Podcast
Questions and Answers
3M has separate information systems for its many divisions and local operations.
True
Hewlett-Packard laptop computers are produced in a single country.
False
SAP's Business Suite Applications was used to replace all legacy software at 3M.
True
International information systems are not important for global firms.
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Cisco and Microsoft were used by Monsanto to manage globally.
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Daum runs Oracle Apps on Windows.
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The growth of international information systems is driven by general cultural factors, specific business globalization factors, and technological advancements.
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Cultural particularism is a general cultural factor that leads to internationalization.
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Brand-name expectations are a specific business factor that drives globalization.
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Different EDI standards are a challenge to global business systems.
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Phone networks are uniformly reliable across the globe.
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Data transfer speeds are uniformly fast across the globe.
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Most companies have state-of-the-art international systems with online control and communication.
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There are only two main kinds of organizational structures for international information systems.
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The four main global strategies are domestic, multinational, franchiser, and transnational.
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The configuration, management, and development of systems do not follow the global strategy chosen.
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There are only two types of systems configuration.
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Building international architectures is a straightforward process.
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A multinational consumer-goods company based in the U.S. would not expand into Asian markets.
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There is only one main challenge in developing global systems.
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A single office is responsible for the development of international systems.
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Coordinating software releases is not a challenge in developing global systems.
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Introducing changes in business processes is not a challenge in developing global systems.
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Fonterra has separate information systems for its many divisions and local operations.
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Hewlett-Packard laptop computers are produced in multiple countries.
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Standardization of data interfaces is a technology challenge for global systems.
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Coordinating software releases is not important for global systems.
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Cooptation involves excluding local users from the design and implementation process.
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Developing new transnational centers of excellence is not a strategy for managing global systems.
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Study Notes
Managing Global Systems
The Growth of International Information Systems
- The global economic system and global world order are driven by advanced networks and information systems.
- The growth of international trade has radically altered domestic economies around the globe.
- For example, the production of high-end electronic products, such as Hewlett-Packard laptops, is parceled out to multiple countries.
Global Business Drivers
- General cultural factors: • Global communication and transportation technologies • Development of global culture • Emergence of global social norms • Political stability • Global knowledge base
- Specific business factors: • Global markets • Global production and operations • Global coordination • Global workforce • Global economies of scale
Challenges and Obstacles to Global Business Systems
- General cultural challenges: • Cultural particularism • Regionalism and nationalism • Language differences • Social expectations (brand-name expectations, work hours) • Political laws
- Specific challenges: • Standards (different EDI, email, telecommunication standards) • Reliability (phone networks not uniformly reliable) • Speed (different data transfer speeds, many slower than in the US) • Personnel (shortages of skilled consultants)
Organizing International Information Systems
- 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
- Franchiser
- Transnational
- Global systems to fit the strategy:
• Configuration, management, and development of systems tend to follow the global strategy chosen
• Four main types of systems configuration:
- Establish at world headquarters
- Regional centers
- Local units
- Hybrid approach
Managing Global Systems
- Principle management challenges: • Agreeing on common user requirements • Introducing changes in business processes • Coordinating application development • Coordinating software releases • Encouraging local users to support global systems
- The management solution: • Coordinating software releases (institute procedures to ensure all operating units update at the same time) • Encouraging local users to support global systems (cooptation: bringing the opposition into design and implementation process without giving up control)
Technology Issues and Opportunities for Global Value Chains
- Technology challenges of global systems: • Computing platforms and systems integration • Standardization (data standards, interfaces, software, etc.) • How new core systems will fit in with existing suite of applications developed around the globe by different divisions
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Description
Explore the key factors driving international business, alternative strategies for global expansion, and the role of information systems in supporting global business strategies. Learn about the challenges and solutions for managing global information systems.
