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1、Management Information Systems, 3rd Edition1Chapter 11EDI, Supply Chain Management, and Global Information SystemsManagement Information Systems, 3rd Edition2Learning Objectives When you finish this chapter, you will: Understand the importance of interorganizational and international ISs. Recognize
2、the role EDI plays in saving costs in business operations. Be able to describe the vertical and horizontal information integration among companies. List the legal, cultural, and other challenges to implementing informational exchange systems.Management Information Systems, 3rd Edition3Sharing Inform
3、ation Systems Interorganizational Information Systems Systems shared by two or more organizations Built and owned by one organization Increases efficiency and effectiveness Organizations use similar systems to serve international sitesManagement Information Systems, 3rd Edition4Vertical Information
4、Exchange Vertically related Output of one organization used in processes of another Integrating ISs between vertically related organizations highly beneficial Saves time and money Better serves customersManagement Information Systems, 3rd Edition5Vertical Information InterchangeFigure 11.1 Vertical
5、relationships among organizationsManagement Information Systems, 3rd Edition6Electronic Data Interchange What is EDI?Exchange of electronic data using interorganizational information systemsSet of hardware, software, and standards that accommodate the EDI processManagement Information Systems, 3rd E
6、dition7Electronic Data Interchange Benefits of EDI Cost Savings Speed Accuracy Security System Integration Just-in-time SupportManagement Information Systems, 3rd Edition8Figure 11.3 Benefits of EDIElectronic Data InterchangeManagement Information Systems, 3rd Edition9Electronic Data InterchangeFigu
7、re 11.4 Suppliers, manufacturers, and retailers cooperate in some of the most successful applications of EDI.Management Information Systems, 3rd Edition10Electronic Data Exchange How does EDI work? Suppliers proposal sent electronically to purchasing organization. Electronic contract approved over n
8、etwork. Supplier manufactures and packages goods, attaching shipping data recorded on a bar code. Quantities shipped and prices entered in system and flowed to invoicing program; invoices transmitted to purchasing organization.Management Information Systems, 3rd Edition11Electronic Data Exchange Man
9、ufacturer ships order. Purchasing organization receives packages, scans bar code, and compares data to invoices actual items received. Payment approval transferred electronically. Bank transfers funds from purchaser to suppliers account using electronic fund transfer (EFT). Management Information Sy
10、stems, 3rd Edition12Electronic Data InterchangeFigure 11.5How EDI worksManagement Information Systems, 3rd Edition13Electronic Data Interchange EDI Standards EDI requires companies to agree on standards Compatible hardware and software Agreed upon electronic form format Established EDI standards Aut
11、omotive Industry Action Group (AIAG) X.12 de facto umbrella standard in U.S. and Canada EDI for Administration, Commerce, and Trade (EDIFACT) umbrella of standards in EuropeManagement Information Systems, 3rd Edition14Electronic Data Interchange How to Subscribe to EDI Larger companies purchase hard
12、ware and software Medium and small companies seek third-party service Value-added networking (VAN) Managed network services available for a feeManagement Information Systems, 3rd Edition15Electronic Data Interchange EDI on the Web Advantages of Web EDI Lower cost More familiar software Worldwide con
13、nectivity Disadvantages of Web EDI Low speed Poor securityManagement Information Systems, 3rd Edition16Electronic Data Interchange Legal Problems of EDI Increased risk of unauthorized interception Contractual responsibility for incomplete or corrupted telecommunications Questionable validity of digi
14、tal contracts Protection against the ease of collaborative pricing and other activities that may violate antitrust lawsManagement Information Systems, 3rd Edition17Electronic Data Interchange The Importance of EDI Need for timely, reliable data exchange in response to rapidly changing markets Emerge
15、nce of standards and guidelines Spread of information into many organizational units Greater reliability of information technology Globalization of organizationsManagement Information Systems, 3rd Edition18Horizontal Information Interchange Horizontal Information Interchange Organizations performing
16、 similar activities share information Real estate agencies maintain multiple listing service Financial institutions share financial information Airlines share reservation systems Legal implications and risks similar to those of EDIManagement Information Systems, 3rd Edition19Horizontal Information I
17、nterchangeFigure 11.2 Horizontal information interchangeManagement Information Systems, 3rd Edition20International and Multinational Organizations Multinational organizations need integrated ISs Flow of information across borders essential Managers increasing attention to international IS integratio
18、n Some large companies build their own international ISsManagement Information Systems, 3rd Edition21Figure 11.8 The importance of international integration to companies with international operationsInternational and Multinational OrganizationsManagement Information Systems, 3rd Edition22Using the W
19、eb for International Commerce International Web Commerce Benefits Increased revenues Increased international Web participation Potential Web participation Cost savings Printing and shipping costs Customer service costsManagement Information Systems, 3rd Edition23Challenges to Global Information Syst
20、ems Technological Challenges Non-uniform information infrastructures Payment Mechanisms Non-uniform preferred payment methodManagement Information Systems, 3rd Edition24Challenges to Global Information Systems Language Differences Translation delays Laws forbid foreign language accounting and other
21、systems Cultural Differences Cultural imperialismManagement Information Systems, 3rd Edition25Challenges to Global Information Systems Economic, Scientific, and Security Interests Government restriction on sharing sensitive information Varying treatment of trade secrets, patents, and copyrights Political Challenges Fear that access to information threatens sovereignty Government pressure to buy only nation
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