Transcript MSS and alternatives views of the subject

The challenge for MSS in
the 21st century
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Ibrahim Elbeltagi
Info 2007
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LEARNING OBJECTIVES
IDENTIFY FACTORS BEHIND BUSINESS
INTERNATIONALIZATION
COMPARE GLOBAL STRATEGIES FOR
DEVELOPING BUSINESS
DEMONSTRATE HOW MSS SUPPORT
GLOBAL STRATEGIES
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Ibrahim Elbeltagi
Info 2007
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LEARNING OBJECTIVES
PLAN DEVELOPMENT OF
INTERNATIONAL MSS
EVALUATE TECHNICAL
ALTERNATIVES IN
DEVELOPING
GLOBAL SYSTEMS
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Ibrahim Elbeltagi
Info 2007
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MANAGEMENT CHALLENGES
GROWTH OF INTERNATIONAL
SUPPORT SYSTEMS
ORGANIZING INTERNATIONAL
SUPPORT SYSTEMS
MANAGING GLOBAL SYSTEMS
TECHNOLOGY ISSUES &
OPPORTUNITIES
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Ibrahim Elbeltagi
Info 2007
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INTERNATIONAL SUPPORT SYSTEMS
INFRASTRUCTURE
BASIC SUPPORT SYSTEMS
REQUIRED TO COORDINATE
WORLDWIDE TRADE
& OTHER ACTIVITIES
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Ibrahim Elbeltagi
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INTERNATIONAL SUPPORT SYSTEMS
INFRASTRUCTURE
GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES
CORPORATE GLOBAL STRATEGIES
ORGANIZATIONAL STRUCTURE
MANAGEMENT & BUSINESS PROCEDURES
TECHNOLOGICAL PLATFORM
INTERNATIONAL SUPPORT SYSTEMS INFRASTRUCTURE
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Ibrahim Elbeltagi
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GLOBAL BUSINESS DRIVERS
General Cultural Factors:
GLOBAL COMMUNICATION &
TRANSPORTATION TECHNOLOGIES
DEVELOPMENT OF GLOBAL CULTURE
EMERGENCE OF GLOBAL NORMS
POLITICAL STABILITY
GLOBAL KNOWLEDGE BASE
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Ibrahim Elbeltagi
Info 2007
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GLOBAL BUSINESS DRIVERS
Specific Business Factors:
GLOBAL
GLOBAL
GLOBAL
GLOBAL
GLOBAL
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MARKETS
PRODUCTION & OPERATIONS
COORDINATION
WORK FORCE
ECONOMIES OF
SCALE
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Ibrahim Elbeltagi
Info 2007
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CHALLENGES & OBSTACLES TO GLOBAL
BUSINESS SYSTEMS
GENERAL:
CULTURAL PARTICULARISM
SOCIAL EXPECTATIONS
POLITICAL LAWS
SPECIFIC:
TELECOMMUNICATION STANDARDS
NETWORK RELIABILITY
DATA TRANSFER SPEEDS
SHORTAGE OF CONSULTANTS
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Ibrahim Elbeltagi
Info 2007
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GLOBAL STRATEGIES & BUSINESS
ORGANIZATION
DOMESTIC EXPORTER: Centralization in
home country
MULTINATIONAL: Central home base;
decentralized production, sales, marketing in
other countries
FRANCHISER: Product created, initially
produced in home country; relies heavily on
local workers to produce, market in other
countries
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Ibrahim Elbeltagi
Info 2007
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GLOBAL STRATEGIES & BUSINESS
ORGANIZATION
TRANSNATIONAL: Truly global firm; no
national headquarters; value-added activities
managed from global perspective; optimizes
supply & demand, taking advantage of local
competitive strengths
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Ibrahim Elbeltagi
Info 2007
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GLOBAL BUSINESS STRATEGY &
STRUCTURE
STRATEGY
DOMESTIC
FUNCTION
EXPORTER
MULTINATIONAL
PRODUCTION
CENTRALIZED
DISPERSED
COORDINATED
COORDINATED
FINANCE / ACCOUNTING
CENTRALIZED
CENTRALIZED
CENTRALIZED
COORDINATED
SALES / MARKETING
MIXED
DISPERSED
COORDINATED
COORDINATED
HUMAN RESOURCES
CENTRALIZED
CENTRALIZED
COORDINATED
COORDINATED
STRATEGIC MANAGEMENT
CENTRALIZED
CENTRALIZED
CENTRALIZED
COORDINATED
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Ibrahim Elbeltagi
Info 2007
FRANCHISER
TRANSNATIONAL
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GLOBAL SUPPORT SYSTEMS
CENTRALIZED: Domestic home base
DUPLICATED: Copies of home system used in
foreign locations
DECENTRALIZED: Each unit has unique
system
NETWORKED: Integrated & coordinated at all
locations
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Ibrahim Elbeltagi
Info 2007
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GLOBAL INFORMATION SYSTEMS
CONFIGURATIONS
SYSTEM
DOMESTIC
CONFIGURATION EXPORTER
CENTRALIZED
X
STRATEGY
MULTINATIONAL
DUPLICATED
FRANCHISER
TRANSNATIONAL
X
DECENTRALIZED
x
X
NETWORKED
x
x
X : DOMINANT PATTERN
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Ibrahim Elbeltagi
X
x : EMERGING PATTERN
Info 2007
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REORGANIZE THE BUSINESS
ORGANIZE VALUE-ADDING ACTIVITIES FOR
COMPARATIVE ADVANTAGE
DEVELOP & OPERATE SYSTEMS AT EACH
LEVEL: National; regional, international
ESTABLISH SINGLE WORLD HEADQUARTERS:
Have global chief information officer
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Ibrahim Elbeltagi
Info 2007
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DEVELOPING GLOBAL SYSTEMS
AGREE ON COMMON USER REQUIREMENTS
INDUCE PROCEDURAL BUSINESS CHANGES
COORDINATE APPLICATIONS DEVELOPMENT
COORDINATE SOFTWARE RELEASES
ENCOURAGE LOCAL USERS TO ACCEPT
OWNERSHIP
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Ibrahim Elbeltagi
Info 2007
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STRATEGY: DIVIDE, CONQUER, APPEASE
DEFINE CORE BUSINESS PROCESSES
IDENTIFY CORE SYSTEMS TO COORDINATE
CENTRALLY
CHOOSE AN APPROACH: Incremental, grand
design, evolutionary
MAKE BENEFITS CLEAR
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Ibrahim Elbeltagi
Info 2007
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IMPLEMENTATION TACTICS
CO-OPTATION: Bring opposition into
process of designing, and implementing
solution without giving up control over
direction, nature of change
TRANSNATIONAL CENTERS
OF
EXCELLENCE: Focus on
specific business processes
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Ibrahim Elbeltagi
Info 2007
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MAIN TECHNICAL ISSUES
HARDWARE & SOFTWARE
INTEGRATION
CONNECTIVITY
SOFTWARE: Languages can be a barrier
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Ibrahim Elbeltagi
Info 2007
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MAIN TECHNICAL ISSUES
HARDWARE & SOFTWARE
INTEGRATION
CONNECTIVITY
SOFTWARE: Languages can be a barrier
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Ibrahim Elbeltagi
Info 2007
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Organisations in the 21st
Century
Several forms proposed, each of which
adopts a particular view of the
organisation, for example:
Learning organisation
Network organisation
Dynamic organisation
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Ibrahim Elbeltagi
Info 2007
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The Learning Organisation
A Learning Organisation is an organisation
skilled at creating, acquiring and transferring
knowledge, and at modifying its behaviour to
reflect new knowledge and insights
Organisations learn through individual
learning, but individual learning does not
guarantee organisational learning
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Ibrahim Elbeltagi
Info 2007
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The Learning Organisation
Culture of organisation must be conducive to
learning, where basic assumptions are
challenged, and experimentation, innovation,
idea generation at all levels, diversity of
opinions and teamwork are actively
encouraged
IT needs to support the combination,
creation, acquisition, communication and
embedding of knowledge within an
organisation
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Ibrahim Elbeltagi
Info 2007
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The Network organisation
Organisations that operate through a network of
market sensitive business units, in response to market
forces.
Each BU may be:
 Internal
 Outsourced
 Result of Strategic Alliances or Value Added
Partnerships (VAPs) for the exchange of goods and
information.
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Ibrahim Elbeltagi
Info 2007
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The Network organisation
To exist, it requires the capabilities of IT to
facilitate the communication and co-ordination
between the Bus, and to help foster VAPs.
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Ibrahim Elbeltagi
Info 2007
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The Network organisation
§
Internal BUs
External BUs
Current MSS function
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Ibrahim Elbeltagi
Info 2007
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The Dynamic Organisation
Closely related to the Network Organisation,
but not the same
A dynamic organisation represents a
continuously evolving set of activities which
are formed by integrating a group of internal
and external resources in order to develop
and exploit the briefest business opportunities
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Ibrahim Elbeltagi
Info 2007
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The Dynamic Organisation
Doesn’t stand still, in terms of outlook and
structure. Structure fluid so that it can easily
respond to opportunities
Set up a team of people, tasks & other resources
to exploit an opportunity, and dissolve it when
finished exploiting opportunity
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Ibrahim Elbeltagi
Info 2007
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The Dynamic Organisation
Doesn’t stand still, in terms of outlook and
structure. Structure fluid so that it can easily
respond to opportunities
Set up a team of people, tasks & other resources
to exploit an opportunity, and dissolve it when
finished exploiting opportunity
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Ibrahim Elbeltagi
Info 2007
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The Dynamic Organisation
Static component of the company
Working together,
reporting
Searching, looking out,
resource intelligence &
management, setting up,
supporting, dissolving.
Current MSS Functionality?
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Ibrahim Elbeltagi
Info 2007
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End of Module!
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Ibrahim Elbeltagi
Info 2007
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