An interorganizational system (IOS) is a system between organizations, or "shared information system among a group of companies."A. Gunasekaran, Maqsood Sandhu (2010) ''Handbook on Business Information Systems.'' p. 773 The most common form of interorganizational system is

electronic data interchange Electronic data interchange (EDI) is the concept of businesses electronically communicating information that was traditionally communicated on paper, such as purchase orders, advance ship notices, and invoices. Technical standards for EDI exist to ...

, which permits instantaneous computer-to-computer transfer of information.

Overview

Interorganizational systems allow 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. Interorganizational system 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. An Inter-organizational system is an information system shared by one or more suppliers and customers Organizations might pursue an interorganizational system for the following reasons: #Reduce the risk in the organization #Pursue

economies of scale In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of Productivity, output produced per unit of cost (production cost). A decrease in ...

#Benefit from the exchange of technologies #Increase competitiveness #Overcome investment barriers #Encourage global communication An examples of interorganizational systems is the

Sabre (computer system) Sabre Global Distribution System is a computer reservation system, travel reservation system owned by Sabre Corporation, which allows travel agents and companies to search, price, book, and ticket travel services provided by airlines, hotels, car r ...

. “ understanding of environmental uncertainty are leading to the horizontal relationships across organizations."

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Overview

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