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Learn about the importance of inter-organizational systems (IOS) and e-commerce in today's business landscape. Discover strategies for successful internet use and the future impact of the internet on business. Find out how firms can establish electronic linkages with trading partners and create a coordinated unit to achieve benefits that each could not achieve alone.
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Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed Lecture 12
Using Information Technology to Engage in Electronic Commerce • Today’s talk • The Inter-organizational System • Strategies for E-Commerce • The Next Step for E-Commerce • Suggestions for Successful Internet Use • Future impact of the Internet on Business
E-Commerce strategy & Inter-organizational Systems • IOS • How the firm can establish electronic linkages with other firms to create an interorganizational systems • They work as coordinated unit, achieving benefits that each could not achieve alone. • Participating firms called • Trading partners, • Business partners • Business alliance E-commerce is fundamental to inter-organizational systems The rapid and secure exchange of vast amounts of data is critical to support the transactions of the organizations that use IT to compete
IOS Benefits • 2 key benefits of IOS • Comparative Efficiency • Internal efficiency • Inter-organizational efficiency • Bargaining Power • Unique product features • Reduced search-related costs • Increased switching costs
Proactive & Reactive Business Partners • When a firm adopt an IOS • It should be proactive or Reactive??? • Debate about different industries or companies???
Adoption influences • There are 2 internal and environmental influences • Competitive pressure • When it is in poor position in relation to its competitors or when industry or trade associations provide strong pressure • Exercised power • When firm can exert power over other members or IOS, it will be proactive in adopting IOS • Internal need • When the firm sees that participation in the IOS is a way to improve its own operations, it will approach IOS in a proactive manner • Top management support • Top management always influence the decision
Environmental Influences Environmental Influences Internal Influences Internal need pressure Exercised power Competitors Trading partner Top management support IOS
Indirect IOS benefits Indirect benefits Direct benefits Reduced errors competitors Trading partners Reduced Costs Increased Ability to compete Improved relationship Increased Operational efficiency Improved service customers
Thank you!!! • Q&A