The Benefits of IT-Based Supply Chains-Strategic or Operational?

ABSTRACT Business relationships are being revolutionized by the use of inter-organizational information systems (IOSs) that connect together separate companies' business processes through the application of Information Technology (IT). The physical value chain is now paralleled by the virtual information chain. Detailed case studies from earlier research suggest that there are huge benefits to be gained from concepts such as Electronic Data Interchange (EDI), shared product design databases and shared production scheduling systems. However, there is little empirical evidence of the overall usage and outcomes of IOS implementation. In this survey, IOS benefits are evaluated using marketing derived frameworks. Evidence from 89 United Kingdom (UK)-based organizations, a large proportion of which are trading internationally, suggests that IOSs are becoming pervasive across different business processes and across different types of industry. The analysis reveals that marketing activities are now dominated by the management of the information along the supply chain and that significant benefits can be realized. However, the time-scale for implementing such systems is of the order of 5 to 10 years and there are significant barriers to successful implementation.