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Global Information
Systems
              3/6/2012
Why Global?
•   Businesses compete in a global market
•   Economies are closely integrated
•   Cheap, plentiful communications
•   New markets
•   Advantages of outsourcing
Outsourcing
• “Your back room is someone else’s front
  room” – Peter Drucker
Japan
China
India
Russia
Europe
Global Competitive
Environment
• Business intelligence
  – Research competition
  – Find suppliers
  – Target customers
• Greater competition
  – E-commerce
  – New market entrants
  – Market domination
• Processes
  – Logistics
  – Outsourcing
Global Information Systems
• Hardware -
  documentation
• Software – user
  interface
• Data – sharing
• People – language,
  relationships
• Procedures – values,
  expectations

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Global Information Systems

Editor's Notes

  1. Growth in world economy impacts all value chain activitiesBusiness processes now span the worldNeed to address differences:CultureLanguageEconomic environments
  2. Process of hiring another organization to perform servicesAny value chain business activity can be outsourcedVendor can be domestic or internationalOverseas outsourcing for:Cheaper laborTaking advantage of time differences“Your back room is someone else’s front room.” (Peter Drucker)Employee cafeteria is a back room operationOutsource it to food services company. It’s their front room operation.Acquisition and operation of computer hardwareMany companies outsource operations to EDSOutsource Web Farm Acquiring licensed softwareEntire information system Vendor provides hardware, software, data, some procedures for payroll functionPeopleSoft (ERP, DBMS, SCM)Application outsourcing Web storefront or Web HostingBusiness function outsourcingAccounting, Human Resources, etc.Broader than outsourcing ISLoss of controlVendor in driver’s seatYou conform to vendor’s methods and proceduresVendor chooses technologies to implementPotential loss of intellectual capitalRevealing proprietary secrets, methods, proceduresVendors set priorities for fixing problems and failuresVendors’ priorities may change management, strategic direction, or be acquiredCompany’s CIO or other managers, may become superfluousCritical managers of IS and business may not share same goals and objectives resulting in biased, bad decisionsOverseas outsourcing for:Cheaper laborTaking advantage of time differences
  3. Foxconn has factories in Asia, Europe, and South America that together assemble around 40 percent of all consumer electronics products sold.[18][edit]ChinaFoxconn has 13 factories in nine Chinese cities—more than in any other country.
  4. The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. The IT–ITES industry has two major components: IT Services and business process outsourcing (BPO). The growth in the service sector in India has been led by the IT–ITES sector,
  5. Late to the game b/c of USSRHackersSoftwareInternet Startups
  6. In December 2011, SAP AG agreed to buy SuccessFactors Inc. for $3.4 billion in cash or 52 percent more than the share closing price on 2 December 2011. With the acquisition, SAP AG will become more competitive with Oracle Corp. in the Cloud computing market.[10]Not a major player in developing technology, but a major player in developing global markets.
  7. Customers and suppliersSuppliers have wider range of customersCustomers have more available vendorsEasier to learn about each other through search enginesSubstitutes easier to locateEnables new market entrantsIntensifies rivalry
  8. Reporting relationshipsProcess of making program work in other languagesUnless designed from beginning, very expensiveTranslations will need to be created for:User interface Menu bars and commandsIcons Forms, reports, and queries Documentation Error messagesInformation systems affectedComputer hardware is sold worldwide User interfaces What languages will be used?Can systems use localized programming language?Software applicationsHuman componentsCultural differences must be consideredLocal normsJob descriptions