Transcript 11. Building Information Systems
15.1
MANAGING INTERNATIONAL INFORMATION SYSTEMS
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2004 by Prentice Hall
OBJECTIVES
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• • • • •
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?
Define and classify global information systems Present the major issues surrounding global information systems ©
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MANAGEMENT CHALLENGES
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Lines of business and global strategy.
The difficulties of managing change in a multicultural environment.
Complexity of building Global systems which are IOS (Inter organizational Systems) ©
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MANAGING INTERNATIONAL INFORMATION SYSTEMS TOPICS TO BE DISCUSSED 1. Major dimensions for developing an international I.S. architecture.
2. Global business drivers .
3. Global business challenges.
4.
Basic strategies for global firm’s organization structure.
5. Global I.S. configuration to fit the strategy.
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15.5
MANAGING INTERNATIONAL INFORMATION SYSTEMS TOPICS TO BE DISCUSSED (CONTD.) 6. Management challenges in developing global I.S.
7. Global I.S. development strategy.
8. Technology challenges of global information systems.
9. Management challenges in creating organizational and technology infrastructure for conducting global business and solution guidelines .
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MAJOR DIMENSIONS FOR DEVELOPING AN INTERNATIONAL INFORMATION SYSTEMS ARCHITECTURE Global Environment: Business Drivers and Challenges 15.6
Corporate Global Strategies Organization Structure Management and Business Processes Technology Platform International Information Systems Architecture Figure 15-1 ©
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GLOBAL BUSINESS DRIVERS Business Driver : A force in the environment : - to which business must respond.
- that influences the direction of the business.
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GLOBAL BUSINESS DRIVERS 15.8
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GENERAL CULTURAL FACTORS Global communication and transportation technologies.
Development of global culture.
Emergence of global social norms.
Political stability.
Global knowledge base. ©
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GLOBAL BUSINESS DRIVERS
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SPECIFIC BUSINESS FACTORS Global markets.
Global production and operations.
Global coordination.
Global workforce.
Global economies of scale.
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GLOBAL BUSINESS CHALLENGES (NEGATIVE FACTORS) 1. Particularism ( Judgements/ actions on the basis of narrow characteristics) : Religious, - Nationalistic, - Ethnic, - Regionalism, - Geopolitical, 2. Prohibition of trans-border data flow.
contd.
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GLOBAL BUSINESS CHALLENGES (NEGATIVE FACTORS) (contd.) 3. National laws and traditions.
4. Cultural and political differences.
5. Accounting practices, 6. Language, 7. Currency fluctuations ©
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FOUR BASIC INTERNATIONAL STRATEGIES FORMING THE BASIS FOR GLOBAL FIRM’S ORGANIZATION STRUCTURE BUSINESS STRATEGIES DOMESTIC FUNCTION EXPORTER MULTI NATIONAL FRANCHISER TRANS NATIONAL PRODUCTION CENT.
DISP.
COORD.
COORD.
FINANCE / ACCOUNTING SALES/ MARKETING HUMAN RESOURCE STRATEGIC MANAGEMENT CENT.
MIXED CENT.
CENT.
CENT.
DISP.
CENT.
CENT.
CENT.
COORD.
COORD.
CENT.
COORD.
COORD.
COORD.
COORD.
CENT. – CENTRALISED, COORD. - COORDINATED DISP. - DISPERSED (DECENTRALISED) 15.12
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15.13
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GLOBAL I.S. CONFIGURATION TO FIT THE STRATEGY Centralized Systems : System development and operation at domestic home base. (DOMESTIC EXPORTER) Decentralized Systems : Each foreign unit designs its unique solutions and systems. ( MULTINATIONAL) Duplicated Systems : - Development at home base, - Operations handed over to autonomous units in foreign locations. (FRANCHISER) Networked Systems : Systems development and operations are coordinated across all units. (TRANSNATIONAL) ©
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MANAGEMENT CHALLENGES IN DEVELOPING GLOBAL INFORMATION SYSTEMS ( USUAL PROBLEMS – BECOME HIGHLY COMPLICATED IN GLOBAL SYSTEMS) 1. Agreeing on common User requirements.
2. Introducing changes in business processes.
3. Coordinating applications development.
4. Coordinating software releases.
5. Encouraging local users to support global systems.
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GLOBAL I.S. DEVELOPMENT STRATEGY 1.
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Only core systems to be coordinated centrally . ( Core Functions : Critical to organization : Define core business processes.
- Identify core systems to be coordinated centrally) Choose an Approach: Avoid peace meal approach.
- Avoid grand-design approach (trying to do everything at once) - Use Evolutionary Approach : Evolve transnational applications from existing applications with clear vision for next 5 years.
Make Benefits Clear to : - Senior managers at HQ - Foreign divisional managers ©
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GLOBAL I.S. DEVELOPMENT STRATEGY 15.16
Figure 15-3 ©
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TECHNOLOGY CHALLENGES OF GLOBAL INFORMATION SYSTEMS Computing platforms and system integration.
Connectivity through networks : - Networking standards, - EDI, Software : Problems : (a) GUI (b) Common language, (c) Important software applications : - Global Supply Chain Management, - Enterprise Systems, - VPN, (d) Hidden costs of offshore software outsourcing : - Contract cost, - Vendor selection cost, - Knowledge transfer cost, - Domestic human resource cost, - Cost of coordination with vendor, - Cost of adjusting to cultural differences, - Cost of managing contract.
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MANAGEMENT CHALLENGES IN CREATING ORGANIZATIONAL & TECHNOLOGY INFRASTRUCTURE FOR CONDUCTING GLOBAL BUSINESS Challenges : 1. Finding the right global business, 2. Difficulties of managing change in a multicultural firm.
3. Difficulties of achieving global connectivity and integration.
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MANAGEMENT CHALLENGES IN CREATING ORGANIZATIONAL & TECHNOLOGY INFRASTRUCTURE FOR CONDUCTING GLOBAL BUSINESS Solution Guidelines: 1.
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Agree on common user requirements (core business processes and common language).
Introduce changes in business processes : Success will depend on LEGITIMACY and CHANGE STRATEGY (convincing on benefits) Coordinate applications development strategy).
(follow evolutionary change Coordinate software releases .
Encourage local users to support global systems : - Involve users in design creation, - Deal with resistant local units by COOPTATION .
- Avoid raw power (forced acceptance) 15.19
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15.20
END OF MANAGING INTERNATIONAL INFORMATION SYSTEMS
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2004 by Prentice Hall