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E-Commerce Global Information Systems

E-Commerce Global Information Systems. Michael Porter’s Value Chain. E-Commerce. Value added Disintermediation Shifting value adding activities Push vs. Pull. Global. Global. Highly centralized information system Subsidiaries have little autonomy Sometimes called a “franchiser”

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E-Commerce Global Information Systems

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  1. E-CommerceGlobal Information Systems

  2. Michael Porter’s Value Chain

  3. E-Commerce • Value added • Disintermediation • Shifting value adding activities • Push vs. Pull

  4. Global

  5. Global • Highly centralized information system • Subsidiaries have little autonomy • Sometimes called a “franchiser” • Extensive communication network necessary • Difficult and impractical • Heavy reliance on headquarters for new products and ideas • Examples: • McDonald’s, Mrs. Fields’ Cookies, General Motors

  6. Multinational

  7. Multinational • Production, sales, and marketing are decentralized • Financial management remains the parent’s responsibility • Example: Tyco Corporation • Focus on local responsiveness • Reduces the need for communication between subsidiaries and headquarters • Each subsidiary operates on a different platform

  8. International

  9. International • Operates much like a multinational corporation • But subsidiaries depend on headquarters more for process and production decisions • Information systems personnel are regularly exchanged among locations • Encourages a cooperative culture in geographically dispersed personnel • Example: Caterpillar Corporation

  10. Exhibit 9.4 A Transnational Structure

  11. Transnational • Parent and all subsidiaries work together in designing policies, procedures, and logistics • Usually focuses on optimizing supply sources and using advantages available in subsidiary locations • Architecture requires a higher level of standardization and uniformity for global efficiency • But must maintain local responsiveness • Examples: Citigroup, Sony, Ford

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