1. Management Information Systems
The International Dimension
Part 1: The Global Economy

2. Study Questions Q1. Why is the global economy important today?
Q2. How does the global economy change the competitive environment?
Q3. How does the global economy change competitive strategy?
Q4. How does the global economy change value chains and business processes?
Q5. How does the global economy change information systems?

3. Q1. Why Is the Global Economy Important Today?
Businesses compete in a global market
Economies have become more closely integrated
Cheap, plentiful telecommunications are available
New markets have opened

4. Q2. Changes in the Competitive Environment
Internet-equipped world economy
Customers and suppliers
Suppliers have wider range of customers
Customers have more available vendors
Easier to learn about each other through search engines
Substitutes easier to locate
Enables new market entrants
Intensifies rivalry

5. Q3. How Does the Global Economy Change Competitive Strategy?
Size and complexity of global economy effects strategy
Enormous task
Expensive
Size enables unprecedented product differentiation

6. Q4. Changing Value Chains and Business Processes
Growth in world economy impacts all value chain activities
Business processes now span the world
Need to address differences:
Culture
Language
Economic environments

7. Q5. How Does the Global Economy Change Information Systems?
Information systems affected
Computer hardware is sold worldwide
User interfaces
What languages will be used?
Can systems use localized programming language?
Software applications
Human components
Cultural differences must be considered.
Local norms
Job descriptions
Reporting relationships