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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

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Week 2 globalization and mis systems l.jpg

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

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.

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Globalization created a new world characterized by:

Worldwide communication

Collaboration without barriers

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Tom Friedman

  • Pulitzer Prize-winning New York Times foreign affairs columnist

  • author of the renowned book on globalization, “The World is Flat”

  • Factors /drivers that contribute to increased connectedness = “flattening” of the world

  • MIS systems are playing a key role

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Tom Friedman’s “The World is Flat” Video

  • As you watch the video, take notes and be ready to discuss:

    • What is the Overall Point of the video/book?

    • What are the 10 Flatteners and what are their implications according to Friedman?

    • Based on the video, what does someone need to do to be successful in the 21st Century?

  • Tom Friedman’s “The World is Flat” Video: http://mitworld.mit.edu/video/266/

  • Evolution of globalization l.jpg
    Evolution of Globalization

    Mainly European countries are globalizing

    What is the primary driver of Globalization 1.0?

    Industries changed

    Slow pace of change

    Globalization 1.0

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    Evolution of Globalization

    Companies are globalizing

    What are the primary drivers of Globalization 2.0?

    Mainly Europe and America involved

    Globalization 2.0

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    Evolution of Globalization

    Individuals and small groups are globalizing

    What are the drivers of Globalization 3.0?

    Fast changes

    Emergence of new industries

    Globalization 3.0

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    The Overall Idea

    • The global economic playing field has been leveled

    • Competition is worldwide

    • Few jobs or markets are constrained by geographic boundaries

    • There are steps you can take to succeed in this world

    Flattener 1 11 9 1989 the fall of the berlin wall windows 3 1 released l.jpg
    Flattener #1: 11/9/1989: The Fall of the Berlin WallWindows 3.1 released

    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.

    Flattener 2 netscape went public l.jpg
    Flattener #2: Netscape went public


    New services

    Dot com boom

    Overbuild of fibre optics

    Boston, Bethesda, and Bangalore are now neighbors.

    Companies no longer control collaborative development of technology products

    Flattener 3 work flow software l.jpg
    Flattener #3: Work Flow Software


    Easier for applications to work with other applications (with some exceptions)

    “Smokestacks” like AOL and CompuServe replaced or redesigned

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    Flattener #4: Outsourcing


    Moving Jobs

    Why do companies outsource?

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    Flattener #5: Offshoring

    Offshoring: Moving entire operations

    How is offshoring different than outsourcing?

    Flattener 6 open sourcing l.jpg
    Flattener #6: Open Sourcing

    Open source products: developed collaboratively and free


    Open office

    Creation/distribution of material by anyone

    Potentially threatening to Microsoft, The New York Times, Record Labels, and others (Why?)

    Flattener 7 supply chaining l.jpg
    Flattener #7: Supply Chaining

    Integration of retailers, suppliers, and customers

    Increases efficiency. (Why?)

    Flattener 8 in sourcing l.jpg
    Flattener #8: In-Sourcing

    Delegation of company’s key operations to a subcontractor

    What does UPS do in this area?

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    Flattener #9: Informing

    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?

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    Flattener #10: The Steroids

    Technologies that support different types of collaboration

    Greater mobility

    Convergence of media and technoloigies

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    Opportunities of Operating in the Digital World

    Engineering Graduates in the US, Europe and India

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    Challenges of Operating in the Digital World

    Globalization also created a set of unprecedented challenges:

    Governmental challenges

    Geoeconomical challenges

    Demographic challenges

    Cultural challenges

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    Governmental Challenges

    Political System Challenges

    Regulatory Challenges

    Data-Sharing Challenges

    Internet Access and Individual Freedom

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    Cultural Challenges

    Risk taking


    Work skills/habits

    Intellectual property concepts

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    Going Global: International Business Strategy in the Digital World

    Multidomestic Business Strategy

    Global Business Strategy

    Transnational Business Strategy

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    Multidomestic Business Strategy World

    • Lower degree of global integration

    • Higher degree of local responsiveness

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    Global Business Strategy World

    • Higher degree of global integration

    • Lower degree of local responsiveness

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    Transnational Business Strategy World

    • Some operations centralized

    • while others decentralized

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    Information Systems Strategies World

    Multinational Information Systems Strategy

    Global Information Systems Strategy

    Transnational Information Systems Strategy

    Niklas zennstr m cofounder and chief executive officer skype l.jpg
    Niklas Zennström: Cofounder and Chief Executive Officer, Skype

    “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


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    The Automobile Industry Skype

    Feeling the pressure of globalization

    Failed attempts at making a “world car” (why?)

    Cultural and economic conditions need to undergo more globalization