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8/13/2019 Challenges GIS BY USMAN SHAUKAT
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Challenges of Global
Information Systems
COURSE : MANAGEMENT INFORMATIONSYSTEM
SUBMITTED BY USMAN SHAUKAT
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Multinational Organizations and IS
A multinational firm (MNF) is a firm thatoperates in many countries. The firm may ormay not have a headquarters in a singlecountry, but operates divisions andsubsidiaries in different countries to take
advantage of local benefits (i.e., cheap labor)
MNFs must use global information systemswhich are systems that serve individuals andfirm units in multiple countries.
Global information systems are different thanother IS because these systems must conformto laws, cultures, and standards etc. in manycountries
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The Web and International Commerce
Web has become important vehicle for B2B andB2C commerce
Ratio of non-English speakers to English
speakers growing
Internet opens enormous global opportunities
Chinese market expected to be largest in future
Web offers opportunities to save on costs (see
subsequent slides)
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The Web and International Commerce
(continued)
Figure 9.1: Two-thirds of Internet users come from non-English-speaking
countries
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The Web and International Commerce
(continued)
Figure 9.2: Imperatives to heed when designing Web sites for an
international audience
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Think Globally, Act Locally
International companies think globally, act
locally
Be sensitive to regional customs Control must be decentralized
Strategic planning should be global
Can be followed with local flavor
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Challenges of Global Information
Systems
Global information systems face challenges
Technological barriers
Regulations and tariffs
Electronic payment mechanisms
Different language and culture
Economic and political considerations
Different measurement standards
Legal barriers
Different time zones
Challenges involve both the firms Web site and
other information systems
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Technological Challenges
Challenges
Not all countries have adequate information
technology infrastructures
Unable to build international IS Broadband communication lines needed
Solutions
Offer two versions of Websites to compensate for
slower bandwidth
Use low earth orbit satellite systems to build
network for voice and data
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Technological Challenges (continued)
Challenges
Language is technological challenge becauseeight-bit bytes not sufficient for languages with
large character sets (e.g., Chinese Fields such as telephone numbers present
problems for databases in MNFs
Solutions
Use double-byte characters (e.g., unicode allowsfor 65,536 characters)
Fields for telephone numbers must be variablelength to allow flexibility
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Regulations and Tariffs
Challenges
Countries have different importing regulations
Executives reluctant because of hassles
Even with research there are fears that employees
will not know how to comply with laws ofdestination countries
Solutions
There are programs such as NextLinx to help
importers and exporters for Web commerce NextLinx is integrated within the firms systems
When an international order is placed the
software determines tariffs, cost of delivery,
provides forms, and logistics
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Differences in Payment Mechanisms
Challenges E-commerce allows easy payment for online
purchases
Credit cards preferred payment method in North
America Not all countries adopt this preference
Japanese avoid using credit cards
Solutions
Web sites for international firms must have
multiple payment mechanisms
Konbini example in Japan
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Language Differences
Challenges
International parties must agree on common language
Data not transmittable internationally because information
must be translated; computers still cannot accurately
translate on the fly
English considered de facto international language Many countries require accounting systems to be in the local
language
Solutions
Largest companies translate Web sites into local languages
Web site design and translation should be done in overseas
offices although the server may be located in another
country; lack of uniformity in languages
Multiple accounting systems in different languages
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Cultural Differences
Challenges
Different countries vary
Tastes
Gestures
Treatment of people Ethical issues
Conservative groups against Americanization
Solutions
MNFs should employ local personnel to design
their Web sites or version of a Web site that will
appeal to a particular country
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Conflicting Economic, Scientific, and
Security Interests
Challenges Goal of corporate management
Seize large market share and maximize organizationprofits
Goal of governments is to protect economic, scientific,and security interests of its people
Occasionally interests conflict Drawings related to the design and manufacture of
weapons Software packages Encryption software
Differences in treatment of trade secrets, patents, andcopyright law
Solutions No easy ones Pressure from America for stronger copyright laws International trade groups
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Political Challenges
Challenge Information is power and some countries oppose policy of
free access to information and limit use of Internet
Governments recognize that software is an economic
resource and require firms to purchase local software to
build local industry; problems for firms trying to standardize
Solutions
MNFs may have to cut some content from their sites to limit
risks of offending local government
Limit use of employee blogs International human rights pressure may help in the long run
Use open source software (e.g., Linux, MySQL) can help
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Different Standards
Challenge
No international accounting standards United States uses English system of weights and
measures; rest of world uses metric system
Different standards for dates, temperatures, time,
telephone numbers, and addresses Different standards for product codes
Solution
Multiple accounting systems
Multiple versions of data where user can requestversion needed (i.e., software must be flexible and
give users choice)
Promotion of universal product codes
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Legal Barriers: Privacy and Data
Collection
Privacy laws in general
Respect for privacy in international business isunresolved challenge
Majority of democratic nations protect individual
privacy How privacy laws differ with respect to data
collection
Does the law apply to data collected by a companyor the government?
Does the law apply to manual data, digital data, orboth?
Does the law protect data concerning humanbeings or does the law also protect legal entitiessuch as corporations?
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Legal Barriers: US versus EU Approach
to Privacy with Respect to Data
Collection
US privacy laws
Slanted toward the public sector (government)
Over 50 % encompass manual and computerized systems
Limited provisions for individuals versus legal entities
(corporations)
EU privacy laws
Covers both public and private sector
Stronger protection regarding computerized decision makin
Variance in EU with respect to coverage of entities; strong
coverage with respect to individuals
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Legal Barriers: EU Practices with
Respect to Data Collected on Individuals
European Union practices (Directive on DataPrivacy) for data collected by corporations on
consumers follows the Fair Information
Practices mentioned in chapter 11
Personal data collected only for specifiedpurposes
Personal data must be given consent to be
processed
Collecting organizations must identifythemselves
People have right to object to processing of
personal data
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Legal Barriers: Legal Proceedings
Challenge
Suppose you purchased an item from a sitelocated in another country, and the item has adefect or arrived after the time promised. Becauseyour request for compensation or other remedieshas not been answered, you decide to sue. Where
do you file the lawsuit? Solution
Country- of-origin principle whereby all legalmatters are confined to the country where the site
operates Country-of-destination principle whereby the laws
of the country to which the site caters applyregarding dealings with the site, regardless of thesites country (EUs approach)
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Different Time Zones
Challenge
MNFs must craft policies that work for employees,customers, and IS for all time zones
Time stamping
Solutions
Teleconferencing systems can help; but huge timedifferences require accommodations foremployees in other time zones
Chat rooms and bulletin boards for asynchronouscommunication
Opportunity to work on projects 24 hours a day Enable customer support personnel to be availabl
24/7 without requiring night shift work
Standard policy for time stamping documents
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Summary
Companies using Web for business mustaccommodate non-English speaking audiences
Companies must tailor to local preferences
Must be aware of cultural differences and
payment preferences
Tariff and legal issues
Linguistic, cultural, economic, and political
challenges must be addressed
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Summary (continued)
Laws governing collection of data in UnitedStates and European Union are different
Incompatible data privacy laws
Restricted flow of personal data between
United States and EU
Safe Harbor arrangement enables EU to do
business with US
Old legal approach of territorial jurisdiction
inadequate
Free speech and consumer litigation of e-tailers
brought need for legal reform for cyberspace