1、16.1 2006 by Prentice Hall16Chapter 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 strategiesOBJECTIVES16.3 2006 by Prenti
2、ce Hall 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)16.4 2006 by Prentice Hall Challenge: Fulfill customer orders made to a
3、 network of forty subsidiaries in Europe, Asia, and North America whose systems could not share data with one another Solutions: develop a single corporate database and use middleware with standard interfaces to connect all the subsidiarys systems Develop a single worldwide data model with standard
4、definitions and codes Illustrates the role of systems in an international environment for reducing inventory and business process costs worldwide. Drager Safety AG Case16.5 2006 by Prentice HallTHE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Global Product Development and Production Figure 16-116.6
5、2006 by Prentice HallThe basic information systems required by organizations to coordinate worldwide trade and other activitiesInternational information systems architecture: THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS A force in the environment to which businesses must respond and that influenc
6、es the direction of the businessBusiness driver: 16.7 2006 by Prentice HallInternational Information Systems Architecture THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Figure 16-216.8 2006 by Prentice HallThe global business drivers can be divided into two groups: THE GROWTH OF INTERNATIONAL INFOR
7、MATION SYSTEMS Global communication and transportation technologies Development of global culture General cultural factors: Table 16-116.9 2006 by Prentice HallTHE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Emergence of global social norms Political stability Global knowledge base Table 16-1 (Conti
8、nued)General Cultural Factors: (Continued)16.10 2006 by Prentice HallTHE 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)16.11 2006 by Prentice
9、HallTHE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Business Challenges Cultural particularism: Regionalism, nationalism, language differencesSocial expectations: Brand-name expectations, work hours Political laws: Transborder data and privacy laws, commercial regulations General: Table 16-216.12 20
10、06 by Prentice HallTHE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS Standards: Different Electronic Data Interchange (EDI), telecommunications standards Reliability: Phone networks not uniformly reliableSpeed: Different data transfer speeds, many slower than United StatesPersonnel: Shortages of skill
11、ed consultantsSpecific: Table 16-2 (Continued)16.13 2006 by Prentice HallORGANIZING 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 Bus
12、iness Organization16.14 2006 by Prentice HallORGANIZING INTERNATIONAL INFORMATION SYSTEMS Heavy centralization of corporate activities in the home country of originDomestic exporter strategy: Centralized financial management and control while decentralizing production, sales, and marketing operation
13、s to units in other countriesMultinational strategy: 16.15 2006 by Prentice HallORGANIZING INTERNATIONAL INFORMATION SYSTEMS The product is financed and initially produced in the home country, but for product-specific reasons rely on foreign personnel for further production, marketing, and human res
14、ources.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: 16.16 2006 by Prentice HallGloba
15、l Strategy and Systems Configurations ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Figure 16-316.17 2006 by Prentice Hall1.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 hand
16、ed over to autonomous units in foreign locations.Four types of systems configuration: ORGANIZING INTERNATIONAL INFORMATION SYSTEMS 16.18 2006 by Prentice Hall3. Decentralized systems: Each foreign unit designs its own unique solutions and systems.4. Networked systems: Systems development and operati
17、ons occur in an integrated and coordinated fashion across all units.ORGANIZING INTERNATIONAL INFORMATION SYSTEMS Four types of systems configuration: (Continued)16.19 2006 by Prentice HallORGANIZING INTERNATIONAL INFORMATION SYSTEMS Organize value-adding activities along lines of comparative advanta
18、ge Develop and operate systems units at each level of corporate activity regional, national, and international Establish at world headquarters Reorganizing the BusinessTo develop a global company and information systems support structure: 16.20 2006 by Prentice HallMANAGING GLOBAL SYSTEMS Agreeing o
19、n common user requirementsIntroducing changes in business processesCoordinating applications developmentCoordinating software releasesEncouraging local users to support global systems Management Challenges in Developing Global Systems Table 16-416.21 2006 by Prentice HallMANAGING GLOBAL SYSTEMS Defi
20、ne 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 transnationalChoose an approach: Incremental, Grand Design, Evolutionary Make th
21、e Benefits Clear Global Systems Strategy 16.22 2006 by Prentice HallMANAGING GLOBAL SYSTEMS Figure 16-4Source: Adapted from Managing Information Technology in Multinational Corporations by Edard M. roche, copyright 1993.16.23 2006 by Prentice HallTECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE
22、CHAINS Computing platforms and systems integration: Develop global, distributed, and integrated systems to support digital business processes spanning national boundariesUse of same hardware and operating system does not guarantee integration.Establish data and technical standards Technology Challen
23、ges of Global Systems 16.24 2006 by Prentice HallTECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Overcoming disparate national technical standards, data exchange restrictions and service levelsUser of Internet technology to create global intranets, extranets, virtual private networks (VP
24、Ns) Connectivity:Technology Challenges of Global Systems (Continued)16.25 2006 by Prentice HallInternet Population in Selected Countries Figure 16-5TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Sources: CIA World Factbook 2003; Computer Industry Almanac; and www.cia.gov, accessed Novem
25、ber 9, 200416.26 2006 by Prentice HallTECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Cost of new interface designsIntegrating new systems with oldUser interface designDifferences in language and conventions Software: Unique challenges for application software: 16.27 2006 by Prentice Hal
26、lTECHNOLOGY 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: 16.28 2006 by Prentice HallTECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VA
27、LUE CHAINS Contract costVendor selection costsTransition management and knowledge transfer costs Domestic human resources costs Major cost components of offshore software development: 16.29 2006 by Prentice HallTECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Costs of improving software d
28、evelopment processesCosts of adjusting to cultural differences Cost of managing an offshore contract Major cost components of offshore software development: (Continued)16.30 2006 by Prentice HallTotal Cost of Outsourcing TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS Figure 16-616.31 20
29、06 by Prentice HallMANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONSManagement Opportunities: Ability to lower costs through global scale economies by building international systems for producing and selling goods and services in different regions of the world 16.32 2006 by Prentice HallFinding th
30、e right global business strategyDifficulties of managing change in a multicultural firmDifficulties of achieving global connectivity and integration Management Challenges: MANAGEMENT OPPORTUNITIES, CHALLENGES, AND SOLUTIONS16.33 2006 by Prentice HallAgreeing 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
