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CHAPTER 15. MANAGING INTERNATIONAL

CHAPTER 15. MANAGING INTERNATIONAL INFORMATION SYSTEMS LEARNING OBJECTIVES IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS DEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIES * LEARNING OBJECTIVES

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CHAPTER 15. MANAGING INTERNATIONAL

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  1. CHAPTER 15. MANAGING INTERNATIONAL INFORMATION SYSTEMS

  2. LEARNING OBJECTIVES • IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION • COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS • DEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIES *

  3. LEARNING OBJECTIVES • PLAN DEVELOPMENT OF INTERNATIONAL INFORMATION SYSTEMS • EVALUATE TECHNICAL ALTERNATIVES IN DEVELOPING GLOBAL SYSTEMS *

  4. MANAGEMENT CHALLENGES • GROWTH OF INTERNATIONAL INFO SYSTEMS • ORGANIZING INTERNATIONAL INFO SYSTEMS • MANAGING GLOBAL SYSTEMS • TECHNOLOGY ISSUES & OPPORTUNITIES *

  5. INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE BASIC INFORMATION SYSTEMS REQUIRED TO COORDINATE WORLDWIDE TRADE & OTHER ACTIVITIES *

  6. GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES CORPORATE GLOBAL STRATEGIES ORGANIZATIONAL STRUCTURE MANAGEMENT & BUSINESS PROCEDURES TECHNOLOGICAL PLATFORM INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE

  7. GLOBAL BUSINESS DRIVERSGeneral Cultural Factors: • GLOBAL COMMUNICATION & TRANSPORTATION TECHNOLOGIES • DEVELOPMENT OF GLOBAL CULTURE • EMERGENCE OF GLOBAL NORMS • POLITICAL STABILITY • GLOBAL KNOWLEDGE BASE *

  8. GLOBAL BUSINESS DRIVERSSpecific Business Factors: • GLOBAL MARKETS • GLOBAL PRODUCTION & OPERATIONS • GLOBAL COORDINATION • GLOBAL WORK FORCE • GLOBAL ECONOMIES OF SCALE *

  9. CHALLENGES & OBSTACLES TO GLOBAL BUSINESS SYSTEMS GENERAL: • CULTURAL PARTICULARISM • SOCIAL EXPECTATIONS • POLITICAL LAWS SPECIFIC: • TELECOMMUNICATION STANDARDS • NETWORK RELIABILITY • DATA TRANSFER SPEEDS • SHORTAGE OF CONSULTANTS *

  10. GLOBAL STRATEGIES & BUSINESS ORGANIZATION • DOMESTIC EXPORTER:Centralization in home country • MULTINATIONAL:Central home base; decentralized production, sales, marketing in other countries • FRANCHISER:Product created, initially produced in home country; relies heavily on local workers to produce, market in other countries *

  11. GLOBAL STRATEGIES & BUSINESS ORGANIZATION • TRANSNATIONAL:Truly global firm; no national headquarters; value-added activities managed from global perspective; optimizes supply & demand, taking advantage of local competitive strengths *

  12. STRATEGY MULTI- NATIONAL TRANS- NATIONAL DOMESTIC FRANCHISER FUNCTION EXPORTER PRODUCTION CENTRALIZED DISPERSED COORDINATED COORDINATED FINANCE/ACCOUNTING CENTRALIZED CENTRALIZED CENTRALIZED COORDINATED SALES/MARKETING MIXED DISPERSED COORDINATED COORDINATED HUMAN RESOURCES CENTRALIZED CENTRALIZED COORDINATED COORDINATED STRATEGIC MANAGEMENT CENTRALIZED CENTRALIZED CENTRALIZED COORDINATED GLOBAL BUSINESS STRATEGY & STRUCTURE

  13. GLOBAL INFORMATION SYSTEMS • CENTRALIZED:Domestic home base • DUPLICATED:Copies of home system used in foreign locations • DECENTRALIZED:Each unit has unique system • NETWORKED:Integrated & coordinated atall locations *

  14. STRATEGY SYSTEM DOMESTIC MULTI- TRANS- CONFIGURATION EXPORTER NATIONAL FRANCHISER NATIONAL CENTRALIZED X DUPLICATED X DECENTRALIZED x X x NETWORKED x X X : DOMINANT PATTERN x : EMERGING PATTERN GLOBAL INFORMATION SYSTEMS CONFIGURATIONS

  15. REORGANIZE THE BUSINESS • ORGANIZE VALUE-ADDING ACTIVITIES FOR COMPARATIVE ADVANTAGE • DEVELOP & OPERATE SYSTEMS AT EACH LEVEL: National; regional, international • ESTABLISH SINGLE WORLD HEADQUARTERS: Have global chief information officer *

  16. DEVELOPING GLOBAL SYSTEMS • AGREE ON COMMON USER REQUIREMENTS • INDUCE PROCEDURAL BUSINESS CHANGES • COORDINATE APPLICATIONS DEVELOPMENT • COORDINATE SOFTWARE RELEASES • ENCOURAGE LOCAL USERS TO ACCEPT OWNERSHIP *

  17. STRATEGY: DIVIDE, CONQUER, APPEASE • DEFINE CORE BUSINESS PROCESSES • IDENTIFY CORE SYSTEMS TO COORDINATE CENTRALLY • CHOOSE AN APPROACH: Incremental, grand design, evolutionary • MAKE BENEFITS CLEAR *

  18. IMPLEMENTATION TACTICS • CO-OPTATION: Bring opposition into process of designing, and implementing solution without giving up control over direction, nature of change • TRANSNATIONAL CENTERS OF EXCELLENCE: Focus on specific business processes *

  19. MAIN TECHNICAL ISSUES • HARDWARE & SOFTWARE INTEGRATION • CONNECTIVITY • SOFTWARE:Languages can be a barrier *

  20. © 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e Connect to the INTERNET Laudon/Laudon Web site: http://www.prenhall.com/laudon Additional Internet Resources related to this chapter: http://www.brint.com

  21. CHAPTER 15. MANAGING INTERNATIONAL INFORMATION SYSTEMS

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