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8/3/2019 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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Management Information Systems 8/eChapter 15 Managing International Information Systems
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
8/3/2019 MIS8Ch15
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Management Information Systems 8/eChapter 15 Managing International Information Systems
Lines of business and global strategy
The difficulties of managing change in amulticultural environment
MANAGEMENT CHALLENGES
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Management Information Systems 8/eChapter 15 Managing International Information Systems
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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Management Information Systems 8/eChapter 15 Managing International Information Systems
Figure 15-1
Technology Platform
Organization Structure
Corporate Global Strategies
Management and Business
Processes
Global Environment:Business Drivers and Challenges
International Information Systems Architecture
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
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Management Information Systems 8/eChapter 15 Managing International Information Systems
The Global Environment: Business Drivers and Challenges
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
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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Management Information Systems 8/eChapter 15 Managing International Information Systems
Business Challenges
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
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
8/3/2019 MIS8Ch15
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Management Information Systems 8/eChapter 15 Managing International Information Systems
State of the Art
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
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
8/3/2019 MIS8Ch15
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Management Information Systems 8/eChapter 15 Managing International Information Systems
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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Management Information Systems 8/eChapter 15 Managing International Information Systems
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
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Global Systems to Fit the Strategy
M I f i S 8/
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Management Information Systems 8/eChapter 15 Managing International Information Systems
Figure 15-2
SYSTEM
CONFIGURATION
Strategy
Centralized
Domestic
Exporter
Multinational Franchiser Transnational
Duplicated
Decentralized
Networked
X
X
x xX
x X
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
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Management Information Systems 8/eChapter 15 Managing International Information Systems
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
ORGANIZING INTERNATIONAL INFORMATION 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
MANAGING GLOBAL SYSTEMS
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
M t I f ti S t 8/
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Management Information Systems 8/eChapter 15 Managing International Information Systems
Figure 15-3
MANAGING GLOBAL SYSTEMS
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Management Information Systems 8/eChapter 15 Managing International Information Systems
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
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
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Management Information Systems 8/eChapter 15 Managing International Information Systems
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
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
New Technical Opportunities and the Internet
Management Information Systems 8/e
15Ch
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Management Information Systems 8/eChapter 15 Managing International Information Systems15
MANAGING
INTERNATIONALINFORMATION
SYSTEMS
Chapter