Reducing organizational boundaries as networked information system enables transactions to be exchanged electronically among different companies, hence reducing the cost of obtaining products and services from outside the firm. An inter-organizational system is a system that automates the flow of information across organizational boundaries and links a company to its customers, distributors or suppliers. 1.4 Systems concepts 1.4.1 What is a system It is a group of interrelated components working together towards a common goal by accepting inputs and producing outputs in an organized transformation process.