17.1
LEARNING OBJECTIVES
• IDENTIFY FACTORS BEHIND
BUSINESS INTERNATIONALIZATION
• COMPARE GLOBAL STRATEGIES
FOR DEVELOPING BUSINESS
• DEMONSTRATE HOW INFO
SYSTEMS SUPPORT
GLOBAL STRATEGIES
*
17.2
LEARNING OBJECTIVES
• PLAN DEVELOPMENT OF
INTERNATIONAL INFORMATION
SYSTEMS
• EVALUATE TECHNICAL
ALTERNATIVES IN
DEVELOPING
GLOBAL SYSTEMS
17.3
*
MANAGEMENT CHALLENGES
• GROWTH OF INTERNATIONAL INFO
SYSTEMS
• ORGANIZING INTERNATIONAL INFO
SYSTEMS
• MANAGING GLOBAL SYSTEMS
• TECHNOLOGY ISSUES &
OPPORTUNITIES
*
17.4
INTERNATIONAL INFORMATION
SYSTEMS INFRASTRUCTURE
BASIC INFORMATION SYSTEMS
REQUIRED TO COORDINATE
WORLDWIDE TRADE
& OTHER ACTIVITIES
*
17.5
INTERNATIONAL INFORMATION
SYSTEMS INFRASTRUCTURE
GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES
CORPORATE GLOBAL STRATEGIES
ORGANIZATIONAL STRUCTURE
MANAGEMENT & BUSINESS PROCEDURES
TECHNOLOGICAL PLATFORM
17.6
INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE
GLOBAL BUSINESS DRIVERS
General Cultural Factors:
• GLOBAL COMMUNICATION &
TRANSPORTATION TECHNOLOGIES
• DEVELOPMENT OF GLOBAL CULTURE
• EMERGENCE OF GLOBAL NORMS
• POLITICAL STABILITY
• GLOBAL KNOWLEDGE BASE
*
17.7
GLOBAL BUSINESS DRIVERS
Specific Business Factors:
•
•
•
•
•
17.8
GLOBAL MARKETS
GLOBAL PRODUCTION & OPERATIONS
GLOBAL COORDINATION
GLOBAL WORK FORCE
GLOBAL ECONOMIES OF SCALE
*
CHALLENGES & OBSTACLES TO
GLOBAL BUSINESS SYSTEMS
GENERAL:
• CULTURAL PARTICULARISM
• SOCIAL EXPECTATIONS
• POLITICAL LAWS
SPECIFIC:
• TELECOMMUNICATION STANDARDS
• NETWORK RELIABILITY
• DATA TRANSFER SPEEDS
• SHORTAGE OF CONSULTANTS
17.9
*
GLOBAL STRATEGIES &
BUSINESS ORGANIZATION
• DOMESTIC EXPORTER: Centralization in
home country
• MULTINATIONAL: Central home base;
decentralized production, sales, marketing
in other countries
• FRANCHISER: Product created, initially
produced in home country; relies heavily
on local workers to produce, market in
other countries
*
17.10
GLOBAL STRATEGIES &
BUSINESS ORGANIZATION
• TRANSNATIONAL: Truly Global Firm; No
National Headquarters; Value-added
Activities Managed From Global
Perspective; Optimizes Supply & Demand,
Taking Advantage of Local Competitive
Strengths
*
17.11
GLOBAL BUSINESS STRATEGY &
STRUCTURE
STRATEGY
FUNCTION
DOMESTIC
EXPORTER
PRODUCTION
CENTRALIZED
DISPERSED
COORDINATED
COORDINATED
FINANCE/ACCOUNTING
CENTRALIZED
CENTRALIZED
CENTRALIZED
COORDINATED
SALES/MARKETING
MIXED
DISPERSED
COORDINATED
COORDINATED
HUMAN RESOURCES
CENTRALIZED
CENTRALIZED
COORDINATED
COORDINATED
STRATEGIC MANAGEMENT CENTRALIZED
CENTRALIZED
CENTRALIZED
COORDINATED
17.12
MULTINATIONAL
FRANCHISER
TRANSNATIONAL
GLOBAL INFORMATION SYSTEMS
• CENTRALIZED: Domestic Home Base
• DUPLICATED: Copies of Home System
Used in Foreign Locations
• DECENTRALIZED: Each Unit has Unique
System
• NETWORKED: Integrated & Coordinated at
all Locations
*
17.13
GLOBAL INFORMATION SYSTEMS
CONFIGURATIONS
STRATEGY
SYSTEM
DOMESTIC
CONFIGURATION EXPORTER
CENTRALIZED
X
MULTINATIONAL
DUPLICATED
DECENTRALIZED
X
x
NETWORKED
X
x
x
X : DOMINANT PATTERN
17.14
FRANCHISER
TRANSNATIONAL
X
x : EMERGING PATTERN
REORGANIZE THE BUSINESS
• ORGANIZE VALUE-ADDING ACTIVITIES
FOR COMPARATIVE ADVANTAGE
• DEVELOP & OPERATE SYSTEMS AT
EACH LEVEL: National; regional,
international
• ESTABLISH SINGLE WORLD
HEADQUARTERS: Have global chief
information officer
*
17.15
DEVELOPING GLOBAL SYSTEMS
• AGREE ON COMMON USER
REQUIREMENTS
• INDUCE PROCEDURAL BUSINESS
CHANGES
• COORDINATE APPLICATIONS
DEVELOPMENT
• COORDINATE SOFTWARE RELEASES
• ENCOURAGE LOCAL
USERS TO ACCEPT
OWNERSHIP
17.16
*
STRATEGY: DIVIDE, CONQUER,
APPEASE
• DEFINE CORE BUSINESS PROCESSES
• IDENTIFY CORE SYSTEMS TO
COORDINATE CENTRALLY
• CHOOSE AN APPROACH: Incremental,
grand design, evolutionary
• MAKE BENEFITS CLEAR
*
17.17
MAIN TECHNICAL ISSUES
• HARDWARE & SOFTWARE
INTEGRATION
• CONNECTIVITY
• SOFTWARE: Languages can be a
barrier
*
17.18
Connect to the INTERNET
PRESS LEFT MOUSE BUTTON ON ICON TO
CONNECT TO THE LAUDON & LAUDON
WEB SITE FOR MORE INFORMATION IN
THIS CHAPTER
17.19
17.20
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Chapter 15