Management Information Systems Islamia University of Bahawalpur Delivered by: Tasawar Javed Lecture 12

Today’s talk  The Inter-organizational System  Strategies for E-Commerce  The Next Step for E-Commerce  Suggestions for Successful Internet Use  Future impact of the Internet on Business Using Information Technology to Engage in Electronic Commerce

 IOS How the firm can establish electronic linkages with other firms to create an interorganizational systems They work as coordinated unit, achieving benefits that each could not achieve alone. Participating firms called  Trading partners,  Business partners  Business alliance E-commerce is fundamental to inter-organizational systems The rapid and secure exchange of vast amounts of data is critical to support the transactions of the organizations that use IT to compete E-Commerce strategy & Inter- organizational Systems

2 key benefits of IOS  Comparative Efficiency Internal efficiency Inter-organizational efficiency  Bargaining Power Unique product features Reduced search-related costs Increased switching costs IOS Benefits

When a firm adopt an IOS  It should be proactive or Reactive???  Debate about different industries or companies??? Proactive & Reactive Business Partners

There are 2 internal and environmental influences  Competitive pressure When it is in poor position in relation to its competitors or when industry or trade associations provide strong pressure  Exercised power When firm can exert power over other members or IOS, it will be proactive in adopting IOS  Internal need When the firm sees that participation in the IOS is a way to improve its own operations, it will approach IOS in a proactive manner  Top management support Top management always influence the decision Adoption influences

CompetitorsTrading partner Internal need Top management support pressureExercised power Internal Influences Environmental Influences IOS

Indirect IOS benefits Reduced errors Reduced Costs Increased Operational efficiency competitors Trading partners customers Increased Ability to compete Improved relationship Improved service Indirect benefits Direct benefits

Thank you!!! Q&A