ii) improving the quality of the existing products
iii) understanding and reacting to changes in the consumer buying pattern.
The concept is also used with ecommerce, virtual teams, virtual organizations, enterprise resource planning implementation etc.
While an organization becomes larger and more complex, they tend to break functions into smaller units by assigning a group of staff to specialize in these activities. This allows the organization to manage the complexity of the organization. But with time, no decision maker can take good decisions with isolated information that they get from the information of the individual departments. In today’s competitive world, an organization finds it difficult to operate and survive in the silo information system and hence organizations have always attempted to remove these functional barriers that existed for decades. Hence is the significance of integrated information systems and Integrated Organizational Effort.
The main reasons for the need for integrated organizational effort include
i) increased competition
ii) growth in use of information technology
iii) increased variety in products
iv) longer supply chain and
v) shorter product life-cycle.
Integration can also happen across the firms, like the distributers, suppliers, manufacturers etc. and also across the departments like finance, accounting, manufacturing, human resource etc. The different media of this integration include electronic data interchange, enterprise resource computing, and business-to-business procurement. Research has shown a positive correlation between organizational integration and organizational performance and occupies a central position in management, strategy, operations management, and organizations theory and information systems.