Management Information System, Slides of International Management

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Management Information Systems:

Managing the Digital Firm

Sixteenth Edition

Chapter 15

Managing Global Systems

Learning Objectives

15.1 What major factors are driving the internationalization of business? 15.2 What are the alternative strategies for developing global businesses? 15.3 What are the challenges posed by global information systems and management solutions for these challenges? 15.4 What are the issues and technical alternatives to be considered when developing international information systems? 15.5 How will MI S help my career?

New Systems Help Eli Lilly

Standardize as a Global Company

(1 of 2)

• (^) Problem
  • (^) Global footprint
  • (^) Disparate local processes, systems, and data
• (^) Solutions
  • (^) Design global strategy and business model
  • (^) Globalize business processes
  • (^) Deploy SA P ER P and GR C Process Control

New Systems Help Eli Lilly

Standardize as a Global Company

(2 of 2)

• (^) Global ER P System
• (^) Demonstrates I T’s role in helping organizations pursue a global growth strategy
• (^) Illustrates the ability of I T systems to standardize global processes and rules

Figure 15.1: Apple Iphone’s Global

Supply Chain

Developing an International

Information Systems Architecture

• (^) Understand global environment
  • (^) Business drivers for global competition
  • (^) Inhibitors creating management challenges
• (^) Develop corporate strategy for global competition
• (^) Develop organizational structure and division of labor
• (^) Consider management issues
  • (^) Design of business procedures, reengineering, managing change
• (^) Consider technology platform

The Global Environment: Business

Drivers and Challenges

• (^) General cultural challenges
  • (^) Cultural particularism
  • (^) Social expectations
  • (^) Political laws
• (^) Specific challenges
  • (^) Standards
  • (^) Reliability
  • (^) Speed
  • (^) Personnel

Table 15.1: The Global Environment:

Business Drivers and Challenges

General Cultural Factors Specific Business Factors Global communication and transportation technologies Global markets Development of global culture Global production and operations Emergence of global social norms Global coordination Political stability Global workforce Global knowledge base Global economies of scale

State of the Art

• (^) Most companies have inherited a patchwork international system using traditional batch-oriented reporting, manual data entry, legacy systems, and little online control
• (^) Significant difficulties in building appropriate international architectures - (^) Planning a system appropriate to firm’s global strategy - (^) Structuring organization of systems and business units - (^) Solving implementation issues - (^) Choosing right technical platform

Global Strategies and Business

Organization

• (^) Three main kinds of organizational structure
  • (^) Centralized: In the home country
  • (^) Decentralized/dispersed: To local foreign units
  • (^) Coordinated: All units participate as equals
• (^) Four main global strategies
  • (^) Domestic exporter
  • (^) Multinational
  • (^) Franchisers
  • (^) Transnational

Global Systems to Fit the Strategy

• (^) Configuration, management, and development of systems tend to follow global strategy chosen
• (^) Four main types of systems configuration
  • (^) Centralized: Systems development and operation occur totally at domestic home base
  • (^) Duplicated: Development occurs at home base but operations are handed over to autonomous units in foreign locations
  • (^) Decentralized: Each foreign unit designs own solutions and systems
  • (^) Networked: Development and operations occur in coordinated fashion across all units

Figure 15.3 Global Strategy and

Systems Configurations

A Typical Scenario: Disorganization

on a Global Scale

• (^) Traditional multinational consumer-goods company based in United States and operating in Europe would like to expand into Asia
• (^) World headquarters and strategic management in United States
• (^) Separate regional, national production and marketing centers
• (^) Foreign divisions have separate I T systems
• (^) E-mail systems are incompatible
• (^) Each production facility uses different ER P system, different hardware and database platforms, and so on

Global Systems Strategy (1 of 2)

• (^) Share only core systems
  • (^) Core systems support functionality critical to firm
• (^) Partially coordinate systems that share some key elements
  • (^) Do not have to be totally common across national boundaries
  • (^) Local variation desirable
• (^) Peripheral systems
• (^) Need to suit local requirements only