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International IS strategy IS for Management1 International Information Systems Management and strategy.

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1 International IS strategy IS for Management1 International Information Systems Management and strategy

2 International IS strategyIS for Management2 International IS 4 Growth leads to the need to consider issues in managing globally versus locally –geographic versus functional divisions –managing a “stateless” (multinational) firm 4 Challenges (can also be opportunities): –managing change across cultures, international laws –operating a coordinated international network –strong central leadership while maintaining overall flexibility to meet opportunities

3 International IS strategyIS for Management3 International IS 4 Global coordination, enabled by IS include –Systems development –Accounting, finance –Production, marketing, distribution 4 International markets –cultural specific consumer needs –dynamic economies, statutes, business practices –pace of change leads to a moving target market.. 4 Success in IT: software and cellular phone distribution, online trading, Internet expansion

4 International IS strategyIS for Management4 International IS 4 Deploying international information systems: –develop awareness and understanding of global business drivers –develop a strategy suitable for the environment –review impact on existing organization structure –how will an international IS affect management –build a suitable technology infrastructure/platform

5 International IS strategyIS for Management5 International IS Overall strategies 4 Domestic exporter (e.g., local mousepad exporter) –heavy centralization in home country for manufacturing, etc. 4 Multinational (financial management at home; e.g.., GreatWestLife) –decentralized production, distribution to suit market 4 Franchiser –design at home, rely on foreign personnel for further production (e.g., Burger King) 4 Transnational –stateless, truly global firm (e.g., Arthur Andersen)

6 International IS strategyIS for Management6 International IS and strategy Reading materials from the Web 4 Alignment check 4 How to avoid global website disasters ontent.html ontent.html 4 All the web’s a stage 4 ROUNDTABLE: STRATEGIC PLANNING - Bigger Picture

7 International IS strategyIS for Management7 Assigned Reading: Alignment check 4 Know your mission statement –aligning IT to business - a moving target 4 To what extent is IT a core competence –Ford Co., a global company found that although designing cars was essential to maintaining core competence, designing CAD systems was not. –Internal providers of IS services must be competitive with outsource organizations. –Centralize enterprise technology infrastructure decisions to reduce Total cost of ownership (TCO) some “emerging markets” areas may need flexibility.

8 International IS strategyIS for Management8 Assigned Reading: How to avoid global website disasters 4 39% of of internet users seek non-English content (IDC report) 4 Difficult issues faced by content providers and ecommerce sites include: –language, impressions, commerce culture –local representation, service assistance –insufficient network infrastructure, internet appliance and software variations –unfamiliarity with local statutes, business practices 4 Importance of “local” knowledge

9 International IS strategyIS for Management9 Assigned Reading: All the web’s a stage 4 The Internet provides extended distribution of content, but will your”spin”be received properly? –Examples of unintended messages are possible via colors, symbols, credit policies, etc 4 How do you deal with varying business practices from one country (or even Province!) to another 4 Trade barriers and import/export restrictions 4 Central control and local empowerment –central branding, systems, but local distribution decisions

10 International IS strategyIS for Management10 Assigned Reading: The Bigger Picture 4 The evolution of the role of IT professionals impacted by –business focus from products to “solutions” –migration from “product” to “customer” orientation –vagueness of business goals could also increase risk of ineffective systems improperly targeted too broad of a scope –a global 7/24 economy that evolves continually –strategic supply chain management –increased dependence on IT for wealth creation shift from efficiency to innovation

11 International IS strategyIS for Management11 Assigned Reading: The Bigger Picture - The new role of IT profession 4 Implementing new technologies will continue to be major role 4 Long-range planning increasingly important as IT increases its importance as a strategic tool 4 Control versus ownership of knowledge management of the customer 4 IT-profession is dead versus duty as plumbers. 4 Ultimately, the IT profession Business model enablers

12 International IS strategyIS for Management12 International information systems Global organization traits supported by IS 4 Think globally - understand impact to export markets, cultures 4 Compete locally in everywhere market served 4 Utilize local expertise and knowledge 4 Integrated network - work as one entity 4 Free flow of information for responsive and resourceful decision making

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