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16Chapter

ManagingInternationalInformationSystems

16ChapterManagingInternationIdentifythemajorfactorsdrivingtheinternationalizationofbusinessComparestrategiesfordevelopingglobalbusinessesDemonstratehowinformationsystemscansupportdifferentglobalbusinessstrategiesManagementInformationSystemsChapter16ManagingInternationalInformationSystemsOBJECTIVESIdentifythemajorfactorsdriEvaluatetheissuesandtechnicalalternativestobeconsideredwhendevelopinginternationalinformationsystemsIdentifythechallengesposedbyglobalinformationsystemsandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsEvaluatetheissuesandtechniChallenge:FulfillcustomerordersmadetoanetworkoffortysubsidiariesinEurope,Asia,andNorthAmericawhosesystemscouldnotsharedatawithoneanotherSolutions:developasinglecorporatedatabaseandusemiddlewarewithstandardinterfacestoconnectallthesubsidiary’ssystemsDevelopasingleworldwidedatamodelwithstandarddefinitionsandcodesIllustratestheroleofsystemsinaninternationalenvironmentforreducinginventoryandbusinessprocesscostsworldwide.ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsDragerSafetyAGCaseChallenge:FulfillcustomerorTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalProductDevelopmentandProductionManagementInformationSystemsChapter16ManagingInternationalInformationSystemsFigure16-1THEGROWTHOFINTERNATIONALINThebasicinformationsystemsrequiredbyorganizationstocoordinateworldwidetradeandotheractivitiesDevelopinganInternationalInformationSystemsArchitectureInternationalinformationsystemsarchitecture:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSAforceintheenvironmenttowhichbusinessesmustrespondandthatinfluencesthedirectionofthebusinessBusinessdriver:ThebasicinformationsystemsInternationalInformationSystemsArchitectureManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSFigure16-2InternationalInformationSystTheGlobalEnvironment:BusinessDriversandChallengesTheglobalbusinessdriverscanbedividedintotwogroups:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalcommunicationandtransportationtechnologiesDevelopmentofglobalcultureGeneralculturalfactors:Table16-1TheGlobalEnvironment:BusineManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSEmergenceofglobalsocialnormsPoliticalstabilityGlobalknowledgebaseTable16-1(Continued)GeneralCulturalFactors:(Continued)ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalmarketsGlobalproductionandoperationsGlobalcoordinationGlobalworkforceGlobaleconomiesofscaleSpecificbusinessfactors:Table16-1(Continued)ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSBusinessChallengesCulturalparticularism:Regionalism,nationalism,languagedifferencesSocialexpectations:Brand-nameexpectations,workhoursPoliticallaws:Transborderdataandprivacylaws,commercialregulationsGeneral:Table16-2ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSStandards:

Different

ElectronicDataInterchange(EDI),telecommunicationsstandardsReliability:PhonenetworksnotuniformlyreliableSpeed:

Differentdatatransferspeeds,manyslowerthanUnitedStatesPersonnel:

ShortagesofskilledconsultantsSpecific:Table16-2(Continued)ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSThreekindsoforganizationalstructure:Centralized(inthehomecountry)Decentralized(tolocalforeignunits)Coordinated(allunitsparticipateasequals)GlobalStrategiesandBusinessOrganizationManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSHeavycentralizationofcorporateactivitiesinthehomecountryoforiginDomesticexporterstrategy:Centralizedfinancialmanagementandcontrolwhiledecentralizingproduction,sales,andmarketingoperationstounitsinothercountriesMultinationalstrategy:ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSTheproductisfinancedandinitiallyproducedinthehomecountry,butforproduct-specificreasonsrelyonforeignpersonnelforfurtherproduction,marketing,andhumanresources.Franchisers:Thevalue-addingactivitiesaremanagedfromaglobalperspectivewithoutreferencetonationalborders,optimizingsourcesofsupplyanddemandwherevertheyappear,andtakingadvantageofanylocalcompetitiveadvantages.Transnationalstrategy:ManagementInformationSystemsGlobalSystemstoFittheStrategyGlobalStrategyandSystemsConfigurationsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSFigure16-3GlobalSystemstoFittheStraManagementInformationSystemsChapter16ManagingInternationalInformationSystemsCentralizedsystems:Systemsdevelopmentandoperationoccurtotallyatthedomestichomebase.Duplicatedsystems:Developmentoccursatthehomebasebutoperationsarehandedovertoautonomousunitsinforeignlocations.Fourtypesofsystemsconfiguration:ORGANIZINGINTERNATIONALINFORMATIONSYSTEMSManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystems3.

Decentralizedsystems:Eachforeignunitdesignsitsownuniquesolutionsandsystems.4.Networkedsystems:Systemsdevelopmentandoperationsoccurinanintegratedandcoordinatedfashionacrossallunits.ORGANIZINGINTERNATIONALINFORMATIONSYSTEMSFourtypesofsystemsconfiguration:(Continued)ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSOrganizevalue-addingactivitiesalonglinesofcomparativeadvantageDevelopandoperatesystemsunitsateachlevelofcorporateactivity—regional,national,andinternationalEstablishatworldheadquartersReorganizingtheBusinessTodevelopaglobalcompanyandinformationsystemssupportstructure:ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSAgreeingoncommonuserrequirementsIntroducingchangesinbusinessprocessesCoordinatingapplicationsdevelopmentCoordinatingsoftwarereleasesEncouraginglocaluserstosupportglobalsystemsManagementChallengesinDevelopingGlobalSystemsTable16-4ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSDefinethecorebusinessprocesses:Conductworkflowanalysis,identifycentersofexcellencefortheseprocessesIdentifythecoresystemstocoordinatecentrally:ConquerthecoresystemsanddefinethesesystemsastrulytransnationalChooseanapproach:Incremental,GrandDesign,EvolutionaryMaketheBenefitsClearGlobalSystemsStrategyManagementInformationSystemsLocal,Regional,andGlobalSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSFigure16-4 Source:AdaptedfromManagingInformationTechnologyinMultinationalCorporationsbyEdardM.roche,copyright1993.Local,Regional,andGlobalSyManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSComputingplatformsandsystemsintegration:

Developglobal,distributed,andintegratedsystemstosupportdigitalbusinessprocessesspanningnationalboundariesUseofsamehardwareandoperatingsystemdoesnotguaranteeintegration.EstablishdataandtechnicalstandardsTechnologyChallengesofGlobalSystemsManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSOvercomingdisparatenationaltechnicalstandards,dataexchangerestrictionsandservicelevelsUserofInternettechnologytocreateglobalintranets,extranets,virtualprivatenetworks(VPNs)Connectivity:TechnologyChallengesofGlobalSystems(Continued)ManagementInformationSystemsInternetPopulationinSelectedCountriesManagementInformationSystemsChapter16ManagingInternationalInformationSystemsFigure16-5TECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINS Sources:CIAWorldFactbook2003;ComputerIndustryAlmanac;and,accessedNovember9,2004InternetPopulationinSelecteManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSCostofnewinterfacedesignsIntegratingnewsystemswitholdUserinterfacedesignDifferencesinlanguageandconventionsSoftware:Uniquechallengesforapplicationsoftware:ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSOutsourcingportionsofnewsystemslikedevelopmentworkormaintenanceofexistingsystemstoexternalvendorsinanothercountryOffshoresoftwareoutsourcing:ManagingGlobalSoftwareDevelopmentManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSContractcostVendorselectioncostsTransitionmanagementandknowledgetransfercostsDomestichumanresourcescostsMajorcostcomponentsofoffshoresoftwaredevelopment:ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSCostsofimprovingsoftwaredevelopmentprocessesCostsofadjustingtoculturaldifferencesCostofmanaginganoffshorecontractMajorcostcomponentsofoffshoresoftwaredevelopment:(Continued)ManagementInformationSystemsTotalCostofOutsourcingManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSFigure16-6TotalCostofOutsourcingManaManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSManagementOpportunities:AbilitytolowercoststhroughglobalscaleeconomiesbybuildinginternationalsystemsforproducingandsellinggoodsandservicesindifferentregionsoftheworldManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsFindingtherightglobalbusinessstrategyDifficultiesofmanagingchangeinamulticulturalfirmDifficultiesofachievingglobalconnectivityandintegrationManagementChallenges:MANAGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsAgreeingoncommonuserrequirementsIntroducingchangesinbusinessprocessesCoordinatingapplicationsdevelopmentCoordinatingsoftwarereleasesEncouraginglocaluserstosupportglobalsystemsSolutionGuidelines:MANAGEMENTOPPORTUNITIES,CHALLENGES,ANDSOLUTIONSManagementInformationSystems16Chapter

ManagingInternationalInformationSystems

16ChapterManagingInternationIdentifythemajorfactorsdrivingtheinternationalizationofbusinessComparestrategiesfordevelopingglobalbusinessesDemonstratehowinformationsystemscansupportdifferentglobalbusinessstrategiesManagementInformationSystemsChapter16ManagingInternationalInformationSystemsOBJECTIVESIdentifythemajorfactorsdriEvaluatetheissuesandtechnicalalternativestobeconsideredwhendevelopinginternationalinformationsystemsIdentifythechallengesposedbyglobalinformationsystemsandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsEvaluatetheissuesandtechniChallenge:FulfillcustomerordersmadetoanetworkoffortysubsidiariesinEurope,Asia,andNorthAmericawhosesystemscouldnotsharedatawithoneanotherSolutions:developasinglecorporatedatabaseandusemiddlewarewithstandardinterfacestoconnectallthesubsidiary’ssystemsDevelopasingleworldwidedatamodelwithstandarddefinitionsandcodesIllustratestheroleofsystemsinaninternationalenvironmentforreducinginventoryandbusinessprocesscostsworldwide.ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsDragerSafetyAGCaseChallenge:FulfillcustomerorTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalProductDevelopmentandProductionManagementInformationSystemsChapter16ManagingInternationalInformationSystemsFigure16-1THEGROWTHOFINTERNATIONALINThebasicinformationsystemsrequiredbyorganizationstocoordinateworldwidetradeandotheractivitiesDevelopinganInternationalInformationSystemsArchitectureInternationalinformationsystemsarchitecture:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSAforceintheenvironmenttowhichbusinessesmustrespondandthatinfluencesthedirectionofthebusinessBusinessdriver:ThebasicinformationsystemsInternationalInformationSystemsArchitectureManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSFigure16-2InternationalInformationSystTheGlobalEnvironment:BusinessDriversandChallengesTheglobalbusinessdriverscanbedividedintotwogroups:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalcommunicationandtransportationtechnologiesDevelopmentofglobalcultureGeneralculturalfactors:Table16-1TheGlobalEnvironment:BusineManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSEmergenceofglobalsocialnormsPoliticalstabilityGlobalknowledgebaseTable16-1(Continued)GeneralCulturalFactors:(Continued)ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalmarketsGlobalproductionandoperationsGlobalcoordinationGlobalworkforceGlobaleconomiesofscaleSpecificbusinessfactors:Table16-1(Continued)ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSBusinessChallengesCulturalparticularism:Regionalism,nationalism,languagedifferencesSocialexpectations:Brand-nameexpectations,workhoursPoliticallaws:Transborderdataandprivacylaws,commercialregulationsGeneral:Table16-2ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSStandards:

Different

ElectronicDataInterchange(EDI),telecommunicationsstandardsReliability:PhonenetworksnotuniformlyreliableSpeed:

Differentdatatransferspeeds,manyslowerthanUnitedStatesPersonnel:

ShortagesofskilledconsultantsSpecific:Table16-2(Continued)ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSThreekindsoforganizationalstructure:Centralized(inthehomecountry)Decentralized(tolocalforeignunits)Coordinated(allunitsparticipateasequals)GlobalStrategiesandBusinessOrganizationManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSHeavycentralizationofcorporateactivitiesinthehomecountryoforiginDomesticexporterstrategy:Centralizedfinancialmanagementandcontrolwhiledecentralizingproduction,sales,andmarketingoperationstounitsinothercountriesMultinationalstrategy:ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSTheproductisfinancedandinitiallyproducedinthehomecountry,butforproduct-specificreasonsrelyonforeignpersonnelforfurtherproduction,marketing,andhumanresources.Franchisers:Thevalue-addingactivitiesaremanagedfromaglobalperspectivewithoutreferencetonationalborders,optimizingsourcesofsupplyanddemandwherevertheyappear,andtakingadvantageofanylocalcompetitiveadvantages.Transnationalstrategy:ManagementInformationSystemsGlobalSystemstoFittheStrategyGlobalStrategyandSystemsConfigurationsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSFigure16-3GlobalSystemstoFittheStraManagementInformationSystemsChapter16ManagingInternationalInformationSystemsCentralizedsystems:Systemsdevelopmentandoperationoccurtotallyatthedomestichomebase.Duplicatedsystems:Developmentoccursatthehomebasebutoperationsarehandedovertoautonomousunitsinforeignlocations.Fourtypesofsystemsconfiguration:ORGANIZINGINTERNATIONALINFORMATIONSYSTEMSManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystems3.

Decentralizedsystems:Eachforeignunitdesignsitsownuniquesolutionsandsystems.4.Networkedsystems:Systemsdevelopmentandoperationsoccurinanintegratedandcoordinatedfashionacrossallunits.ORGANIZINGINTERNATIONALINFORMATIONSYSTEMSFourtypesofsystemsconfiguration:(Continued)ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSOrganizevalue-addingactivitiesalonglinesofcomparativeadvantageDevelopandoperatesystemsunitsateachlevelofcorporateactivity—regional,national,andinternationalEstablishatworldheadquartersReorganizingtheBusinessTodevelopaglobalcompanyandinformationsystemssupportstructure:ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSAgreeingoncommonuserrequirementsIntroducingchangesinbusinessprocessesCoordinatingapplicationsdevelopmentCoordinatingsoftwarereleasesEncouraginglocaluserstosupportglobalsystemsManagementChallengesinDevelopingGlobalSystemsTable16-4ManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSDefinethecorebusinessprocesses:Conductworkflowanalysis,identifycentersofexcellencefortheseprocessesIdentifythecoresystemstocoordinatecentrally:ConquerthecoresystemsanddefinethesesystemsastrulytransnationalChooseanapproach:Incremental,GrandDesign,EvolutionaryMaketheBenefitsClearGlobalSystemsStrategyManagementInformationSystemsLocal,Regional,andGlobalSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSFigure16-4 Source:AdaptedfromManagingInformationTechnologyinMultinationalCorporationsbyEdardM.roche,copyright1993.Local,Regional,andGlobalSyManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSComputingplatformsandsystemsintegration:

Developglobal,distributed,andintegratedsystemstosupportdigitalbusinessprocessesspanningnationalboundariesUseofsamehardwareandoperatingsystemdoesnotguaranteeintegration.EstablishdataandtechnicalstandardsTechnologyChallengesofGlobalSystemsManagementInformationSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSOvercomingdisparatenationaltechnicalstandards,dataexchangerestrictionsandservicelevelsUserofInternettechnologytocreateglobalintranets,extranets,virtualprivatenetworks(VPNs)Connectivity:TechnologyChallengesofGlobalSystems(Continued)ManagementInformationSystemsInternetPopulationinSelectedCountriesManagementInformationSystemsChapter16ManagingInternationalInformationSystemsFigure16-5TECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINS Sources:CIAWorldFactbook2003;ComputerIndustryAlmanac;and,accessedNovember9,2004InternetPopulationinSelecteManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSCostofnewinterfacedesignsIntegratingnewsystemswitholdUserinterfacedesignDifferencesinlanguageandconventionsSoftware:Uniquech

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