Interorganisational Systems. Interorganisational Systems Information Partnering It is the driving force behind the emerging electronic marketplace. Case:
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It is the driving force behind the emerging electronic marketplace.
IBM and Sears teamed up to provide Prodigy, a package of several hundred electronic data services, including home banking, stock market quotations, and airline reservations.
American Airlines has joined with Marriott and Budget Rent-a-Car in offering AMRIS an electronic travel supermarket.
Insurance Value-added Network (IVANS), the Singapore TradeNet, and the Baxter Healthcare System.
The electronic marketplace is an important trend in the 90’s. electronic sales channels reduce the costs of locating suppliers, ordering merchandise, and reconciling errors. Customers can save money by ordering just-in-time inventory via electronic market channels.
The players in the electronic marketplace include
1. Telcot, an Electronic market for cotton, enables 12,000 farmers to sell their products. Telcot was established by a cooperative association of cotton farmers in Oklahoma and Texas.
2. IVANS, the network that links insurance agents, insurance carriers, and other information sources for insurance agents, was created by an industry association of independent insurance agents.
3. SABRE and APOLLO, the airline reservation systems of American and United, not only have added the flights of competitive carriers but also have become electronic travel supermarkets for related services, such as hotel and rental car reservations. These information systems link the airlines with travel agents and provide the travel agents with a wide range of travel information.
Overview of Internet Applications:
Today the internet is becoming an electronic marketplace, and business uses of the Internet are growing more rapidly than any other application.
Globalisation: Intenet provides a global communications networks that is vital to creating a global presence.
Competitive Advantage: Using internet as a marketing tool, businesses can provide up-to-date information about products, technological developments, and research to millions of prospective customers and users.
Information Access: Businesses can access information including government databases, industry statistics and competitor practices.
Cost Containment: Doing Business electronically is less expensive than using paper works, phone contact, and information distribution by paper or by mail.
Sales and Marketing: Using the Internet, customers can obtain information about products, services, advertisement, prices, schedules, contact persons, service capabilities and business opportunities. Thousands of potential customers can access information in a labour-efficient and cost-effective way.
Electronic Communications: Businesses can have access to an international electronic communications network that facilities communications and interactions among customers, vendors and competitors in far-flung locations.
Shifting to Capabilities based Competition