The collaboration between Microsoft and Intel is one of the most lucrative business partnerships in the last twenty years. The relationship between the two companies was very convenient because of the type of products that the companies produce (Ungson, 2008). Microsoft is the largest producer of computer software while Intel is one of the largest manufacturers of computer CPUs and electronic chips (Rainer, 2010).
The operating system from Microsoft has been instrumental in enhancing a low cost of computation. Microsoft had to find a business partner that would help in realizing its vision of providing people with a low cost of computation. Intel is widely known for producing affordable computer hardware and therefore the company became an ideal partner for Microsoft (Ungson, 2008).
The partnership between Microsoft and Intel has been very successful because of the products that the two companies produce. The products produced by the two companies complement each other because they are sold as single package. Intel produces CPUs and other computer hardware while Microsoft produces the software that is needed to run the hardware (Schooley, 2007).
Computer hardware can not work without software and vice versa. This paper will discuss the rationale behind inter-organizational partnerships in industry information systems and how the systems are used to define and support partnerships.
Microsoft has the highest stake in its partnership with Intel and it is estimated that the partnership has a market capitalization of $400 billion (Ungson, 2008). It is this successful partnership that attracted IBM to choose the two companies when it launched its first personal computer. This is not to mean that there were no other companies that would have provided the much needed software and CPUs.
Microsoft has been facing a lot of competition from the Digital Research Company for a very long time. Microsoft and Intel have continued to dominate their respective industries as a result of their association with IBM (Ungson, 2008). The need to dominate the computer industry was the rationale behind the partnership between Microsoft and Intel.
The partnership between Microsoft and Intel has been experiencing some challenges in recent years because customers have been reluctant in accepting Microsoft products (Ungson, 2008). The two companies started with some weak technologies but got stronger after the partnerships. Microsoft has for many years been criticized for its offensive business tactics.
There are accusations from different quarters that Microsoft has been abusing its monopoly power (Waters, 2007). The partnership between Microsoft and Intel was commonly referred to as Wintel since Windows could only run Intel CPUs. It is this kind of monopoly that enabled the two companies to enjoy a lot of profits (Waters, 2007). The users had no option but to purchase computer products produced by the two companies.
It is this kind of benefits that made this partnership to be successful. The two companies collaborate in terms of sales, services and engineering systems which make it necessary for the companies to have an inter-organizational partnership in industry information systems (Truman, 2000).
Microsoft and Intel collaborate to provide IT solutions to their customers. The companies have joint roadmaps and other integrated features that justify their need to partner in industry information systems (Truman, 2000).
Microsoft and Intel have an objective of providing the most relevant and effective IT infrastructure for users (Truman, 2000). This can not be achieved without having a partnership in industry information systems. The need to provide fast and efficient software to customers is the reason behind Microsoft’s decision to partner with Intel especially when it comes to industry information systems (Schooley, 2007).
Inter-organizational partnerships in industry information systems have become very essential in modern business. Microsoft operates in a very competitive environment that requires companies to have reliable, flexible and efficient information systems (Ungson, 2008).
Organizations that are in a business partnership need to relate in a way that benefits customers and the companies involved (Murphy, 2008). This can only be achieved through an inter-organizational system. The partnership between Microsoft and Intel has been defined and supported in a great way by the inter-organizational system.
Microsoft and Intel are linked in the market because they depend on each other to sell their products (Truman, 2000). Microsoft and Intel have benefited in a great way through the inter-organizational system because the partnership improved communication between the two companies.
The companies are able to give the best services to their clients and customers because of the efficiency introduced by the inter-organizational system (Waters, 2007).
Inter-organizational systems are very instrumental in supporting business partnerships between two organizations (Murphy, 2008). The partnership between Microsoft and Intel has been the most lucrative one in recent years because of an inter-organizational system. An inter-organizational system improves supply chain management which is very critical in any kind of business partnership.
Businesses that are in a partnership require an efficient communication network that ensures that clients and customers get products and services within the required time. The delivery of products and services to customers by two businesses that are in a partnership requires an interconnected communication network (Khosrowpour, 2006).
Automation is one the key elements of an inter-organizational system that ensures fast and efficient service delivery. Apart from making profits, the other objective of the partnership between Microsoft and Intel is quality service delivery. An inter-organizational information system brings efficiency in supply chain management (Jones, 1998).
Inter-organizational systems facilitate an exchange of technology between two companies (Dye, 2008). This is inevitable because an inter-organizational system can not be run without technology. Computer programs and the internet are normally used to facilitate communication between two companies.
Data storage and interpretation is part of a business partnership and can only be efficient through the use of modern information systems (Dye, 2004). The process of sending and receiving messages is very important in a business partnership and therefore the use of intelligent technologies benefits both companies. Microsoft and Intel use new technologies in their inter-organizational systems which are of great benefit to both companies.
The discoveries made by one company in an inter-organizational system are normally shared by partners and this encourages the designers in both companies to come up with new technologies that can make the system better (Frambach, 2002).
The technologies used in inter-organizational systems define and support business partnerships (Frambach, 2002). Microsoft and Intel have benefited in a great way from their partnership because of a wide range of technologies that the two companies share in their inter-organizational system.
Inter-organizational systems bring the power of numbers that makes organizations within a business partnership to be very competitive (Eom, 2005). Every market requires a healthy competition and inter-organizational systems that provide the much needed competitiveness.
Business partnerships with effective inter-organizational systems are very efficient when it comes to service delivery and supply chain management (Dye, 2008). The many advantages that are offered by inter-organizational systems encourage other organizations to form such partnerships (Eom, 2005). In order for the general public to enjoy better services and prices, the market must have a healthy competition.
Companies can only come up with better products and services if there is competition within the market (Dye, 2008). The partnership between Microsoft and Intel enabled the companies to remain relevant in a very competitive market for a very long time.
Companies such as Motorola, Linux, and Digital Research were forced to enter into inter-organizational system partnerships for them to catch up with Microsoft and Intel (D’Amours, 1999).
Global communication is very essential in modern business partnerships and this can only be facilitated by inter-organizational system partnerships (Chwelos, 2001).
Microsoft and Intel have an inter-organizational system at the global level that enables them to increase their productivity because they learn new tactics from each other. An inter-organizational system with a wider communication network has the capacity to provide services and products to customers across the world (Chandrashekar, 1999).
A global communication network requires a lot of resources to be implemented and only stable companies like Microsoft and Intel are in a good position to do that. Inter-organizational systems enable the companies involved to reduce their business risks. An inter-organizational system has the capacity to monitor all business aspects which ensures that operational, financial and safety risks are at a minimum level (Damsgaard, 2004).
Business partnerships are defined and supported by accountability that can be a great challenge without an inter-organizational system in place. Inter-organizational systems reduce the time taken to complete a business transaction because it compresses operational time cycles (Damsgaard, 2004).
It has been proven that business partnerships with an inter-organizational system record low operational costs because of minimum routines. Inter-organizational systems eliminate manual processes that are normally responsible for the many errors in business transactions. Clients and customers find it easy to access valuable information from business partnerships with an inter-organizational system (Angeles, 2000).
The process of planning and implementing an inter-organizational system has got some success factors that need to be considered (Angeles, 2000). To begin with, the system should facilitate information flow in all the companies involved in a business partnership (Ungson, 2008). The other success factor of inter-organizational systems is cost reduction.
Companies in a business partnership share some of the operational costs through an inter-organizational system (Ungson, 2008). It is important to consider the cost factor at the planning stage as a way of minimizing any kind of financial risks. An inter-organizational system should enable companies to deliver products and services to all customers wherever they are regardless of distance (Ungson, 2008).
The communication and delivery network in an inter-organizational system should be able to cover the majority of areas with potential clients and customers. Global coverage is a common trend with multinational companies (Waters, 2007). It is important to note that an inter-organizational system should enhance operational and transactional efficiency for it to be considered successful (Waters, 2007).
The people in charge of planning and executing an inter-organizational system should ensure that all the technologies used to build the system are efficient and of high quality (Waters, 2007). An effective system eliminates all the errors that are associated with information flow. Successful inter-organizational systems should enable users to process and transfer information without any difficulty (Waters, 2007).
System users should access and operate it without much struggle. It is important to ensure that all the components of an inter-organizational system which include, messaging systems, shared databases, extranets and electronic data interchange systems are properly secured (Truman, 2000). All security measures should be put in place during the planning and execution of such an important project to guarantee success.
The data interchange and messaging systems carry very sensitive information that should only be accessed by authorized people (Waters, 2007). An inter-organizational system brings a lot of positive changes to an organization and therefore all the critical success factors should be considered in the planning and execution of such an important project (Truman, 2000).
There are some lessons that one can learn from the implementation of Microsoft’s inter-organizational project (Tuite, 2007). The first lesson is that such a project has got its benefits and disadvantages. Some of the benefits include an increase in sales and operational efficiency while some of the advantages include the high cost of setting up the system and customization of standards (Waters, 2007).
Inter-organizational systems can not succeed if there is no trust between or among partners. Trust is the most fundamental aspect of any kind of partnership. Observing all the contractual agreements is a sign of faithfulness in a business partnership (Tuite, 2007). The other vital lesson learnt from this project is the importance of having all the necessary checks and balances that can be used to prevent any kind of mischief.
Companies should not stop improving and marketing their products just because of an inter-organizational system (Waters, 2007). The modern business world is very competitive and the ability of a company to come up with quality products and services is what guarantees success. An inter-organizational system is only meant to provide the right platform for a company to sell its products (Eom, 2005).
The other lesson to be noted is that an organization should not enter into any partnership that can not improve its current situation (Eom, 2005). Organizations whose products and systems are compatible form the best partnerships like the Microsoft and Intel case.
There is no organization that is self sufficient when it comes to operational resources and therefore inter-organizational systems are vital for any organization that wants to be successful (Eom, 2005). Organizations in a business partnership should be flexible enough to shift their strategies incase an inter-organizational system does not bring the expected results.
The other vital lesson from this project is that too much interdependence between organizations in a business partnership is not good for their future development (Chwelos, 2001). The power of big organizations can be limited because the interdependence in inter-organizational systems affects the power structure.
The design management plays a very important role in the organizational changes that are brought about by the implementation of an inter-organizational system (Chwelos, 2001). The design management ensures that an IT infrastructure is put in place to support an inter-organizational system. The Design management plays a critical role in securing all the systems.
The changes that are brought about by inter-organizational systems are supposed to be managed in the best way possible for them to have an impact on the organization (Jones, 1998). The design management evaluates user needs to ensure that the system to be put in place is functional and efficient (Tuite, 2007).
The design management prepares the budget for information systems implementation by ensuring the systems are cost-effective. The design management has to plan and schedule all the necessary upgrades that are required to facilitate an inter-organizational system.
The design management provides the support advisory services to the implementation team (Jones, 1998). The other role of design management is to ensure that a company adheres to all software licensing laws and specifications. The design management is supposed to solve all the problems that arise during system implementation (Rainer, 2010).
In conclusion, inter-organizational systems are very important in improving efficiency in service delivery. Organizations that are in a business partnership need to relate in an organized way to ensure that customers receive quality services (Eom, 2005). The partnership between Microsoft and Intel is a perfect example of how an inter-organizational system can benefit organizations.
Inter-organizational systems are very instrumental in supporting business partnerships between two organizations (Eom, 2005). An inter-organizational system with a wider communication network has the capacity to offer services and products to customers across the world.
Businesses that are in a partnership require an efficient communication network that ensures that clients and customers get products and services within the required time (Rainer, 2010). Business partnerships are defined and supported by accountability that can be a great challenge without an inter-organizational system.
It is important to note that an inter-organizational system should enhance operational and transactional efficiency for it to be considered successful (Handfield, 2002). It is important to ensure that all the components of an inter-organizational system which include messaging systems, shared databases, extranets and electronic data interchange systems are secured.
References
Angeles, R. (2000). Revisiting the role of internet-EDI in the current electronic scene. Logistics Information Management, 13(1), 45-57.
Chandrashekar, A. (1999). Toward the virtual supply chain: The convergence of IT and organization. The International Journal of Logistics Management, 10(2), 27-39.
Chwelos, P. (2001). Research report: Empirical test of an EDI adoption model. Information Systems Research, 12(1), 304-21.
D’Amours, S. (1999). Networked manufacturing: The impact of information sharing. International Journal of Production Economics, 58(1), 63-79.
Damsgaard, J. (2004). Networked information technologies: Diffusion and adoption. New York, NY: Springer.
Dye, E. (2008). Antecedents to implementation of inter-organizational systems. New York, NY: Molde University College.
Eom, S. (2005). Inter-organizational formation system in the internet age. New York, NY: Idea Group Inc.
Frambach, R. (2002). Organizational innovation adoption: a multi-level framework of determinants and opportunities for future research. Journal of Business Research, 55(2), 163-76.
Handfield, R. (2002). Supply chain redesign: Transforming supply chains into integrated value systems. New York, NY: FT Press.
Jones, M. (1998). Towards the development of measures of perceived benefits and compatibility of EDI: a comparative assessment of competing first order factor models. European Journal of information systems, 7(3), 210-20.
Khosropour, M. (2006). Cases on strategic information systems. London: Idea Group Inc.
Murphy, B. (2008). Tell me thy company: Inter-organizational relations in the United Nations system. London: ProQuest.
Rainer, K. (2010). Introduction to information systems: Enabling and transforming business. New York, NY: John Wiley & Sons.
Schooley, B. (2007). Inter-organizational systems to improve time-critical public services: The case of emergency medical services. New York, NY: Claremont Graduate University.
Truman, G. (2000). Integration in electronic exchange environments. Journal of Management Information Systems, 17(1), 209-45.
Tuite, M. (2007). Inter-organizational decision making. New York, NY: Transaction Publishers.
Ungson, G. (2008). Global strategic management. New York, NY: M.E Sharpe.
Waters, C. (2007). Global logistics: New direction in supply chain management. New York, NY: Kogan Page Publishers.