Interorganizational System


Interorganizational System

An Interorganizational System (IOS) is one which allows the flow of information to be automated between organizations in order to reach a desired supply-chain management system, which enables the development of competitive organizations. This supports forecasting client needs and the delivery of products and services. IOS helps to better manage buyer-supplier relationships by encompassing the full depths of tasks associated with business processes company-wide. In doing these activities, an organization is able to increase the productivity automatically; therefore, optimizing communication within all levels of an organization as well as between the organization and the supplier. For example, each t-shirt that is sold in a retail store is automatically communicated to the supplier who will, in turn, ship more t-shirts to the retailer.

Organizations might pursue an IOS for the following reasons:

#Reduce the risk in the organization
#Pursue economies of scale
#Benefit from the exchange of technologies
#Increase competitiveness
#Overcome investment barriers
#Encourage global communication

The most common form of IOS is Electronic Data Interchange, which permits instantaneous computer-to-computer transfer of information.

References

Haag, Cummings, McCubbrey, Pinsonneult, and Donovan. (2006). "Information Management Systems for the Information Age" Pages 26 to 27. McGraw-Hill Ryerson.

Nelson, Shaw. "The Adoption and Diffusion of Interogranizational System Standards and Process Innovations" University of Illinois. June 26, 2006. [http://www.si.umich.edu/misq-stds/proceedings/146_258-301.pdf]

[Contractor and Lorange, 1988] F.J. Contractor, P. Lorgance [eds.] . "Cooperative Strategies in International Business" Lexington Books, 1988.


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