Jussi Koskinen

Extending the Enterprise: Transforming Boundaries and Relations

Summary of prof. B, Konsynski's lecture. Univ. of Jyväskylä. May 11, 1992. Distribution: National Post-graduate Program of Information Systems Science.

 

Introduction

Professor Konsynski's lecture dealt with an emerging agenda concerning the issues related to the role of information technology transforming organizational boundaries. He stated that the payoff of interorganizational information systems have been better than that of other systems. Electronic markets are not pure markets in the traditional sense of economics but a kind of hierarchies. The chief executives of organizations are now more interested in the interorganizational matters than technical people. Formerly the situation has been different. The adoption of interorganizational systems is not a overnight project but a long term issue. Konsynski claims that doctrines of Michael Porter were proper in 80's but not in 90's when traditional boundaries of organizations have changed. Information technology can be seen as a means to leverage the creation of patterns of influence beyond traditional organization boundaries. The co-operation between the market partners can happen by the means of agreements, transactions etc. The change of scale on a market can be achieved by influence instead of ownership (case of United Airlines).

 

Updated: Sept. 30, 2004 by Jussi Koskinen.