A DECISION SUPPORT SYSTEM FRAMEWORK for VENDOR MANAGED

完善管理制度英语In any organization, having a well-defined and effective management system is crucial for its success. A good management system ensures that tasks are carried out efficiently, resources are utilized effectively, and goals are achieved in a timely manner. It also provides a framework for decision-making, communication, and problem-solving within the organization. In this paper, we will discuss the importance of establishing a strong management system and how it can be done effectively.The Importance of a Strong Management SystemA strong management system is essential for the success of any organization. It ensures that there is clarity and consistency in how tasks are carried out, and that resources are used in an optimal way. A good management system also helps to facilitate communication and collaboration among different departments and teams within the organization. It provides a framework for setting goals, implementing strategies, and measuring performance. In addition, a well-designed management system helps to identify potential problems and challenges early on, so that they can be addressed before they become major issues.Key Components of a Management SystemThere are several key components that are essential for a well-functioning management system. These include:1. Clear leadership and direction: A strong management system needs to have clear leadership and direction. This includes having a clear vision and mission for the organization, as well as clearly defined goals and objectives. Leaders should also provide guidance and support to employees, and ensure that they have the resources they need to succeed.2. Effective communication: Communication is key to any successful organization. A good management system should facilitate communication among employees, departments, and teams. This includes ensuring that information is shared in a timely and transparent manner, and that feedback is encouraged and acted upon.3. Efficient processes and procedures: A good management system should have efficient processes and procedures in place for carrying out tasks and projects. This includes having clear guidelines for how tasks should be completed, as well as mechanisms for monitoring and evaluating performance.4. Performance measurement and evaluation: A strong management system should have mechanisms in place for measuring and evaluating performance. This includes setting key performance indicators (KPIs) and regular performance reviews, as well as providing feedback and recognition for employees who perform well.5. Continuous improvement: Finally, a good management system should be focused on continuous improvement. This means constantly looking for ways to improve processes, procedures, and performance, and implementing changes where necessary.How to Establish an Effective Management SystemEstablishing an effective management system requires careful planning and coordination. Here are some steps that can be taken to create a strong management system:1. Define the organization's vision and mission: The first step in establishing a strong management system is to define the organization's vision and mission. This involves clarifying what the organization stands for, what its goals are, and how it plans to achieve them.2. Set goals and objectives: Once the vision and mission have been defined, the next step is to set specific, measurable, achievable, relevant, and time-bound (SMART) goals and objectives. These goals should be aligned with the organization's vision and mission, and should be communicated clearly to all employees.3. Develop processes and procedures: Once the goals and objectives have been set, the next step is to develop processes and procedures for carrying out tasks and projects. This includes defining roles and responsibilities, setting deadlines and milestones, and creating systems for monitoring and evaluating performance.4. Implement systems for communication and collaboration: Effective communication and collaboration are essential for a successful management system. This includes setting up regular meetings and check-ins, using tools like email and project management software to facilitate communication, and providing training on effective communication techniques.5. Measure and evaluate performance: To ensure that the management system is working effectively, it is important to measure and evaluate performance on a regular basis. This includes setting key performance indicators (KPIs), conducting performance reviews, and providing feedback and recognition to employees.6. Implement a system for continuous improvement: Finally, it is important to implement a system for continuous improvement. This means regularly reviewing and updating processes and procedures, seeking feedback from employees and customers, and making changes to the management system where necessary.ConclusionEstablishing an effective management system is essential for the success of any organization.A strong management system provides clarity and consistency in how tasks are carried out, ensures that resources are utilized effectively, and facilitates communication and collaboration among employees. By following the steps outlined in this paper, organizations can create a management system that is well-defined, efficient, and focused on achieving its goals.。

业务控制英语Business control in English refers to the system of processes, rules, and regulations put in place to ensure that a company's operations are running smoothly and efficiently. In Chinese, 业务控制通常指的是公司为确保运营顺利高效而制定的一系列流程、规则和法规。

Effective business control is essential for the success and sustainability of any organization. It helps in managing risks, ensuring compliance with laws and regulations, and improving overall performance. 有效的业务控制对于任何组织的成功和可持续发展至关重要。

它有助于管理风险、确保遵守法律法规，并提高整体绩效。

One of the key elements of business control is financial control. This involves monitoring and managing a company's finances, including budgeting, cash flow management, and financial reporting. 财务控制是业务控制的关键要素之一。

这涉及监控和管理公司的财务状况，包括预算编制、现金流管理和财务报告。

Operational control is another important aspect of business control. It focuses on the day-to-day operations of a company, ensuring thatprocesses are efficient, resources are utilized effectively, and quality standards are met. 运营控制是业务控制的另一个重要方面。

Decision models for information systems management Kweku-Muata Osei-Bryson&Ojelanki NgwenyamaPublished online:1May2008#Springer Science+Business Media,LLC20081IntroductionIn the last two decades,information systems(IS)manage-ment decision making has become more complex.Every-day,IS managers in organizations of all over the world manage billions dollars of assets and must make complex decisions that involve information security,outsourcing, disaster recovery,software,hardware and vendor selection, investment strategies,timing the implementation of com-plex software systems(such as enterprise resource planning (ERP)).Inadequate understanding of these decision prob-lems,poor decision analysis,and bad judgment can result in catastrophic outcomes for companies.However,there has been limited research on decision models and frame-works that could assist information technology(IT) managers with these complex decision problems.While there are researchers working in these areas,much of their work appears in journals outside the field of IS.The primary objective of this special issue of Information Systems Frontiers is to focus on providing solutions to significant IS management problems and to provide strategic knowledge for practicing managers.A second objective of this special issue to give impetus to the development of a line of research that would continue to focus attention on providing solutions for the many emerging complex problems that IS managers may face. 2Information systems decision contextInformation systems management decision problems such as information security,outsourcing,disaster recovery, software,hardware and vendor selection,investment strat-egies,timing the implementation of complex software systems(such as ERP)are extremely complex and can adversely impact the performance of the firm.The complexity of these decision problems derive from organi-zation and environmental conditions that include(a) multiple stakeholders with different goals and risk prefer-ences(b)multiple objectives and value trade-offs;(c) competitive environments with risk and uncertainty;and (d)inter dependencies,indefinite time horizons and strategic impacts of decision.Under these conditions decision makers often have difficulties identifying decision alternatives and must be creative and careful in their analysis,as the consequences of poor IS decision making found in the literature show(Lyttinen and Robey1999;Yeo 2002;Ngwenyama et al.2007).When managers face complex IS problems,decision analysis frameworks and methods can be extremely useful when they assist:(1) interrogating the problem domain;(2)structuring decision problems and generating alternatives;(3)analyzing alter-natives and assessing their impacts;(4)determining the preferences of decision makers;(5)evaluating and com-paring decision alternatives,and,analysis of implications. However,while general theories and frameworks exists for decision analysis,the complexity and diversity of IS problems necessitate research and development of frame-Inf Syst Front(2008)10:277–279DOI10.1007/s10796-008-9082-7K.-M.Osei-Bryson(*)The Information Systems Research Institute, Virginia Commonwealth University, Richmond,V A23284,USAe-mail:KMOsei@O.NgwenyamaInstitute for Research on Technology Management, Ryerson University,Toronto,ON,Canadae-mail:Ojelanki@Ryerson.caworks and models specific to the class of decision problems that IS managers face.3The papersIn this special issue we present eight papers that present a range of approaches and address a wide range of IS decision problems.In general the papers can be classified into two categories,frameworks for decision analysis and decision models.One of the papers presents a conceptual framework;five of the papers present structured decision analysis frameworks,and three present decision-theoretic based models.While all the papers follow the design science paradigm of research,the decision framework papers present empirical cases,and the decision-theoretic papers present demonstrations of analysis using the models.The Samoilenko paper(Information Systems Fitness and Risk in IS Development:Insights and Implications from Chaos and Complex Systems Theories)outlines a framework and principles for analyzing IS fitness and risk based on chaos and complexity theory.Samoilenko approach is more in the tradition of appreciative decision making,where the focus is on ways of thinking to help the decision maker appreciate the problem situation.Aydin and Bakker(Analyzing IT Maintenance Outsourcing Decision from a Knowledge Management Perspective)also follow this tradition but from an empirically grounded perspective outlining a framework for decision analysis of knowledge management issues in IS outsourcing.They focus mainly on strategies for interrogating the problem domain and structur-ing the decision problem.Alaranta and Henningsson(An Approach to Analyzing and Planning Post-Merger IS Integration:Insights from Two Field Studies)outline a framework and approach for post-merger information sys-tems integration planning.Post-merger IS integration is a complex multidimensional problem that is challenging many IS managers.Alaranta and Henningsson discuss the key decisions of the planning process and suggest strategies for approaching them.An important feature of their approach is its grounding in empirical case studies of favorable and unfavorable strategies.The Scheepers and Scheepers(A Process-focused Decision Framework for Analyzing the Business Value Potential of IT Investments)framework focuses on analyzing IT investments from the perspective of business value creation.These authors develop a model for exploring the business value potential of IT at the business process level;a challenging undertaking necessary for cost-benefit analysis.The last of this category is that of Barclay(Towards An Integrated Measurement of IS Project Performance:The Project Performance Scorecard),who presents a framework and approach for evaluating project performance based on existing theoretical models of IS success and the Balanced Scorecard.She focuses on defining dimensions of project measurement that are of interest to different stakeholders and a process for eliciting preferences.The three decision-theoretic papers also vary in topics that they cover.Like Barclay,Plaza(Team Performance and Information System Implementation Application of the Progress Curve to the Earned Value Method in an Information System Project)is concerned with IS project performance but comes to the issue from a different perspective.Plaza is interested in predicting implementa-tion times(and cost)for large scale IS projects and proposes a decision model based on the earned value method and the learning curve.Rao and Osei-Bryson(An Approach for Incorporating Quality-Based Cost–Benefit Analysis in Data Warehouse Design)focus on an aspect of data warehouse design where the major concern is the determination of the data that are to be produced and stored in the data warehouse.They present a cost-benefit model that incorporates quality issues in data warehouse design. Finally Turetken(Is Your Back-Up IT Infrastructure in a Safe Location?)presents a multi-criteria decision model for location of the IT infrastructure for business continuity planning.4Contribution of this issueThis issue of ISF makes a contribution to theory and practice of IS management from the following perspectives:(1)The papers present frameworks and models that have immediate application to various classes of IS decision problems.(2) The papers present possibilities for further research into decision models for the problems that the authors have addressed.However,this research can evolve along different lines:(a)the development of decision support systems for the addressed problems;(b)other approaches or techniques that might be applicable for extending the breadth and depth of the current approaches;(c)alternative approaches can be proposed for the set of problems and comparative analysis can be conducted.We wish to express our appreciation to all the authors who submitted papers.We also wish to express our gratitude to all the reviewers who diligently reviewed the papers in order to ensure that that there was appropriate quality and fit. ReferencesLyytinen,K.,&Robey,D.(1999).Learning failure in information systems rmation Systems Journal,9,85–101. Ngwenyama,O.,Guergachi,A.,&McLaren,T.(2007).Using the learning curve to maximize IT productivity:A decision analysismodel for timing software upgrades.International Journal of Production Economics,1005,524–535.Yeo,K.(2002).Critical failure factors in information systems projects.International Journal of Project Management,20,241–246. Kweku-Muata Osei-Bryson is Professor of Information Systems at Virginia Commonwealth University.He has also worked as an Information Systems practitioner in industry and government.He holds a Ph.D.in Applied Mathematics(Management Science& Information Systems)from the University of Maryland at College Park.His research areas include:Data Mining,Database Systems, Knowledge Management,IS Security,e-Commerce,Decision Support Systems,IT&Productivity,IS Outsourcing.He has published papers in various journals including:Journal of Database Management, Information Systems Frontiers,European Journal of Information Systems,Information&Management,Information Systems Journal, Journal of the Association for Information Systems,Expert Systems with Applications.He serves as an Associate Editor of the INFORMS Journal on Computing,on the Editorial Board of the Computers&Operations Research journal and the International Advisory Board of the Journal of the Operational Research Society.Ojelanki Ngwenyama,MS,(Roosevelt),MBA(Syracuse),Ph.D. (Computer Science,SUNYBinghamton),is Professor of Information Technology Management and Director of the Institute for Research on Technology Management and Organizational Learning at Ryerson University,Canada.Prior to joining Ryerson in2004,Ojelanki was Professor of Information Systems at Virginia Commonwealth Univer-sity.He is currently Visiting Research Professor at Aalborg University in Denmark,and University of Jyväskyläin Finland.Ojelanki’s current research focuses on ICT and productivity,IT management, software process improvement,non-traditional research methods in information systems and ICT and development.He was an Associate Editor for MISQ(2004-2001)and is a member of the Editorial Advisory Board of the Scandinavian Journal of Information System. He has also served on the editorial boards of the Journal of Information Technology and People and Journal of the Association of Information Systems and ICIS.。

a framework for ethical decision-making -回复什么是伦理决策框架？为什么我们需要它？它是如何工作的？下面，我将一步一步解答这些问题。

伦理决策框架可以被理解为一种指导性的工具，用于帮助我们做出道德正确的决策。

在面对复杂的伦理问题时，我们需要对各种因素进行权衡，并选择最符合伦理原则的决策。

伦理决策框架提供了一种结构化的方法，以确保我们在作出决策时考虑到各种伦理考量。

伦理决策框架之所以重要，是因为我们生活在一个相互关联的社会中。

我们的行为和决策可能会对他人产生直接或间接的影响。

在这种情况下，我们需要确保我们的决策是道德的，并尽量减少负面影响，最大化正面影响。

伦理决策框架为我们提供了一个指导，使我们能够更好地理解我们的行为后果，并相应地做出决策。

伦理决策框架的工作原理是将我们所面临的伦理问题分解为几个关键要素，并对它们进行思考和评估。

以下是一个常用的五步伦理决策框架：第一步是定义问题。

在这一步中，我们需要确定我们所面临的具体伦理问题是什么。

这可以是一个个人决策，也可以是一个组织或社会层面的决策。

例如，我们可能需要决定是否在利润和道德原则之间进行取舍。

第二步是确定利害相关方。

在决策过程中，我们需要考虑受到我们决策影响的各方。

这些人或群体可能是员工、股东、客户、社区等。

我们需要考虑他们的权益和利益，并在决策中尽力兼顾他们的需求。

第三步是评估权衡。

在这一步中，我们需要对伦理决策的各种因素进行权衡。

这些因素可能包括道德原则、法律法规、社会期望、个人价值观等。

我们需要评估这些因素之间的相对重要性，并确定最合适的权衡方案。

第四步是选择决策。

在这一步中，我们需要根据之前的评估，选择最符合伦理原则的决策。

这可能是一个权衡过程，需要考虑各种因素的平衡和取舍。

我们还需要确保我们的决策是可行的，并能够在实践中执行。

第五步是评估后果。

一旦我们做出了决策，并付诸行动，我们需要对决策后果进行评估。

使用管理制度英文IntroductionIn today's fast-paced and complex business environment, the effective management of an organization is crucial to its success. A well-designed and implemented management system can help in achieving the organization's objectives, ensuring the optimal use of resources, and maintaining a competitive edge in the market. In this paper, we will explore the concept of management system, its components, and the benefits of its implementation.What is a Management System?A management system can be defined as a set of processes, policies, and procedures designed to plan, execute, and control the operations of an organization. It provides a framework for achieving the organization's objectives and ensuring the efficient use of resources. A management system encompasses various aspects of the organization, including its structure, culture, and processes, and is designed to provide a systematic approach to management.Components of a Management SystemA management system typically consists of the following components:1. Policies and Procedures: These are guiding principles and guidelines that outline the organization's expectations and standards for employee behavior and performance. They serve as a reference for employees and provide a framework for decision-making.2. Planning and Goal Setting: This component involves setting organizational objectives, developing strategies to achieve them, and allocating resources to support the plans. It also includes the establishment of key performance indicators (KPIs) to measure progress and success.3. Organizational Structure: The structure of an organization defines the reporting relationships, roles, and responsibilities of employees. A well-defined organizational structure helps in achieving clarity and accountability within the organization.4. Communication and Information Sharing: Effective communication and information sharing are essential for the smooth functioning of an organization. A management system should include processes for the dissemination of information and feedback mechanisms to ensure that communication is two-way.5. Performance Management: Performance management involves setting performance standards, evaluating employee performance, and providing feedback for improvement. It also includes the identification of training and development needs to enhance employee performance.6. Risk Management: A management system should include processes for identifying, assessing, and mitigating risks that could affect the organization's ability to achieve its objectives. This involves developing risk management plans and monitoring risk exposure.Benefits of a Management SystemThe implementation of a management system offers several benefits to an organization, including:1. Improved Efficiency: A well-designed management system helps in streamlining processes, reducing waste, and improving productivity. It ensures that resources are utilized optimally and that there is minimal redundancy in operations.2. Enhanced Quality: A management system focuses on setting and maintaining high standards for products and services, which leads to improved quality and customer satisfaction.3. Increased Accountability: Clear policies and procedures help in defining roles and responsibilities, ensuring that employees are accountable for their actions and decisions.4. Better Decision Making: A management system provides a framework for making informed and strategic decisions by providing timely and relevant information to decision-makers.5. Regulatory Compliance: A management system helps in ensuring that the organization complies with applicable laws, regulations, and industry standards, reducing the risk of non-compliance penalties and legal issues.6. Continuous Improvement: A management system encourages a culture of continuous improvement by monitoring performance, identifying areas for enhancement, and implementing changes to achieve better results.ConclusionA well-designed and implemented management system is essential for the success and sustainability of an organization. It provides a systematic approach to planning, executing, and controlling operations, ensuring that resources are utilized efficiently and that the organization achieves its objectives. By incorporating the components of a management system and realizing its benefits, organizations can achieve a competitive edge and sustained growth in today's dynamic business environment.。

软考高级架构师系统设计40题1. In a system design, which of the following is the most important consideration for scalability?A. Hardware performanceB. Software architectureC. Network bandwidthD. User interface design答案：B。

解析：软件架构对于系统的可扩展性至关重要。

硬件性能在一定程度上影响，但不是最关键的。

网络带宽主要影响数据传输，对可扩展性的直接影响较小。

用户界面设计与系统的可扩展性关系不大。

2. When designing a system, which principle should be followed to ensure high availability?A. RedundancyB. Minimization of componentsC. Simple architectureD. Low cost答案：A。

解析：冗余是确保高可用性的重要原则。

减少组件可能会降低复杂性，但不一定能保证高可用性。

简单架构有助于理解和维护，但不是保证高可用性的关键。

低成本通常不是高可用性设计的首要考虑因素。

3. Which of the following is a key factor in determining theperformance of a system?A. The number of usersB. The algorithm usedC. The color scheme of the interfaceD. The brand of the hardware答案：B。

解析：算法的优劣直接决定了系统的性能。

用户数量会影响系统负载，但不是决定性能的根本因素。

界面的颜色方案与性能无关。

硬件品牌对性能有一定影响，但算法的影响更为关键。

管理制度的英语Introduction:A management system is a framework of policies, processes, and procedures used by an organization to ensure that it can fulfill all the tasks required to achieve its objectives. A well-functioning management system is essential for the success of any organization, as it provides the structure, clarity, and guidance needed for effective decision-making, resource allocation, and performance evaluation.A management system encompasses various functions such as planning, organizing, leading, and controlling. It provides a set of rules and guidelines for how different tasks and responsibilities are divided among employees, how resources are allocated, how communication and collaboration are facilitated, and how performance is monitored and evaluated. It is essential for creating an environment where everyone knows their role and responsibilities, and where there is a clear line of authority and communication.In this article, we will explore the key components of a management system, its significance, and the various types of management systems used in different organizations. We will also discuss the challenges involved in implementing a management system and some best practices for creating and maintaining an effective management system.Key components of a management system:A management system comprises several key components, each of which plays a crucial role in ensuring that the organization operates efficiently and effectively. These components include:1. Policies and procedures:Policies and procedures are formal documents that outline the rules and guidelines governing various aspects of the organization's operations. They provide a framework for decision-making and problem-solving and help ensure consistency and compliance across different departments and functions. Policies and procedures cover a wide range of areas, including human resources, finance, operations, quality assurance, health and safety, and information technology.2. Organizational structure:The organizational structure defines the hierarchy of authority and responsibility within the organization. It outlines the relationships between different departments, teams, and individuals, and provides a clear understanding of who reports to whom and who is responsible for what. An effective organizational structure promotes accountability, coordination, and communication and helps ensure that everyone knows their role and responsibilities.3. Planning and goal setting:Planning and goal setting are essential components of a management system, as they provide a roadmap for the organization's future direction. This involves setting specific, measurable, achievable, relevant, and time-bound (SMART) goals, developing strategies and action plans for achieving those goals, and allocating resources and responsibilities accordingly. Effective planning and goal setting help ensure that everyone is working towards the same objectives and that resources are being utilized efficiently.4. Performance management:Performance management involves the systematic evaluation and improvement of individual, team, and organizational performance. This includes setting performance expectations, providing regular feedback and coaching, conducting performance appraisals, identifying training and development needs, and rewarding and recognizing high performers. A robust performance management system helps align individual and team performance with organizational goals and objectives and ensures that employees are empowered and motivated to perform at their best.5. Communication and collaboration:Effective communication and collaboration are essential for the success of any organization, and a management system should facilitate and support these activities. This includes establishing clear channels of communication, promoting transparency and openness, and providing the tools and resources needed for efficient collaboration, such as team meetings, project management software, and communication platforms. A strong focus on communication and collaboration helps build trust, foster teamwork, and ensure that everyone is working together towards common goals.6. Risk management:Risk management involves identifying, assessing, and managing the risks that could impact the organization's ability to achieve its objectives. This includes conducting risk assessments, developing risk mitigation strategies, establishing contingency plans, and monitoring and reporting on risk exposure. A robust risk management system helps protect the organization from potential threats and vulnerabilities and ensures that it can respond effectively to unexpected challenges and disruptions.7. Continuous improvement:Continuous improvement is an essential aspect of any management system, as it involves the ongoing effort to enhance the organization's processes, products, and services. This includes implementing quality management principles, such as the plan-do-check-act (PDCA) cycle, conducting regular performance reviews, fostering a culture of innovation and creativity, and empowering employees to identify and address areas for improvement. Continuous improvement helps drive efficiency, innovation, and competitiveness and ensures that the organization remains adaptable and responsive to changing market conditions.Significance of a management system:A well-functioning management system offers numerous benefits to an organization. It provides the structure, clarity, and guidance needed for effective decision-making, resource allocation, and performance evaluation. It helps ensure that everyone knows their role and responsibilities, and that there is a clear line of authority and communication. It promotes accountability, coordination, and collaboration, and helps align individual and team performance with organizational goals and objectives. A management system also helps protect the organization from potential threats and vulnerabilities and ensures that it can respond effectively to unexpected challenges and disruptions. Moreover, it drives efficiency, innovation, and competitiveness and ensures that the organization remains adaptable and responsive to changing market conditions.Types of management systems:There are several types of management systems used in different organizations, each of which is designed to meet the specific needs and requirements of the organization. Some of the most common types of management systems include:1. Quality management system (QMS):A quality management system is a set of policies, processes, and procedures used to ensure that an organization delivers products and services that consistently meet customer requirements and expectations. It encompasses various functions such as quality planning, quality control, quality assurance, and continuous improvement and is typically based on international standards such as ISO 9001.2. Environmental management system (EMS):An environmental management system is a framework used to manage an organization's environmental responsibilities in a systematic and sustainable manner. It involves identifying and assessing environmental impacts, developing and implementing environmental objectives and targets, and monitoring and reporting on environmental performance. EMSs are typically based on international standards such as ISO 14001.3. Health and safety management system (HSMS):A health and safety management system is a framework used to manage an organization's health and safety risks in the workplace. It involves identifying and assessing health and safety hazards, developing and implementing controls and procedures to mitigate risks, and monitoring and reporting on health and safety performance. HSMSs are typically based on international standards such as OHSAS 18001 (now replaced by ISO 45001).4. Information security management system (ISMS):An information security management system is a framework used to manage an organization's information security risks. It involves identifying and assessing informationsecurity threats, developing and implementing controls and procedures to protect against these threats, and monitoring and reporting on information security performance. ISMSs are typically based on international standards such as ISO 27001.5. Risk management system:A risk management system is a framework used to identify, assess, and manage the risks that could impact an organization's ability to achieve its objectives. It involves establishing risk management policies and procedures, conducting risk assessments, developing risk mitigation strategies, and monitoring and reporting on risk exposure.Implementing a management system:Implementing a management system can be a complex and challenging process, as it involves significant changes to the organization's structure, processes, and culture. However, there are several key steps and best practices that organizations can follow to ensure a successful implementation:1. Define the scope and objectives:Before implementing a management system, it is essential to clearly define the scope and objectives of the system. This involves identifying the areas of the organization that will be covered by the system, setting specific goals and targets for the system, and establishing clear expectations for what the system should achieve.2. Obtain leadership support:Implementing a management system requires strong leadership support, as it often involves significant changes to the organization's structure, processes, and culture. Obtaining buy-in from senior management is essential for ensuring that the system is prioritized, resourced, and supported throughout the organization.3. Engage stakeholders:Engaging stakeholders is crucial for ensuring that the management system aligns with the organization's goals and meets the needs of its employees, customers, and other key stakeholders. This involves seeking input and feedback from different parts of the organization, including employees at all levels, customers, suppliers, and regulatory agencies.4. Develop policies and procedures:Developing clear and well-defined policies and procedures is essential for providing the framework and guidance needed for the effective operation of the management system. These documents should be developed in consultation with relevant stakeholders and should be communicated to all employees to ensure understanding and compliance.5. Provide training and support:Implementing a management system often requires employees to develop new skills and behaviors, and it is essential to provide training and support to help employees adapt to the changes. This may involve conducting training sessions, workshops, and one-on-one coaching, and providing resources and tools to facilitate the implementation process.6. Monitor and evaluate:Once the management system is implemented, it is crucial to monitor and evaluate its performance to ensure that it is achieving its objectives and delivering the expected benefits. This involves establishing key performance indicators (KPIs) and measurement processes, conducting regular reviews and audits, and making adjustments as needed to improve system performance.Challenges of implementing a management system:Implementing a management system can be challenging for several reasons, including resistance to change, lack of resources, and complexity of the process. Some common challenges organizations may face when implementing a management system include:1. Resistance to change:One of the most significant challenges of implementing a management system is resistance to change from employees who are comfortable with the current way of doing things. This resistance can stem from fear of the unknown, lack of understanding about the benefits of the system, or concerns about increased workload or job security.2. Lack of resources:Implementing a management system often requires significant resources in terms of time, money, and expertise. Organizations may struggle to allocate the necessary resources to the implementation process, especially if they are already stretched thin with other priorities and initiatives.3. Complexity of the process:The process of implementing a management system can be complex and multifaceted, involving changes to the organization's structure, processes, and culture. This complexity can make it challenging to develop and implement a system that is well-aligned with the organization's needs and goals.4. Maintaining momentum:Once the initial excitement and enthusiasm for implementing a management system wear off, organizations may struggle to maintain momentum and commitment to the process. It can be challenging to keep employees engaged and motivated throughout the implementation process, especially if they do not see immediate benefits or outcomes.Best practices for creating and maintaining an effective management system:Despite the challenges involved, many organizations have successfully implemented and maintained effective management systems by following some best practices. These best practices can help ensure that the management system is well-aligned with the organization's needs and goals, and that it delivers the expected benefits and outcomes. Some key best practices for creating and maintaining an effective management system include:1. Align the system with organizational goals:The management system should be closely aligned with the organization's strategic goals and priorities, and should be designed to support the achievement of these goals. This involves ensuring that the system addresses the organization's key challenges and opportunities and that it is designed to deliver specific, measurable, achievable, relevant, and time-bound (SMART) outcomes.2. Communicate the benefits:It is essential to communicate the benefits of the management system to employees and other key stakeholders to build understanding and support for the process. This involves clearly articulating the goals of the system, the expected outcomes, and the ways in which employees and other stakeholders will benefit from the changes.3. Provide training and support:Providing training and support is crucial for helping employees adapt to the changes associated with implementing a management system. This may involve offering training sessions, workshops, and one-on-one coaching, and providing resources and tools to help employees develop the necessary skills and behaviors.4. Involve employees in the process:Involving employees in the development and implementation of the management system can help build buy-in and ensure that the system meets the needs and expectations of its end users. This involves seeking input and feedback from employees at all levels, and encouraging their participation and collaboration throughout the process.5. Monitor and evaluate:Monitoring and evaluating the performance of the management system is essential for ensuring that it is achieving its objectives and delivering the expected benefits. This involves establishing key performance indicators (KPIs), conducting regular reviews and audits, and making adjustments as needed to improve system performance.Conclusion:In conclusion, a well-functioning management system is essential for the success of any organization, as it provides the structure, clarity, and guidance needed for effectivedecision-making, resource allocation, and performance evaluation. It encompasses various functions such as planning, organizing, leading, and controlling, and provides a set of rules and guidelines for how different tasks and responsibilities are divided among employees, how resources are allocated, how communication and collaboration are facilitated, and how performance is monitored and evaluated. A management system is also crucial for creating an environment where everyone knows their role and responsibilities and where there is a clear line of authority and communication. It promotes accountability, coordination, and collaboration, and helps align individual and team performance with organizational goals and objectives. Moreover, it helps protect the organization from potential threats and vulnerabilities and ensures that it can respond effectively to unexpected challenges and disruptions. Finally, it drives efficiency, innovation, and competitiveness and ensures that the organization remains adaptable and responsive to changing market conditions. Despite the challenges involved in implementing a management system, organizations can succeed by following some best practices and ensuring that the system is well-aligned with their needs and goals. Ultimately, a well-designed and well-implemented management system can help an organization achieve its strategic objectives, enhance its performance, and maintain its competitive advantage in the marketplace.。

Internal Control — Integrated Framework Executive SummarySenio.executive.hav.lon.sough.way.t.bette.contro.th.enterprise.the.run.Interna. pan.o.cours.towar.profitabilit.goal.an.achievemen.o. it.mission.an.t.minimiz.surprise.alon.th.way.The.enabl.managemen.t.dea.wit.rapidl. petitiv.environments.shiftin.custome.demand.an.prioritie s.an.restructurin.fo.futur.growth.Interna.control.promot.efficiency.reduc.ris.o.asse.l w.an.regulatio ns.Becaus.interna.contro.serve.man.importan.purposes.ther.ar.increasin.call.fo.be tte.interna.contro.system.an.repor.card.o.them.Interna.contro.i.looke.upo.mor.an.m or.a..solutio.t..variet.o.potentia.problems.What Internal Control IsInterna.contro.mean.differen.thing.t.differen.people.Thi.cause.confusio.amon. businesspeople.legislators.regulator.an.others.Resultin.miscommunicatio.an.differ pounde.whe.th.ter w.regulatio.o.rule.•Thi.repor.deal.wit.th.need.an.expectation.o.managemen.an.others.I.define.an. describe.interna.contro.to.•mo.definitio.servin.th.need.o.differen.parties.Provid..standar.agains.whic.busines.an.othe.entities--larg.o.small.i.th.publi.o.pr ivat.sector.fo.profi.o.not--ca.asses.thei.contro.system.an.determin.ho.t.improv.the m.Internal control is broadly defined as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:•Effectivenes.an.efficienc.o.operations.•Reliabilit.o.financia.reporting.w.an.regulations.Th.firs.categor.addresse.a.entity'.basi.business objectives.includin.performanc. an.profitabilit.goal.an.safeguardin.o.resources.Th.secon.relate.t.th.preparatio.o.reli abl.publishe.financia.statements.includin.interi.an.condense.financia.statement.an. selecte.financia.dat.derive.fro.suc.statements.suc.a.earning.releases.reporte.publicl w.an.regulation.t.whic.th.entit.i.subject.Thes.di stinc.bu.overlappin.categorie.addres.differen.need.an.allo..directe.focu.t.mee.th.se parat.needs.•Interna.contro.system.operat.a.differen.level.o.effectiveness.Interna.contro.ca.b.judge.effectiv.i.eac.o.th.thre.categories.respectively.i.th.boar.o.director.an.manag emen.hav.reasonabl.assuranc.that.•The.understan.th.exten.t.whic.th.entity'.operation.objective.ar.bein.achieved.•Publishe.financia.statement.ar.bein.prepare.reliably.plie.with.While internal control is a process, its effectiveness is a state or condition of the process at one or more points in time.ponents.Thes.ar.derive.fro.th.wa.ma panie.ma.implemen.the.differentl.tha. pan.ca.stil.hav.eff ponent.are:Control Environmentanization.influencin.th.contro.consci ponent.o.interna.control.providin. disciplin.an.structure.Contro.environmen.factor.includ.th.integrity.ethica.value.an.c ompetenc.o.th.entity'.people.management'.philosoph.an.operatin.style.th.wa.man agemen.assign.authorit.an.responsibility.and organize.an.develop.it.people.an.th.attentio.an.directio.provide.b.th.boar.o.directors.Risk Assessment--Ever.entit.face..variet.o.risk.fro.externa.an.interna.source.tha.mus.b.assessed.. preconditio.t.ris.assessmen.i.establishmen.o.objectives.linke.a.differen.level.an.inte rnall.consistent.Ris.assessmen.i.th.identificatio.an.analysi.o.relevan.risk.t.achieveme n.o.th.objectives.formin..basi.fo.determinin.ho.th.risk.shoul.b.managed.Becaus.eco nomic.industry.regulator.an.operatin.condition.wil.continu.t.change.mechanism.ar. neede.t.identif.an.dea.wit.th.specia.risk.associate.wit.change.Control Activities--Contro.activitie.ar.th.policie.an.procedure.tha.hel.ensur.managemen.directive .ar.carrie.out.The.hel.ensur.tha.necessar.action.ar.take.t.addres.risk.t.achievemen.o.t h.entity'anization.a.al.level.an.i.al .functions.The.includ..rang.o.activitie.a.divers.a.approvals.authorizations.verificatio ns.reconciliations.review.o.operatin.performance.securit.o.asset.an.segregatio.o.du ties.Information and Communicationmunicate.i..for.an.timefr rmatio.system.produc.reports. rmation.tha.mak.i.possibl.trmati rme.busines.decision-m municatio.als.mus.occu.i..broade.sense.flowi anization.Al.personne.mus.receiv..clea.messag.fro.to.man agemen.tha.contro.responsibilitie.mus.b.take.seriously.The.mus.understan.thei.ow. rol.i.th.interna.contro.system.a.wel.a.ho.individua.activitie.relat.t.th.wor.o.others.Th rmatio.upstream.Ther.als.need.t.b. municatio.wit.externa.parties.suc.a.customers.suppliers.regulator.an.sh areholders.Monitoring--Interna.contro.system.nee.t.b.monitored--.proces.tha.assesse.th.qualit.o.th.s ystem'.performanc.ove.time.Thi.i.accomplishe.throug.ongoin.monitorin.activities.s binatio.o.th.two.Ongoin.monitorin.occur.i.th.cours.o.oper ations.I.include.regula.managemen.an.supervisor.activities.an.othe.action.personn e.tak.i.performin.thei.duties.Th.scop.an.frequenc.o.separat.evaluation.wil.depen.pri maril.o.a.assessmen.o.risk.an.th.effectivenes.o.ongoin.monitorin.procedures.Intern a.contro.deficiencie.shoul.b.reporte.upstream.wit.seriou.matter.reporte.t.to.manag emen.an.th.board.ponents.formin.a.integrate.syste.tha.rea ct.dynamicall.t.changin.conditions.Th.interna.contro.syste.i.intertwine.wit.th.entity'. operatin.activitie.an.exist.fo.fundamenta.busines.reasons.Interna.contro.i.mos.effe ctiv.whe.control.ar.buil.int.th.entity'.infrastructur.an.ar..par.o.th.essenc.o.th.enterprise."Buil.in.control.suppor.qualit.an.empowermen.initiatives.avoi.unnecessar.cost.an. enabl.quic.respons.t.changin.conditions.Ther.i..direc.relationshi.betwee.th.thre.categorie.o.objectives.whic.ar.wha.a.enti ponents.whic.represen.wha.i.neede.t.achiev.th.objectives.A ponent.ar.relevan.t.eac.objective.category.Whe.lookin.a.an.on.category--th.ef ponent.mus.b.presen.an. functionin.effectivel.t.conclud.tha.interna.contro.ove.operation.i.effective.The internal control definition--with its underlying fundamental concepts of a process, effected by people, providing reasonable assurance--together with the categorization of objectives and the components and criteria for effectiveness, and the associated discussions, constitute this internal control framework.What Internal Control Can DoInterna.contro.ca.hel.a.entit.achiev.it.performanc.an.profitabilit.targets.an.prev en.los.o.resources.I.ca.hel.ensur.reliabl.financia.reporting.An.i.ca.hel.ensur.tha.th.en w.an.regulations.avoidin.damag.t.it.reputatio.an.othe.consequ ences.I.sum.i.ca.hel.a.entit.ge.t.wher.i.want.t.go.an.avoi.pitfall.an.surprise.alon.th.wa y.What Internal Control Cannot Do•Unfortunately.som.peopl.hav.greater.an.unrealistic.expectations.The.loo.fo.absolutes.believin.that.Interna.contro.ca.ensur.a.entity'.success--tha.is.i.wil.ensur.achievemen.o.basi.b usines.objective.o.will.a.th.least.ensur.survival.•Eve.effectiv.interna.contro.ca.onl.hel.a.entit.achiev.thes.objectives.I.ca.provid. rmatio.abou.th.entity'c.o.it.towar.thei.achievement.B e petitors.action.o.economi.condition.ca.b.beyon.mana gement'.control.Interna.contro.canno.ensur.success.o.eve.survival.w.an. regulations.Thi.belie.i.als.unwarranted.A.interna.contro.system.n.matte.ho.wel.conceive.an. operated.ca.provid.onl.reasonable--no.absolute--assuranc.t.managemen.an.th.bo ar.regardin.achievemen.o.a.entity'.objectives.Th.likelihoo.o.achievemen.i.affecte.b.l imitation.inheren.i.al.interna.contro.systems.Thes.includ.th.realitie.tha.judgment.i.d ecision-makin.ca.b.faulty.an.tha.breakdown.ca.occu.becaus.o.simpl.erro.o.mistake. Additionally.control.ca.b.circumvente.b.th.collusio.o.tw.o.mor.people.an.managem en.ha.th.abilit.t.overrid.th.system.Anothe.limitin.facto.i.tha.th.desig.o.a.interna.cont ro.syste.mus.reflec.th.fac.tha.ther.ar.resourc.constraints.an.th.benefit.o.control.mus.b.considere.relativ.t.thei.costs.Thus, while internal control can help an entity achieve its objectives, it is not apanacea.Roles and ResponsibilitiesEveryone in an organization has responsibility for internal control.Management--Th.chie.executiv.office.i.ultimatel.responsibl.an.shoul.assum."ownership.o.th. system.Mor.tha.an.othe.individual.th.chie.executiv.set.th."ton.a.th.top.tha.affect.int pany.th.chie.e xecutiv.fulfill.thi.dut.b.providin.leadershi.an.directio.t.senio.manager.an.reviewin.th. wa.they'r.controllin.th.business.Senio.managers.i.turn.assig.responsibilit.fo.establis hmen.o.mor.specifi.interna.contro.policie.an.procedure.t.personne.responsibl.fo.th. unit'.functions.I..smalle.entity.th.influenc.o.th.chie.executive.ofte.a.owner-manager.uall.mor.direct.I.an.event.i..cascadin.responsibility..manage.i.effectivel..chie.exec utiv.o.hi.o.he.spher.o.responsibility.O.particula.significanc.ar.financia.officer.an.thei. staffs.whos.contro.activitie.cu.across.a.wel.a.u.an.down.th.operatin.an.othe.unit.o.a .enterprise.Board of Directorsernance.guid anc.an.oversight.Effectiv.boar.member.ar.objective.capabl.an.inquisitive.The.als.hav. .knowledg.o.th.entity'mi.th.tim.necessar.t.fulfil.thei.boar.responsibilities.Managemen.ma.b.i..positio.t.overrid.control.an.ignor.o.stifl.c ommunication.fro.subordinates.enablin..dishones.managemen.whic.intentionall.m isrepresent.result.t.cove.it.tracks..strong.activ.board.particularl.whe.couple.wit.effec munication.channel.an.capabl.financial.lega.an.interna.audi.function s.i.ofte.bes.abl.t.identif.an.correc.suc..problem.Internal Auditors--Interna.auditor.pla.a.importan.rol.i.evaluatin.th.effectivenes.o.contro.systems anizationa.positio.an.authorit.i.a.e ntity.a.interna.audi.functio.ofte.play..significan.monitorin.role.Other Personnelanizatio.an.th erefor.shoul.b.a.explici.o.implici.par.o.everyone'.jo.description.Virtuall.al.employee. e.i.th.interna.contro.syste.o.tak.othe.action.neede.t.effec.cont municatin.upwar.problem.i.operatio ns.noncomplianc.wit.th.cod.o.conduct.o.othe.polic.violation.o.illega.actions..numbe.o.externa.partie.ofte.contribut.t.achievemen.o.a.entity'.objectives.Exte rna.auditors.bringin.a.independen.an.objectiv.view.contribut.directl.throug.th.finan efu.t.managemen.an.th.boar.efu.i.effectin.i nterna.contro.ar.legislator.an.regulators.customer.an.other.transactin.busines.wit.th.enterprise.financia.analysts.bon.rater.an.th.new.media.Externa.parties.however.ar.n o.responsibl.for.no.ar.the..par.of.th.entity'.interna.contro.system.Organization of this ReportThi.repor.i.i.fou.volumes.Th.firs.i.thi.Executiv.Summary..high-leve.overvie.o.th.i nterna.contro.framewor.directe.t.th.chie.executiv.an.othe.senio.executives.boar.me mbers.legislator.an.regulators.ponent.a n.provide.criteri.agains.whic.managements.board.o.other.ca.asses.thei.contro.syste ms.Th.Executiv.Summar.i.included.The third volume, Reporting to External Parties, is a supplemental document providing guidance to those entities that report publicly on internal control over preparation of their published financial statements, or are contemplating doing so.The fourth volume, Evaluation Tools, provides materials that may be useful in conducting an evaluation of an internal control system.What to DoActions that might be taken as a result of this report depend on the position and role of the parties involved:Senior Management--Mos.senio.executive.wh.contribute.t.thi.stud.believ.the.ar.basicall."i.control.o. pany--.division..de ponen.tha.cut.acros.activities--wher.control.ar.i.earl.stage.o. developmen.o.otherwis.nee.t.b.strengthened.The.d.no.lik.surprises.Thi.stud.sugge in.thi.framework ..CEO.togethe.wit.ke.operatin.an.financia.executives.ca.focu.attentio.wher.needed. Unde.on.approach.th.chie.executiv.coul.procee.b.bringin.togethe.busines.uni.head. an.ke.functiona.staf.t.discus.a.initia.assessmen.o.control.Directive.woul.b.provide.fo .thos.individual.t.discus.thi.report'.concept.wit.thei.lea.personnel.provid.oversigh.o .th.initia.assessmen.proces.i.thei.area.o.responsibilit.an.repor.bac.findings.Anothe.a pproac.migh.involv.a.initia.revie.o.corporat.an.busines.uni.policie.an.interna.audi.pr ograms.Whateve.it.form.a.initia.self-assessmen.shoul.determin.whethe.ther.i..nee.f or.an.ho.t.procee.with..broader.mor.in-dept.evaluation.I.shoul.als.ensur.tha.ongoin. monitorin.processe.ar.i.place.Tim.spen.i.evaluatin.interna.contro.represent.a.invest ment.bu.on.wit..hig.return.Board Members--Member.o.th.boar.o.director.shoul.discus.wit.senio.managemen.th.stat.o.th.e ntity'.interna.contro.syste.an.provid.oversigh.a.needed.The.shoul.see.inpu.fro.th.int erna.an.externa.auditors.Other Personnel--Manager.an.othe.personne.shoul.conside.ho.thei.contro.responsibilitie.ar.bein.conducte.i.ligh.o.thi.framework.an.discus.wit.mor.senio.personne.idea.fo.strengt henin.control.Interna.auditor.shoul.conside.th.breadt.o.thei.focu.o.th.interna.contr par.thei.evaluatio.material.t.th.evaluatio.tools.Legislators and Regulatorsw.recogniz.tha.ther.ca.b.misconception .an.differen.expectation.abou.virtuall.an.issue.Expectation.fo.interna.contro.var.wid el.i.tw.respects.First.the.diffe.regardin.wha.contro.system.ca.accomplish.A.noted.so m.observer.believ.interna.contro.system.will.o.should.preven.economi.loss.o.a.leas. panie.fro.goin.ou.o.business.Second.eve.whe.ther.i.agreemen.abou.wh a.interna.contro.system.ca.an.can'.do.an.abou.th.validit.o.th."reasonabl.assurance.c oncept.ther.ca.b.disparat.view.o.wha.tha.concep.mean.an.ho.i.wil.b.applied.Corpor at.executive.hav.expresse.concer.regardin.ho.regulator.migh.constru.publi.report.a ssertin."reasonabl.assurance.i.hindsigh.afte.a.allege.contro.failur.ha.occurred.Befor. legislatio.o.regulatio.dealin.wit.managemen.reportin.o.interna.contro.i.acte.upon.t mo.interna.contro.framework.includin.limitation.o.int erna.control.Thi.framewor.shoul.b.helpfu.i.reachin.suc.agreement.Professional Organizationsanization.providin.guidanc.o.financia.ma nagement.auditin.an.relate.topic.shoul.conside.thei.standard.an.guidanc.i.ligh.o.thi .framework.T.th.exten.diversit.i.concep.an.terminolog.i.eliminated.al.partie.wil.ben efit.Educators--Thi.framewor.shoul.b.th.subjec.o.academi.researc.an.analysis.t.se.wher.futur.e mo. groun.fo.understanding.it.concept.an.term.shoul.fin.thei.wa.int.universit.curricula.W.believ.thi.repor.offer..numbe.o.benefits.Wit.thi.foundatio.fo.mutua.understa municat.mor.effectively.Bus ines.executive.wil.b.positione.t.asses.contro.system.agains..standard.an.strengthe.t h.system.an.mov.thei.enterprise.towar.establishe.goals.Futur.researc.ca.b.leverage. of.a.establishe.base.Legislator.an.regulator.wil.b.abl.t.gai.a.increase.understandin.o. mo.interna.contro. framework.thes.benefit.wil.b.realized。

17 Vol. 8 – No. 3 – 1998Further Improvements to CBSS CBSS was our first attempt to build a Web-based negotiation Support System. Al-though it was tested in the context of col-lective bargaining between management and labour unions, it could also be useful for negotiating commercial contracts. We see the need to further improve CBSS in the following ways:1)Currently CBSS is mainly text based.Voice communication can be added, for instance, to the Hot-Line dialogue.However, there could be a tendency for two parties to do negotiation simply through voice channels only. Although voice can be recorded, it is difficult to document the negotiation process and to trace back what was discussed at any particular moment.2)Multimedia (such as graphics, video)and multi-format (such as spreadsheets and wordprocessing) document ex-change should be added to support ar-gument and background informationexchange during the negotiation proc-ess. Since CBSS is built in the Web en-vironment, it would be easy to add this function into the CBSS menu.3)To make a negotiation document le-gal, digital signatures for agreement au-thorisation should be added once the two parties have reached agreement.4)So far, CBSS supports only one nego-tiation setting at a time. It should be extended to support concurrent multi-negotiation settings. We plan to build multiple virtual meeting rooms in CBSS so that negotiation parties can book rooms for different negotiation settings with their own private documents maintained and saved separately.5)There was already a third-party media-tor component built into CBSS but we have not tested it yet. It is important to find out how instant online consulting during negotiation process could sig-nificantly improve the negotiation re-sults.ReferencesCarmel, E., Herniter, B. C., and Nunamaker J.F. Jr,(1993).“Labor-management contract negotiationin an electronic meeting room:A case study“, Group Decision andNegotiation, 2, 27-60.Gulliver, P. H. (1979). Dispute and negotiation: A Cross-culturalperspective. Academic Press, New York.Ozer, Jan (1998) Real-Time Internet Collaboration, PC Magazine Online,/pcmag/features/groupware/gpws5.htm.Suarga, Y. Yuan, J.B. Rose,and N. Archer (1998), Web-based Collective Bargaining Support System:a Valid Process Support Tool for Remote Negotiation, Working Paper #425,School of Business,McMaster University.Negotiation and Contract through E-mailby Ook Lee, Hansung University, Korea*IntroductionThis paper describes aspects of electronic contracting and Negotiating in South Ko-rea. Since South Korea is a developing country, its national IT infrastructure is not well developed to support all aspects of Electronic Commerce unlike developed countries such as the USA. Nevertheless,there are many new companies which are trying to do business in the cyberspace in South Korea. Firstly, this paper introduces the IT environment of South Korea and other developing nations and suggests that in developing countries, there are several problems that should be solved prior to the full development of electronic com-merce when compared to a developed country like the US. Secondly, by present-ing an episode of negotiation which hap-pened between the firm and the customer over the price and quantity of the prod-is a strong need for third party registry to promote trust and non-repudiation. We propose that third party registry should be run by an agency of the government.The reason for choosing the government is mainly cultural. Similar schemes have been introduced in Japan and the US.National IT Infrastructure andElectronic CommerceWe can easily suggest that doing an e-commerce business in a developed coun-try should be different from doing it in a less-developed country; here ”develop-ment“ refers mainly to the level of na-tional IT infrastructure development. Na-tional IT infrastructure can be defined as the vision of broadband communication that is interoperable as if it is a single net-work, which is easily accessible and widely distributed to all groups within society bringing business, education, and govern-ment services directly to households and facilitating peer to peer communication throughout society (Kraemer, et al., 1996).But this idealistic vision is hard to achieve for countries with less economic resources.* Dr. Ook Lee(leeo@hsel.hansung.ac.kr)is Professor of Business Administration at Hansung University, Seoul Korea.His major research interests include electronic-commerce, software maintenance, neural networks,and the role of IT in Asian economiccrisis.uct, we show that negotiation involves complex items and suggest that e-mail can act as a rich medium for negotiation. How-ever, in order to have negotiation done automatically, we need an intelligent ne-gotiation support system which under-stands the natural language of e-mail messages. We propose a framework of such a system. Lastly, contracting can also be done in e-mails or in web sites. But in a developing country such as Korea, thereNevertheless, South Korea embarked on building its national IT infrastructure in 1994 which was officially called the ”Ko-rea Information Infrastructure(KII)“ project (Jeong and King, 1996). The Korean gov-ernment committed itself to promoting industries such as computer makers, tel-ecommunication network builders and value-added service providers, Multime-dia firms, Cable TV industries, and Internet-related companies, which is simi-lar to what the Singaporean government was able to accomplish. In other words, Singapore’s national IT infrastructure is as well-developed as the one in the US. This is one of the reasons why there is a flourishing e-commerce industry in Sin-gapore (Wong, 1997).Besides the national IT infrastructure, a country needs the following systems in order to provide a fertile ground for e-commerce.1.Active and widespread use of creditcards: Countries such as the Philippines, India, and China where credit cards are not widely used cannot find a work-able payment method for e-commerce (Asuncion, 1997; Bhatnagar, 1997; Liu, 1997; Rao, 1998). In this respect, South Korea is similar to these countries even though credit cards are widely used since many consumers on the Internet are very much reluctant to give out their credit card number and the per-sonal identification number (Korean credit cards require a PIN in order to be used in a transaction). From the cul-tural point of view, another reason is the fact that Koreans love to use cash in most business transactions even fora large sum just like people in HongKong (Westland, et al., 1997). As for the payment method in e-commerce in Korea, many companies use money transfers through bank accounts, i.e. the buyer sends money to the bank account of the seller and the seller will send the goods to the buyer. This kind of pay-first-get-the goods-later payment method is obviously an obstacle for e-commerce to grow since many consum-Korean telephone company has a gov-ernment-owned monopoly. Eventhough it is trying to upgrade the com-munication lines with fiber-optic ca-bles, their business policy has notchanged, i.e., there is no concept ofseparate billing for data communicati-on purpose. In other words, if a personmakes a local call to the Internet Serv-ice Provider and surfs the net for a longtime, the person will get a very expen-sive phone bill. With this kind of envi-ronment, it is not easy to do e-com-merce.3.Legal system that acknowledges thecontract by electronic messages as le-gally binding: The South Korean gov-ernment does not recognize electronicmessages as legally binding yet. But asEun Kim and Pilky Hong (1997) pro-posed, the preparation of the legal ar-rangements requires an active role ofthe government for facilitating the useof e-commerce. In other words, with-out the government changing its legalsystem, e-commerce contract is mean-ingless (Burkert, 94; Wildhaber, 94). Thegovernment needs to set up an agencyto handle the verification and valida-tion of the electronic contracts, i.e. athird party registry of e-contracts. Thisagency can give trust in the e-com-merce system to both consumers andsellers and prevent repudiation of con-tracts.Negotiation through E-mailThe subject firm delivers English news andlessons everyday through e-mail. Thecharge was US$10 per month for 5 itemsof English news and lessons based on newswhich were about 5 pages of A4 size pa-per. Upon advertising this through BBSand direct e-mails, the firm started to re-ceive a negotiation offers such as the fol-lowing.Prospective customer’s e-mail: ”Can I getjust 1 item a day and pay US$2 permonth?”The firm’s answer e-mail: ”No, we can’t.Because we have to create 5 items any-ReferencesAsuncion, R.M. ”Potentials of ElectronicMarkets in the Philippines“,Electronic Markets (7:2), 1997,pp. 34-37.Bhatnagar, S. ”Electronic Commerce inIndia: The Untapped Potential“,Electronic Markets (7:2), 1997,pp.22-24.Burkert, H. ”Legal Uncertaintyand Electronic Markets“,Electronic Markets (11), April 1994,pp. 1-3.Daft, R.L. and Lengel, R.H. ”Organiza-tional Information Requirements,Media Richness and Structural Design“,Management Science (32:5), 1986,pp. 554-571.Jeong, K.H. and King, J.“National Information InfrastructureInitiatives in Korea: Vision and PolicyIssues“, Information InfrastructureAnd Policy (5:2), 1996, pp. 119-133.Kim, E. and Hong, P.“The Government’s Role in Diffusion ofEC in Korea“, Electronic Markets (7:2),1997, pp. 6-9.Kraemer, K., Dedrick, J., Jeong, K.H.,Thierry, V., West, J., and Wong, P.K.”National Information Infrastructure:A Cross-Country Comparison“,Information Infrastructure And Policy(5:2), 1996, pp. 81-93.Lieberman, S. ”EFT in ElectronicCommerce in the USA“,Electronic Markets (7:2), 1997,pp. 38-39.ers feel insecure. Thus it is clear thatwithout the full trust between consum-ers and e-commerce companies, evena country with widespread credit carduse cannot facilitate the growth of e-commerce.2.Cheap and fixed price of unlimited useof local telephone line for data com-munication: Unlike the US, the SouthEM – Electronic Markets18way everyday. We can offer you a free trial of one month and then you can de-cide.”Then the customer decided to get a free trial of one month. Here is another exam-ple of negotiation which happened through e-mail.Prospective customer’s e-mail: ”Can I pay at the end of the month rather than be-ginning of the month?”The firm’s answer e-mail: ”Yes, but how do we get confidence in your promise to pay later?”Prospective customer’s e-mail: ”Then how do I get confidence in quality, not to men-tion the continuation of your service throughout the month?”The firm’s answer e-mail: ”OK, we will accept your offer; you can pay at the end of the month. But in case you won’t pay in time, we will pursue this matter in court.”Prospective customer’s e-mail: ”Well, thanks, but I will also pursue this matter in court if your service lacks the quality that you initially promised and in case you stop sending English news service in the middle of the month.”The firm’s answer e-mail: ”It seems that we have no confidence in each other’s behavior. I tell you what, how about a free trial subscription for the first month?”Then the customer decided to get a free trial of one month. After a free trial month, the customer who demanded one-item for less payment decided not to subscribe anymore. On the other hand, the customer who demanded the end-of-month pay-ment decided to sign on according to the firm’s conditions which is paying first for the subscription month. The firm had to give out a free trial month and then lost lots of free customers and ended up with about 1,000 customers paying according to the firm’s conditions which is paying-at-the beginning of the month.As we can see from this e-negotiation, negotiating here does not only involve price but also terms of subscription methodaccording to the old theory (Daft andLengel, 1986), when a medium can con-vey more information, the medium is con-sidered to be information rich. Thus face-to-face communication is the richermedium than e-mail communication sinceface-to-face communication can conveymore information besides just messagessuch as gestures and tone of voice. How-ever, according to the new theory (Markus,1994), E-mail turns out to be a very richinformation medium by analyzing the em-pirical evidences in workplaces. Lookingat the negotiation through e-mail episode,we prove that the new theory on infor-mation richness is correct; people can bebolder when they negotiate through e-mail. In other words, if the service is web-based, it is very unlikely to attract peoplewho try to negotiate everything from priceto the subscription method. The Web canprovide a structured contract space; peo-ple fill out their names and addresses andchoose the type of service and payment,but it does not allow the two-way com-munication for negotiation. Thus we pro-pose that e-mail should be used in e-com-merce negotiation with the help of theIntelligent Negotiation Support System. Inreality, it is impossible to negotiate throughe-mail with several thousand or more peo-ple. Thus this process has to be automated.We propose here that the Intelligent NSSwhich understands natural language andutilizes case-based reasoning can replacea human being.Contract through E-mailConsumers can make a contract in websites or in e-mails. In both cases, it is noteasy to maintain the integrity of the con-tract. The core of the problem is the lackof trust between two relevant parties. Thusthere is a need to establish an institutionthat can verify and validate the contract,and ensure the identity of buyers and sell-ers. The idea of a third-party registry hasalready been discussed (Zovickian andBrundage, 1998) and has been practisedpartially in Japan (Yasuda, 1997). In theJapanese e-commerce system, there is aninstitution called Certification Authoritywhich issues a digital certificate that veri-Liu, Z. ”China’s InformationSuper Highway: Its Goal, Architectureand Problems“, Electronic Markets (7:4),1997, pp. 45-50.Markus, M.L. ”Electronic Mail as theMedium of Managerial Choice“, Organi-zation Science (5:4), 1994, pp. 502-527.Rao, M. ”Ad Convention: Indian Adver-tising Agencies Urged to HarnessInternet Technologies“, ElectronicMarkets (8:1), 1998, pp. 48-49.Runge, A. ”The Need for SupportingElectronic Commerce Transactions withElectronic Contracting System“,Electronic Markets (8:1), 1998,pp. 16-19.Westland, J.C., Kwok, M., Shu, J.,Kwok, T., and Ho, H. ”Electronic Cashin Hon Kong“, Electronic Markets (7:2),1997, pp. 3-6.Wildhaber, B. ”Electronic Markets andSecurity Requirements – The LegalBasis“, Electronic Markets (11),April 1994, pp. 8-9.Wong, P.K. ”Assessment of ElectronicCommerce Developments in Singapore“,Electronic Markets (7:3), 1997,pp. 43-45.Yasuda, M. ”Certification AuthorityGuidelines in Japan“, Electronic Markets(7:2), 1997, pp. 29-30.Zovickian, S.A. and Brundage, R.A.”Enforcing The Electronic Contract“,World Wide Web, http:///comm/emforce.htm, 1998.and period. In other words, unlike e-auc-tion systems which allow the negotiatingof the price only, the usual negotiationshould involve all kinds of secondary itemswhich make the whole procedure verycomplex (Runge, 1998). This episodeshows that the very complex negotiationcan be done through E-mail, which vali-dates the recent theories on informationrichness according to the medium. Namely,19Vol. 8 – No. 3 – 1998fies the identity of business parties in e-commerce. Digital certification fosters trust between buyers and sellers. Thus this proves that building a third party registry is necessary to solve the most serious prob-lem that South Korean e-commerce faces which is lack of trust.Who will be the third party registry, the government or private industry? The CA in Japan is established by the Japanese government. And even in US, EFT (Elec-tronic Fund Transfer) which is a method for transferring money automatically by computer during e-commerce transactions is run by the Automated Clearing House which is closely associated with the Fed-eral Reserve Bank of US (Lieberman, 1997). Thus we propose that the third party reg-istry should be the government, especially for South Korea where a few conglomer-ates take up most of businesses. In South Korea, people’s trust in those big busi-nesses is much lower than in the govern-ment particularly since the economic tur-moil of 1997. When the most importantthing while doing e-commerce is trust, thegovernment of South Korea is more trust-able than private industry. Thus in SouthKorea where the whole IT infrastructurebuilding was a government project, itwould be more beneficial to have a gov-ernment agency that functions as the thirdparty registry of all e-contracts incyberspace in Korea.ConclusionElectronic negotiation through e-mailproves that e-mail can be an informationrich medium through which people cannegotiate not just price but other complexitems such as subscription terms. Elec-tronic negotiation can be automated byimplementing the Intelligent NSS whichunderstands e-mail messages and negoti-ate with the customer using case-basedreasoning.Electronic contract through e-mail andweb sites needs a third party registry whichcan verify and confirm the contract. Butin a country such as South Korea wherethe national IT infrastructure is not as welldeveloped as in developed countries suchas the US, an organization like the elec-tronic contract registry should be a non-profit agency of the government. As na-tional IT infrastructure projects weregovernment-driven, this project of nation-wide e-contract registry business shouldbe government-led; private businesseswould not be trusted by the e-commerceparticipants which is due to the Confu-cian cultural aspect of respecting govern-ment than private businesses in Korea es-pecially since the economic failure of 1997.Electronic Contracting in OnlineStock Tradingby Subhasish Dasgupta, Fairleigh Dickinson University, New Jersey, USA*IntroductionThe World Wide Web has grown at anamazing speed, and along with it hasgrown electronic commerce and transac-tions on the Internet. Approximately 2.7billion dollars worth of transactions tookplace over the Internet in 1997, and thenumber is expected to climb to 5 billiondollars in 1998 (Guay, 1998). This phe-nomenal increase in electronic commercehas not been restricted to any particularindustry. And this buying trend has af-fected both products and services. Peopleare buying products from web shoppingmalls, travel services from Internet-basedtravel agencies, and financial services frombanks and brokerage houses. One suchservice which has experienced unprec-edented growth in the USA is online stocktrading. In fact, more people trade securi-ties than purchase books, CDs or any otherproduct online.1991). According to Runge (1998), elec-tronic contracting comprises of two ac-tivities. The first, involves electronic agree-ment or contract negotiations. The second activity is the signing of contracts, which have been previously negotiated or ex-changed electronically. In this paper we look at electronic contracting in the present model for online stock trading in the USA. We also investigate the various issues critical to the continued success of the industry.Electronic Contracting in OnlineStock Trading SystemsIn the traditional method of stock trad-ing, investors call broker for advice and placement of orders. The cost for a trade is generally a minimum amount plus a per-centage of the total value of the transac-tion. One brokerage firm, Charles Schwab, introduced a business model that allowed investors (and brokers) to place their trades using a virtual private network for trading. Online trading systems allow investors to place their trades on the World Wide Web. Brokerage houses have set up web sites which handle all aspects of the transaction.The online brokerages are in the midst ofexpansion. The daily average of onlinetrades in the last quarter of 1997 was153,000. The majority of trades involvedstocks not funds. In the first few monthsof 1998, 4.6 million individuals tradedstocks online – an increase of over 150%in the last six months of 1997 alone. Bythe year 2002, more than 20% of Ameri-can households are expected to invest elec-tronically. Online trades accounted for 17%of total retail trades in 1997; this figure willapproach 30% in 1998 (Dreyfuss 1998).In this paper we evaluate the role of elec-tronic contracting in US online brokerages.Electronic Contracting involves the ex-change of messages between buyers andsellers, structured according to a prear-ranged format so that the contents aremachine processible and automaticallygive rise to contractual obligations (BaumEM – Electronic Markets20。