Interorganizational System
Development
Lecture 22


Today Lecture

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Interorganizational System Development
EXXONMOBIL
Discussion Case – Interorganizational Systems
Development
HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems Development
Internet-Based Systems
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Application Servers
Java Development Platform


Today Lecture…
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Web Service
Web Service Advantages for E-Business
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Web Services Terminology
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Web Service Model
¨ TRADITIONAL WEB-BASED SYSTEMS
¨ WEB SERVER CLUSTERS
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Today Lecture…
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BUILDING A WEB SERVICE
Case Example

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BEKINS
Case Example – Web Services

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BUILDING A WEB SERVICE
Preparing for On-The-Fly Web Services Development


Interorganizational System Development


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One of the main business trends is the appearance of
business ecosystems — “groupings” of businesses that
work closely together
¨ Supply Chain Management systems integrate supply
chains
These are now a major trend as they compete against
one another on their ability to reduce costs and time
across their entire chains
Development of such inter-organizational systems
requires teams from the different organizations to work
together


Supply Chain Example


Interorganizational System Development
cont.
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Another type of inter-organizational system
is a platform, which provides the
infrastructure for the operation of a business
ecosystem, a region, or an industry

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Sabre

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Video game industry


Interorganizational System Development
cont.
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Platform development is a major trend in an
increasing number of industries

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Following 2 cases
1.

Exxonmobil - Yet to become a platform

2.

HKEx – points out the types of coordination needed
to develop an interorganizational system for a
business ecosystem



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EXXONMOBIL
Discussion Case – Interorganizational
Systems Development

Mobil created Speedpass, a system that uses a 1.5inch-long wand that motorists can attach to their key
chain and “wave” at an electronic reader on a Mobil
gas pump to pay for gas
Mobil’s goal was to speed motorists in and out of its
stations
ExxonMobil now has five million Speedpass holders
¨ They buy more Mobil gas than non-Speedpass
customers, they visit Mobil stations one more time
per month, and they spend 2-3 percent more
money


EXXONMOBIL
Discussion Case – Interorganizational Systems
Development cont.
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To leverage this technology, it has teamed up with
McDonald’s restaurants in Chicago to test use of
Speedpass to pay for food


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How should Mobil leverage this platform even more?



HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems
Development
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HKEx is Asia’s second largest stock market
To extend its reach beyond Hong Kong, it decided to
embed its business processes in an open trading
architecture by building a third-generation automatic
order matching and execution system
HKEx’s goal is integrated end-to-end computerized
trading processes, from investors through brokers to
markets


HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems
Development cont.
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The project was daunting, involving both

internal and external people
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40 staff members from varying departments

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150 consultants, and

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500 brokerage firms


HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems
Development cont.

n Development took two years, and ended with
three levels of testing
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One level involved testing the systems that some 100
brokerage firms built to interface with the open
gateway

n Rollout was phased so that Hong Kong’s stock
market was not disrupted



HONG KONG EXCHANGES & CLEARING
Case Study – Interorganizational Systems
Development cont

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HKEx has built its processes into an open architecture
and coordinated the construction of an interorganizational system – with components from
numerous sources and participants of many kinds

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It is now the foundation for its industry ecosystem


Internet-Based Systems

n HKEx’s system is not Internet based but it allows

Internet access for online trading as well as other actions
¨ The Internet has opened up the options HKEx can
offer
n Internet users have become so sophisticated that
Internet-based systems must be:
¨ Scalable
¨ Reliable, and
¨ Integrated both internally and externally with systems
of customers or business partners



Internet-Based Systems

nTo do this companies recognize they must negotiate
‘language differences’
¨ E.g.

a system may have to port old COBOL
applications to Java, reconcile interface discrepancies
and interface with back-end legacy applications, often
without documentation or past experience with those
systems
Tools are available to help
n Open systems etc.
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Internet-Based Systems: Application
Servers
n Originally conceived as a piece of middleware to link a Web
server to applications on other company systems
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The application server has grown into a framework for
developing Internet-based applications

nFigure 9-6 shows the basic application server architecture.

The virtual server takes requests from clients and Web servers
(on the left), runs the necessary business logic & provides
connectivity to the entire range of back-end systems (on the

right)


Internet-Based Systems: Application Servers

nThe goal of the application server:
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automate

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manage technical tasks in the development and running of
Internet based applications

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nThe result:
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Developers can focus more on business issues, rather than
technical detail



Internet-Based Systems:
Java Development Platform
Java has been in many cases the starting point for the
development of Internet-based systems with an open
system architecture.
¨ Originally – developed to provide applets that run

on Web clients
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Evolved into a full programming language
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Goal = Platform for independent language
that could run on any system
n Promise applications portability: “write once, run
anywhere”
n Didn’t live up to promise = evolved into a standard
platform for developing server-side applications
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Java Software Development


Internet-Based Systems:
Java Development Platform
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cont.

Major components in Java server-side platform
¨ Enterprise
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Java Beans (EJB)

Preconfigured pieces of code that IS staff no
longer have to build from scratch


¨ Java

2 Enterprise Edition (J2EE)
n Defines a standard for developing Internet-based
enterprise applications


Internet-Based Systems:
Java Development Platform cont

¨ Provide

an alternative to building online business
systems from scratch or buying packaged online
business systems because of their multi-vendor
platform capability and pre-built, reusable
components

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Microsoft competes with its own versions:
¨ Component
¨ Distributed

Object Model (COM)

Component Object Model (DCOM)



Web Service
Web Service:
¨ “Web-based applications that dynamically interact
with other Web applications using open standards
that include XML, UDDI and SOAP”
Universal Description Discovery Integration
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Simple Object Access Protocol
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Service-Oriented Architecture (SOA):
¨ “Development of applications from distributed
collections of smaller loosely coupled service
providers”
¨ “A collection of services or software agents that
communicate freely with each other”