Interorganizational System
From Wikipedia, the free encyclopedia
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.
[edit] 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. [1]
[Contractor and Lorange, 1988] F.J. Contractor, P. Lorgance [eds.]. Cooperative Strategies in International Business Lexington Books, 1988.
