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The challenge for MSS in the 21 st century

The challenge for MSS in the 21 st century. LEARNING OBJECTIVES. IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS DEMONSTRATE HOW MSS SUPPORT GLOBAL STRATEGIES *. LEARNING OBJECTIVES. PLAN DEVELOPMENT OF INTERNATIONAL MSS

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The challenge for MSS in the 21 st century

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  1. The challenge for MSS in the 21st century Ibrahim Elbeltagi Info 2007

  2. LEARNING OBJECTIVES • IDENTIFY FACTORS BEHIND BUSINESS INTERNATIONALIZATION • COMPARE GLOBAL STRATEGIES FOR DEVELOPING BUSINESS • DEMONSTRATE HOW MSS SUPPORT GLOBAL STRATEGIES * Ibrahim Elbeltagi Info 2007

  3. LEARNING OBJECTIVES • PLAN DEVELOPMENT OF INTERNATIONAL MSS • EVALUATE TECHNICAL ALTERNATIVES IN DEVELOPING GLOBAL SYSTEMS * Ibrahim Elbeltagi Info 2007

  4. MANAGEMENT CHALLENGES • GROWTH OF INTERNATIONAL SUPPORT SYSTEMS • ORGANIZING INTERNATIONAL SUPPORT SYSTEMS • MANAGING GLOBAL SYSTEMS • TECHNOLOGY ISSUES & OPPORTUNITIES * Ibrahim Elbeltagi Info 2007

  5. INTERNATIONAL SUPPORT SYSTEMS INFRASTRUCTURE BASIC SUPPORT SYSTEMS REQUIRED TO COORDINATE WORLDWIDE TRADE & OTHER ACTIVITIES * Ibrahim Elbeltagi Info 2007

  6. GLOBAL ENVIRONMENT: BUSINESS DRIVERS & CHALLENGES CORPORATE GLOBAL STRATEGIES ORGANIZATIONAL STRUCTURE MANAGEMENT & BUSINESS PROCEDURES TECHNOLOGICAL PLATFORM INTERNATIONAL SUPPORT SYSTEMS INFRASTRUCTURE INTERNATIONAL SUPPORT SYSTEMS INFRASTRUCTURE Ibrahim Elbeltagi Info 2007

  7. GLOBAL BUSINESS DRIVERSGeneral Cultural Factors: • GLOBAL COMMUNICATION & TRANSPORTATION TECHNOLOGIES • DEVELOPMENT OF GLOBAL CULTURE • EMERGENCE OF GLOBAL NORMS • POLITICAL STABILITY • GLOBAL KNOWLEDGE BASE * Ibrahim Elbeltagi Info 2007

  8. GLOBAL BUSINESS DRIVERSSpecific Business Factors: • GLOBAL MARKETS • GLOBAL PRODUCTION & OPERATIONS • GLOBAL COORDINATION • GLOBAL WORK FORCE • GLOBAL ECONOMIES OF SCALE * Ibrahim Elbeltagi Info 2007

  9. CHALLENGES & OBSTACLES TO GLOBAL BUSINESS SYSTEMS GENERAL: • CULTURAL PARTICULARISM • SOCIAL EXPECTATIONS • POLITICAL LAWS SPECIFIC: • TELECOMMUNICATION STANDARDS • NETWORK RELIABILITY • DATA TRANSFER SPEEDS • SHORTAGE OF CONSULTANTS * Ibrahim Elbeltagi Info 2007

  10. 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 * Ibrahim Elbeltagi Info 2007

  11. 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 * Ibrahim Elbeltagi Info 2007

  12. 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 Ibrahim Elbeltagi Info 2007

  13. GLOBAL SUPPORT 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 * Ibrahim Elbeltagi Info 2007

  14. 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 Ibrahim Elbeltagi Info 2007

  15. 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 * Ibrahim Elbeltagi Info 2007

  16. DEVELOPING GLOBAL SYSTEMS • AGREE ON COMMON USER REQUIREMENTS • INDUCE PROCEDURAL BUSINESS CHANGES • COORDINATE APPLICATIONS DEVELOPMENT • COORDINATE SOFTWARE RELEASES • ENCOURAGE LOCAL USERS TO ACCEPT OWNERSHIP * Ibrahim Elbeltagi Info 2007

  17. STRATEGY: DIVIDE, CONQUER, APPEASE • DEFINE CORE BUSINESS PROCESSES • IDENTIFY CORE SYSTEMS TO COORDINATE CENTRALLY • CHOOSE AN APPROACH: Incremental, grand design, evolutionary • MAKE BENEFITS CLEAR * Ibrahim Elbeltagi Info 2007

  18. 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 * Ibrahim Elbeltagi Info 2007

  19. MAIN TECHNICAL ISSUES • HARDWARE & SOFTWARE INTEGRATION • CONNECTIVITY • SOFTWARE:Languages can be a barrier * Ibrahim Elbeltagi Info 2007

  20. MAIN TECHNICAL ISSUES • HARDWARE & SOFTWARE INTEGRATION • CONNECTIVITY • SOFTWARE:Languages can be a barrier * Ibrahim Elbeltagi Info 2007

  21. Organisations in the 21st Century Several forms proposed, each of which adopts a particular view of the organisation, for example: • Learning organisation • Network organisation • Dynamic organisation * Ibrahim Elbeltagi Info 2007

  22. The Learning Organisation • A Learning Organisation is an organisation skilled at creating, acquiring and transferring knowledge, and at modifying its behaviour to reflect new knowledge and insights • Organisations learn through individual learning, but individual learning does not guarantee organisational learning * Ibrahim Elbeltagi Info 2007

  23. The Learning Organisation • Culture of organisation must be conducive to learning, where basic assumptions are challenged, and experimentation, innovation, idea generation at all levels, diversity of opinions and teamwork are actively encouraged • IT needs to support the combination, creation, acquisition, communication and embedding of knowledge within an organisation * Ibrahim Elbeltagi Info 2007

  24. The Network organisation • Organisations that operate through a network of market sensitive business units, in response to market forces. Each BU may be: ØInternal ØOutsourced ØResult of Strategic Alliances or Value Added Partnerships (VAPs) for the exchange of goods and information. * Ibrahim Elbeltagi Info 2007

  25. The Network organisation • To exist, it requires the capabilities of IT to facilitate the communication and co-ordination between the Bus, and to help foster VAPs. * Ibrahim Elbeltagi Info 2007

  26. The Network organisation § Internal BUs External BUs Current MSS function Ibrahim Elbeltagi Info 2007

  27. The Dynamic Organisation • Closely related to the Network Organisation, but not the same • A dynamic organisation represents a continuously evolving set of activities which are formed by integrating a group of internal and external resources in order to develop and exploit the briefest business opportunities * Ibrahim Elbeltagi Info 2007

  28. The Dynamic Organisation • Doesn’t stand still, in terms of outlook and structure. Structure fluid so that it can easily respond to opportunities • Set up a team of people, tasks & other resources to exploit an opportunity, and dissolve it when finished exploiting opportunity * Ibrahim Elbeltagi Info 2007

  29. The Dynamic Organisation • Doesn’t stand still, in terms of outlook and structure. Structure fluid so that it can easily respond to opportunities • Set up a team of people, tasks & other resources to exploit an opportunity, and dissolve it when finished exploiting opportunity * Ibrahim Elbeltagi Info 2007

  30. The Dynamic Organisation Searching, looking out, resource intelligence & management, setting up, supporting, dissolving. Static component of the company Working together, reporting Current MSS Functionality? Ibrahim Elbeltagi Info 2007

  31. End of Module! Ibrahim Elbeltagi Info 2007

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