© Pearson Prentice Hall 2009 Part 3-1 Using MIS 2e Part 3 The International Dimension: Global IS and the Value Chain David Kroenke

© Pearson Prentice Hall 2009 Part 3-2 Study Questions Q1 – How do global information systems benefit the value chain? Q2 – Why do global information systems impact functional and cross-functional systems differently? Q3 – How do global information systems affect supply chain profitability? Q4 – What is the economic impact of global manufacturing? Q5 – Should information systems be instruments for exporting cultural values?

© Pearson Prentice Hall 2009 Part 3-3 Q1 – How do global information systems benefit the value chain? Q2 – Why do global information systems impact functional and cross- functional systems differently? Q3 – How do global information systems affect supply chain profitability? Q4 – What is the economic impact of global manufacturing? Q5 – Should information systems be instruments for exporting cultural values?

© Pearson Prentice Hall 2009 Part 3-4 Q1 – How do global information systems benefit the value chain? Value chain activities can be performed anywhere in the world. Manufacturing can be distributed throughout the world with each facility having its own inbound logistics, manufacturing, and outbound logistics linked together via information systems. Support activities can be outsourced to various locations, often the cheapest, around the world. Virtual companies can operate around the globe, 24/7, with very little disadvantage.

© Pearson Prentice Hall 2009 Part 3-5 Q1 – How do global information systems benefit the value chain? Q2 – Why do global information systems impact functional and cross-functional systems differently? Q3 – How do global information systems affect supply chain profitability? Q4 – What is the economic impact of global manufacturing? Q5 – Should information systems be instruments for exporting cultural values?

© Pearson Prentice Hall 2009 Part 3-6 Q2 – Why do global information systems impact functional and cross-functional systems differently? A lack of integration in functional systems can be advantageous for international systems.  It’s unnecessary to accommodate different languages and business cultural differences in a single system. Each geographic location has its own system that works best for the locale. A data interface allows systems to adequately share data and information when necessary. Cross-functional, integrated systems provide an organization-wide view of the business. However they have these problems:  They do not readily accommodate differences in language, business practices, and cultural norms.  Entering data in different languages devalues an integrated database.  Inherent processes, the mainstay of integrated systems, may conflict with local cultural norms.

© Pearson Prentice Hall 2009 Part 3-7 Q1 – How do global information systems benefit the value chain? Q2 – Why do global information systems impact functional and cross- functional systems differently? Q3 – How do global information systems affect supply chain profitability? Q4 – What is the economic impact of global manufacturing? Q5 – Should information systems be instruments for exporting cultural values?

© Pearson Prentice Hall 2009 Part 3-8 Q3 – How do global information systems affect supply chain profitability? Global information systems increase supply chain profitability in these ways:  Facilities can be located anywhere in the world a business finds it economically advantageous.  Inventories can be reduced and save the costs of storing and shipping items around the world.  Transportation delivery options are expanded and product deliveries can be tracked online.  Information is more comprehensive, accurate, and timely from a global information system.

© Pearson Prentice Hall 2009 Part 3-9 Q1 – How do global information systems benefit the value chain? Q2 – Why do global information systems impact functional and cross- functional systems differently? Q3 – How do global information systems affect supply chain profitability? Q4 – What is the economic impact of global manufacturing? Q5 – Should information systems be instruments for exporting cultural values?

© Pearson Prentice Hall 2009 Part 3-10 Q4 – What is the economic impact of global manufacturing? Global manufacturing provides an accelerator effect to the local economies—a dollar spent contributes two or three dollars of activity to the economy. Dollars spent in economies other than the United States generate economic activity in that region.

© Pearson Prentice Hall 2009 Part 3-11 Q1 – How do global information systems benefit the value chain? Q2 – Why do global information systems impact functional and cross- functional systems differently? Q3 – How do global information systems affect supply chain profitability? Q4 – What is the economic impact of global manufacturing? Q5 – Should information systems be instruments for exporting cultural values?

© Pearson Prentice Hall 2009 Part 3-12 Q5 – Should information systems be instruments for exporting cultural values? Information systems do in fact export cultural values because of these factors:  Inherent processes featured in cross-functional systems include best practices of the country and culture in which they were created.  Inherent processes encode the cultural values of system designers. What happens when the values of system designers clash with the values of system users? Consider the differences in these values between countries:  Freedom of speech  Governmental controls and concerns  Outlawed activities. Information systems project human values. The question is: Whose values?