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An Inter-Organizational System Approach For Strategic Supply Network Modelling

Nikolaus Muessigmann, Antonia Albani & Klaus Turowski

abstract Dynamic identification and selection of strategic supply networks are complex tasks which cannot be executedmanually and therefore require the support of modern inter-organizational IT infrastructures. Existing ERP (EnterpriseResource Planning) systems need to be extended by business components which provide functionality to formmulti tier value networks. This functionality is based on a demand propagation methodology allowing a focal companyto send out a demand to a potential network of partners. By splitting this demand into sub demands the networkof suppliers is identified, which is able to fulfil the original demand of the focal company.In many industries, companies are faced with enormous pressure caused externally by changing market conditionsbut also internally by finance and cost control (Burtler et al., 1997; Österle, 1995). In order to compete companieshave to increase their organizational flexibility to manage throughput as well as to reduce cost (Malone Lautbacher,1998; Pine, Victor, Boynton, 1993; Tapscott, Ticoll, Lowy, 2000). One way to accomplish this is byconcentrating on core competencies while outsourcing supporting products and services to business partners(Angeli, 2002). In some branches, like the automotive industry, manufacturers have decreased their vertical integrationsignificantly over the last years (VDA, 2003). They have formed value networks with their partners not only forsourcing production factors but also for joint research and development purposes. It is obvious that forming andhandling these value networks is a complex task which cannot be done manually. Modern inter-organizational ITinfrastructuresare necessary to support the creation and management of these corporate networks (Albani, Winnewisser, Turowski, 2004). Current ERP systems build the fundamentals for the management and controlling ofvalue networks. But there is a lack of functionality to support dynamic identification, evaluation, and qualification ofcompetent partners.This paper is intended to reduce this gap by extending on previous work, which provides the methodical foundationin the field of identification and evaluation in the domain of strategic supply networks and which gives an overviewon an inter-organizational system approach for this business domain (Albani Muessigmann, 2005).
   
type conference paper (English)
   
name of conference Seventh Annual Global Information Technology Managment Association (GITMA) World Conference 2006 (Orlando, Florida, USA)
date of conference 01-04-2006
title of proceedings Proceedings of the Seventh Annual Global Information Technology Managment Association (GITMA) World Conference 2006
page(s) 1-3
review not reviewed
   
citation Muessigmann, N., Albani, A., & Turowski, K. (2006). An Inter-Organizational System Approach For Strategic Supply Network Modelling. In Proceedings of the Seventh Annual Global Information Technology Managment Association (GITMA) World Conference 2006, pp.1-3.