GL O B A L I NF OR M AT IO N

S Y S TE M :
PRESENTED BY:
• AIMEN NAEEM (BSF1804835)
• AQSA (BSF1804929)
• MASOOMA SHAHID (BSF1804794)
• HADIA (BSF1804880)
• DUAA SALEEM (BSF1804788)
WHY GO GLOBAL?

• CUSTOMERS DEMAND INTEGRATED WORLDWIDE SERVICES

• EXAMPLE: UPPER COMPANY
• PRODUCES LEATHER AND UPPERS IN ITALY
• UPPER SHIPPED TO CHINA
• TESTED IN IRELAND
• SOLD IN UNITED STATES
• SUPPLY CHAIN LOGISTICS MANAGED AND COORDINATED IN US
WHY GO GLOBAL?

• EXPANSION OF GLOBAL MARKETS IS A MAJOR FACTOR IN DEVELOPING GLOBAL

INFORMATION SYSTEMS

• GLOBAL ORGANIZATIONS REDUCE COSTS IN PURCHASING, MANUFACTURING,

AND DISTRIBUTION
• GAIN ACCESS TO CHEAPER LABOR

• E-BUSINESS
• MAJOR FACTOR IN THE WIDESPREAD USE OF GLOBAL INFORMATION SYSTEMS
• BUILDS ON THE ADVANTAGES AND STRUCTURES OF TRADITIONAL BUSINESS
GLOBAL INFORMATION SYSTEM:
• A SYSTEM THAT SERVES ORGANIZATION IN
MULTIPLE COUNTRIES

• INFORMATION SYSTEM THAT WORK ACROSS

NATIONAL BORDERS

• FACILITATES COMMUNICATION BETWEEN

HEADQUARTERS AND SUBSIDIARIES IN OTHER
COUNTRIES

• STORE MANUPULATE AND TRANSMIT DATA ACROSS

CULTURAL AND GEOGRAPHIC BOUNDARIES
GLOBAL INFORMATION SYSTEM
PURPOSE

• STORE DATA
• HELP IN GENERAL RESEARCH
• HELP IN DECISION MAKING
GLOBAL INFORMATION SYSTEM:
• HELPS INTERNATIONAL COMPANIES:
• INCREASE CONTROL OVER ITS SUBSIDIARIES
• BETTER COORDINATE THEIR ACTIVITIES AND ACCESS NEW GLOBAL MARKETS

• INCLUDES CONTROL AND COORDINATION DIMENSIONS

CONTROL AND COORDINATION
Control Coordination

Centralized architecture for data Decentralized architecture for data

Standard formats for reports Standardization within departments

Performance-tracking system Ability to communicate standards to

other departments
CHALLENGES OF GIS
• TECHNOLOGICAL CHALLENGES • LEGAL BARRIERS
• REGULATION AND TARRIFS • PRIVACY LAWS
• DIFFERENCE IN PAYMENT MACHANISM • DIFFERENT TIME ZONES
• LANGUAGES DIFFERENCE • POOR TELECOMMUNICATION
• CULTURAL DIFFERENCES INFRASTRUCTURE

• POLITICAL DIFFERENCES • LACK OF SKILLED ANALYST AND

• DIFFERENT STANDARDS PROGRAMMERS
TECHNOLOGICAL CHALLENGES:
• NOT ALL HAVE ADEQUATE TECHNOLOGY .
• HIGH SPEED INTERNET REQUIRED
• TELEPHONE AND POSTAL CODE ARE DIFFERENTS.
• UNABLE TO BUILD INTERNATIONAL IS
• CAN OFFER TWO VERSION OF WEBSITE TO COMPENSATE FOR SLOWER
BANDWIDTH
REGULATIONS AND TARIFFS

• DIFFERENT IMPORT REGULATIONS

• COMPANIES MUST COMPLY THE LAWS OF DESTINATION COMPANY
• EXECUTIVE RELUCTANT BECAUSE OF HASSLES
• COMPLY WITH LAWS OF DESTINATION COUNTRIES
DIFFERENCE IN PAYMENTS
• E-COMMERCE ALLOW EAST PAYMENT
• CREDIT CARD ARE PREFERRED
• NOT ALL HAVE ADEQUATE THIS METHOD
• NOT ALL COUNTRIES ADOPT THIS PREFERENCE.
• JAPANESE AVOID CREDIT CARD .
• HIGH STOLEN OF CREDIT CARD
LANGUAGE DIFFERENCE
• INTERNATIONAL PARTIES MUST AGREE ON COMMON LANGUAGE
• DATA NOT TRANSMITTABLE INTERNATIONALLY BECAUSE INFORMATION IS
TRANSLATED .

• ENGLISH CONSIDERED DE FACTO INTERNATIONAL LANGUAGE .

• LARGEST COMPANIES TRANSLATE WEB SITES INTO LOCAL LANGUAGE .
CULTURAL DIFFERENCE:
• DIFFERENT COUNTRIES VARY
• TASTES
• GESTURES
• BEHAVIOR OF PEOPLE
• ETHICAL ISSUES
• DEFERRED COLORS
• ATTITUDE ABOUT WORK
• WEB DESIGNERS MUST BE SENSITIVE TO
CULTURAL DIFFERENCES
POLITICAL DIFFERENCE:
• INFORMATION IS POWER
• SOME COUNTRIES OPPOSE POLICY OF FREE ACCESS TO INFORMATION
• GIVES OTHER NATIONS OPPORTUNITY TO CONTROL INDIGENOUS RESOURCES
• COMPANIES MUST OBEY LOCAL LAW
• GOVERNMENT MAY LIMIT INTERNET USE
DIFFERENT STANDARDS:
• STANDARDS CONSIDERED WHEN INTEGRATING ISS
INTERNATIONALLY

• RECORDS MAY BE INCOMPATIBLE

• UNITED STATES USES ENGLISH SYSTEM OF WEIGHTS AND
MEASURES

• REST OF WORLD USES METRIC SYSTEM

CONTINUE….
• DIFFERENT STANDARDS
• TIMES
• TEMPERATURES
• ADDRESSES
• DATE FORMAT
• UNITED STATES USES MONTH/DAY/YEAR FORMAT
• REST OF WORLD USES DAY/MONTH/YEAR
CONTINUE….

• DIFFERENT STANDARDS VERY COSTLY

• NASA LOST SPACECRAFT BECAUSE OF MEASUREMENT UNIT DISCREPANCY
• DIFFERENT STANDARDS OF PRODUCT CODE E.G. EAN,UPC,UCC
• NO INTERNATIONAL ACCOUNTING STANDARDS
LEGAL BARRIERS:

• COUNTRIES HAVE DIFFERENT LAWS

• AFFECTS GLOBAL BUSINESS IN GENERAL
• DIFFERENT LAWS
• INTERNATIONAL TRANSFER OF DATA
• FREE SPEECH
• LOCATION OF LEGAL PROCEEDINGS
CONTINUE….
• APPLICABLE LAW
• FREE SPEECH LAWS DIFFERENT IN OTHER COUNTRIES
• IMPACTS WHAT CAN OR CANNOT BE DISPLAYED ONLINE
• OTHER LAWS
• GAMBLING
• AUCTIONING
• SALE OF ALCOHOL AND DRUGS
 PRIVACY LAWS:
• RESPECT FOR PRIVACY IN INTERNATIONAL BUSINESS IS
UNRESOLVED CHALLENGE
• MAJORITY OF DEMOCRATIC NATIONS PROTECT INDIVIDUAL
PRIVACY
• LAWS REFLECT DIFFERENCE IN APPROACH TO ISSUE OF
PRIVACY
DIFFERENT TIME ZONES:
• DIFFERENT GLOBAL REGIONS REQUIRE POLICIES
FOR WORK AND INFORMATION SYSTEMS

• TELECONFERENCING AVAILABLE MOST OF DAY.

SOMETIMES 24 HOURS PER DAY

• ALLOW EMPLOYEES FROM DIFFERENT TIME ZONES

TO DISCUSS PROBLEMS

• TEAMS IN SUPPORT CENTERS MAY WORK SHIFTS

POOR TELECOMMUNICATION INFRASTRUCTURE:

• COMPANIES MUST CONSIDER TELECOMMUNICATION INFRASTRUCTURES OF

SUBSIDIARY COUNTRIES

• DIFFERENCES IN TELECOMMUNICATION SYSTEMS MAKE CONSOLIDATION

DIFFICULT
• WEB PAGE CONTENT WITH MANY GRAPHICS AND ANIMATION SHOULD BE AVOIDED
IN COUNTRIES WITH SLOW OR COSTLY INTERNET ACCESS
• DIFFERENCES IN STANDARDS CAN CAUSE PROBLEMS AS WELL
LACK OF SKILLED ANALYST AND PROGRAMMERS:

• NATURE OF CULTURE AND DIFFERENCES IN SKILLS IN OTHER COUNTRIES

MUST BE CONSIDERED WHEN FORMING TEAMS
• CULTURAL AND POLITICAL DIFFERENCES AFFECT COOPERATIVE ENVIRONMENT
NEEDED FOR GLOBAL INTEGRATION

• TRAINING AND CERTIFICATION PROGRAMS OFFERED THROUGH THE INTERNET

CAN REDUCE SKILLS GAP IN DEVELOPING NATIONS
GLOBAL STRATEGY:
• A GLOBAL STRATEGY IS ONE THAT A COMPANY TAKES WHEN IT WANTS TO
COMPETE AND EXPAND IN THE GLOBAL MARKET.

• IN OTHER WORDS A STRATEGY BUSINESS PURSUE WHEN THEY WISH TO

EXPAND INTERNATIONALLY.
STRATEGY REQUIREMENTS:

 PLANNING SUPPORT
 MANAGEMENT CONFLICT
 LONG TERM FOREIGN EXCHANGE RISK
 MANAGEMENT OF GLOBAL TAX RISK
 GLOBAL ACCESS DATA
GLOBAL STRATEGY CAN MEAN
• WHEN A COMPANY PURSUES A GLOBAL STRATEGY IT NEEDS TO DETERMINE
ITS STRATEGY IS

 INTERNATIONAL
 MULTINATIONAL
 GLOBAL
 TRANSNATIONAL
INTERNATIONAL COMPANIES
• INTERNATIONAL COMPANIES ARE
IMPORTERS AND EXPORTERS, THEY
HAVE NO INVESTMENT OUTSIDE OF
THEIR HOME COUNTRY.

• EXAMPLE:
• COKA COLA
MULTINATIONAL COMPANIES:
• MULTINATIONAL COMPANIES HAS
LOCATIONS OR FACILITIES IN
MULTIPLE COUNTRIES, BUT EACH
LOCATION FUNCTIONS IN ITS OWN
WAY, ESSENTIALLY AS ITS OWN
ENTITY.

• EXAMPLE:
• PROCTER AND GAMBLE
GLOBAL COMPANY:
• GLOBAL COMPANIES ALSO HAS
LOCATIONS IN MULTIPLE COUNTRIES,
BUT THEY’VE FIGURED OUT TO CREATE
ONE COMPANY CULTURE WITH ONE SET
OF PROCESSES THAT FACILITATE A MORE
EFFICIENT AND EFFECTIVE SINGLE
GLOBAL ORGANIZATION.

• EXAMPLE:
• ADOBE
TRANSNATIONAL COMPANY:
• TRANSNATIONAL COMPANY REFERS
TO A CORPORATION WHICH
OPERATES IN OTHER COUNTRIES
OTHER THAN THE HOME COUNTRY
AND DO NOT HAVE CENTRALIZED
MANAGEMENT SYSTEM.

• EXAMPLE:
• NESTLE
THANK YOU!