4. Improved inter organizational relationships. IT can also improve horizontal coordination and collaboration with external parties such as suppliers, customers, and partners. Exhibit 8.13 shows differences between traditional inter organizational relationship characteristics and emerging relationship characteristics. Traditionally, organizations had an arm’s-length relationship with suppliers. However, as we discussed in Chapter 5, suppliers are becoming closer partners, tied electronically to the organization for orders, invoices, and payments. Studies have shown that inter organizational information networks tend to heighten integration, blur organizational boundaries, and create shared strategic contingencies among firms. 8 0 One good example of inter organizational collaboration is the Pulse Net alliance, sponsored by the Centers for Disease Control and Prevention (CDC). The Pulse Net information network uses collaborative technology to help U.S. state and federal agencies anticipate, identify, and prevent food-borne disease outbreaks. Through more frequent communication and real-time information sharing, rich relationships among the various agencies have evolved. State health labs and the CDC once had infrequent contact but are now involved in joint strategic planning regarding the PulseNet project.