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MANAGING GLOBAL SYSTEMS

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FERHAT GÜNDEŞ

on 13 December 2013

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Transcript of MANAGING GLOBAL SYSTEMS

MANAGING GLOBAL SYSTEMS
MANAGING GLOBAL SYSTEMS
FERHAT GÜNDEŞ

SÜLEYMAN IŞIK
LEARNING OBJECTIVES
Identify the major factors driving the internationalization of business
Compare strategies for developing global businesses
Demonstrate how information systems can support different global business strategies
Identify the challenges posed by global information systems and management solutions
Evaluate the issues and technical alternatives to be considered when developing international information systems
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEM
Global economic system and global world order driven by advanced networks and information systems
Growth of international trade has radically altered domestic economies around the globe
For example, production of many high-end electronic products parceled out to multiple countries(HP,APPLE ..)
Image by goodtextures: http://fav.me/d2he3r8
HP LAPTOP'S GLOBAL SUPPLY CHAIN
APPLE IPHONE’S GLOBAL SUPPLY CHAIN
STRATEGY WHEN BUILDING INTERNATIONAL SYSTEM
1-)Understand global environment
Business drivers pushing your industry toward global competition
Inhibitors creating management challenges
2-)Develop corporate strategy for competition
How firm should respond to global competition
Where will production,marketing,sales be located
Design of business procedures,re engineering,managing change
3-)Develop organization structure and division of labor
4-)Consider management issues
5-) Consider technology platform
International Information Systems Architecture

The global environment: Business drives and challenges
Business Drives:
General cultural factors lead toward internationalization and result in specific business globalization
Challenges and obstacles to global business systems

State of the Art
Most companies have inherited patchwork international systems using 1960s-era batch-oriented reporting, manual entry of data from one legacy system to another, and little online control and communication

Significant difficulties in building appropriate international architectures

Planning a system appropriate to firm’s global strategy
Structuring organization of systems and business units
Solving implementation issues
Choosing right technical platform

ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEM
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEM
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEM
General cultural challenges:

Cultural particularism

Regionalism,nationalism,language differences
Social expectations
Brand-name expectations, work hour
Political laws

Trans border data flow

Trans border data and privacy laws, commercial regulations

Specific challenges:

Standards

Different EDI, e-mail, telecommunication standards

Reliability

Phone networks not uniformly reliable

Speed

Different data transfer speeds, many slower than U.S
Personnel

Shortages of skilled consultants

THE GROWTH OF INTERNATIONAL INFORMATION SYSTEM
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEM
CONTENT
1-) THE GROWTH OF INTERNATIONAL INFORMATION SYSTEMS

2-)ORGANIZING INTERNATIONAL
INFORMATION SYSTEMS

3-)MANAGING GLOBAL SYSTEMS

4-)TECHNOLOGY ISSUE AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS
THE GROWTH OF INTERNATIONAL INFORMATION SYSTEM
DEVELOPING AN INTERNATIONAL INFORMATION SYSTEMS ARCHITECTURE
THE GLOBAL ENVIRONMENT:BUSINESS DRIVES AND CHALLENGES
STATE OF THE ART
Global Business Strategy and Structure:

Global strategies and business organization:

Three main kinds of organizational structure

Centralized:
In the home country
Decentralized/dispersed
: To local foreign units
Coordinated:
All units participate as equals

Four main global strategies

Domestic exporter
Multinational
Franchisers
Transnational

GLOBAL STRATEGIES AND BUSINESS ORGANIZATION
GLOBAL SYSTEMS TO FIT THE STRATEGY
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Global systems to fit the strategy


Four main types of systems configuration
Centralized:
Systems development and operation occur totally at domestic home base
Duplicated:
Development occurs at home base but operations are handed over to autonomous units in foreign locations
Decentralized:
Each foreign unit designs own solutions and systems
Networked:
Development and operations occur in coordinated fashion across all units

Configuration, management, and development of systems tend to follow global strategy chosen

ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
Global Strategy and Systems Configurations

ORGANIZING INTERNATIONAL INFORMATION SYSTEMS
To develop a global company and information systems support structure
Organize value-adding activities along lines of comparative advantage
E.g., Locate functions where they can best be performed,
for least cost and maximum impact
Develop and operate systems units at each level of corporate activity—regional, national, and international
Establish at world headquarters:
Single office responsible for development of international
systems
Global CIO position

MANAGING GLOBAL SYSTEMS
A TYPICAL SCENARIO: DISORGANIZATION ON A GLOBAL SCALE
GLOBAL SYSTEMS STRATEGY
MANAGEMENT SOLUTION: IMPLEMENTATION
MANAGING GLOBAL SYSTEMS
Principle management challenges in developing global systems

Agreeing on common user requirements
Introducing changes in business processes
Coordinating application development
Coordinating software releases
Encouraging local users to support global systems

MANAGING GLOBAL SYSTEMS
Typical scenario: Disorganization on a global scale

Traditional multinational consumer-goods company based in U.S. and operating in Europe would like to expand into Asian markets
World headquarters and strategic management in U.S.
Only centrally coordinated system is financial controls
and reporting
Separate regional, national production and marketing centers
Foreign divisions have separate IT systems
E-mail systems are incompatible
Each production facility uses different ERP system, different hardware and database platforms, etc.

MANAGING GLOBAL SYSTEMS
Global systems strategy

Share only core systems
-Core systems support functionality critical to
firm
Partially coordinate systems that share some key elements
-Do not have to be totally common across
national boundaries
-Local variation desirable
Peripheral systems
-Need to suit local requirements only

MANAGING GLOBAL SYSTEMS
Local, Regional, and Global System

MANAGING GLOBAL SYSTEMS
1-)Define core business processes
2-)Identify core systems to coordinate centrally
3-)Choose an approach
Piecemeal and grand design approaches tend to fail
Evolve transnational applications incrementally from
existing applications
4-)Make benefits clear
-Global flexibility
-Gains in efficiency
-Global markets and larger customer base unleash new
economies of scale at production facilities
-Optimizing corporate funds over much larger capital
base
Global systems strategy

MANAGING GLOBAL SYSTEMS
The management solution

Agreeing on common user requirements
-Short list of core business processes
-Develop common language, understanding of
common elements and unique local qualities
Introducing changes in business processes
-Success depends on legitimacy, authority, ability
to involve users in change design process
Coordinating applications development
-Coordnate change through incremental steps
-Reduce set of transnational systems to bare
minimum
The management solution

MANAGING GLOBAL SYSTEMS
Coordinating software releases
-Institute procedures to ensure all operating units
update at same time
Encouraging local users to support global systems
-Cooptation:
Bringing the opposition into design and
implementation process without giving up control
over direction and nature of the change
-Permit each country unit to develop one transnational
application
-Develop new transnational centers of excellence

MANAGING GLOBAL SYSTEMS
Technology challenges of global systems

Computing platforms and systems integration
-How new core systems will fit in with existing suite
of applications developed around globe by different
divisions
-Standardization: Data standards, interfaces,
software, etc.
Connectivity
-Internet does not guarantee any level of service
-Many firms use private networks and VPNs
-Low penetration of PCs, outdated infrastructures in
developing countries

MANAGING GLOBAL SYSTEMS
Technology challenges of global systems

Software
-Integrating new systems with old
-Human interface design issues, languages
-Software localization: converting software to operate in
second language
-Most important software applications:
-TPS and MIS
-Increasingly, SCM and enterprise systems to standardize
business processes
-Applications that enhance productivity of international
teams

MANAGING GLOBAL SYSTEMS
MANAGING GLOBAL SYSTEMS
PROBLEMS OF INTERNATIONAL NETWORKS
INTERNET PENETRATION BY REGION
REORGANIZING THE BUSINESS
THANK YOU
THANK YOU
THANK YOU
THANK YOU
THANK YOU
THANK YOU
THANK YOU
Full transcript