Options in inter-organizational systems integration

Inter-organizational systems integration can happen in many ways. Depending on the setting, one integration solution is more appropriate than another. If companies are to decide on the most appropriate solution for them, they need to know what all possible solutions are they can choose from and on what aspects these differ. The research question that is answered in this paper is on what relevant classificatory basis we can distinguish IOSI solutions; and given this classificatory basis, what is the complete set of IOSI solutions to choose from? We used a grounded theory approach, studying several inter-organizational integration cases, standards and technologies. The theoretical contribution of this paper is that it identifies a six-dimensional inter-organizational systems integration solution space. The six dimensions concern data design, process design, process execution control, task execution, data transmission and data storage, each of which is considered from a (de)centralization perspective. These (de)centralization dimensions are, at least in theory, orthogonal to each other. The research is relevant for practitioners because taking a position on the dimensions implies choosing a solution with distinct properties. Properties of solutions are discussed so as to make it easier for companies to choose an appropriate solution. The main novelty of the paper is that it defines a comprehensive integration solution space by introducing the important concept of centralization at the level of inter-organizational information systems

The Impact of Inter-Organizational Systems

Application of information technology to facilitate information flows associated with coordinating transactions between two are more organizations are commonly known as inter-organizational systems (IOS). Such systems, on one hand allow for smoother and cheaper linkage between two organizations by the transactions to take place more efficiently thus lowering the over all cost of transacting. On the other hand, they allow for the initiating firm to achieve an edge over its competition. Such a competitive edge (by the initiating) firm is achieved in a two-fold way: (i) by introducing systems which require large capital investment, the entry barrier is raised thereby decreasing threat of new entries and (ii) by forcing the other party (buyers or suppliers) to invest into specialized assets like hardware, software, and skills (which of course are eventually paid back by the reduced cost of transacting), thereby increasing the cost of switching. In some cases the benefits of an IOS were deemed by the initiator firm to be so significant that it provided the other party with the necessary equipment at a no cost. Because of their ability to provide the first-mover advantage, IOS have been labeled as strategic systems. Recently, large retailers have used IOS toimplement Vendor Managed Inventory systems where even the demand analysis and forecasting decisions are delegated to the suppliers. Since the supplier has immediate access to the demand data it can adjust its production level more quickly in response to fluctuations in the demand. Many other retailers and consumer good producers have responded to the competitive threat posed by large retailers like Wal-Mart by developing joint warehousing systems, which are commonly known by Efficient Consumer Response systems, thereby providing benefits of virtual integration without individual firms loosing their identities. While in many cases, the focus of IOS has been dyadic relationship between buyers and sellers [GASK85, ZAHE94], for some industries, the entire value chain involving many different players have been transformed. In distribution channels (or just channels in the sequel) products flow through many different stages before (and in some cases even after) getting committed to a customer. Since channel members perform interrelated activities, the organizational effects of an IOS are not confined to just the immediate trading partners linked by the system. Rather, resulting changes percolate throughout the channel

Analyzing inter-organizational systems from a power and interest perspective

Inter-organizational systems (IOS) are ICT-based systems that enable organizations to share information and to electronically conduct business across organizational boundaries. Especially since the increasing availability of the Internet, there have been less technological barriers to implement IOS. However, that does not imply that IOS-possibilities are implemented successfully in all occasions: other barriers may remain. Innovation is not only a technical process of ?solving problems?, it also involves economic and political processes in which interests are articulated, alliances are built and outcomes are struggled over. To explore this observation, this paper presents a model that helps to describe and analyze IOS from a power and interest perspective of multiple parties. To illustrate this model, eight case studies of IOS are discussed, of which two in more depth. After that, we will put the findings of the analysis in a broader perspective. The paper concludes with the assertion that the scope for the design of an effective IOS depends on a combination of technical, economic and social

Network Analysis Methods for Modelling Tourism Inter- Organizational Systems

This chapter discusses the emerging network science approach to the study of complex adaptive systems and applies tools derived from statistical physics to the analysis of tourism destinations. The authors provide a brief history of network science and the characteristics of a network as well as different models such as small world and scale free networks, and dynamic properties such as resilience and information diffusion. The Italian resort island of Elba is used as a case study allowing comparison of the communication network of tourist organizations and the virtual network formed by the websites of these organizations. The study compares the parameters of these networks to networks from the literature and to randomly created networks. The analyses include computer simulations to assess the dynamic properties of these networks. The results indicate that the Elba tourism network has a low degree of collaboration between members. These findings provide a quantitative measure of network performance. In general, the application of network science to the study of social systems offers opportunities for better management of tourism destinations and complex social systems

Complexity and Context: Emerging Forms of Collaborative Inter-Organizational Systems

The paper analyses the collaborative development of emergent IOS in three data intensive industry sectors (telecommunications, news media, and financial services). The findings reveal that environmental complexities (the complexity of data consumption patterns and increased interdependence within value webs) require context-sensitive value exchanges operationalised within co-operatively developed commodity-like IT infrastructures. The paper concludes by examining the implications of the study findings for developing IOS to support pooled, sequential, and reciprocal inter-organisational interdependencies

Supply Chain Management and Inter-organizational Systems: An Integrated Perspective

The growth in electronic commerce has brought into focus the critical role of inter-organizational systems (IOS) in facilitating various aspects of business transactions between two companies. In the operations and logistics field, supply chain management (SCM) has been touted as one of the major strategies to improve organizational performance and generate competitive advantage. Although IOS are extensively used to facilitate SCM, very few papers have examined the inter-linkages between the two topics. Research has focused on the flow of material and information independently. In this paper we propose to integrate the two concepts, SCM and IOS, and identify management issues related to implementation of an electronic supply chain that integrates traditional supply chain with IOS

Interorganizational Business Simulation and Gaming: Rethinking Information Systems Curricula

Increasingly information systems span organizational boundaries. As “doing business electronically” becomes a central feature of IS strategy, it also becomes crucial for IS curricula to reflect this new reality. The potential for these systems to affect corporate performance demands that managers and system developers receive training in inter-organizationalsystems. This panel maintains that important aspects of business dynamics may be conveyed through simulations set in a business gaming environment. While simulation conveys knowledge about the complex dynamic aspects of inter-organizational systems, gaming provides realism and stimulates interest among participaits. This panel will debate the merits of using simulation and gaming as vehicles to teach inter-organizational systems and will lead discussion 011 how these may be introduced into IS cumcula

Emerging Trends of ICT Adoption in Innovation Contexts: A Network Framework

Given the growing prominence of innovation in service sciences and international competitiveness, the context of innovation has emerged in adoption research. This study explores emerging trends of ICT adoption in an innovation context. More specifically, given the increased importance of inter-organizational networks in fostering innovation, the study uncovers drivers of adoption of inter-organizational systems that support the innovation process. Particularly, to enhance understanding of innovations that are entrenched in networks of heterogeneous actors, this study employs an interdisciplinary approach as it applies network and relationships marketing literatures to the adoption and inter-organizational systems literatures. Based on qualitative research incorporating a focus group and sixteen in-depth interviews, the study provides a network framework for understanding key drivers of ICT adoption, including trust, commitment, coordination and communication efficiency, in innovation contexts