Information Systems in Global Business - Minitrack Introduction

Globalization of markets and value systems continues to be a driving force, which is redefining the way in which many companies are doing business. What is the role of IT in all of this? The application of various information-based technologies is both the cause and the effect of new ways to do business. The convergence of IT and telecommunications, and the availability of bandwidth supports and enables new organizational designs. The (global) networked organization, linkages of supply chain partners, and alliances exploiting uniquely grouped core competencies are all supported or enabled by modern IT. An encompassing concept is emerging nowadays: the integrated value system, or as different organizations cooperate in dynamic partnership relationships, the integrated value web. Value system integration can be defined as the process by which multiple enterprises within a shared market segment collaboratively plan, implement and manage the flow of goods, services and information along the value system in a way that increases customer-perceived value and optimizes the efficiency of the chain. Company value chains are transformed into integrated value systems if they are designed to act as an "extended enterprise"; creating and enhancing customerperceived value by means of cross enterprise collaboration. The concept of integrated value system is expected to have major impact, allowing companies, and ultimately customers, to benefit from reduced inventories, cost savings, improved value added goods and services to customers, and tighter links with business partners. Due to competitive pressures, integrated value chains or webs will operate on a global scale.