Managing International IS9.200 Information Systems for Management1 Chapter 15 International Information Systems (IIS)

Managing International IS9.200 Information Systems for Management2 Team Brainstorming Task Suppose you want to organize a business with the international scope. For example, a business in a particular industry with sales, sourcing (purchasing) and production operations (or just some of these) offshore. 1) Define the business. 2) What are the things (management issues) you would need to take care off? 3) Why would you globalize operations anyway? 4) What would most likely be the key IT for your globalized business?

Managing International IS9.200 Information Systems for Management3 IIS, Architecture & Business Drivers International IS architecture Consists of basic IS required by organizations to coordinate worldwide trade and related processes/tasks Global Business Drivers Forces that influence business direction and to which businesses must respond to. Economic, Technological & Other Drivers

Managing International IS9.200 Information Systems for Management4 Global Business Drivers – Economic Markets expanding (capital and information move more than before) Economies change toward market model (Possibilities to place operations offshore?) Coordination (How to achieve? Centralize? Decentralize?) Workforce grows (diversity, different labor prices, different attitudes toward work and IT) Economies of scale could be achieved (ex: sourcing where it is cheapest) Global transportation services develop (FedEx) More…

Managing International IS9.200 Information Systems for Management5 Global Business Drivers – Technological… Different cultures and some shared beliefs and behaviors Different political systems and stability Widely accessible knowledge sources (quality standards and methods, best practices, white papers on Internet, patent databases, etc.) Internet as a global computer network reaches “everywhere” Private computer nets more affordable – telecom. costs drop Buying, selling, contracting, electronically Moving money electronically … and Other

Managing International IS9.200 Information Systems for Management6 Domestic Exporter Characterized by high centralization of corporate activities in home country of origin Global Business Strategies Multinational Concentrates financial management and control from a home base, but decentralizes production, sales, and marketing

Managing International IS9.200 Information Systems for Management7 Global Business Strategies Franchisers Involves creating, designing, and financing in the home country, then rely on foreign personnel for further production, marketing, and human resources (e.g., McDonald's) Transnational Truly global, no national headquarters, value-added activities (sourcing, production, marketing) managed with a global perspective

Managing International IS9.200 Information Systems for Management8 Organizing for Different Global Business Strategies

Managing International IS9.200 Information Systems for Management9 Managing IIS Strategy Not all systems need be coordinated on a transnational basis. Only some core systems are truly worth sharing from a cost and feasibility basis. What needs to be done: Define the core business processes Identify the appropriate core systems to coordinate centrally Make the benefits clear, so buy-in can occur Choose Incremental, Grand Design, or Evolutionary approach (  more )

Managing International IS9.200 Information Systems for Management10 Deal with different national laws - Disparate accounting practices in various countries make an impact on how profit and losses are reported or analyzed (  more )

Managing International IS9.200 Information Systems for Management11 Deal with Information Technology Issues Telecommunications networks are the key. Issues: - What kinds of nets to choose? Who manages? Costs management. - Phone networks are not uniformly reliable. - Data network reliability varies. - Varying data transfer speeds (  more )

Managing International IS9.200 Information Systems for Management12 Transborder Data Flow - the movement of information across national boundaries in any form - technological solutions must comply with legislature (privacy, commercial laws) Disparate IT standards (e.g., EDI, , telecommunications) - How to link incompatible nets and information systems?