The Evolution of a Global Cash Management System
Some companies are implementing interorganizational information systems (IOSs) with trading partners that allow them to share data and software across organizational boundaries. The authors explore the effect of IOSs on cash management from a managerial perspective and present a case study of Motorola and Citibank. Motorola's strategy has evolved from an internal cost saving initiative to a supply chain focus yielding significant strategic benefits. Cooperation between Motorola, its suppliers, and Citibank has brought cash flows in line with product flows. Motorola and Citibank have effectively meshed parts of their organizations and information systems together to provide a mechanism for the seamless collection and disbursement of cash payments between Motorola companies and their suppliers. The key results are just-in-time money and the integration of financial processes throughout the cash supply chain. Finally, the authors compare the results with existing management/information systems theories on globalization and competition.