1Preparedby:JaneChenApr.22th,20002ElectronicCommerceTheEvolutionofInter-organizationalSystems(IOS)MakingSenseofMarketRelationshipsManagingtheEvolutionofTechnologyFromInter-organizationalSystemstoInternetFromProprietaryIOStoPlatformsforElectronicCommerce3(1)FromInter-organizationalSystemstoInternetOverthepastfourdecades,thespeedandfunctionalityoftechnologytosupportinformationmanagementandcommunicationhavedramaticallyincreased,causingustorethinkthebusinessvalueofinformation.Recently,therehasbeenastrongupsurgeininterestintheuseofITasatooltosupportelectroniccommerce.Now,theITwhichisusedintheElectronicCommerceischangingfromInter-organizationSystemstotheInternet.41)IOSInteractionPatternsOne-to-oneOne-to-manyMany-to-manyBuyer-SellerSystemSeller-BuyerSystemStrategicPartnershipSystem(2)TheEvolutionofInter-organizationalSystems(IOS)Inter-organizationalSystems(IOS)-networkedcomputersthatenablecompaniestoshareinformationandinformationprocessingacrossorganizationalboundaries.Forexample:TheIOSEvolutionatAmericanAirlines:MarketingSystemPurchasingSystemElectronicMarkets52)IOSLevelsofControlLevels0Level1Level2Level3InternalDataProcessNetworkoperations/SharingControlControlmanagement(EDI)control1950sandearly1960sLevelsofInteraction:onetooneLevelsofControl:0Internaloperations/managementcontrolAA(2)TheEvolutionofInter-organizationalSystems(IOS)61968to1978LevelofInteractionAAProcessControlOtherairlineDataSharingAAProcessControlTravelagentsMinimalprocesscontrolLargetravelagenciesDatasharingLevelsofControl:1LevelsofControl:2LevelofInteraction1978to1988(2)TheEvolutionofInter-organizationalSystems(IOS)71980sto1990sLevelofInteractionLevelsofControlOtherairlinesAAOn-lineinformationproviders(e.g.,CompuServe,AmericaOnline,Prodigy)Business/PleasuretravelersTravelagentsCorporatebusinessunitsDatasharingProcesscontrolNetworkcontrolMinimalprocesscontrolMinimalprocesscontrolProcesscontrol(2)TheEvolutionofInter-organizationalSystems(IOS)8(3)FromProprietaryIOStoPlatformsforElectronicCommerceOvertime,thepatternofinteractionevolvedfromsimplesystemslinkingbuyersandsellerstocomplexelectronicmarketsintergrat-ingindustrysuppliers,producers,channelintermediaries,andcustomersthroughawebofelectronicrelationships.Inthepast,theinformationsuperhighwayinitiativeshadlimitedimpactonhowbusinesswasconducted;in1995,however,thevisionofaubiquitous,low-cost,globalinformationplatformforelectroniccommerceisrapidlybecomingareality.Thereasoncanbesummarizedinasingleword-Internet.9GrowthofCommercialUseoftheInternetNumberofbusinessregisteredontheInternet0500010000150002000025000300003500019911992199319941995(3)FromProprietaryIOStoPlatformsforElectronicCommerce10(3)FromProprietaryIOStoPlatformsforElectronicCommerceBy1995,personalcomputershadbecomeascommonplaceinbusinessasthetelephoneandwererapidlybecominghousehold“appliances”In1994alone,U.S.householdsspentover$8billiononpersonalcomputers-equivalenttowhatwasspentonTV.InApril1994,theClintonAdministrationapproveda$6milliongrantfortheformationCommerceNet.11(4)MakingSenseofMarketRelationshipsEssentialElementsofElectronicCommerceAvailableontheInternetin1995ToolstosafeguardinformationNetworkprotocolssupportflowofinformation&communicationToolsandtechniquestobrowsethroughinformationcollections,tofindrelevantitemsInformationcollectionsorganizedbypredefinedoradhoccriteriaPhysicalnetworkprovidesbandwidthandaddressingschemesrequiredforinformationexchangeElectronictransactionsystemsPaymentauthenticationsystem12PatternsofMarketExchangeVerticallyIntegratedFirmManagementSupplierResearchanddevelopmentAfter-salesserviceMarketingandsalesLogisticsManufacturingCoreFirm(4)MakingSenseofMarketRelationships13ManagementSupplierResearchanddevelopmentAfter-salesserviceMarketingandsalesLogisticsManufacturingSelectiveSourcingCoreFirm(4)MakingSenseofMarketRelationships14ManagementSupplierResearchanddevelopmentAfter-salesserviceMarketingandsalesLogisticsManufacturingSelectiveSourcingCoreFirm(4)MakingSenseofMarketRelationships15(5)ManagingtheEvolutionofTechnologyIndividualsmustlearnnewwaysofworkingandnewwaysofinteracting-andoldapproachesmustbeunlearned”.Successdemandsthatusersbeheavilyinvolvedindefiningandbuildingthesystem,anddevelopmentprocessesmustbeinteractive.PointofsaleRemoteprocessingcenterElectronic16ElectronicCommerceTHEEND