Inc.
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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Copyright 2010 John Wiley & Sons, Inc.
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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Copyright 2010 John Wiley & Sons, Inc.
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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Copyright 2010 John Wiley & Sons, Inc.
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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Copyright 2010 John Wiley & Sons, Inc. 11-6
Figure IT7eU
Copyright 2010 John Wiley & Sons, Inc.
• 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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Boeing’s 787 Dreamliner
Copyright 2010 John Wiley & Sons, Inc. 11-8
11.1 Interorganizational Activities and Order Fulfillment
Copyright 2010 John Wiley & Sons, Inc.
Logistics
• Process of planning, implementing, & controlling the efficient & effective flow & storage of goods, services, & related information from point of origin to point of consumption.
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For much more & an overview on this topic – click the image:
Automated Order Fulfillment Increases Distribution Center Productivity by 80%
Copyright 2010 John Wiley & Sons, Inc.
Figure 11.1
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Order fulfillment and the logistics system.
Copyright 2010 John Wiley & Sons, Inc.
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
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Copyright 2010 John Wiley & Sons, Inc. 11-12
11.2 Interorganizational Information Systems and Large-Scale Information Systems
Copyright 2010 John Wiley & Sons, Inc.
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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Copyright 2010 John Wiley & Sons, Inc.
Types of IOS
• B2B trading systems• B2B support systems• Global systems• Electronic funds transfer (EFT)• Groupware• Shared databases
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11.3 Global Information Systems
Copyright 2010 John Wiley & Sons, Inc.
Multinational Companies Use Global Information Systems
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Companies that operate in several countries….
Headquarters in home country……
And……manufacturing........sales……….& research in other countries….
Copyright 2010 John Wiley & Sons, Inc.
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
Copyright 2010 John Wiley & Sons, Inc. 11-19
• 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.
Copyright 2010 John Wiley & Sons, Inc.
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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Copyright 2010 John Wiley & Sons, Inc.
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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Copyright 2010 John Wiley & Sons, Inc.
Figure 11.2
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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.)
Copyright 2010 John Wiley & Sons, Inc.
Figure 11.3
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How radio frequency ID tags smooth supply chains.
Copyright 2010 John Wiley & Sons, Inc.
Figure 11.4
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How RFID works in a manufacturer-retailer supply chain. (Source: Drawn by E. Turban.)
Copyright 2010 John Wiley & Sons, Inc.
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.
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How RFID works RFID Chips-how they work
Copyright 2010 John Wiley & Sons, Inc.
Figure 11.5
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Web-based supply chain involving public exchanges.
Copyright 2010 John Wiley & Sons, Inc.
Figure 11.6
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Electronic hub (bottom) compared to traditional intermediaries (top). (Source: Drawn by J. Lee & E. Turban.)
Copyright 2010 John Wiley & Sons, Inc. 11-28
11.5 Interorganizational Information Integration and Connectivity
Copyright 2010 John Wiley & Sons, Inc.
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
Copyright 2010 John Wiley & Sons, Inc.
Figure 11.7
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Supplier relationship management (SRM). (Source: B. Schecterle, “Managing and Extending Supplier Relationships, “ People Talk, April-June 2003, courtesy of Oracle Corp.)
Copyright 2010 John Wiley & Sons, Inc.
• 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
Copyright 2010 John Wiley & Sons, Inc.
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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Copyright 2010 John Wiley & Sons, Inc.
Copyright 2010 John Wiley & Sons, Inc.
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