Transcript Chapter 15
17.1 LEARNING OBJECTIVES • IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION • COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS • DEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIES * 17.2 LEARNING OBJECTIVES • PLAN DEVELOPMENT OF INTERNATIONAL INFORMATION SYSTEMS • EVALUATE TECHNICAL ALTERNATIVES IN DEVELOPING GLOBAL SYSTEMS 17.3 * MANAGEMENT CHALLENGES • GROWTH OF INTERNATIONAL INFO SYSTEMS • ORGANIZING INTERNATIONAL INFO SYSTEMS • MANAGING GLOBAL SYSTEMS • TECHNOLOGY ISSUES & OPPORTUNITIES * 17.4 INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE BASIC INFORMATION SYSTEMS REQUIRED TO COORDINATE WORLDWIDE TRADE & OTHER ACTIVITIES * 17.5 INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES CORPORATE GLOBAL STRATEGIES ORGANIZATIONAL STRUCTURE MANAGEMENT & BUSINESS PROCEDURES TECHNOLOGICAL PLATFORM 17.6 INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE GLOBAL BUSINESS DRIVERS General Cultural Factors: • GLOBAL COMMUNICATION & TRANSPORTATION TECHNOLOGIES • DEVELOPMENT OF GLOBAL CULTURE • EMERGENCE OF GLOBAL NORMS • POLITICAL STABILITY • GLOBAL KNOWLEDGE BASE * 17.7 GLOBAL BUSINESS DRIVERS Specific Business Factors: • • • • • 17.8 GLOBAL MARKETS GLOBAL PRODUCTION & OPERATIONS GLOBAL COORDINATION GLOBAL WORK FORCE GLOBAL ECONOMIES OF SCALE * CHALLENGES & OBSTACLES TO GLOBAL BUSINESS SYSTEMS GENERAL: • CULTURAL PARTICULARISM • SOCIAL EXPECTATIONS • POLITICAL LAWS SPECIFIC: • TELECOMMUNICATION STANDARDS • NETWORK RELIABILITY • DATA TRANSFER SPEEDS • SHORTAGE OF CONSULTANTS 17.9 * 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 * 17.10 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 * 17.11 GLOBAL BUSINESS STRATEGY & STRUCTURE STRATEGY FUNCTION DOMESTIC EXPORTER 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 17.12 MULTINATIONAL FRANCHISER TRANSNATIONAL GLOBAL INFORMATION 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 * 17.13 GLOBAL INFORMATION SYSTEMS CONFIGURATIONS STRATEGY SYSTEM DOMESTIC CONFIGURATION EXPORTER CENTRALIZED X MULTINATIONAL DUPLICATED DECENTRALIZED X x NETWORKED X x x X : DOMINANT PATTERN 17.14 FRANCHISER TRANSNATIONAL X x : EMERGING PATTERN 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 * 17.15 DEVELOPING GLOBAL SYSTEMS • AGREE ON COMMON USER REQUIREMENTS • INDUCE PROCEDURAL BUSINESS CHANGES • COORDINATE APPLICATIONS DEVELOPMENT • COORDINATE SOFTWARE RELEASES • ENCOURAGE LOCAL USERS TO ACCEPT OWNERSHIP 17.16 * STRATEGY: DIVIDE, CONQUER, APPEASE • DEFINE CORE BUSINESS PROCESSES • IDENTIFY CORE SYSTEMS TO COORDINATE CENTRALLY • CHOOSE AN APPROACH: Incremental, grand design, evolutionary • MAKE BENEFITS CLEAR * 17.17 MAIN TECHNICAL ISSUES • HARDWARE & SOFTWARE INTEGRATION • CONNECTIVITY • SOFTWARE: Languages can be a barrier * 17.18 Connect to the INTERNET PRESS LEFT MOUSE BUTTON ON ICON TO CONNECT TO THE LAUDON & LAUDON WEB SITE FOR MORE INFORMATION IN THIS CHAPTER 17.19 17.20