c h a p t e r

16
MANAGING
INTERNATIONAL
INFORMATION
SYSTEMS
 LEARNING OBJECTIVES

• IDENTIFY FACTORS BEHIND

BUSINESS INTERNATIONALIZATION
• COMPARE GLOBAL STRATEGIES
FOR DEVELOPING BUSINESS
• DEMONSTRATE HOW INFO
SYSTEMS SUPPORT
GLOBAL STRATEGIES
*
 LEARNING OBJECTIVES

• PLAN DEVELOPMENT OF
INTERNATIONAL INFORMATION
SYSTEMS
• EVALUATE TECHNICAL
ALTERNATIVES IN
DEVELOPING
GLOBAL SYSTEMS
*
 MANAGEMENT CHALLENGES

• GROWTH OF INTERNATIONAL INFO

SYSTEMS
• ORGANIZING INTERNATIONAL INFO
SYSTEMS
• MANAGING GLOBAL SYSTEMS
• TECHNOLOGY ISSUES &
OPPORTUNITIES
*
INTERNATIONAL INFORMATION SYSTEMS
INFRASTRUCTURE

BASIC INFORMATION SYSTEMS

REQUIRED TO COORDINATE
WORLDWIDE TRADE
& OTHER ACTIVITIES
*
INTERNATIONAL INFORMATION SYSTEMS
INFRASTRUCTURE

GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES

CORPORATE GLOBAL STRATEGIES

ORGANIZATIONAL STRUCTURE

MANAGEMENT & BUSINESS PROCEDURES

TECHNOLOGICAL PLATFORM

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
*
 GLOBAL BUSINESS DRIVERS
Specific Business Factors:
• 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
*
 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
*
 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
*
 GLOBAL BUSINESS STRATEGY &
STRUCTURE
STRATEGY

DOMESTIC MULTI- TRANS-

FRANCHISER
FUNCTION EXPORTER NATIONAL NATIONAL

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

 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
*
 GLOBAL INFORMATION SYSTEMS
CONFIGURATIONS

STRATEGY
SYSTEM DOMESTIC MULTI- TRANS-
CONFIGURATION EXPORTER NATIONAL FRANCHISER NATIONAL
CENTRALIZED X

DUPLICATED X

DECENTRALIZED x X x

NETWORKED x X

X : DOMINANT PATTERN 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
*
 DEVELOPING GLOBAL SYSTEMS

• AGREE ON COMMON USER

REQUIREMENTS
• INDUCE PROCEDURAL BUSINESS
CHANGES
• COORDINATE APPLICATIONS
DEVELOPMENT
• COORDINATE SOFTWARE RELEASES
• ENCOURAGE LOCAL USERS TO ACCEPT
OWNERSHIP
*
 STRATEGY: DIVIDE, CONQUER, APPEASE

• DEFINE CORE BUSINESS PROCESSES

• IDENTIFY CORE SYSTEMS TO
COORDINATE CENTRALLY
• CHOOSE AN APPROACH: Incremental,
grand design, evolutionary
• MAKE BENEFITS CLEAR
*
 IMPLEMENTATION TACTICS

• CO-OPTATION: Bring opposition into

process of designing, and
implementing solution without giving
up control over direction, nature of
change
• TRANSNATIONAL CENTERS
OF EXCELLENCE: Focus on
specific business processes
*
 MAIN TECHNICAL ISSUES

• HARDWARE & SOFTWARE

INTEGRATION
• CONNECTIVITY
• SOFTWARE: Languages can be a
barrier
*
c h a p t e r

16
MANAGING
INTERNATIONAL
INFORMATION
SYSTEMS