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CHAPTER 15. MANAGING INTERNATIONAL

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CHAPTER 15. MANAGING INTERNATIONAL INFORMATION SYSTEMS LEARNING OBJECTIVES IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS DEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIES * LEARNING OBJECTIVES

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learning objectives
LEARNING OBJECTIVES
  • IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION
  • COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS
  • DEMONSTRATE HOW INFO SYSTEMS SUPPORT GLOBAL STRATEGIES

*

learning objectives3
LEARNING OBJECTIVES
  • PLAN DEVELOPMENT OF INTERNATIONAL INFORMATION SYSTEMS
  • EVALUATE TECHNICAL ALTERNATIVES IN DEVELOPING GLOBAL SYSTEMS

*

management challenges
MANAGEMENT CHALLENGES
  • GROWTH OF INTERNATIONAL INFO SYSTEMS
  • ORGANIZING INTERNATIONAL INFO SYSTEMS
  • MANAGING GLOBAL SYSTEMS
  • TECHNOLOGY ISSUES & OPPORTUNITIES

*

international information systems infrastructure
INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE

BASIC INFORMATION SYSTEMS

REQUIRED TO COORDINATE

WORLDWIDE TRADE

& OTHER ACTIVITIES

*

international information systems infrastructure6

GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES

CORPORATE GLOBAL STRATEGIES

ORGANIZATIONAL STRUCTURE

MANAGEMENT & BUSINESS PROCEDURES

TECHNOLOGICAL PLATFORM

INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE

INTERNATIONAL INFORMATION SYSTEMS INFRASTRUCTURE
global business drivers general cultural factors
GLOBAL BUSINESS DRIVERSGeneral Cultural Factors:
  • GLOBAL COMMUNICATION & TRANSPORTATION TECHNOLOGIES
  • DEVELOPMENT OF GLOBAL CULTURE
  • EMERGENCE OF GLOBAL NORMS
  • POLITICAL STABILITY
  • GLOBAL KNOWLEDGE BASE

*

global business drivers specific business factors
GLOBAL BUSINESS DRIVERSSpecific Business Factors:
  • GLOBAL MARKETS
  • GLOBAL PRODUCTION & OPERATIONS
  • GLOBAL COORDINATION
  • GLOBAL WORK FORCE
  • GLOBAL ECONOMIES OF SCALE

*

challenges obstacles to global business systems
CHALLENGES & OBSTACLES TO GLOBAL BUSINESS SYSTEMS

GENERAL:

  • CULTURAL PARTICULARISM
  • SOCIAL EXPECTATIONS
  • POLITICAL LAWS

SPECIFIC:

  • TELECOMMUNICATION STANDARDS
  • NETWORK RELIABILITY
  • DATA TRANSFER SPEEDS
  • SHORTAGE OF CONSULTANTS

*

global strategies business organization
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

*

global strategies business organization11
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

*

global business strategy structure

STRATEGY

MULTI-

NATIONAL

TRANS-

NATIONAL

DOMESTIC

FRANCHISER

FUNCTION

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

GLOBAL BUSINESS STRATEGY & STRUCTURE
global information systems
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 atall locations

*

global information systems configurations

STRATEGY

SYSTEM

DOMESTIC

MULTI-

TRANS-

CONFIGURATION

EXPORTER

NATIONAL

FRANCHISER

NATIONAL

CENTRALIZED

X

DUPLICATED

X

DECENTRALIZED

x

X

x

NETWORKED

x

X

X : DOMINANT PATTERN x : EMERGING PATTERN

GLOBAL INFORMATION SYSTEMS CONFIGURATIONS
reorganize the business
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

*

developing global systems
DEVELOPING GLOBAL SYSTEMS
  • AGREE ON COMMON USER REQUIREMENTS
  • INDUCE PROCEDURAL BUSINESS CHANGES
  • COORDINATE APPLICATIONS DEVELOPMENT
  • COORDINATE SOFTWARE RELEASES
  • ENCOURAGE LOCAL USERS TO ACCEPT OWNERSHIP

*

strategy divide conquer appease
STRATEGY: DIVIDE, CONQUER, APPEASE
  • DEFINE CORE BUSINESS PROCESSES
  • IDENTIFY CORE SYSTEMS TO COORDINATE CENTRALLY
  • CHOOSE AN APPROACH: Incremental, grand design, evolutionary
  • MAKE BENEFITS CLEAR

*

implementation tactics
IMPLEMENTATION TACTICS
  • CO-OPTATION: Bring opposition into process of designing, and implementing solution without giving up control over direction, nature of change
  • TRANSNATIONAL CENTERS OF EXCELLENCE: Focus on specific business processes

*

main technical issues
MAIN TECHNICAL ISSUES
  • HARDWARE & SOFTWARE INTEGRATION
  • CONNECTIVITY
  • SOFTWARE:Languages can be a barrier

*

connect to the internet

© 2001 Laudon & Laudon, Essentials of Management Information Systems 4/e

Connect to the INTERNET

Laudon/Laudon Web site:

http://www.prenhall.com/laudon

Additional Internet Resources related to this chapter:

http://www.brint.com

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