15.1 © 2004 by prentice hall managinginternationalinformationsystems

15.1 © 2004 by Prentice Hall

MANAGINGMANAGING

INTERNATIONALINTERNATIONAL

INFORMATIONINFORMATION

SYSTEMSSYSTEMS


• How can information systems support the How can information systems support the various international business strategies?various international business strategies?

• What issues should managers address What issues should managers address when developing international information when developing international information systems?systems?

• What technical alternatives are available What technical alternatives are available for developing global systems?for developing global systems?

• Define and classify global information Define and classify global information systemssystems

• Present the major issues surrounding Present the major issues surrounding global information systemsglobal information systems

OBJECTIVES


• Lines of business and global Lines of business and global strategy.strategy.

• The difficulties of managing The difficulties of managing change in a multicultural change in a multicultural environment.environment.

• Complexity of building Global Complexity of building Global systems which are IOS (Inter-systems which are IOS (Inter-organizational Systems)organizational Systems)

MANAGEMENT CHALLENGES


1.1. Major dimensions for developing an Major dimensions for developing an international I.S. architecture.international I.S. architecture.

2.2. Global business driversGlobal business drivers..3.3. Global business challenges.Global business challenges.4.4. Basic strategies for global firm’s Basic strategies for global firm’s

organization structure.organization structure.5.5. Global I.S. configuration to fit the Global I.S. configuration to fit the

strategy.strategy.

MANAGING INTERNATIONAL INFORMATION SYSTEMS

TOPICS TO BE DISCUSSED


6.6. Management challenges in developing Management challenges in developing global I.S.global I.S.

7.7. Global I.S. development strategy.Global I.S. development strategy.

8.8. Technology challenges of global Technology challenges of global information systems.information systems.

9.9. Management Management challengeschallenges in in creating creating organizational and technology organizational and technology infrastructureinfrastructure for conducting global for conducting global business and business and solution guidelinessolution guidelines..

MANAGING INTERNATIONAL INFORMATION SYSTEMS

TOPICS TO BE DISCUSSED (CONTD.)

15.6 © 2004 by Prentice HallFigure 15-1

Technology Platform

Organization Structure

Corporate Global Strategies

Management and BusinessProcesses

Global Environment:Business Drivers and Challenges

International Information Systems Architecture

MAJOR DIMENSIONS FOR DEVELOPING AN INTERNATIONAL INFORMATION SYSTEMS ARCHITECTURE


Business DriverBusiness Driver : A force in the : A force in the environment :environment :

- to which business must- to which business must

respond.respond.

- that influences the direction - that influences the direction ofof

the business.the business.

GLOBAL BUSINESS DRIVERS


GENERAL CULTURAL FACTORSGENERAL CULTURAL FACTORS

• Global communication and Global communication and transportation technologies.transportation technologies.

• Development of global culture.Development of global culture.

• Emergence of global social Emergence of global social norms.norms.

• Political stability.Political stability.

• Global knowledge base. Global knowledge base.



SPECIFIC BUSINESS FACTORSSPECIFIC BUSINESS FACTORS

• Global markets.Global markets.

• Global production and Global production and operations.operations.

• Global coordination.Global coordination.

• Global workforce.Global workforce.

• Global economies of scale.Global economies of scale.



1.1. ParticularismParticularism ( Judgements/ actions on ( Judgements/ actions on the basis of narrow characteristics) : the basis of narrow characteristics) :

- - Religious,Religious,

- Nationalistic,- Nationalistic,

- Ethnic,- Ethnic,

- Regionalism,- Regionalism,

- Geopolitical,- Geopolitical,

2.2. Prohibition of trans-border data flow.Prohibition of trans-border data flow.

contd.contd.

GLOBAL BUSINESS CHALLENGES

(NEGATIVE FACTORS)


3.3. National laws and traditions.National laws and traditions.

4.4. Cultural and political Cultural and political differences.differences.

5.5. Accounting practices,Accounting practices,

6.6. Language,Language,

7.7. Currency fluctuationsCurrency fluctuations

GLOBAL BUSINESS CHALLENGES

(NEGATIVE FACTORS) (contd.)


FOUR BASIC INTERNATIONAL STRATEGIES FOUR BASIC INTERNATIONAL STRATEGIES FORMING THE BASIS FOR GLOBAL FIRM’S FORMING THE BASIS FOR GLOBAL FIRM’S

ORGANIZATION STRUCTUREORGANIZATION STRUCTUREBUSINESSBUSINESS STRATEGIES

FUNCTION

DOMESTIC

EXPORTER

MULTI-

NATIONAL

FRANCHISER TRANS-

NATIONALPRODUCTION

FINANCE /

ACCOUNTINGSALES/

MARKETINGHUMAN

RESOURCESTRATEGIC

MANAGEMENT

CENT.

CENT.

MIXED

CENT.

CENT.

DISP.

CENT.

DISP.

CENT.

CENT.

COORD.

CENT.

COORD.

COORD.

CENT.

COORD.

COORD.

COORD.

COORD.

COORD.

CENT. – CENTRALISED, COORD. - COORDINATED

DISP. - DISPERSED (DECENTRALISED)


1.1. Centralized SystemsCentralized Systems : System development and : System development and operation at domestic home base. operation at domestic home base. (DOMESTIC EXPORTER)(DOMESTIC EXPORTER)

2.2. Decentralized SystemsDecentralized Systems : Each foreign unit : Each foreign unit designs its unique solutions and systems. designs its unique solutions and systems. ( MULTINATIONAL)( MULTINATIONAL)

3.3. Duplicated SystemsDuplicated Systems : :

- Development at home base,- Development at home base,

- Operations handed over to autonomous units - Operations handed over to autonomous units in foreign locations. in foreign locations. (FRANCHISER)(FRANCHISER)

4.4. Networked SystemsNetworked Systems : Systems development : Systems development and operations are coordinated across all units. and operations are coordinated across all units.

(TRANSNATIONAL)(TRANSNATIONAL)

GLOBAL I.S. CONFIGURATION

TO FIT THE STRATEGY


1.1. Agreeing on common User Agreeing on common User requirements.requirements.

2.2. Introducing changes in business Introducing changes in business processes.processes.

3.3. Coordinating applications development.Coordinating applications development.

4.4. Coordinating software releases.Coordinating software releases.

5.5. Encouraging local users to support Encouraging local users to support global systems.global systems.

MANAGEMENT CHALLENGES IN

DEVELOPING GLOBAL INFORMATION SYSTEMS

( USUAL PROBLEMS – BECOME HIGHLY COMPLICATED IN GLOBAL

SYSTEMS)


1.1. Only core systems to be coordinated centrallyOnly core systems to be coordinated centrally. . ( (Core FunctionsCore Functions : Critical to organization :- : Critical to organization :-

- - Define core business processes.Define core business processes.

- Identify core systems to be coordinated centrally)- Identify core systems to be coordinated centrally)

2.2. Choose an Approach:Choose an Approach:

- - Avoid peace meal approach.Avoid peace meal approach.

- Avoid grand-design approach (trying to do - Avoid grand-design approach (trying to do everything at once)everything at once)

- Use Evolutionary Approach : - Use Evolutionary Approach : Evolve transnational Evolve transnational applications from existing applications with clear applications from existing applications with clear vision for next 5 years.vision for next 5 years.

3.3. Make Benefits Clear to :Make Benefits Clear to :

- Senior managers at HQ- Senior managers at HQ

- Foreign divisional managers- Foreign divisional managers

GLOBAL I.S. DEVELOPMENT STRATEGY


Figure 15-3

GLOBAL I.S. DEVELOPMENT STRATEGY


1.1. Computing platforms and system integration.Computing platforms and system integration.

2.2. Connectivity through networks :Connectivity through networks :

- Networking standards,- Networking standards, - EDI,- EDI, - VPN,- VPN,

3.3. Software : Problems :-Software : Problems :-

(a)(a) GUIGUI (b) Common language,(b) Common language,

(c) Important software applications :(c) Important software applications :

- Global Supply Chain Management,- Global Supply Chain Management,

- Enterprise Systems,- Enterprise Systems,

(d) Hidden costs of offshore software outsourcing :-(d) Hidden costs of offshore software outsourcing :-

- Contract cost,- Contract cost, - Vendor selection cost, - Vendor selection cost,

- Knowledge transfer cost, - Domestic human resource - Knowledge transfer cost, - Domestic human resource cost,cost,

- Cost of coordination with vendor,- Cost of coordination with vendor,

- Cost of adjusting to cultural differences,- Cost of adjusting to cultural differences,

- Cost of managing contract.- Cost of managing contract.

TECHNOLOGY CHALLENGES OF GLOBAL INFORMATION SYSTEMS


MANAGEMENT CHALLENGES IN CREATING ORGANIZATIONAL & TECHNOLOGY INFRASTRUCTURE FOR CONDUCTING

GLOBAL BUSINESSChallenges :Challenges :

1.1. Finding the right global Finding the right global business,business,

2.2. Difficulties of managing change Difficulties of managing change in a multicultural firm.in a multicultural firm.

3.3. Difficulties of achieving global Difficulties of achieving global connectivity and integration.connectivity and integration.


Solution Guidelines:1. Agree on common user requirements (core business processes

and common language).

2. Introduce changes in business processes : Success will depend on LEGITIMACY and CHANGE STRATEGY (convincing on benefits)

3. Coordinate applications development (follow evolutionary change strategy).

4. Coordinate software releases.

5. Encourage local users to support global systems :

- Involve users in design creation,

- Deal with resistant local units by COOPTATION.

- Avoid raw power (forced acceptance)

MANAGEMENT CHALLENGES IN CREATING ORGANIZATIONAL & TECHNOLOGY INFRASTRUCTURE FOR CONDUCTING

GLOBAL BUSINESS


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