Interorganizational business process reengineering is a logical extension of discussions in the 1980s of the potential for interorganizational systems to fundamentally redefine relationships between buyers and sellers and even competitors within an industry context. This paper presents a framework or model describing the relationship between technological and process innovations, and describes the interdependence of these two forces in the context of interorganizational business process redesign. This framework can be used to examine unique characteristics of reengineering within a single organization and across multiple organizations. This model is used to explain the inconsistency in the literature regarding the benefits of EDI and other interorganizational systems, which are described as providing strategic competitive advantage in some articles, and as providing little or no benefits for implementing firms in other articles. The framework describes the importance of merging technological and process innovations in order to achieve the potential to transform both organizations and interorganizational processes and relationships. * Wallace [49] found that 95% of survey respondents could not identify any advantages from the sue of EDI; Carter [5] observes that most firms implemtingED1 did not realize the expected savings; Eckerson [18] reports "few companies have realized significant cost savings or other benefits from implementing electronic data interchange"; Hollis [29] concluded that ED1 systems were largely undemtilized; Diamond [17] observes that fax and email are cheaper and easier to use than ED1 and provide the same benefits for most firms; and McCusker [34] states that most ED1 users complain that automating the purchase cycle has not measurably affected their bottom line. Indirect effects result from enabling new processes not practical without ED1which result in productivity gains in excess of the direct improvements that would m l t from either ED1 or process innovations implemented separately.
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