Week 2: Globalization and MIS Systems. MIS 2101: Management Information Systems Douglas M. Schutz. Based on material from Information Systems Today: Managing in the Digital World , Leonard Jessup and Joseph Valacich , Pearson Prentice Hall, 2007
MIS 2101: Management Information Systems
Douglas M. Schutz
Based on material from Information Systems Today: Managing in the Digital World, Leonard Jessup and Joseph Valacich, Pearson Prentice Hall, 2007
Also includes material from The World Is Flat: A Brief History of the Twenty-first Century, Thomas L. Friedman, Farrar, Straus and Giroux, 2007
Also includes material by David Schuff, Paul Weinberg, Cindy Joy Marselis, Munir Mandviwalla, and Mart Doyle.
Globalization created a new world characterized by:
Collaboration without barriers
Mainly European countries are globalizing
What is the primary driver of Globalization 1.0?
Slow pace of change
Companies are globalizing
What are the primary drivers of Globalization 2.0?
Mainly Europe and America involved
Individuals and small groups are globalizing
What are the drivers of Globalization 3.0?
Emergence of new industries
The Wall was a physical and symbolic barrier to a flat economy
Windows removed a barrier to the creation of digital content
Started a major change from large centralized systems to small decentralized systems on a mass scale.
Dot com boom
Overbuild of fibre optics
Boston, Bethesda, and Bangalore are now neighbors.
Companies no longer control collaborative development of technology products
Easier for applications to work with other applications (with some exceptions)
“Smokestacks” like AOL and CompuServe replaced or redesigned
Why do companies outsource?
Offshoring: Moving entire operations
How is offshoring different than outsourcing?
Open source products: developed collaboratively and free
Creation/distribution of material by anyone
Potentially threatening to Microsoft, The New York Times, Record Labels, and others (Why?)
Integration of retailers, suppliers, and customers
Increases efficiency. (Why?)
Delegation of company’s key operations to a subcontractor
What does UPS do in this area?
Individuals have access to massive amounts of information
What types of information are easily available to you now that weren’t 10 years ago?
How has this affected car dealers?
Technologies that support different types of collaboration
Convergence of media and technoloigies
Engineering Graduates in the US, Europe and India
Globalization also created a set of unprecedented challenges:
Political System Challenges
Internet Access and Individual Freedom
Intellectual property concepts
Multidomestic Business Strategy
Global Business Strategy
Transnational Business Strategy
Multinational Information Systems Strategy
Global Information Systems Strategy
Transnational Information Systems Strategy
“The idea of charging for calls belongs to the last century.”
Skype has 28 million subscribers
Among the 100 most influential people transforming the world
Feeling the pressure of globalization
Failed attempts at making a “world car” (why?)
Cultural and economic conditions need to undergo more globalization