Growth Of International Information Systems


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Growth Of International Information Systems

  1. 1. Growth of International Information Systems Introduction to CBIS Module 13(a)
  2. 2. Global IS <ul><li>The emergence of a global economic system through information systems </li></ul><ul><li>So, how do we build an international information systems architecture to suit an organizations international strategy? </li></ul>
  3. 4. Business Drivers
  4. 5. Business Challenges
  5. 6. Summary <ul><li>Growth of global information systems </li></ul><ul><li>Drivers of global systems </li></ul><ul><li>Evolution of an international information systems architecture. </li></ul>
  6. 7. Organizing International Information Systems Introduction to CBIS Module 13(b)
  7. 8. Issues Facing Organizations <ul><li>Three issues face organizations seeking a global position: </li></ul><ul><ul><li>Choosing a strategy </li></ul></ul><ul><ul><li>Organizing the business </li></ul></ul><ul><ul><li>Organizing the information systems management area </li></ul></ul>
  8. 9. Global Strategies <ul><li>Four main global strategies form the basis of organizational structure </li></ul><ul><ul><li>Domestic Exporter </li></ul></ul><ul><ul><li>Multinational </li></ul></ul><ul><ul><li>Franchiser </li></ul></ul><ul><ul><li>Transnational </li></ul></ul><ul><li>Strategies characterized by 3 organizational structures </li></ul>
  9. 10. Three Organizational Structures <ul><li>Centralized (in the home country) </li></ul><ul><li>Decentralized (to local foreign units) </li></ul><ul><li>Coordinated (all units participate as equals) </li></ul>
  10. 11. Global IS to Fit Strategy
  11. 12. Four IS Structures <ul><li>Centralized systems: Systems development and operation occur totally at the domestic home base </li></ul><ul><li>Duplicated systems: Development occurs at the home base but operations are handed over to autonomous units in foreign locations </li></ul>
  12. 13. Four IS Structures <ul><li>Decentralized systems: Each foreign unit designs its own unique solutions and systems </li></ul><ul><li>Networked systems: Systems development and operations occur in an integrated and coordinated fashion across all units </li></ul>
  13. 14. Developing a Global Company and a IS Support Structure <ul><li>Organize value-adding activities along lines of comparative advantage </li></ul><ul><li>Develop and operate systems units at each level of corporate activity —regional, national, and international </li></ul><ul><li>Establish at world headquarters </li></ul>
  14. 15. Summary <ul><li>Global strategy influence </li></ul><ul><ul><li>Structure of the organizations, which influence </li></ul></ul><ul><ul><ul><li>Structure of the IS, and </li></ul></ul></ul><ul><ul><ul><li>IS area management </li></ul></ul></ul><ul><li>Global organizational strategy and structure influence IS strategy and structure </li></ul>
  15. 16. Managing Global Systems Introduction to CBIS Module 13(c)
  16. 17. Management Challenges in Developing Global Systems
  17. 18. Global Systems Strategy
  18. 19. Global Systems Strategy <ul><li>Define the core business processes: Conduct workflow analysis, identify centers of excellence for these processes </li></ul><ul><li>Identify the core systems to coordinate centrally: Conquer the core systems and define these systems as truly transnational </li></ul><ul><li>Choose an approach: Incremental, Grand Design, Evolutionary </li></ul><ul><li>Make the Benefits Clear </li></ul>
  19. 20. Summary <ul><li>Management challenges in developing global IS </li></ul><ul><li>Global business strategy </li></ul>
  20. 21. Technology Issues and Opportunities for Global Information Systems Introduction to CBIS Module 13(d)
  21. 22. Technology Challenges <ul><li>Hardware, software, and networking challenges </li></ul><ul><li>Requires systems integration, connectivity, appropriate software development to overcome challenges </li></ul>
  22. 23. Systems Integration <ul><li>Develop global, distributed, and integrated systems to support digital business processes spanning national boundaries </li></ul><ul><li>Use of same hardware and operating system does not guarantee integration. </li></ul><ul><li>Establish data and technical standards </li></ul>
  23. 24. Connectivity <ul><li>Overcoming disparate national technical standards, data exchange restrictions and service levels is difficult </li></ul><ul><li>Use of Internet technology to create global intranets, extranets, virtual private networks (VPNs) </li></ul>
  24. 25. Challenges for Software Development <ul><li>Cost of new interface designs </li></ul><ul><li>Integrating new systems with old </li></ul><ul><li>User interface design </li></ul><ul><li>Differences in language and conventions </li></ul>
  25. 26. Managing Global Software Development <ul><li>Offshore software outsourcing </li></ul><ul><ul><li>Outsourcing portions of new systems like development work or maintenance of existing systems to external vendors in another country </li></ul></ul>
  26. 27. Managing Global Software Development <ul><li>Contract cost </li></ul><ul><li>Vendor selection costs </li></ul><ul><li>Transition management and knowledge transfer costs </li></ul><ul><li>Domestic human resources costs </li></ul><ul><li>Costs of improving software development processes </li></ul><ul><li>Costs of adjusting to cultural differences </li></ul><ul><li>Cost of managing an offshore contract </li></ul>
  27. 28. Summary <ul><li>Technology challenges </li></ul><ul><li>Global software development challenges </li></ul>