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8/6/2019 Mis9 Ch16 Ppt
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16.1 2006 by Prentice Hall
16Chapter
Managing InternationalManaging International
Information SystemsInformation Systems
Managing InternationalManaging International
Information SystemsInformation Systems
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16.2 2006 by Prentice Hall
Identify the major factors driving the
internationalization of business
Compare strategies for developing global
businesses
Demonstrate how information systems can support
different global business strategies
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
OBJECTIVES
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Evaluate the issues and technical alternatives to be
considered when developing international
information systems
Identify the challenges posed by global information
systems and management solutions
OBJECTIVES (Continued)
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
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Challenge: Fulfill customer orders made to a networkof forty subsidiaries in Europe, Asia, and NorthAmerica whose systems could not share data with oneanother
Solutions: develop a single corporate database anduse middleware with standard interfaces to connectall the subsidiarys systems
Develop a single worldwide data model with standarddefinitions and codes
Illustrates the role of systems in an internationalenvironment for reducing inventory and business
process costs worldwide.
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
Drager Safety AG Case
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THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Global Product Development and Production
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
Figure 16-1
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The basic information systems required by
organizations to coordinate worldwide trade
and other activities
Developing an International Information SystemsDeveloping an International Information Systems
ArchitectureArchitecture
International information systems architecture:
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
A force in the environment to which businesses
must respond and that influences the direction
of the business
Business driver:
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International Information Systems Architecture
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Figure 16-2
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Emergence of global social norms
Political stability
Global knowledge base
Table 16-1 (Continued)
General Cultural Factors: (Continued)
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Global markets
Global production and operations
Global coordination
Global workforce
Global economies of scale
Specific business factors:
Table 16-1 (Continued)
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Business Challenges
Cultural particularism: Regionalism, nationalism,language differences
Social expectations: Brand-name expectations,
work hours
Political laws: Transborder data and privacy laws,
commercial regulations
General:
Table 16-2
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS
Standards: Different Electronic Data Interchange
(EDI), telecommunications standards
Reliability: Phone networks not uniformly reliable
Speed: Different data transfer speeds, many
slower than United States
Personnel: Shortages of skilled consultants
Specific:
Table 16-2 (Continued)
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Three kinds of organizational structure:
Centralized (in the home country)
Decentralized (to local foreign units)
Coordinated (all units participate as equals)
Global Strategies and Business Organization
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Heavy centralization of corporate activities in
the home country of origin
Domestic exporter strategy:
Centralized financial management and control
while decentralizing production, sales, andmarketing operations to units in other
countries
Multinational strategy:
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
The product is financed and initially produced
in the home country, but for product-specific
reasons rely on foreign personnel for furtherproduction, marketing, and human resources.
Franchisers:
The value-adding activities are managed from a
global perspective without reference to national
borders, optimizing sources of supply and
demand wherever they appear, and taking
advantage of any local competitive advantages.
Transnational strategy:
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Global Systems to Fit the StrategyGlobal Systems to Fit the Strategy
Global Strategy and Systems Configurations
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Figure 16-3
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
1. Centralized systems: Systems development and
operation occur totally at the domestic home
base.
2. Duplicated systems: Development occurs at the
home base but operations are handed over to
autonomous units in foreign locations.
Four types of systems configuration:
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
3. Decentralized systems: Each foreign unit
designs its own unique solutions andsystems.
4. Networked systems: Systems development
and operations occur in an integrated and
coordinated fashion across all units.
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Four types of systems configuration: (Continued)
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Organize value-adding activities along lines ofcomparative advantage
Develop and operate systems units at each level of
corporate activity regional, national, andinternational
Establish at world headquarters
Reorganizing the Business
To develop a global company and information systems
support structure:
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
MANAGING GLOBAL SYSTEMS
Agreeing on common user requirements
Introducing changes in business processes
Coordinating applications development
Coordinating software releases
Encouraging local users to support global systems
Management Challenges in Developing Global Systems
Table 16-4
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
MANAGING GLOBAL SYSTEMS
Define the core business processes: Conduct
workflow analysis, identify centers of excellence
for these processes
Identify the core systems to coordinate centrally:
Conquer the core systems and define these
systems as truly transnational
Choose an approach: Incremental, Grand Design,
Evolutionary
Make the Benefits Clear
Global Systems Strategy
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Computing platforms and systems integration:
Develop global, distributed, and integratedsystems to support digital business processes
spanning national boundaries
Use of same hardware and operating systemdoes not guarantee integration.
Establish data and technical standards
Technology Challenges of Global Systems
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Overcoming disparate national technical
standards, data exchange restrictions and
service levels
User of Internet technology to create
global intranets, extranets, virtual private
networks (VPNs)
Connectivity:
Technology Challenges of Global Systems (Continued)
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Internet Population in Selected Countries
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
Figure 16-5
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Sources: CIA World Factbook2003; Computer Industry
Almanac; and www.cia.gov,accessed November 9, 2004
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Cost of new interface designs
Integrating new systems with old
User interface design
Differences in language and conventions
Software:
Unique challenges for application software:
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Outsourcing portions of new systems like
development work or maintenance of existing
systems to external vendors in another
country
Offshore software outsourcing:
Managing Global Software DevelopmentManaging Global Software Development
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Costs of improving software development processes
Costs of adjusting to cultural differences
Cost of managing an offshore contract
Major cost components of offshore software development:
(Continued)
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Total Cost of Outsourcing
Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
Figure 16-6
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
Management Opportunities:
Ability to lower costs through global scaleeconomies by building international systems for
producing and selling goods and services in
different regions of the world
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
Finding the right global business strategy
Difficulties of managing change in a
multicultural firm
Difficulties of achieving global connectivity
and integration
Management Challenges:
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS
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Management Information SystemsManagement Information SystemsChapter 16 Managing International Information SystemsChapter 16 Managing International Information Systems
Agreeing on common user requirements
Introducing changes in business processes
Coordinating applications development
Coordinating software releases
Encouraging local users to support global systems
Solution Guidelines:
MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS