Interorganizational system

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, 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
#Benefit from the exchange of technologies
#Increase competitiveness
#Overcome investment barriers
#Encourage global communication

An examples of interorganizational systems is the Sabre (computer system).

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

References

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Further reading

* F.J. Contractor, P. Lorgance ds. ''Cooperative Strategies in International Business'' Lexington Books, 1988.
* Haag, Cummings, McCubbrey, Pinsonneult, and Donovan. ''Information Management Systems for the Information Age'' McGraw-Hill Ryerson. 1996. p. 26-27
* Nelson, Shaw. ''The Adoption and Diffusion of Interorganizational System Standards and Process Innovations'' University of Illinois. June 26, 2006.
online)

Supply chain management