THE EVOLUTION OF A GLOBAL CASH MANAGEMENT-SYSTEM

Some companies are implementing interorganizational information system s (IOSs) with trading partners that allow them to share data and softw are across organizationzal boundaries. The authors explore the effect of IOSFs 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 yield ing significant strategic benefits. Cooperation between Motorola, its suppliers, and Citibank has brought cash flows in line with product fl ows. Motorola and Citibank have effectively meshed parts of their orga nizations and information systems together to provide a mechanism for the seamless collection and disbursement of cash payments between Moto rola companies and their suppliers. The key results are just-in-time m oney and the integration of financial processes throughout the cash su pply chain. Finally, the authors compare the results with existing man agement/information systems theories on globalization and competition.