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
In commerce, supply chain management (SCM) is the management of the flow of goods and services including all processes that transform raw materials into final products between businesses and locations. This can include the movement and stor ...
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