Information Systems as a Global Perspective

1. Information Systems as a Global Perspective Understanding the global information technology environment By : Akash Patel

2. Introduction • Information technology has played a crucial role in the race towards globalization. • Today, multinational corporations and governments increasingly rely on IT for conducting international business. • Therefore it is extremely important for corporate executives and chief information officers to understand the nature of the global information technology environment.

3. In order to exploit fully IT for global business, we need to understand the key IS issues of different countries. • We summarize issues from a few countries selected on the basis of their level of economic development. • Categories: • Advanced • Newly industrialized • Developing • Under-developed

4. Table 6.1 Key issues in information systems management – USA(1994)Rank Description of the issue#1 Building a responsive IT infrastructure#2 Facilitating and managing business process redesign#3 Developing and managing distributed systems#4 Developing and implementing an information architecture#5 Planning and managing communication networks#6 Improving the effectiveness of software development#7 Making effective use of the data resource#8 Aligning the IS organization within the enterprise#9 Recruiting and developing IS human resources#10 Improving IS strategic planning#11 Managing the existing portfolio of legacy applications#12 Measuring IS effectiveness and productivitySource: Janz, B. D., Brancheau, J. C. and Wetherbe, J. C. Key informationsystems management issues. MISRC Working Paper, University ofMinnesota, 1994.

5. Key MIS issues in advanced nations(United States, Western European countries, Japan, Australia etc.) • Information Architecture: • A high level map of information requirements. • Provides overall framework to guide application development and database development • Includes the major classes of information and their relationships to the various functions and processes in the organization. • Includes functional decomposition, ER diagrams, and planning matrices.

6. 2. Data resource: • A vital resource • Firms collect data from internal as well as external sources(customers, suppliers etc.) • Should be properly managed 3. Strategic planning: • IT planning that supports business goals, mission and strategy. • Quick actions to update new technologies regularly before they obsolete.

7. 4. IS Human Resources: • Include technical as well as managerial personnel • The rapid technological change creates shortage of specialized skills • Organizations need to decide which functions can be outsourced and which needs to be retained in-house.

8. 5. Organizational learning: • Organizational learning is the way an organization learns and adapts. • Continued learning about technology changes and adapt accordingly. 6. Technology Infrastructure: • Includes components such as computers, telecommunication networks, operating systems, databases, system software etc.

9. 7. IS Organization Alignment: • The organizational positioning of the IS department within the company has a direct impact on its effectiveness. 8. Competitive advantage: • IT and IS in a firm can be used in ways that provide a decided advantages over its competitors.

10. 9. Software development: • The development of software represent a major expenditure for the IS organization, yet it remains with problems of poor quality, unmet needs, constant delays, and exceeded budgets.

11. 10. Telecommunication systems: • An organization can do business anywhere anytime, without being constrained by time or distance. • Providing connectivity between different computing centers and users globally. • Implementation includes huge financial investments.

12. Key MIS issues in newly industrialized nationas(Taiwan, Hong Kong, Ireland, South Korea, Singapore etc.) • Communication between IS department and end users: • Communication is necessary between these two groups (users and builders) • End users in Taiwan unable to specify their information needs accurately to the IS group • At the same time, IS employees use terminology that end users do not understand due to lack of good understanding of the organizations business processes.

13. 2. Top management support: • Requires for financial and human resources • Senior management is expected to support for suitable budget and by showing leadership and involvement. • Required for IS department to get help from other departments • Without strong management support, the IS department would have little chance to achieve its mission.

14. 3. IS strategic planning: • IS strategic planning is difficult in Taiwan due to rapid changes in technology, lack of familiarity with IS planning methodologies, inadequate understanding of business process, less funding by top management etc. • Results in system failure in other countries.

15. 4. Competitive advantage: • In the private sector, several retail, wholesale, transportation, and media firms have begun to build IS that can be create business opportunities, and enable an organization to differentiate itself in the market place.

16. 5. Goal alignment: • Senior management needs to clearly communicate the organization’s goals, policies and strategies to the IS staff. 6. Computerization of routine work: • It was the first priority in USA but in Taiwan, computer usage in business is far behind that in USA. • The IS in many organizations is still in Nolan’s initial stages.

17. 7. IT infrastructure: • A responsive IT infrastructure is vital to the flexibility and changing needs of a business organization. • Key to long term productivity. 8. System integration: • Integration of various system components into a unified whole provides benefits of synergy, effectiveness, and added value to the user.

18. 9. Software development productivity: • Productivity is measured by ratio of outputs to inputs. • The speed of development varies with changing business needs. 10. System friendliness: • Ease of use and user-oriented features are essential to the success and continued use of software product.

19. Table 6.8 Key issues in information systems management – Taiwan (1994)Rank Description of the issue#1 Communication between the IS department and end users#2 Top management support#3 IS strategic planning#4 Competitive advantage#5 Goal alignment#6 Computerization of routine work#7 IT infrastructure#8 System integration#9 Software development productivity#10 System friendliness#11 Security and control#12 Software development qualityTie IS standards (tie)#14 Data resource#15 IS funding level#16 IS role and contribution#17 User participation#18 Recruit, train, and promote IS staff#19 Information architecture#20 Placement of IS departmentSource: Palvia, P. and Wang, Pien. An expanded global information technology issue model:an addition of newly industrialized countries. Journal of Information Technology Management,Vol. VI, No.2, 1995, pp. 29–39.

20. Key MIS issues in developing nations(Argentina, Brasil, India, Mexico etc.) • The ranking of key MIS issues of India was done by participant managers in two seminars. • A fully ranked list is listed below:

22. 1. Understanding and awareness of MIS contribution: • Understanding and awareness of MIS contribution is absent. • Lack of knowledge of how MIS can help in business. • Need for computer based systems is not a high priority. • Lack understanding due to rely on manual systems and availability of semi-skilled and skilled personnel.

23. 2. Human resources and personnel for MIS: • Current emphasis on education seems to be on technological aspects rather than on the application of IS concepts to business needs. • IS human resource development is neglected. • India has become a primary location for international outsourcing; yet there is a shortage within the country for those trained in developing business information systems.

24. 3. Quality of input data: • Inferior input data due to lack of information literacy and information culture among workers. • Less than adequate infrastructure for collecting data.

25. 4. Educating senior managers about MIS: • Senior managers do not truly understand the full potential of information technology. • They need to be educated about its many applications in business. • E.g. – besides transaction processing, IT can be used for building executive Information systems and strategic systems.

26. 5. User friendliness of systems: • Users in developing nations are untrained in the use of information technology. • Software and systems are imported from Western and advanced nations. Thus may not be user friendly for users. • Partially dependant on the cultural and educational background of the users.

27. 6. Continuing training and education of the MIS staff: • Lower level of IT preparedness in developing countries. • Rapid advances in technology. • Lack of training available for MIS professionals in business functions.

28. 7 & 8. Maintenance in software, and standards in hardware and software: • Suffer from inadequate supply of trained programmers. • Maintenance is high if quality is low. • Quality of the system depends on the software and hardware standards. • Problems arise when hardware and software purchased from different vendors in different nations.

29. 9. Data security: • Valuable resource • Needs to be protected else it may be abused to the organization’s detriment. • Newer controls and security provisions which were not in manual systems should be built.

30. 10. Packaged application software availability: • Increased reliance on Packaged Applications software • Software which meets the specific business requirements unique to developing nations should be developed. • Reliance on off-the-shelf packaged software should be reduced.

31. Other common issues are maintenance of hardware, application portfolio, strategic planning, telecommunications etc.

32. Key MIS issues in underdeveloped nations(Bangladesh, Cuba, Haiti, Kenya, Nigeria, Iran, Iraq, Jordan, Zimbabve) • Problem faced by IS: • Influenced by government • Outdated hardware and software • Very low priority by government

34. 1. Obsolescence of computing equipment: • Due to shortage of foreign currency. • Efficiency and effectiveness of computers have suffered. 2. Obsolescence of software: • Outdated software • Shortage of foreign currency prevent firms from purchasing software packages.

35. 3. Proliferation of mixed vendor shops: • Causes severe problems if vendor selection not done carefully. • Due to poor IS management.

36. 4. Availability of skilled MIS personnel and opportunity for professional development for MIS managers and non-managers: • Absence of skilled MIS personnel and professional developers. • Shortage of people with computing and system skills. • Should keep their program constantly updated.

37. 5. Possible government intervention and influence in computer market: • Government issues import licenses to new local businesses but these firms sell it to existing large firms. • Economy is dominated by government control.

38. 6. Establishments of professional standards: • Should be established. • Lack of professional standards allowed the entry of non-professionals and untrained people. • Necessary for development of better quality of IS products. 7. Improvement of IS productivity: • Lack of professionalism. • Problem of deteriorating hardware and software.

39. Other issues: • Existence of archaic hardware and software. • Inability to acquire modern resources . • IS not used for competitive advantage.

41. Global information technology environment model • We can conclude that advanced nations are driven by strategic needs, developing countries by operational needs, underdeveloped countries by infrastructural needs.

43. Proposed comprehensive model for the global IT environment • Additional factors are also responsible like cultural and political systems. • E.g. (cultural) – Yahoo and Google has some different features for India than USA. • (political) – China has blocked some websites which harms its political systems.

44. Conclusion • Reports of IS management issues in all parts of world help organizations to plan and implement IT applications. • Developing and validating sound models help to explain IT issues and planning IT applications. • Use the model for focused research. • E.g. - give stress on cultural components.

45. Developing a comprehensive universal methodology that can applied globally to identify the key IS issues will be helpful in obtaining reliable results.