1. The International Dimension, Part III
Global IS and the Value Chain
© 2008 Pearson Prentice Hall, Experiencing MIS, David Kroenke

2. Study Questions
How do global information systems benefit the value chain?
Why do global information systems impact functional and cross-functional systems differently?
Hoe do global information systems affect supply chain profitability?
What is the impact of global manufacturing?
Should information systems be the instruments for exporting cultural values?

3. How Do Global Information Systems Benefit the Value Chain?
Activities can be performed anywhere in the world
Sales and marketing can be local
Manufacturing can be distributed throughout world
Service and support functions outsourced to less costly areas
Integrated into worldwide system
Global virtual companies operate 24/7

4. Impacts of Global Information Systems
Functional systems’ lack of data integration
Makes accommodations for language and cultural differences unnecessary
Needs adequate data interface to share data
Cross-functional integrated systems provide world-wide view
Do not readily accommodate differences in language, business processes, cultural norms
Lose value of integration
Based on ides of standardization
Inherent processes problematic

5. Affects on Supply Chain Profitability
Supply chain performance driven by facilities, inventories, transportation, and information
Each affected positively by global information systems
Facilities can be located anywhere
Inventories can be reduced producing cost savings
Reduce or eliminate bullwhip effect
Support JIT

6. Affects on Supply Chain Profitability, continued
Transportation can be selected to optimize value
Select method of delivery
Automated systems track shipments
Produce accurate and timely information

7. Economic Impacts of Global Manufacturing
Modern manufacturing reduces prices of goods, increasing demand
Accelerator effect also increases demand
Globally:
Buying in another country will generate the accelerator effect in that country, increasing demand for goods
Decreases economic activity in purchaser’s country, but may be balanced by increased demand for goods

8. Instruments for Exporting Cultural Values
Information systems export cultural values
Best practice dependent on specific culture
Double standard
China requested that MSN shut down support to certain Chinese sites
Google blocked searches for certain terms in some countries
U.S. has made online gambling illegal

9. Active Review
How do global information systems benefit the value chain?
Why do global information systems impact functional and cross-functional systems differently?
Hoe do global information systems affect supply chain profitability?
What is the impact of global manufacturing?
Should information systems be the instruments for exporting cultural values?