MIS8Ch15

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15.1 2004 by Prentice Hall

Management Information Systems 8/eChapter 15 Managing International Information Systems

15MANAGING

INTERNATIONAL

INFORMATION

SYSTEMS

Chapter

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What are the major factors driving theinternationalization of business?

What strategies are available for developing

international businesses? How can information systems support the various

international business strategies?

What issues should managers address when

developing international information systems? What technical alternatives are available for

developing global systems?

OBJECTIVES

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Lines of business and global strategy

The difficulties of managing change in amulticultural environment

MANAGEMENT CHALLENGES

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Developing an International Information Systems Architecture

THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS

An international information systemsarchitecture consists of basicinformation systems required by

organizations to coordinate worldwidetrade and other tasks

A business driver is an environmental

force to which businesses must respondand that influence a businesss direction

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Figure 15-1

Technology Platform

Organization Structure

Corporate Global Strategies

Management and Business

Processes

Global Environment:Business Drivers and Challenges

International Information Systems Architecture


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The Global Environment: Business Drivers and Challenges


Global business drivers are [a] generalcultural factors and [b] specific business factors

Global culture, created by TV and otherglobal media (e.g., movies) permit cultures todevelop common expectations about right andwrong, desirable and undesirable, heroic andcowardly

A global knowledge base--strengthenedby educational advances in Latin America, China,southern Asia, and eastern Europe--also affectsgrowth

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Business Challenges


Particularism, making judgments and taking actionbased on narrow or personal features, rejects the conceptof shared global culture

Transborder data flow is the movement ofinformation across international boundaries in any form

National laws and traditions create disparateaccounting practices in various countries, impacting howprofits and losses are analyzed

Additional factors: cultural differences abouttechnology, different languages, and currency fluctuations

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State of the Art


Despite business challenges, many firmsstill do not have rationally developed ITsystems

Most companies inherited patchworkinternational systems from the past

Significant difficulties still exist in building

proper international architectures

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Domestic exporter characterized by heavycentralization of corporate activities in home country oforigin

Multinational concentrates financial managementand control out of a home base, but decentralizesproduction, sales, and marketing

Franchisers involve creating, designing, andfinancing in the home country, then rely on foreign

personnel for further production, marketing, and humanresources (e.g., McDonalds)

Transnational may or may not have a worldheadquarters, but will have many regional headquarters

ORGANIZING INTERNATIONAL INFORMATION SYSTEMS

Global Strategies and Business Organization

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Global Systems Information technology and improved

global telecommunications - give

international firms more flexibility to shapeglobal strategies

Domestic exporters - tend to have highly

centralized systems in which one domesticsystems development staff developsworldwide applications


Global Systems to Fit the Strategy

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Figure 15-2

SYSTEM

CONFIGURATION

Strategy

Centralized

Domestic

Exporter

Multinational Franchiser Transnational

Duplicated

Decentralized

Networked

X

X

x xX

x X


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Reorganizing the Business Organize value-adding services along lines

of comparative advantage

Develop and operate systems units at eachlevel of corporate activity regional,national, and international

Establish a world headquarters at oneoffice responsible for developinginternational systems


Global Systems, Reorganizing the Business

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A Typical Scenario: Disorganization on a Global Scale

MANAGING GLOBAL SYSTEMS

A traditional U.S. multi-national consumer-goodscompany, also operating in Europe, wants to expandinto Asia

It knows it must develop a transnational strategy andsupportive IT system structure

It has dispersed production and marketing to regionaland national centers while maintaining a worldheadquarters and strategic management in the U.S.

The result: a hodgepodge of hardware, software, andcommunications (e.g., incompatible e-mail systems,different manufacturing resources planning, differentmarketing / sales / human resources systems)

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Strategy: Divide, Conquer, Appease


Not all systems need be coordinated on atransnational basis; only some coresystems are truly worth sharing from a cost

and feasibility basis Define the Core Business Processes

Identify the Core Systems to CoordinateCentrally

Choose an Approach: Incremental, GrandDesign, Evolutionary

Make the Benefits Clear

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Figure 15-3


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Implementation Tactics: Cooptation -bringing the opposition into design and implementationof solution without surrendering control over direction

and nature of change The Management Solution

Agree on common user requirements

Introduce changes in business processes

Coordinate applications development Coordinate software releases

Encourage local users to support global systems

OBJECTIVES

Implementation Tactics and The Management Solution

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Hardware and Systems Integration

Developing global systems based on core systems raisesquestions about how new cores systems will fit within existingapplications

Connectivity

Telecommunications is heart of international systems, linkingsystems and people in global firm into single, integrated network

Potential solutions including putting together leased privatenetwork, building ones own network, or creating global intranetsover Intranet

Software Developing new core systems poses unique challenges for

software, involves problems of human interface design and systemfunctionality

Many firms increasingly turn to supply chain management andenterprise systems to standardize business processes globally

TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS

Main Technical Issues

Management Information Systems 8/e

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Table 15-5: Problems of InternationalNetworks Costs and tariffs

Network management

Installation delays

Poor international service quality

Regulatory constraints

Changing user requirements

Disparate standards

Network capacity



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Communicate and compute anytime, anywherenetworks based on satellites, cell phones, andpersonal communications systems willfacilitate work

Companies use the Internet to construct virtualprivate networks (VPNs) to reduce networkingcosts and staff

As Internet technology spreads outside theUSA, it will expand opportunities for electroniccommerce and international trade


New Technical Opportunities and the Internet


15Ch

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Management Information Systems 8/eChapter 15 Managing International Information Systems15

MANAGING

INTERNATIONALINFORMATION

SYSTEMS

Chapter

MIS8Ch15

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