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International mis
International mis
International mis
International mis
International mis
International mis
International mis
International mis
International mis
International mis
International mis
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International mis
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International mis
International mis
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International mis
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International mis

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  • 1. Chapter 16 Managing International Information Systems16.1 © 2006 by Prentice Hall
  • 2. Management Information Systems Chapter 16 Managing International Information Systems 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 strategies16.2 © 2006 by Prentice Hall
  • 3. Management Information Systems Chapter 16 Managing International Information Systems OBJECTIVES (Continued) • Evaluate the issues and technical alternatives to be considered when developing international information systems • Identify the challenges posed by global information systems and management solutions16.3 © 2006 by Prentice Hall
  • 4. Management Information Systems Chapter 16 Managing International Information Systems Drager Safety AG Case • Challenge: Fulfill customer orders made to a network of forty subsidiaries in Europe, Asia, and North America whose systems could not share data with one another • Solutions: develop a single corporate database and use middleware with standard interfaces to connect all the subsidiary’s systems • Develop a single worldwide data model with standard definitions and codes • Illustrates the role of systems in an international environment for reducing inventory and business process costs worldwide.16.4 © 2006 by Prentice Hall
  • 5. Management Information Systems Chapter 16 Managing International Information Systems THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Global Product Development and Production16.5 Figure 16-1 © 2006 by Prentice Hall
  • 6. Management Information Systems Chapter 16 Managing International Information Systems THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Developing an International Information Systems Architecture International information systems architecture: • The basic information systems required by organizations to coordinate worldwide trade and other activities Business driver: • A force in the environment to which businesses must respond and that influences the direction of the business16.6 © 2006 by Prentice Hall
  • 7. Management Information Systems Chapter 16 Managing International Information Systems THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS International Information Systems Architecture16.7 Figure 16-2 © 2006 by Prentice Hall
  • 8. Management Information Systems Chapter 16 Managing International Information Systems THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS The Global Environment: Business Drivers and Challenges The global business drivers can be divided into two groups: General cultural factors: • Global communication and transportation technologies • Development of global culture Table 16-116.8 © 2006 by Prentice Hall
  • 9. Management Information Systems Chapter 16 Managing International Information Systems THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS General Cultural Factors: (Continued) • Emergence of global social norms • Political stability • Global knowledge base Table 16-1 (Continued)16.9 © 2006 by Prentice Hall
  • 10. Management Information Systems Chapter 16 Managing International Information Systems THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Specific business factors: • Global markets • Global production and operations • Global coordination • Global workforce • Global economies of scale Table 16-1 (Continued)16.10 © 2006 by Prentice Hall
  • 11. Management Information Systems Chapter 16 Managing International Information Systems THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Business Challenges General: • Cultural particularism: Regionalism, nationalism, language differences • Social expectations: Brand-name expectations, work hours • Political laws: Transborder data and privacy laws, commercial regulations Table 16-216.11 © 2006 by Prentice Hall
  • 12. Management Information Systems Chapter 16 Managing International Information Systems THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Specific: • Standards: Different Electronic Data Interchange (EDI), telecommunications standards • Reliability: Phone networks not uniformly reliable • Speed: Different data transfer speeds, many slower than United States • Personnel: Shortages of skilled consultants Table 16-2 (Continued)16.12 © 2006 by Prentice Hall
  • 13. Management Information Systems Chapter 16 Managing International Information Systems ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Global Strategies and Business Organization Three kinds of organizational structure: • Centralized (in the home country) • Decentralized (to local foreign units) • Coordinated (all units participate as equals)16.13 © 2006 by Prentice Hall
  • 14. Management Information Systems Chapter 16 Managing International Information Systems ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Domestic exporter strategy: • Heavy centralization of corporate activities in the home country of origin Multinational strategy: • Centralized financial management and control while decentralizing production, sales, and marketing operations to units in other countries16.14 © 2006 by Prentice Hall
  • 15. Management Information Systems Chapter 16 Managing International Information Systems ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Franchisers: • The product is financed and initially produced in the home country, but for product-specific reasons rely on foreign personnel for further production, marketing, and human resources. Transnational strategy: • The value-adding activities are managed from a global perspective without reference to national borders, optimizing sources of supply and demand wherever they appear, and taking advantage of any local competitive advantages.16.15 © 2006 by Prentice Hall
  • 16. Management Information Systems Chapter 16 Managing International Information Systems ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Global Systems to Fit the Strategy Global Strategy and Systems Configurations16.16 Figure 16-3 © 2006 by Prentice Hall
  • 17. Management Information Systems Chapter 16 Managing International Information Systems ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Four types of systems configuration: 1. Centralized systems: Systems development and operation occur totally at the domestic home base. 2. Duplicated systems: Development occurs at the home base but operations are handed over to autonomous units in foreign locations.16.17 © 2006 by Prentice Hall
  • 18. Management Information Systems Chapter 16 Managing International Information Systems ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Four types of systems configuration: (Continued) 3. Decentralized systems: Each foreign unit designs its own unique solutions and systems. 4. Networked systems: Systems development and operations occur in an integrated and coordinated fashion across all units.16.18 © 2006 by Prentice Hall
  • 19. Management Information Systems Chapter 16 Managing International Information Systems ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Reorganizing the Business To develop a global company and information systems support structure: • Organize value-adding activities along lines of comparative advantage • Develop and operate systems units at each level of corporate activity —regional, national, and international • Establish at world headquarters16.19 © 2006 by Prentice Hall
  • 20. Management Information Systems Chapter 16 Managing International Information Systems MANAGING GLOBAL SYSTEMS Management Challenges in Developing Global Systems • Agreeing on common user requirements • Introducing changes in business processes • Coordinating applications development • Coordinating software releases • Encouraging local users to support global systems Table 16-416.20 © 2006 by Prentice Hall
  • 21. Management Information Systems Chapter 16 Managing International Information Systems MANAGING GLOBAL SYSTEMS Global Systems Strategy • Define the core business processes: Conduct workflow analysis, identify centers of excellence for these processes • Identify the core systems to coordinate centrally: Conquer the core systems and define these systems as truly transnational • Choose an approach: Incremental, Grand Design, Evolutionary • Make the Benefits Clear16.21 © 2006 by Prentice Hall
  • 22. Management Information Systems Chapter 16 Managing International Information Systems MANAGING GLOBAL SYSTEMS Local, Regional, and Global Systems Source: Adapted from Managing Information Technology in Multinational Corporations by Edard M. roche, copyright 1993.16.22 Figure 16-4 © 2006 by Prentice Hall
  • 23. Management Information Systems Chapter 16 Managing International Information Systems TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Technology Challenges of Global Systems Computing platforms and systems integration: • Develop global, distributed, and integrated systems to support digital business processes spanning national boundaries • Use of same hardware and operating system does not guarantee integration. • Establish data and technical standards16.23 © 2006 by Prentice Hall
  • 24. Management Information Systems Chapter 16 Managing International Information Systems TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Technology Challenges of Global Systems (Continued) Connectivity: • Overcoming disparate national technical standards, data exchange restrictions and service levels • User of Internet technology to create global intranets, extranets, virtual private networks (VPNs)16.24 © 2006 by Prentice Hall
  • 25. Management Information Systems Chapter 16 Managing International Information Systems TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Internet Population in Selected Countries Sources: CIA World Factbook 2003; Computer Industry Almanac; and www.cia.gov, accessed November 9, 200416.25 Figure 16-5 © 2006 by Prentice Hall
  • 26. Management Information Systems Chapter 16 Managing International Information Systems TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Software: Unique challenges for application software: • Cost of new interface designs • Integrating new systems with old • User interface design • Differences in language and conventions16.26 © 2006 by Prentice Hall
  • 27. Management Information Systems Chapter 16 Managing International Information Systems TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Managing Global Software Development Offshore software outsourcing: • Outsourcing portions of new systems like development work or maintenance of existing systems to external vendors in another country16.27 © 2006 by Prentice Hall
  • 28. Management Information Systems Chapter 16 Managing International Information Systems TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Major cost components of offshore software development: • Contract cost • Vendor selection costs • Transition management and knowledge transfer costs • Domestic human resources costs16.28 © 2006 by Prentice Hall
  • 29. Management Information Systems Chapter 16 Managing International Information Systems TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Major cost components of offshore software development: (Continued) • Costs of improving software development processes • Costs of adjusting to cultural differences • Cost of managing an offshore contract16.29 © 2006 by Prentice Hall
  • 30. Management Information Systems Chapter 16 Managing International Information Systems TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Total Cost of Outsourcing16.30 Figure 16-6 © 2006 by Prentice Hall
  • 31. Management Information Systems Chapter 16 Managing International Information Systems MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Opportunities: Ability to lower costs through global scale economies by building international systems for producing and selling goods and services in different regions of the world16.31 © 2006 by Prentice Hall
  • 32. Management Information Systems Chapter 16 Managing International Information Systems MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Management Challenges: • Finding the right global business strategy • Difficulties of managing change in a multicultural firm • Difficulties of achieving global connectivity and integration16.32 © 2006 by Prentice Hall
  • 33. Management Information Systems Chapter 16 Managing International Information Systems MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS Solution Guidelines: • Agreeing on common user requirements • Introducing changes in business processes • Coordinating applications development • Coordinating software releases • Encouraging local users to support global systems16.33 © 2006 by Prentice Hall

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