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  • Chap04

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