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Transcript

  • 1. Chapter 4
    • Computer Use in an International Marketplace
    MANAGEMENT INFORMATION SYSTEMS 8/E Raymond McLeod, Jr. and George Schell Copyright 2001 Prentice-Hall, Inc. 4-
  • 2. The Multinational Corporation (MNC)
    • Parent company and group of subsidiaries
    • Operates across
      • Products
      • Markets
      • Nations
      • Cultures
    4-
  • 3. Each Subsidiary Has Its Own
    • Geography
    • Goals
    • Policies
    • Procedures
    4-
  • 4. Special Need for Information Processing in an MNC
    • Influenced by internal and external conditions
    • Seeks to minimize environmental uncertainty
      • Uncertainty - Difference between information required and information possessed
    • Requires ‘good’ use of information technology to achieve desired performance
    4-
  • 5. Types of MNC Organizational Structure Classifications
    • Each structure requires its own information processor
    • Worldwide functional divisions
      • Organized along functional lines
      • Marketing in subsidiary reports to marketing in parent company
      • Strategic planning done at top executive level
      • Data that integrates operations does not exist at lower levels
    4-
  • 6. MNC Classifications (cont.)
    • International regions
      • International division separate from domestic division
    • Geographic regions
      • Each region responsible for its subsidiaries
      • No communication between regions
      • Communication coordinated by parent company
    4-
  • 7. MNC Classifications (cont.)
    • Worldwide product divisions
      • Product division responsible for operations worldwide
      • Helps recognize product specific needs
    4-
  • 8. Need for Coordination in an MNC
    • Greater need than domestic companies
    • Companies unable to gain strategic control of their worldwide operations and manage them in a globally coordinated manner will not succeed in the emerging international economy
    • Resources are widely distributed
    4-
  • 9. Need for Coordination in an MNC (cont.)
    • Improvements in information technology and methodology have made global coordination somewhat easier
    • Still, coordination is big challenge
    4-
  • 10. Advantages of Coordination in an MNC
    • Flexibility in responding to competitors
    • Ability to respond in one country to a change in another
    • Ability to keep abreast of market needs around the world
    • Ability to transfer knowledge between units in different countries
    4-
  • 11. Advantages of Coordination in an MNC (cont.)
    • Reduced overall costs of operation
    • Increased efficiency and effectiveness in meeting customer needs
    • Ability to achieve and maintain diversity in firm’s products, their production, and distribution
    4-
  • 12. Global Business Strategies
    • Multinational strategy
    • Global strategy
    • International strategy
    • Transnational strategy
    4- All use global information systems (GISs) in various ways
  • 13. Loose controls; strategic decisions remote HQ Financial reporting flows Multinational Strategy 4-
  • 14. HQ Tight controls; centrally driven strategy One-way flows, goods, information, and resources Global Strategy 4-
  • 15. Assets, responsibilities decentralized HQ International mentality Formal control systems International Strategy 4-
  • 16. Transnational Strategy 4- Complex controls; high coordination skills,coordinated strategic decision process Heavy flows; materials, people information, technology Distributed capabilities, resources and decision making HQ
  • 17. Global Business Drivers (GBD)
    • Joint resources
    • Flexible operations
    • Rationalized operations
    • Risk reduction
    • Global products
    • Scarce supplies
    • Corporate customers
    4-
  • 18. GBDs Cautions
    • All GBDs do not apply to all MCNs
    • Drivers have many influences
      • Industry
      • Country
      • Own characteristics
      • Business units within firm
    • Provide vehicle for mapping out SPIR
    4-
  • 19. Global Information Systems (GISs) Implementation Problems
    • Politically imposed constraints
      • Hardware purchases and imports
      • Data processing
      • Data communications
        • Transborder data flows (TDF)
          • Operational data
          • Personal data
          • Electronic funds transfer
          • Technical and scientific data
    4-
  • 20. Global Information Systems (GISs) Implementation Problems (cont.)
    • Technological problems
      • Unreliable power
      • Slow telecommunications
      • Software copyrights and blackmarket products
    • Lack of support from subsidiary managers
      • View corporate office as an ‘outsider’
      • Drag heels to improve local profitability
    4-
  • 21. GIS Implementation Strategies
    • Multinational strategy
      • Development teams derived from subsidiaries
    • Global strategy
      • Development teams derived from parent location
    4-
  • 22. GIC Implementation Strategies (cont.)
    • International
      • Development teams can travel from parent to subsidiaries
    • Transnational strategy
      • Development team includes members from both parent and subsidiaries
    4-
  • 23. Transnational Strategy
    • Link the GIS to business strategy
    • Define the information resources
    • Provide for data sharing
    • Consider the cultural environment
    Caution: the tasks and issues listed above are issues to be addressed, not steps to always be followed in strict sequence 4-
  • 24. Computing Around the World
    • Group Support Systems (GSS) in Africa
      • Top management influences
      • Computing literacy
      • Referent power
      • Oral communication preference
      • Satisfaction with use
    4-
  • 25. Group Support Systems (GSS)
    • Systems that typically support problem solvers meeting in groups settings
    • Also called group decision support systems (GDSS)
    • An expansion of the DSS area
    4-
  • 26. Factors Influencing Acceptance of GSS Endorsement by Top Management Satisfaction with Use Oral Communication Preference Referent Power Computer Literacy Acceptance of GSS + + + - - 4-
  • 27. Computing Around the World (cont.)
    • Strategic Decision Support System (SDS) in Switzerland
      • SDS helps managers understand business strategy and its implications
      • Tools and models
      • Cases
      • Tutorials
      • Applications
    4-
  • 28. International Computer Use in Perspective
    • Great deal of attention given to GIS in past few years
    • GIS built on solid foundation
    • Cultural differences can influence computer work
    • A better understanding of GIS is required
    4-
  • 29. Summary
    • MNC
      • Four organizational structures
      • Coordination is the key
      • Multitude of problems
    • GIS
      • Implementation strategies
      • Consider culture
    • U.S. is leader in computer use
    4-