Podcast
Questions and Answers
What is one key objective of organizing value-adding activities?
What is one key objective of organizing value-adding activities?
Core systems should be totally common across national boundaries.
Core systems should be totally common across national boundaries.
False
What position is suggested to be established at world headquarters to oversee international systems development?
What position is suggested to be established at world headquarters to oversee international systems development?
Global CIO
In global systems strategy, systems that suit local requirements only are referred to as __________ systems.
In global systems strategy, systems that suit local requirements only are referred to as __________ systems.
Signup and view all the answers
Match the following elements of a global systems strategy with their purposes:
Match the following elements of a global systems strategy with their purposes:
Signup and view all the answers
What aspect is emphasized alongside efficiency in a global systems strategy?
What aspect is emphasized alongside efficiency in a global systems strategy?
Signup and view all the answers
New core systems will have no impact on existing applications developed by different divisions.
New core systems will have no impact on existing applications developed by different divisions.
Signup and view all the answers
What should be introduced to facilitate changes in business processes?
What should be introduced to facilitate changes in business processes?
Signup and view all the answers
Most important software applications include TPS, MIS, __________, EDI, and enterprise systems.
Most important software applications include TPS, MIS, __________, EDI, and enterprise systems.
Signup and view all the answers
What strategy can help develop new transnational centers of excellence?
What strategy can help develop new transnational centers of excellence?
Signup and view all the answers
What is a key factor driving the internationalization of business?
What is a key factor driving the internationalization of business?
Signup and view all the answers
A decentralized organizational structure is one where all units participate as equals.
A decentralized organizational structure is one where all units participate as equals.
Signup and view all the answers
Name one challenge posed by global information systems.
Name one challenge posed by global information systems.
Signup and view all the answers
The four main global strategies are Domestic exporter, Multinational, Franchiser, and __________.
The four main global strategies are Domestic exporter, Multinational, Franchiser, and __________.
Signup and view all the answers
Match the type of system configuration with its description.
Match the type of system configuration with its description.
Signup and view all the answers
Which of the following is a specific business factor influencing global business?
Which of the following is a specific business factor influencing global business?
Signup and view all the answers
The rise of global social norms has no impact on business strategies.
The rise of global social norms has no impact on business strategies.
Signup and view all the answers
What is a major characteristic of a transnational business strategy?
What is a major characteristic of a transnational business strategy?
Signup and view all the answers
In challenges to global business systems, __________ refers to the varied electronic data interchange standards.
In challenges to global business systems, __________ refers to the varied electronic data interchange standards.
Signup and view all the answers
Match the organizational structure with its main characteristic.
Match the organizational structure with its main characteristic.
Signup and view all the answers
What kind of organizational structure allows for local foreign units to operate autonomously?
What kind of organizational structure allows for local foreign units to operate autonomously?
Signup and view all the answers
Global production and operations is a general cultural factor driving international business.
Global production and operations is a general cultural factor driving international business.
Signup and view all the answers
Which of the following is not a challenge faced by global business systems?
Which of the following is not a challenge faced by global business systems?
Signup and view all the answers
Global __________ refers to the advantages enjoyed from large-scale production.
Global __________ refers to the advantages enjoyed from large-scale production.
Signup and view all the answers
Match the global strategies with their correct functions.
Match the global strategies with their correct functions.
Signup and view all the answers
Study Notes
Lecture 11: BHMS4472 ICT in Business – Managing Global Systems
- The lecture covers managing global systems using ICT (Information, Communication, and Technology).
- Key learning objectives focus on international business factors, global business strategies, challenges of global information systems and management solutions and technical alternatives for international information systems.
What Major Factors Are Driving the Internationalization of Business?
- Global economic systems and global world order are driven by advanced networks and information systems.
- Growth of international trade has significantly altered domestic economies globally.
- Examples include the production of high-end electronic products like iPhones, which are parceled out to multiple countries (Apple iPhone’s global supply chain).
Apple iPhone's Global Supply Chain
- The graphic (a world map) shows the geographical spread and links of the parts of Apple’s supply chain. This includes manufacturing plants in countries including but not limited to the US, Germany, Italy/France, China, South Korea, and Japan.
Developing an International Information Systems Architecture
- Understanding global business drivers and inhibitors will create management challenges.
- Define a corporate global strategy for global competition.
- Develop and manage organizational structures and division of labour.
- Consider management issues, including business procedure design, reengineering, and managing change.
- Consider technical platforms.
International Information Systems Architecture
- Global environment: includes business drivers and challenges.
- Corporate global strategies
- Organization Structure
- Management and Business Processes
- Technology Platform
The Global Environment: Business Drivers and Challenges
- Business drivers include:
- General cultural factors
- Specific business factors
- Challenges include:
- Global
- Specific
The Global Environment: Business Drivers and Challenges - Specific and General Driver Examples
- General Cultural Factors: Global communication and transportation technologies, development of global culture and emergence of global social norms, political stability, and global knowledge base
- Specific Business Factors: Global markets, global production and operations, global coordination, global workforce, and global economies of scale
Challenges and Obstacles to Global Business Systems
- Global challenges include cultural particularism, regionalism, nationalism, language differences, social expectations, and Political laws.
- Specific Challenges include different electronic data interchange (EDI) standards, phone network reliability, data transfer speeds; shortages of skilled consultants.
State of the Art
- Most businesses have patchy international systems.
- Significant difficulty in building international architectures:
- Planning systems appropriate to the firm's global strategy
- Structuring organizational systems and business units
- Solving implementation issues,
- Choosing the right technical platform.
Global Strategies and Business Organization
- Organizational structures:
- Centralized: based in the home country
- Decentralized/ dispersed: to local foreign units
- Coordinated: all units participate as equals
- Global strategies:
- Domestic exporter
- Multinational
- Franchiser
- Transnational
Global Business Strategy and Structure Matrix
- Table matrix showing how different business functions (production, finance/accounting, sales/marketing, human resources, strategic management) are managed under the different global strategies (domestic exporter, multinational, franchiser, transnational)
Global Systems to Fit the Strategy
- Configuration, management, and development of systems tends to follow the global strategy chosen.
- Types of system configurations for different global strategies:
- Centralized: all processing occurs in home country
- Duplicated: development is in home base but operations are in foreign countries.
- Decentralized: each foreign unit designs its own systems
- Networked: development and operations coordinated among all units.
Global Strategy and Systems Configurations Matrix
- Table comparing four different global strategies and the organizational structures/systems required for each.
Reorganizing the Business
- To develop a global company and information system support structure to achieve competitive advantage:
- Organize value-adding activities along lines of comparative advantage, locating functions for lowest cost and maximum reliability.
- Develop and operate systems units at regional, national and international levels
- Establish world headquarters with a global CIO and a single office for transnational system development.
A Typical Scenario: Disorganization on a Global Scale
- A traditional multinational consumer goods company that expands into Asia, but with separate IT systems for different business units (production, marketing) and country divisions, and incompatible systems and different systems and hardware.
Global Systems Strategy
- Share only core systems.
- Partially coordinate systems with some key elements (not necessary for all elements to be the same across national boundaries).
- Peripheral systems must suit local requirements only.
Global Systems Strategy (Continued)
- Define core business processes.
- Identify core systems to be coordinated centrally.
- Choose a system integration approach (piecemeal or comprehensive design).
- Make benefits clear (for global flexibility, greater efficiency, significant cost efficiencies)
- Supply chain resiliency is increasingly important consideration.
The Management Solution: Implementation
- Agreeing on common user requirements(Short-list of core business processes, Develop common language, Unique local qualities)
- Introducing changes in business processes(Success depends on legitimacy, authority, change design process).
- Coordinating applications development( Coordinate change through increments, Reduce transnational system set).
Local, Regional, and Global Systems
- Diagram illustrating interconnected relationships between various levels of business systems (local, regional, global).
- Focus on geographic business scope and business system scope.
The Management Solution: Implementation (Continued)
- Coordinating software releases (institute procedures for concurrent updates across all operating units.)
- Encouraging local users to support global systems (Cooptation, allow each country unit to develop a transnational application, establish new centres of excellence).
Issues and Technical Alternatives When Developing International Information Systems
- Computing platforms and systems integration (how new core systems fit in existing applications, standardization of data standards, interfaces, software)
- Connectivity(Internet service reliability, private networks/VPNs, infrastructure in developing countries.)
- Software (Integrating new systems with old systems, human interface design issues, language support, localization).
- Important software applications (TPS, MIS, SCM, EDI, enterprise systems, collaboration tools, e-mail, videoconferencing).
Internet Population in Selected Countries
- Graph showing varying internet penetration rates across different countries (Norway, U.S.A., Peru, China, Egypt, Pakistan, Somalia). Significant variation observed.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz covers the key concepts from Lecture 11 of BHMS4472, focusing on managing global systems using ICT. It explores international business factors, strategies, and the challenges of global information systems exemplified by Apple iPhone's supply chain.
