Managerial Issues in Interorganizational and Global Information Systems

1. Facilitating Global Trade – One of the most important issues in facilitating global trade is making sure that language barriers and language translation is effective and efficient. While borders are disappearing, translations are vital to the success of an organization. For example, if the translation on a web page is wrong then consumers are less likely to purchase your products. Global trade has dramatically increased as a result of the internet and trade agreements like NAFTA and the European Union. It is important to know the legal and tax issues of the foreign companies that you do business with. It is also possible that leaders in efficiency can give advice to developing countries.


2. Selecting a System – There are various retailers that sell IOS infrastructure so companies have options and can tailor the options to their needs.

3. Partners’ Collaboration – Collaboration and understanding is key for an IOS because there are at least two organization involved. If your partners do not cooperate, then it is likely that your processes will fail. As a company, it is important to persuade your partners that the relationship is beneficial for both parties.


4. New Infrastructure – New infrastructures for companies can be very expensive and hard to make work for many companies, especially if they are small. It is difficult to gauge whether to wait and see how the new infrastructures do in the market or whether to follow your bigger competitors. This is an issue that should be carefully and strategically reviewed by management.

5. Globalization – The issue of going global can be solved based on the IT systems that would be necessary for a company to have in order to be successful. It may be expensive and require a great deal of work so a company should look at all of the possible problems and alternatives before making the decision to go global. Potential problems include language barriers, currency differences, tax and legal requirements, and cultural differences.


6. Using exchanges, hubs, and other services – The Internet is a good way to facilitate exchanges. A third party is a very good option for many companies. Doing that can save a great deal of money but there is the potential loss of control.

7. Partner and Supplier Relationship Management – One of the most common ways to do business today is through partnerships. With the trend in outsourcing becoming even more popular, this results in more partners for companies. It is common even with companies such as Microsoft.