Global Strategies and Challenges in International Support Systems Infrastructure

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