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16Chapter

ManagingInternationalInformationSystems

IdentifythemajorfactorsdrivingtheinternationalizationofbusinessComparestrategiesfordevelopingglobalbusinessesDemonstratehowinformationsystemscansupportdifferentglobalbusinessstrategiesManagementInformationSystemsChapter16ManagingInternationalInformationSystemsOBJECTIVESEvaluatetheissuesandtechnicalalternativestobeconsideredwhendevelopinginternationalinformationsystemsIdentifythechallengesposedbyglobalinformationsystemsandmanagementsolutionsOBJECTIVES(Continued)ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsChallenge:FulfillcustomerordersmadetoanetworkoffortysubsidiariesinEurope,Asia,andNorthAmericawhosesystemscouldnotsharedatawithoneanotherSolutions:developasinglecorporatedatabaseandusemiddlewarewithstandardinterfacestoconnectallthesubsidiary’ssystemsDevelopasingleworldwidedatamodelwithstandarddefinitionsandcodesIllustratestheroleofsystemsinaninternationalenvironmentforreducinginventoryandbusinessprocesscostsworldwide.ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsDragerSafetyAGCaseTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalProductDevelopmentandProductionManagementInformationSystemsChapter16ManagingInternationalInformationSystemsFigure16-1ThebasicinformationsystemsrequiredbyorganizationstocoordinateworldwidetradeandotheractivitiesDevelopinganInternationalInformationSystemsArchitectureInternationalinformationsystemsarchitecture:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSAforceintheenvironmenttowhichbusinessesmustrespondandthatinfluencesthedirectionofthebusinessBusinessdriver:InternationalInformationSystemsArchitectureManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSFigure16-2TheGlobalEnvironment:BusinessDriversandChallengesTheglobalbusinessdriverscanbedividedintotwogroups:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalcommunicationandtransportationtechnologiesDevelopmentofglobalcultureGeneralculturalfactors:Table16-1ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSEmergenceofglobalsocialnormsPoliticalstabilityGlobalknowledgebaseTable16-1(Continued)GeneralCulturalFactors:(Continued)ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSGlobalmarketsGlobalproductionandoperationsGlobalcoordinationGlobalworkforceGlobaleconomiesofscaleSpecificbusinessfactors:Table16-1(Continued)ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSBusinessChallengesCulturalparticularism:Regionalism,nationalism,languagedifferencesSocialexpectations:Brand-nameexpectations,workhoursPoliticallaws:

Transborderdataandprivacylaws,commercialregulationsGeneral:Table16-2ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTHEGROWTHOFINTERNATIONALINFORMATIONSYSTEMSStandards:

Different

ElectronicDataInterchange(EDI),telecommunicationsstandardsReliability:PhonenetworksnotuniformlyreliableSpeed:

Differentdatatransferspeeds,manyslowerthanUnitedStatesPersonnel:

ShortagesofskilledconsultantsSpecific:Table16-2(Continued)ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSThreekindsoforganizationalstructure:Centralized(inthehomecountry)Decentralized(tolocalforeignunits)Coordinated(allunitsparticipateasequals)GlobalStrategiesandBusinessOrganizationManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSHeavycentralizationofcorporateactivitiesinthehomecountryoforiginDomesticexporterstrategy:Centralizedfinancialmanagementandcontrolwhiledecentralizingproduction,sales,andmarketingoperationstounitsinothercountriesMultinationalstrategy:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSTheproductisfinancedandinitiallyproducedinthehomecountry,butforproduct-specificreasonsrelyonforeignpersonnelforfurtherproduction,marketing,andhumanresources.Franchisers:Thevalue-addingactivitiesaremanagedfromaglobalperspectivewithoutreferencetonationalborders,optimizingsourcesofsupplyanddemandwherevertheyappear,andtakingadvantageofanylocalcompetitiveadvantages.Transnationalstrategy:GlobalSystemstoFittheStrategyGlobalStrategyandSystemsConfigurationsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSFigure16-3ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsCentralizedsystems:Systemsdevelopmentandoperationoccurtotallyatthedomestichomebase.Duplicatedsystems:Developmentoccursatthehomebasebutoperationsarehandedovertoautonomousunitsinforeignlocations.Fourtypesofsystemsconfiguration:ORGANIZINGINTERNATIONALINFORMATIONSYSTEMSManagementInformationSystemsChapter16ManagingInternationalInformationSystems3.

Decentralizedsystems:Eachforeignunitdesignsitsownuniquesolutionsandsystems.4.Networkedsystems:Systemsdevelopmentandoperationsoccurinanintegratedandcoordinatedfashionacrossallunits.ORGANIZINGINTERNATIONALINFORMATIONSYSTEMSFourtypesofsystemsconfiguration:(Continued)ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsORGANIZINGINTERNATIONALINFORMATIONSYSTEMSOrganizevalue-addingactivitiesalonglinesofcomparativeadvantageDevelopandoperatesystemsunitsateachlevelofcorporateactivity—regional,national,andinternationalEstablishatworldheadquartersReorganizingtheBusinessTodevelopaglobalcompanyandinformationsystemssupportstructure:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSAgreeingoncommonuserrequirementsIntroducingchangesinbusinessprocessesCoordinatingapplicationsdevelopmentCoordinatingsoftwarereleasesEncouraginglocaluserstosupportglobalsystemsManagementChallengesinDevelopingGlobalSystemsTable16-4ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSDefinethecorebusinessprocesses:Conductworkflowanalysis,identifycentersofexcellencefortheseprocessesIdentifythecoresystemstocoordinatecentrally:ConquerthecoresystemsanddefinethesesystemsastrulytransnationalChooseanapproach:Incremental,GrandDesign,EvolutionaryMaketheBenefitsClearGlobalSystemsStrategyLocal,Regional,andGlobalSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsMANAGINGGLOBALSYSTEMSFigure16-4 Source:AdaptedfromManagingInformationTechnologyinMultinationalCorporationsbyEdardM.roche,copyright1993.ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSComputingplatformsandsystemsintegration:

Developglobal,distributed,andintegratedsystemstosupportdigitalbusinessprocessesspanningnationalboundariesUseofsamehardwareandoperatingsystemdoesnotguaranteeintegration.EstablishdataandtechnicalstandardsTechnologyChallengesofGlobalSystemsManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSOvercomingdisparatenationaltechnicalstandards,dataexchangerestrictionsandservicelevelsUserofInternettechnologytocreateglobalintranets,extranets,virtualprivatenetworks(VPNs)Connectivity:TechnologyChallengesofGlobalSystems(Continued)InternetPopulationinSelectedCountriesManagementInformationSystemsChapter16ManagingInternationalInformationSystemsFigure16-5TECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINS Sources:CIAWorldFactbook2003;ComputerIndustryAlmanac;and,accessedNovember9,2004ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSCostofnewinterfacedesignsIntegratingnewsystemswitholdUserinterfacedesignDifferencesinlanguageandconventionsSoftware:Uniquechallengesforapplicationsoftware:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSOutsourcingportionsofnewsystemslikedevelopmentworkormaintenanceofexistingsystemstoexternalvendorsinanothercountryOffshoresoftwareoutsourcing:ManagingGlobalSoftwareDevelopmentManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSContractcostVendorselectioncostsTransitionmanagementandknowledgetransfercostsDomestichumanresourcescostsMajorcostcomponentsofoffshoresoftwaredevelopment:ManagementInformationSystemsChapter16ManagingInternationalInformationSystemsTECHNOLOGYISSUESANDOPPORTUNITIESFORGLOBALVALUECHAINSCostsofimprovingsoftwaredevelopmentprocessesCostsofadjustingtoculturaldifferencesCostofmanaginganoffshorecontractMajorcostcomponentsofoffshoresoftwaredevelopment:(Continued)TotalCostofOutsourcingManagementInformationSy

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