Answer:
The enterprises involved in an alliance must decide whether to use the manual management of all the exchanged data, or to complement that management with the interconnection of their respective computer applications. This interconnection may bring, however, compatibility problems in the integration of the data from the different enterprises, since those applications would have possibly been designed without taking into account any requirement of integration among enterprises. The establishment of co-operation networks implies the need for wider communication in the organizational field, as well as the requirement of capability to integrate the information systems from different enterprises.
The enterprises inside a network cannot operate properly if they have not the possibility to communicate quickly, accurately, and over long distances. Within a network, it does not make any sense to restrict the application of modern computer technologies to the individual borders of each enterprise. The Management Board of the enterprises in the network must, on the contrary, consider the possibilities of coordinating the processing of data outside the limits of their own organizations by means of an IOS. The application of the IT which provides the electronic integration among the shareholders of an industry may make easier the outsourcing of activities, as well as be a basic part of the proper operation of the reticular structures. An IOS may play an important role in the coordination of interdependent activities, which would be carried out by distant organizational units.
The concept of network emphasizes the interdependency among enterprises, which is provoked by the presence and the sharing of the following key attributes: objectives, experience, labour, taking of decisions, responsibility, trust, and acknowledgement or reward. The enterprises within a network will adopt a common objective, namely to provide a quicker and better service to the final customer. With this aim in view, independent organizations will have to establish close interrelationships, in which Information Technologies have a vital role to play. In this way, the aim of optimizing the flow of profits along the supply chain could be achieved too. IOSs are, basically, new means to facilitate the relationships among organizations; they are, therefore, a strategic instrument. However, an IOS allows to obtain operative advantages too, such as
- Reducing paperwork and manual operations;
- Reducing the stock levels;
- Accelerating the product and material flow;
- Standardizing of procedures;
- Accelerating the flow of information about changes on the demand;
- Reducing telecommunication costs.
The IT is a basic support that facilitates the co-ordination of different enterprises through EDI systems, shared databases, e-mail, videoconferences, which will allow them to work together. They will be able to share information on the markets, on the needs for materials, on stock levels, production schedules, and delivery programs. A key factor in an efficient exchange of information within a network is the computer connection of its members. The computer links accelerate the transference of information, since it provides the automatic transmission of data between physically distant computers. These links can be used as a strategic instrument to increase the competitiveness of the enterprise, binding it electronically with its customers and suppliers through inter-organizational systems. The electronic connection facilitates the approaching of the linked enterprises, which means that the companies may provide the customers direct access to the internal databases, as well as just-in-time stock control.
