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Developing, and testing, a theoretical framework for inter-organisational systems (IOS) as infrastructure to aid future IOS design

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Abstract

Over time many inter-organisational systems (IOS) have evolved to become open systems with the promise of delivering benefits to their broad base of organisational users. However in practice benefits have often remained concentrated, primarily accruing to the dominant party, resulting in low rates of adoption and usage, and often culminating in the failure of the IOS. A framework for IOS as infrastructure is proposed as the basis for designing IOS that will widen the distribution of benefits and increase the likelihood of the IOS succeeding. Potential characteristics of IOS as infrastructure are proposed and three cases studies presented to illustrate how the framework can differentiate between IOS and how IOS as infrastructure looks to be an option worthy of further investigation.

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Notes

  1. Whereby a service—in this case manifested by an IOS—is provided by a third party

  2. The fact that an IOS by definition extends beyond a single organisation should help ensure the observability requirement is met

  3. Furthermore limited scope infrastructure reduces the likelihood of generic processes emerging at an industry level (Brousseau 1994; Tassey 2000) which would potentially reduce the ability of organisations to differentiate themselves.

  4. A full complement of functionality, beside communication, would include search, pricing, logistics, payment, settlement and authentication, product representation, regulation, risk management, influence, dispute resolution (Kambil and van Heck 2002).

  5. Integration can range from serving primarily as an entry point—portal—to providing a seamless exchange of data between organisations—integration hubs or business networking systems

  6. All cases spoke on the condition of anonymity

  7. eMobile claim that the advantage of using their currency is that all items will be priced in it regardless of location simplifying the process of conversion when purchasing from overseas locations.

  8. The leading telco in Australia for example was providing access to a total of 210 websites in April 2005.

  9. though increasing the amount and variety of data to be switched will likely increase some

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  1. School of Business, Economics and Business Building (H69), University of Sydney, Sydney, NSW, 2006, Australia

    Mark Borman

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Borman, M. Developing, and testing, a theoretical framework for inter-organisational systems (IOS) as infrastructure to aid future IOS design. ISeB 4, 343–360 (2006). https://doi.org/10.1007/s10257-006-0033-x

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