Transcript Database Principles & Design By Colin Ritchie

Management Information
Systems
By Effy Oz & Andy Jones
Chapter 8: Challenges of Global
Information Systems
www.cengage.co.uk/oz
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Objectives
• Explain why multinational corporations must use
global information systems
• Provide elementary advice for designing Web
sites for an international audience
• Cite the cultural, legal, and other challenges to
implementing international information systems
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Multinational organisations
• Increasing number of corporations becoming
multinational
• Global information system: serves
organisations in multiple countries
– Used by multinational corporations
• Overseas operations must abide by local laws
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Web and International
Commerce
• Web became important vehicle for B2B and B2C
commerce
• Ratio of non-English speakers to English speakers
growing
• Internet opens enormous global opportunities
• Chinese market expected to be largest in future
• Web offers opportunities to save on costs
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Web and International
Commerce (continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Web and International
Commerce (continued)
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Manuals prepared with animation
Presented in many languages
Global businesses must be sensitive to audiences
Glocalization: design global sites to cater to local
needs
• McDonalds menu changes to appeal to local palates
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
The Web and International
Commerce (continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Think Globally, Act Locally
• International companies “think globally, act
locally”
• Be sensitive to regional customs
• Control must be decentralized
• Strategic planning should be global
• Can be followed with local flavour
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Think Globally, Act Locally
(continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Think Globally, Act Locally
(continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Challenges of Global Information
Systems
• Global information systems face challenges
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Technological barriers
Regulations and tariffs
Electronic payment mechanisms
Different language and culture
Economic and political considerations
Different measurement standards
Legal barriers
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Technological Challenges
• Not all countries have adequate information
technology infrastructures
• Unable to build international IS
• Broadband communication lines needed
• Can offer two versions of Websites to compensate
for slower bandwidth
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Technological Challenges (continued)
• Language is technological challenge
– Eight-bit bytes not sufficient for languages with
large character sets
– Unicode allows for 65,536 characters
– Must coordinate with databases and applications
• Telephone numbers different in different countries
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Regulations and Tariffs
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Countries have different importing regulations
Executives reluctant because of hassles
Comply with laws of destination countries
NextLinx help importers and exporters for Web
commerce
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Differences in Payment Mechanisms
• E-commerce allows easy payment for online
purchases
• Credit cards preferred payment method in North
America
• Not all countries adopt this preference
– Japanese avoid using credit cards
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Language Differences
• International parties must agree on common
language
• Data not transmittable internationally because
information must be translated
• English considered de facto international
language
• Largest companies translate Web sites into local
languages
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Cultural Differences
• Different countries vary
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Tastes
Gestures
Treatment of people
Ethical issues
• Conservative groups against “Americanization”
• Web designers must be sensitive to cultural
differences
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Conflicting Economic, Scientific, and
Security Interests
• Goal of corporate management
– Seize large market share
– Maximize organisation profits
• Scientific information important national
resource
• Occasionally interests conflict
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Conflicting Economic, Scientific, and
Security Interests (continued)
• Weapons manufacturers have technical
drawings
– Valuable to both company and security of country
– Governments may not allow exchange of weapon
designs
• PGP (Pretty Good Privacy) encryption
application was opposed by government
– Thought to compromise national security
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Political Challenges
• Information is power
• Some countries oppose policy of free access to
information
– Gives other nations opportunity to control
indigenous resources
• Government may require software to be
purchased within borders
• Government may limit Internet use
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Different Standards
• Standards considered when integrating ISs
internationally
• Records may be incompatible
• United States uses English system of weights
and measures
• Rest of world uses metric system
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Different Standards (continued)
• Different standards
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Communicating dates
Times
Temperatures
Addresses
• United States uses month/day/year format
• Rest of world uses day/month/year
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Different Standards (continued)
• Different standards very costly
– NASA lost spacecraft because of measurement unit
discrepancy
• European Article Number (EAN): barcode that
includes an extra number to identify country
• Universal Product Code (UPC): American standard
without last extra number
• Uniform Code Council (UCC): promoted use of
European standard
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Different Standards (continued)
• Companies must adapt ISs to de facto (formal)
standards
• Global Trade Item Numbers (GTINs): large
enough to identify much larger set of items
• Support global supply chains
• Major push for using RFID tags
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Legal Barriers
• Countries have different laws
– Affects global business in general
– Poses challenges
• International transfer of data
• Free speech
• Location of legal proceedings
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Legal Barriers (continued)
• Privacy laws
– Respect for privacy in international business is
unresolved challenge
– Majority of democratic nations protect
individual privacy
– Laws reflect difference in approach to issue of
privacy
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Legal Barriers (continued)
• Data protection laws described by three criteria
– Apply to private or public sector
– Manual or automated data
– Concern human beings or legal entities
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Legal Barriers (continued)
• European Union practices may conflict with
U.S. practices
– Personal data collected only for specified purposes
– Personal data must be given consent to be
processed
– Collecting organisations must identify themselves
– People have right to object to processing of
personal data
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Legal Barriers (continued)
• American companies busy collecting data for
marketing
• Discrepancy between European and American
approaches prevents unrestricted flow of
information
• EU directive just a framework
• Safe Harbor: arrangement for U.S. companies
complying with EU directive to trade
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Legal Barriers (continued)
• Applicable law
– Free speech laws different in other countries
– Impacts what can or cannot be displayed online
• Other laws
– Gambling
– Auctioning
– Sale of alcohol and drugs
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Different Time Zones
• Different global regions require policies for
work and information systems
• Teleconferencing available most of day
• Sometimes 24 hours per day
• Allow employees from different time zones to
discuss problems
• Teams in support centres may work shifts
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Different Time Zones (continued)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Different Time Zones (continued)
• Managers must be aware of incorrect time
stamping
• Systems at both locations can be designed to
record local times of both locations
• Or record single time (company headquarters)
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary
• Companies using Web for business must
accommodate non-English speaking audiences
• Companies must tailor to local preferences
• Must be aware of cultural differences and payment
preferences
• Tariff and legal issues
• Linguistic, cultural, economic, and political
challenges must be addressed
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary (continued)
• Laws governing collection of data in United
States and European Union are different
• Incompatible data privacy laws
• Restricted flow of personal data between
United States and EU
• Safe Harbor arrangement enables EU to do
business with US
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning
Summary (continued)
• Old legal approach of territorial jurisdiction
inadequate
• Too much information communicated and
business conducted on Internet
• Free speech and consumer litigation of etailers brought need for legal reform for
cyberspace
Use with Management Information Systems 1e
By Effy Oz & Andy Jones ISBN 9781844807581
© 2008 Cengage Learning