Organizational Learning and Memory

Just like humans, organizations must learn and grow to survive and thrive in an rapidly evolving world. A firm and its members should constantly collaborate and communicate information, as well as share, teach, and learn knowledge. A learning organization is "an organization capable of learning from its past experience, implying the existence of an organizational memory and a means to save, represent, and share it through its personnel."

The concepts of organizational learning and organizational memory are at the very center of a learning organization. Additionally, organizational learning and memory play vital roles in shaping a firm's knowledge management and its knowledge management systems (KMSs). Organizational learning can be defined as "the development of new knowledge and insights that have the potential to influence an organization's behavior." Organizational memory is simply all that the organization "knows." When faced with problems, individuals can tap into corportate memory for explicit and tacit knowledge. Individuals can turn to KMSs or company policies and procedures for any needed information. As a firm and its members learn, the new knowledge gained can be added to the shared via KMSs and, therefore, added to organizational memory. This reveals how important information technology can be in fostering organizational learning and memory development.

According to Turban, Leidner, McLean, and Wetherbe, "the ability of an organization to learn, develop, and share knowledge is dependent on its culture." Culture refers to the assumptions, values, and norms associated with a group or organization. So, organizational culture can be described as the personality of the company. A firm's culture will determine how its members approach learning, value existing knowledge, and utlize knowledge management systems.

Source: Information Technology for Management: Transforming Organizations in the Digital Economy 6th Edition (2008) by Efraim Turban, Dorothy Leidner, Ephraim McLean, & James Wetherbe

Interorganizational Information Systems and Virtual Corporations

In today's global market, companies operate all over the world. Firms need interorganizational information systems (IOSs) to keep them connected to each other and able to efficiently run their businesses. An interorganizational information system (IOS) is a "communication system that allows routine transaction processing and information flow between two or more organizations." IOSs improve processing efficiency and support both collaboration and communication. By linking the information systems of business partners, IOSs are able to reduce costs, improve information quality, compress cycle time, eliminate paper processing, and make information exchange easier.

Four major IOS infrastructure technologies:

1. Electronic data interchange (EDI): electronic movement of business documents between business partners
2. Extranets: extended intranets that connect business partners
3. XML: a companion or even replacement for EDI systems that is emerging as a B2B standard
4. Web services: emerging technology for integrating B2B and intrabusinesss applications

A virtual corporation (VC) is an "organization composed of two or more business partners, in different locations, sharing costs and resoures for the purpose of producing a product or service." In a VC, each partner utilizes its core compentencies or special advantages to create a portion of a product or service. The modern VC can be described as a "network of creative people, resources, and ideas conncected via online services and/or the Internet, who band together to produce products or services."

Some of the most prominent types of IOSs include:

• B2B trading systems: designed to facilitate trading among business partners
• B2B support systems: nontrading systems that support B2B activities
• Global systems: connect two or more companies in different countries
• Electronic funds transfer (EFT): transfer money among financial institutions
• Groupware: facilitate communication and collaboration between and among organizations
• Shared databases: reduce communication time
• Systems that support virtual companies

Source: Information Technology for Management: Transforming Organizations in the Digital Economy 6th Edition (2008) by Efraim Turban, Dorothy Leidner, Ephraim McLean, & James Wetherbe

Essentials of Enterprise Systems and Supply Chains

Enterprise systems or enterprisewide systems are systems or processes that involve the entire enterprise or major portions of it. A variety of enterprise systems can be utilized by organizations. The two most important types of enterprise systems are enterprise resource planning (ERP), which supports supply chains, and customer relationship management (CRM). Other common examples include:

• partner relationship management (PRM)
• business process management (BPM)
• product life cycle management (PLM)
• decision support systems (DSSs)
• knowledge management (KM)
• intelligent systems
• business intelligence

A supply chain can be described as "a set of relationships among suppliers, manufacturers, distributors, and retailers that facilitate the transformation of raw materials into final products." Supply chains involve the flow of materials, information, money, and services from raw materials suppliers to final end users. There are three major types of flows in the supply chain: material flows, information flows, and financial flows. Material flows are all physical products, raw materials, supplies, etc. that flow along the supply chain. Information flows include all data related to demand, shipments, orders, returns, and schedules, as well as changes in the data. Financial flows are all transfers of money, payments, credit card information and authorization, payment schedules, e-payments, and credit-related data.

Supply chain management (SCM) is the "efficient management of the end-to-end processes that start with the design of the product or service and end when it is sold, consumed, or used by the end-consumer." By effectively managing its supply chain, an organization can reduce costs while increasing operating efficiencies. SCM strives to reduce uncertainty and risk along the supply chain so that lower inventory levels and cycle time, improved business processes, and enhanced customer service can be achieved. Information technology (IT) can help firms reach these goals by improving the exchange of information among supply chain members.

SCM software supports specific segments of the supply chain and concentrates on improving decision making, optimization, and analysis. When a supply chain is managed electronically, typically with Web-based software, it is referred to as an e-supply chain. Given an e-supply chain's advantage of automated information flow, many traditional supply chains are moving toward Web-based systems.

Source: Information Technology for Management: Transforming Organizations in the Digital Economy 6th Edition (2008) by Efraim Turban, Dorothy Leidner, Ephraim McLean, & James Wetherbe