ABSTRACT
The entry describes information that has value if shared among trading partners. It points out that the cost of communications, although hidden, is really quite high in most companies. One of way of expressing this as the number of information exchanges per dollar of sales. The entry describes the three components of supply chain integration as observed by Dr. Hau Lee of Stanford. Finally, the entry suggests a way to translate the activity system design into solutions for information integration.Most companies have the requisite information technology in place to extend the enterprise; the problem is they are not using it properly.—James Morehouse,A.T. Kearney, Inc.
