Chapter 13 THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Developing an International Information Systems Architecture The Global Environment: Business Drivers and Challenges ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Global Strategies and Business Organization Global Systems to Fit the Strategy Reorganizing the Business MANAGING GLOBAL SYSTEMS A Typical Scenario: Disorganization on a Global Scale Global Systems Strategy The Management Solution TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Technology Challenges of Global Systems Managing Global Software Development Roadmap

LEARNING OBJECTIVES Identify the major factors driving the internationalization of business. Compare strategies for developing global businesses. Demonstrate how information systems can support different global business strategies. Identify the challenges posed by global information systems and management solutions. Evaluate the issues and technical alternatives to be considered when developing international information systems.

MANAGEMENT CHALLENGES GROWTH OF INTERNATIONAL INFO SYSTEMS ORGANIZING INTERNATIONAL INFO SYSTEMS MANAGING GLOBAL SYSTEMS TECHNOLOGY ISSUES & OPPORTUNITIES

INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE An international information systems architecture consists of basic information systems required by organizations to coordinate worldwide trade and other tasks A business driver is an environmental force to which businesses must respond and that influence a business’s direction

INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE

GLOBAL BUSINESS DRIVERS General Cultural Factors: GLOBAL COMMUNICATION & TRANSPORTATION TECHNOLOGIES DEVELOPMENT OF GLOBAL CULTURE EMERGENCE OF GLOBAL NORMS POLITICAL STABILITY GLOBAL KNOWLEDGE BASE

GLOBAL BUSINESS DRIVERS Specific Business Factors: GLOBAL MARKETS GLOBAL PRODUCTION & OPERATIONS GLOBAL COORDINATION GLOBAL WORK FORCE GLOBAL ECONOMIES OF SCALE

CHALLENGES & OBSTACLES TO GLOBAL BUSINESS SYSTEMS GENERAL: CULTURAL PARTICULARISM SOCIAL EXPECTATIONS POLITICAL LAWS SPECIFIC: TELECOMMUNICATION STANDARDS NETWORK RELIABILITY DATA TRANSFER SPEEDS SHORTAGE OF CONSULTANTS

GLOBAL STRATEGIES & BUSINESS ORGANIZATION DOMESTIC EXPORTER: Centralization in home country MULTINATIONAL: Central home base; decentralized production, sales, marketing in other countries FRANCHISER: Product created, initially produced in home country; relies heavily on local workers to produce, market in other countries

GLOBAL STRATEGIES & BUSINESS ORGANIZATION TRANSNATIONAL: Truly global firm; no national headquarters; value-added activities managed from global perspective; optimizes supply & demand, taking advantage of local competitive strengths

GLOBAL INFORMATION SYSTEMS CENTRALIZED: Domestic home base DUPLICATED: Copies of home system used in foreign locations DECENTRALIZED: Each unit has unique system NETWORKED: Integrated & coordinated at all locations

GLOBAL INFORMATION SYSTEMS CONFIGURATIONS

REORGANIZE THE BUSINESS ORGANIZE VALUE-ADDING ACTIVITIES FOR COMPARATIVE ADVANTAGE DEVELOP & OPERATE SYSTEMS AT EACH LEVEL: National; regional, international ESTABLISH SINGLE WORLD HEADQUARTERS: Have global chief information officer

Managing Global Systems

AGREE ON COMMON USER REQUIREMENTS INDUCE PROCEDURAL BUSINESS CHANGES COORDINATE APPLICATIONS DEVELOPMENT COORDINATE SOFTWARE RELEASES ENCOURAGE LOCAL USERS TO ACCEPT OWNERSHIP DEVELOPING GLOBAL SYSTEMS

STRATEGY: DIVIDE, CONQUER, APPEASE DEFINE CORE BUSINESS PROCESSES IDENTIFY CORE SYSTEMS TO COORDINATE CENTRALLY CHOOSE AN APPROACH: Incremental, grand design, evolutionary MAKE BENEFITS CLEAR

IMPLEMENTATION TACTICS CO-OPTATION: Bring opposition into process of designing, and implementing solution without giving up control over direction, nature of change TRANSNATIONAL CENTERS OF EXCELLENCE: Focus on specific business processes

MAIN TECHNICAL ISSUES HARDWARE & SOFTWARE INTEGRATION CONNECTIVITY SOFTWARE: Languages can be a barrier

So What? Lots of So What’s here Many variables, some not related directly to information systems Depends on corporate strategy and long-term goals Take a course in International Management, Marketing or HR