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In order to manage and control organizational information flow effectively, information system (IS) is developed to operate a collection of data structured according to the needs of a company. The paper proposes a framework showing how the organizational IS affect the organizational supply chain activities. This paper also proposes an integrated approach toward organizational IS formulation and improvements. Through using IT, the role of organizational information system is hoped to facilitate organizational users to handle the business problems they face, develop competitive advantage and seek future business opportunities.