12-1 McGraw-Hill/Irwin


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  • 12-1 McGraw-Hill/Irwin

    1. 1. Business Driven Information Systems 2e CHAPTER 12 GLOBALIZATION, INNOVATION, AND 21 ST ORGANIZATIONAL TRENDS
    2. 2. GLOBALIZATION <ul><li>Traditional forms of business are simply not good enough in a global environment </li></ul><ul><li>Businesses are operating on a global playing field </li></ul><ul><li>The Internet is changing the way companies do business </li></ul>
    3. 4. GLOBALIZATION <ul><li>Challenges that must be confronted to succeed in a global business environment include: </li></ul><ul><ul><li>Cultural Business Challenges </li></ul></ul><ul><ul><li>Political Business Challenges </li></ul></ul><ul><ul><li>Geoeconomic (geographic and economic) Business Challenges </li></ul></ul>
    4. 5. Cultural Business Challenges <ul><li>Cultural business challenges include differences in… </li></ul><ul><ul><li>Languages </li></ul></ul><ul><ul><li>Cultural interests </li></ul></ul><ul><ul><li>Religions </li></ul></ul><ul><ul><li>Customs </li></ul></ul><ul><ul><li>Social attitudes </li></ul></ul><ul><ul><li>Political philosophies </li></ul></ul><ul><ul><li>Business practices </li></ul></ul><ul><ul><li>Work ethic </li></ul></ul><ul><ul><li>Currencies </li></ul></ul>
    5. 6. Political Business Challenges <ul><li>Political business challenges include: </li></ul><ul><ul><li>Numerous rules and regulations surrounding data transfers across national boundaries (especially personal information) </li></ul></ul><ul><ul><li>Tax implications </li></ul></ul><ul><ul><li>Hardware and software importing and exporting </li></ul></ul><ul><ul><li>Trade agreements </li></ul></ul><ul><ul><li>Differences in laws such as privacy, security </li></ul></ul>
    6. 7. Geoeconomic Business Challenges <ul><li>Geoeconomic - refers to the effects of geography on the economic realities of international business activities </li></ul><ul><ul><li>Distances </li></ul></ul><ul><ul><li>Time zone differences </li></ul></ul><ul><ul><li>Skilled labor supply & cost of labor </li></ul></ul><ul><ul><li>Cost of living </li></ul></ul><ul><ul><li>Infrastructure issues </li></ul></ul>
    7. 8. Global Business Challenges <ul><li>Key questions to ask when creating a global website: </li></ul><ul><ul><li>Will the site require new navigational logic to accommodate cultural preferences? </li></ul></ul><ul><ul><li>Will content be translated? </li></ul></ul><ul><ul><ul><li>If so, into how many languages? </li></ul></ul></ul><ul><ul><li>Will multilingual efforts be included in the main site or will it be a separate site - with a country-specific domain? </li></ul></ul>
    8. 9. Cultural Business Challenges <ul><li>More key questions: </li></ul><ul><ul><li>Which country will the server(s) be located in to support local user needs? </li></ul></ul><ul><ul><li>What legal ramifications might occur by having the website targeted at a particular country, such as laws on competitive behaviors, treatment of children, or privacy? </li></ul></ul>
    9. 10. Global Business Challenges <ul><li>McDonald’s Web Sites … </li></ul><ul><li>http://www.mcdonalds.com </li></ul><ul><li>http://www.meencanta.com </li></ul><ul><li>http://www.myinspirasian.com/ </li></ul><ul><li>http://www.mcdonalds.com.mx </li></ul>
    10. 11. Global IT Business Areas Four Global IT Business Management Areas
    11. 12. GLOBAL IT BUSINESS STRATEGIES <ul><li>Global IT business strategies must include detailed information on the application of information technology across the organization </li></ul><ul><li>IT systems depend on global business drivers such as… </li></ul><ul><ul><li>The nature of the industry </li></ul></ul><ul><ul><li>Competitive factors </li></ul></ul><ul><ul><li>Environmental forces </li></ul></ul>
    12. 13. GLOBAL IT BUSINESS STRATEGIES <ul><li>Global IT Business Drivers </li></ul>
    13. 14. GLOBAL IT BUSINESS STRATEGIES <ul><li>Fast-growing key areas for all global business strategies include governance and compliance : </li></ul><ul><ul><li>Governance - is a method or system of government for management or control </li></ul></ul><ul><ul><li>Compliance - is the act of conforming, acquiescing, or yielding </li></ul></ul>
    14. 15. GLOBAL IT BUSINESS STRATEGIES <ul><li>Organizations today are subject to many regulations governing: </li></ul><ul><ul><ul><li>Data retention </li></ul></ul></ul><ul><ul><ul><li>Confidential information </li></ul></ul></ul><ul><ul><ul><li>Financial accountability </li></ul></ul></ul><ul><ul><ul><li>Recovery from disasters </li></ul></ul></ul><ul><li>By instituting IT governance, firms have the internal guidelines and controls they need to comply (compliance) with these regulations </li></ul>
    15. 16. GLOBAL ENTERPRISE ARCHITECTURES <ul><li>Enterprise architecture - includes the plans for how an organization will build, deploy, use, and share its data, processes, and IT assets </li></ul><ul><li>An organization must manage its global enterprise architecture to support its global business operations </li></ul>
    16. 17. GLOBAL ENTERPRISE ARCHITECTURES <ul><li>Issues in global enterprise architecture design: </li></ul><ul><ul><li>Improving efficiency of global networks </li></ul></ul><ul><ul><li>managing global network infrastructures </li></ul></ul><ul><ul><li>Dealing with differences in networks & integrating global technologies </li></ul></ul><ul><ul><li>Controlling data communication security </li></ul></ul><ul><ul><li>Dealing with transborder data flow restrictions </li></ul></ul><ul><ul><li>Understanding & complying with international telecommunications regulations </li></ul></ul><ul><ul><li>Complying with international tariff structures </li></ul></ul>
    17. 18. GLOBAL INFORMATION ISSUES <ul><li>Key global information issues include: </li></ul><ul><ul><li>Information Security </li></ul></ul><ul><ul><li>Information Privacy </li></ul></ul>
    18. 19. GLOBAL INFORMATION ISSUES: Security <ul><li>Businesses must have the appropriate levels of authentication, access control, and encryption in place, to ensure… </li></ul><ul><ul><li>That only authorized individuals can gain access to the network </li></ul></ul><ul><ul><li>That they have access to only those applications for which they are entitled </li></ul></ul><ul><ul><li>That information cannot be understood or altered while in transit </li></ul></ul>
    19. 20. GLOBAL INFORMATION ISSUES: Security <ul><li>Deperimeterization - occurs when an organization moves employees outside its firewall, a growing movement to change the way corporations address technology security </li></ul><ul><li>Companies should focus on beefing up security in end-user devices and an organization's critical information assets </li></ul>
    20. 21. GLOBAL INFORMATION ISSUES: Privacy <ul><li>Information privacy - concerns the legal right or general expectation of individuals, groups, or institutions to determine for themselves, when, and to what extent, information about them is communicated to others </li></ul><ul><li>Information privacy is about how personal information is collected and shared </li></ul>
    21. 22. GLOBAL INFORMATION ISSUES: Privacy <ul><li>Transborder data flows (TDF) occur when business data flows across international boundaries over the telecommunications networks of global information systems </li></ul><ul><li>Many countries view TDF as violating their national sovereignty </li></ul>
    22. 23. GLOBAL INFORMATION ISSUES: Europe <ul><li>European Union members have: </li></ul><ul><ul><li>The right to know the source of personal data processing and the purposes of such processing </li></ul></ul><ul><ul><li>The right to access and or/correct inaccuracies in one’s own personal data </li></ul></ul><ul><ul><li>The right to disallow the use of personal data </li></ul></ul>
    23. 24. GLOBAL INFORMATION ISSUES: Europe <ul><li>Any organization processing personal data of a person living in the EU must comply with key principles: </li></ul><ul><ul><li>Fairly and lawfully processed </li></ul></ul><ul><ul><li>Processed for limited purposes </li></ul></ul><ul><ul><li>Adequate, relevant, and not excessive </li></ul></ul><ul><ul><li>Accurate </li></ul></ul><ul><ul><li>Not kept longer than necessary </li></ul></ul><ul><ul><li>Processed in accordance with the data subject’s rights </li></ul></ul><ul><ul><li>Not transferred to countries without adequate protection </li></ul></ul>
    24. 25. GLOBAL INFORMATION ISSUES: United States <ul><li>Information privacy is not highly legislated or regulated </li></ul><ul><li>There is no all-encompassing law that regulates the use of personal data or information </li></ul><ul><li>Access to public information is considered culturally acceptable, such as obtaining credit reports for employment or housing purposes </li></ul>
    25. 26. GLOBAL INFORMATION ISSUES: Privacy <ul><li>US – EU data privacy requirements </li></ul>
    26. 27. GLOBAL SYSTEMS DEVELOPMENT <ul><li>Global information systems must support a diverse base of customers, users, products, languages, currencies, laws, cultures, technology platforms, etc. </li></ul><ul><li>One of the most important challenges is the global standardization of data definitions </li></ul>
    27. 28. GLOBAL SYSTEMS DEVELOPMENT <ul><li>Organizations can use several strategies to solve problems in global information systems development: </li></ul><ul><ul><li>Transform and customize an information system into a global application </li></ul></ul><ul><ul><li>Set up a multinational development team </li></ul></ul><ul><ul><li>Use centers of excellence </li></ul></ul><ul><ul><li>Outsource the development work </li></ul></ul>
    28. 29. Integrating Global Systems <ul><li>The IT industry is one of the most dynamic in the global economy </li></ul><ul><li>The integration of business and technology has allowed organizations to… </li></ul><ul><ul><li>Increase their share of the global economy </li></ul></ul><ul><ul><li>Transform the way they conduct business </li></ul></ul><ul><ul><li>Become more efficient and effective </li></ul></ul>
    29. 30. 21ST CENTURY ORGANIZATION TRENDS <ul><li>In the next decade, the relentless march of computer power and Internet connection speeds will bring more profound changes to work than anything seen so far </li></ul><ul><li>Organizations that want to survive must learn to identify and embrace these technological changes and learn to operate in entirely different ways </li></ul>
    30. 31. 21ST CENTURY ORGANIZATION TRENDS <ul><li>The primary changes and challenges organizations are focusing on in the 21 st century include: </li></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Social entrepreneurship: going green </li></ul></ul><ul><ul><li>Organizational Social Networking </li></ul></ul><ul><ul><li>It’s a whole new virtual world </li></ul></ul>
    31. 32. INNOVATION <ul><li>Innovation is the introduction of new equipment or methods </li></ul><ul><ul><li>Driven by the need to cut costs while creating a competitive advantage </li></ul></ul><ul><ul><li>Find ways to test and push current performance </li></ul></ul><ul><ul><li>Attract motivated groups of employees </li></ul></ul><ul><ul><li>Reward risk takers </li></ul></ul><ul><ul><li>Celebrate diversity/different cultures/different disciplines </li></ul></ul><ul><ul><li>Encourage practitioner/developer collaboration </li></ul></ul>
    32. 33. SOCIAL ENTREPRENEURSHIP: GOING GREEN <ul><li>Social responsibility - implies that an entity has a responsibility to society </li></ul><ul><ul><li>Corporate policy – is a dimension of social responsibility that refers to the position a firm takes on social and political issues </li></ul></ul><ul><ul><li>Corporate responsibility – is a dimension of social responsibility that includes everything from hiring minority workers to making safe products </li></ul></ul>
    33. 34. SOCIAL ENTREPRENEURSHIP: GOING GREEN <ul><li>Sustainable , or &quot;green,&quot; IT - describes the manufacture, management, use, and disposal of information technology in a way that minimizes damage to the environment </li></ul><ul><li>Several issues: </li></ul><ul><ul><li>Energy consumption </li></ul></ul><ul><ul><li>Recycling IT equipment </li></ul></ul><ul><ul><li>Greener IT </li></ul></ul>
    34. 35. SOCIAL ENTREPRENEURSHIP: GOING GREEN <ul><li>Energy Consumption </li></ul><ul><ul><li>Green energy practices </li></ul></ul><ul><ul><li>Energy rebate programs </li></ul></ul><ul><ul><li>Smart cooling </li></ul></ul><ul><ul><li>Alternative energy sources </li></ul></ul><ul><li>Recycling IT equipment </li></ul><ul><ul><li>Sustainable IT disposal – refers to the safe disposal of IT assets </li></ul></ul><ul><ul><li>E-waste – old computer equipment </li></ul></ul><ul><li>Greener IT – additional ways to save energy in the data center & other facilities </li></ul>
    35. 36. Organizational Social Networking
    36. 37. Passive Search <ul><li>Finding so-called passive candidates - people who are happy and productive working for other companies </li></ul><ul><li>Hiring people as a result of connections through LinkedIn and others </li></ul><ul><li>LinkedIn has 6.7 million members, is a virtual Rolodex </li></ul>
    37. 38. Boomerangs <ul><li>Use social networking to lure back selected former employees, or so-called boomerangs </li></ul><ul><li>Boomerangs cost less to train than new hires and they tend to hit the ground running </li></ul><ul><li>As the labor market tightens, “alumni” become an increasingly attractive source of talent </li></ul>
    38. 39. Marketing Networks <ul><li>Business-oriented networks are increasingly useful in sales and marketing to help executives find employees as well as other resources </li></ul><ul><li>Social networks help forge community with, and among, would-be customers </li></ul>
    39. 40. IT’S A WHOLE NEW VIRTUAL WORLD <ul><li>Two primary types of “virtual” that must be considered when looking at the 21 st century world: </li></ul><ul><ul><li>Virtual worlds </li></ul></ul><ul><ul><li>Virtual workforces </li></ul></ul>
    40. 41. Virtual Worlds <ul><li>As the virtual world grows, it will become more attractive to companies that want to send a multimedia message </li></ul><ul><li>Example: Second Life, the online realm where real people, under the guise of avatars, mill and mingle - in some cases, make a living </li></ul><ul><li>Adidas, Sun Microsystems, Toyota and others want to promote their products and ensure their brands are getting exposure amid young, techno-savvy consumers </li></ul>
    41. 42. Virtual Workforce <ul><li>Letting employees work from outside the office…telecommuting </li></ul><ul><ul><li>Keeps cars off the road </li></ul></ul><ul><ul><li>Helps a company to bolster its “green” image </li></ul></ul><ul><ul><li>Fosters employee retention </li></ul></ul><ul><ul><li>Boosts worker productivity </li></ul></ul><ul><ul><li>Slashes real estate costs </li></ul></ul>
    42. 43. Tools for the Virtual Workforce <ul><li>Mobile commerce (m-commerce) - the ability to purchase goods and services through a wireless Internet-enabled device </li></ul><ul><li>Telematics - blending computers and wireless telecommunications technologies </li></ul><ul><ul><li>Electronic tagging - a technique for identifying and tracking assets and individuals via technologies such as radio frequency identification and smart cards </li></ul></ul>