Myka Ella V.

Dioquino
BSAIS 4B

ASSIGNMENT

1. Explain how each global challenge affects the company’s information system and state some
ways on how to adapt to these challenges in the emerging markets.
a. Cultural
The information system is challenged globally by cultural differences in other countries
and regions of the world. Each country has its tradition and culture that may not apply in
another country. Organizations and individuals seeking global trade are affected by these
differences. The challenges that businesses will face are tastes, gestures, treatment of
people, ethical issues, and conservative groups against “Americanization”. A company
like McDonalds that is American company may face the challenge of tastes in Africa.
The technology that works for attracting customers to McDonalds’ taste of food in the
United States may face a challenge in Africa. There are cultural variations in information
interface in portals like yahoo and Google. The icons on the yahoo home page represent
different aspects of the culture of the country represented. For example, in the Chinese
culture, the color “red” is representation of passion, celebration, and happiness which is a
good sign. Even the stocks are represented in red. On the other hand, in Yahoo Taiwan,
green is a sign for good and red is a sign for danger or something bad. The interface of
the icons varies with cultures. Those creating websites and portals in different countries
must pay attention to what appeals to the culture of the people.

Solution: Multicultural firms should employ personnel locally to design versions of the
websites to appeal to a particular country. Organizations dealing with products that has to
do with taste need to explore ways of incorporating local taste to their food to meet the
local demand.
b. Language
English is a universal language of the internet but the percentage of English speaking
countries is 38.8% as opposed to 62.2% of non-English speaking countries. There is a
challenge of translating information to different languages which makes it difficult to
translate the exact meaning of the information from one language to the other. Google
and other portals have to figure out a way to translate Google into different languages.
Google is translated into 150 different languages. The challenge is that international
partners have to agree on a common language. Information needs to be translated because
the computer cannot translate accurately; English is considered “de facto” international
language. Countries require information and systems in their own language. Some
 countries require that the account system be written in their languages. It is a challenge to
have a universal accounting system

Solution: Large companies translate information in local languages. Website design and
translation should be done in local offices. For example, Google is design and translated
in 150 languages. Organizations need to create multiple accounting systems in different
languages. Google uses language codes. Users specify the language which they intend to
do their search and they are able to search in any language of their choice.
c. Times and Distance
Time differences make it difficult to talk to people on other sides of the globe. It takes
days and sometimes months to get products to other countries. This leads to delays in
business transactions. It is difficult for employees and customers in different countries to
get connected. Time stamping could be a challenge to keep track of creation and
modification time of a document.

Solution: Teleconferencing systems can help with accommodation of employees in other

time zones. Chart rooms and bulletin boards for communication are other ways to bridge
the time gap. Customer support personnel to work 24/7. Companies create standard
policy for time stamping documents.
d. State, Regional and National Laws
Countries have different importing regulations. The regulations have a variety of issues,
trade secrets, patents, copyrights, protection of personal or financial data, and privacy. It
is time consuming to keep track of the regulations and tariffs of computer systems in
multinational and transnational organizations. Employees may not know how to comply
with laws, regulations, and tariffs of destination countries.

Solution: programs like Nextlinx can help importers and exporters for web commerce.
Nextlinx is specialized in global trade. It provides solutions to importers, exporters, and
logistics providers. Nextlinx is integrated in the firm’s systems. Nextlinx handles all the
logistics in international order of software. It determines cost, trade agreement, trade
import and export, and global knowledge.
e. Infrastructures
The challenge that information systems face is that many countries do not have adequate
information technology infrastructures. Some countries do not have quality electricity
and water supply. The telephone and internet services may have limited access and even
the employees are not skilled to handle the changing technological infrastructure.
Companies having branches in countries with low bandwidth have the challenge of
creating their websites. Portals like yahoo and Google have the challenge of using the
technology of different countries in their interface as we will see later in this paper. In
countries with low bandwidth internet the system will be very slow.
 Solution: companies need to create two versions of websites to offer alternative to
compensate for the slow bandwidth. I think companies also need to work with the
infrastructure that works best for those countries.

f. Currency
The value of currency is a great challenge for international trade. The method of payment
too is another challenge to international trade. Some countries do not have debit or credit
card for online transactions. A country like Japan avoids using credit card. Even though
there are some credit cards and debit cards are gradually being used in Japan it is not as
easy as it is in the United States to use the ATM machine. Due to the use of the Post
Office cash machine it is easier to open an account in Japan than to use your credit or
debit card. So, it becomes difficult to do international transactions online. The United
States uses debit and credit card for online transactions. On the contrast the US does not
use mobile payment method which is mobile payment on method on the cell phone to do
electronic commerce.

Solution: international firms must have multiple payment mechanism. The goal of most
people is the use of one device of payment for international trade. Japan is making some
improvement on the Post Office cash machine to accept international credit and debit
cards.
g. Product and Services
Every state and country has laws that must be obeyed by citizens of that country. There
are barriers in areas like data collection privacy, international transfer of data, free
speech, and location of legal proceedings. Other differences include auctions, gambling,
sale of liquor, and drug prescription. Most democratic countries have laws that protect the
privacy of individuals. In the United States there are laws that protect the privacy of
medical records which pose a challenge to the information system. In 2004 Christine
Lehmann in her article on legal barrier of information technology said “The Government
Accountability Office reports that health care facilities and medical practices worry that
they will run afoul of federal laws if they provide health information technology to their
physicians.” (Lehmann, 2004) I don’t the present how far health care facilities and
medical practices can with the use of information technology. This challenge goes a long
way to hinder the use of information technology in the health system. I think the main
reason for this barrier is the issue of privacy of medical information because the law
warrants that patient’s medical record protected from unauthorized users.<br />Solution:
the Department of Health and Human Services in the United States is making effort to
promote the adoption of health information system by health care providers. I think this
solution have been greatly improved the procedures in health care facilities. For example
at my work place at Immanuel Terrace, we can now reorder residence’s prescription
online as opposed to using paper forms and faxing the order to the pharmacy.
h. Technology Transfer
The challenge that information systems face is that many countries do not have adequate
information technology infrastructures. Some countries do not have quality electricity
and water supply. The telephone and internet services may have limited access and even
the employees are not skilled to handle the changing technological infrastructure.
Companies having branches in countries with low bandwidth have the challenge of
creating their websites. Portals like yahoo and Google have the challenge of using the
technology of different countries in their interface as we will see later in this paper. In
countries with low bandwidth internet the system will be very slow.

Solution: companies need to create two versions of websites to offer alternative to

compensate for the slow bandwidth. I think companies also need to work with the
infrastructure that works best for those countries.
i. Trade Agreements
Some countries do not have debit or credit card for online transactions. A country like
Japan avoids using credit card. Even though there are some credit cards and debit cards
are gradually being used in Japan it is not as easy as it is in the United States to use the
ATM machine. Due to the use of the Post Office cash machine it is easier to open an
account in Japan than to use your credit or debit card. So, it becomes difficult to do
international transactions online. The United States uses debit and credit card for online
transactions. On the contrast the US does not use mobile payment method which is
mobile payment on method on the cell phone to do electronic commerce.

Solution: international firms must have multiple payment mechanism. The goal of most
people is the use of one device of payment for international trade. Japan is making some
improvement on the Post Office cash machine to accept international credit and debit
cards.

Resources:https://www.slideshare.net/butest/global-challenges-in-information-systems-spring-
2009-bis-221-mr