Transcript IE381_SM - Pohang University of Science and Technology

IS Globalization Issues
Rev: Feb, 2012
Euiho (David) Suh, Ph.D.
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT: http://posmit.postech.ac.kr)
Dept. of Industrial & Management Engineering
POSTECH
Contents
※
Discussion Questions
1
The International Dimension
2
Global IT Management
3
Global business Strategies & Applications
4
Global IT Platforms
5
Global Data Access Issues
6
Global Systems Development
7
Case Study
Discussion Questions
■ Give an example of overcoming cultural, political, or geo-economic challenges by
using IT.
■ Is there any other Global IT management Challenges except political, geo-economic
and cultural challenges? How can we overcome it?
■ Explain the differences among internet, intranet, and extranet.
3
The International Dimension
1. The International Dimension
■ To operate competitively in a digital economy
 Developing new models ; structured, yet agile, global, yet local
concentrating on maximizing risk-adjusted return from
both knowledge and technology asset
■ The major dimensions of global e-business technology management
4
Global IT management Challenges
2. Global IT Management
■ Political Challenges
– Regulate or prohibit the transfer of data across national boundaries
– Restrict, tax, or prohibit imports of hardware and software
– Local content laws that specify the portion of the value of a product that must be added in
that country if it is to be sold there
– Require a business to spend part of the revenue they earn in a country in that nation’s
economy
■ Geo-economic Challenges
– Physical distances
• Too long to fly in specialists
• Hard to communicate in real time across time zones
• Poor telephone and telecommunications services
– Hard to find skilled local workers
– Differences in the cost of living and labor costs
■ Cultural Challenges
– Differences in language, cultural interests, religions, customs, social attitudes, and political
philosophies
– Cultural training needed before assignments
5
Global Business/IT Strategies (1/2)
3. Global business Strategies & Applications
■ Differences among international, global, transnational business and IT strategies
Comparing Global Business/IT Strategies
International
Global
Transnational
•
Autonomous operations
•
Global sourcing
•
Virtual business operations
via global alliances
•
Region specific
•
Multiregional
•
World markets and mass
customization
•
Vertical integration
•
Horizontal integration
•
Global e-commerce and
customer service
•
Specific customers
•
Some transparency of
customers and production
•
Transparent manufacturing
•
Captive manufacturing
•
Some cross regionalization
•
Global supply chain and
logistics
•
Customer segmentation
and dedication by region
and plant
•
Dynamic resource
management
Moving toward a transnational strategy
6
Global Business/IT Strategies (2/2)
3. Global business Strategies & Applications
■ Differences among international, global, transnational business and IT strategies
(Cont’d)
Information Technology Characteristics
International
Global
Transnational
•
Logically consolidated,
physically distributed,
Internet connected
•
Common global data
resources
•
Integrated global
enterprise systems
•
Stand-alone systems
•
Regional decentralization
•
Decentralized/no standard
•
Interface dependent
•
Heavy reliance on
interfaces
•
Some consolidation of
applications and use of
common systems
•
Multiple systems, high
redundancy, and
duplication of services and
operations
•
Reduced duplication of
operations
•
Internet, intranet, extranet,
and Web-based
applications
•
Some worldwide IT
standards
•
Transnational IT policies
and standards
•
Lack of common systems
and data
Moving toward a transnational strategy
7
Drivers for applications of Global Business
3. Global business Strategies & Applications
■ Customers
– Travel anywhere or companies with global operations
■ Products
– The same throughout the world or assembled by subsidiaries throughout the world
■ Operations
– Parts of a productions or assembly process assigned to subsidiaries based on changing
■ Resources
– The use and cost of common equipment, facilities, and people shared by subsidiaries of a
global company
■ Collaboration
– The knowledge and expertise of colleagues in a global company
– Accessed, shared, and organized to support individual or group effeort
8
Global IT Platforms
4. Global IT Platforms
■ Management of a global IT platform
– Technically complex
– Major political and cultural implications
■ Difficulties of hardware choices
–
–
–
–
–
–
High prices
High tariffs
Import restrictions
Long lead times for government approvals
No local service or spare parts
Lack of “localized” documentation
■ Difficulties of software choices
– Packages developed in Europe may be incompatible with American or Asian versions
– Software publisher may refuse to supply markets that disregard software licensing and
copyright agreements
9
International Data Communications Issues
■ Key global IT challenge
International Data Communications Issues
Network Management Issues
•
•
•
Improving the operational efficiency of networks
Dealing with different networks
Controlling data communication security
Regulatory Issues
•
•
•
Dealing with transborder data flow restrictions
Managing international telecommunication regulations
Handling international politics
Technology Issues
•
•
Managing network infrastructure across countries
Managing international integration of technologies
Country-Oriented Issues
•
•
Reconciling national differences
Dealing with international tariff structures
10
4. Global IT Platforms
The Internet as a Global IT Platform
4. Global IT Platforms
The Internet
An interconnected matrix that reaches tens
of millions of users in over 100 countries
Business environment free of
traditional boundaries and limits
Without incurring massive cost outlays for
telecommunications, companies can…
Expand markets
Reduce communications and distribution costs
Improve profit margins
11
Key Questions for Global Websites
4. Global IT Platforms
■ Key Questions for companies establishing global Internet Web sites
Key Questions
•
Will you have to develop a new navigational logic to accommodate cultural
preferences?
•
What content will you translate, and what content will you create from scratch to
address regional competitors or products that differ from those in the U.S.?
•
Should your multilingual effort be an adjunct to your main site, or will you make it a
separate site, perhaps with a country-specific domain?
•
What kinds of traditional and new media advertising will you have to do in each
country to draw traffic to your site?
•
Will your site get so many hits that you’ll need to set up a server in a local country?
•
What are the legal ramifications of having your website targeted at a particular country,
such as laws on competitive behavior, treatment of children, or privacy?
12
Internet Users by World Region
4. Global IT Platforms
■ Continued expansion of the Internet as it becomes a pervasive IT platform for global
business
World Internet Usage and Population Statistics
World Regions
Population
(2005 Est.)
Population
% of World
Internet Usage,
Latest Data
Usage Growth
2000 ~ 2005
Penetration
(% Population)
World
Users (%)
Africa
900,465,411
14,0
13,468,600
198.3
1.5
1.5
Asia
3,612,363,165
56.3
302,257,003
164.4
8.4
34.0
Europe
730,991,138
11.4
259,653,144
151.9
35.5
29.2
Middle East
259,499,772
4.0
19,370,700
266.5
7.5
2.2
North America
328,387,059
5.1
221,437,647
104.9
67.4
24.9
Latin
America/Caribbean
546,917,192
8.5
56,224,957
211.2
10.3
6.3
Oceania/Australia
33,443,448
0.5
16,269,080
113.5
48.6
1.8
WORLD TOTAL
6,412,067,185
100.0
888,681,131
146.2
13.9
100
13
Global Data Access Issues
5. Global Data Access Issues
■ Subject of political controversy and technology barriers in global business operations
for many years
■ More visible with the growth of the Internet and the pressures of e-commerce
■ Transborder Data Flows(TDF)
– Business data flow across international borders over the telecommunications networks of
global information systems
Transborder Data Flows may be seen as violating
A nation’s sovereignty
because it avoids customs duties and regulations
Laws protecting the local IT industry from competition
Laws protecting local jobs
Privacy legislation
14
Internet Access in Restrictive Countries
5. Global Data Access Issues
■ The struggle between Internet censorship and openness at the national level relates to
– Controlling the conduits
– Filtering the flows
– Punishing the purveyors
■ Most of the world has decided that restricting Internet access is not a viable policy
– Restricting access also hurts a country’s opportunities for economic growth and prosperity
■ Global Government Internet Restrictions
– High Government Access Fees
• Kazakhstan, Kyrgyzstan
– Government Monitored Access
• China, Iran, Saudi Arabia, Azerbaijan, Uzbekistan
– Government Filtered Access
• Belarus, Cuba, Iraq, Tunisia, Sierra Leone, Tajikistan, Turkmenistan, Vietnam
– No Public Access Allowed
• Burma, Libya, North Korea
15
Global Systems Development
6. Global Systems Development
Key Development Issues
Local versus global system requirements
Getting agreement on system features
Global standardization of data definitions
Disturbances caused by systems
implementation and maintenance activities
■ Key development strategies
–
–
–
–
–
Transform an application used by the home office or a subsidiary into a global application
Set up a multinational development team
Parallel development
Centers of excellence
Offshore development
■ Requirement of all of these strategies
– Development team collaboration and managerial oversight to meet the global needs of a
business
16
Internet-Enabled IT Development
6. Global Systems Development
■ Example of Internet-enabled collaboration in global IT systems development
17
Case study
18
Reference
■ O’Brien & Marakas, “Introduction to Information Systems – Fifteenth Edition”,
McGraw – Hill, Chapter 12, pp.522~542
19