Instructions
It is important to understand what information systems are and why they are essential for running and managing a business. The case studies below will provide you with an opportunity to review many of the concepts covered in this course. These case studies provide you with an opportunity to critically analyze events that are taking place in real-life organizations. This helps to develop your critical thinking and research skills as you research each of these scenarios.
For this assignment, you will review four case studies. Then, in a PowerPoint presentation, you will evaluate the studies and respond to each of the questions below, using both critical thinking and theory as well as supporting documentation.
Based on your reading of the case study “Can You Run the Company with Your iPhone?” on pages 9–10 of the textbook, discuss how emerging trends in technology are helping Network Rail improve railway performance and safety.
Based on your reading of the case study “Enterprise Social Networking Helps Sanofi Pasteur Innovate and Improve Quality” on pages 41–42 of the textbook, discuss how information systems influenced the company’s organizational strategy. Critique their core information system applications from a business perspective. Analyze how information system projects are aligned with organizational goals and strategies.
Based on your reading of the case study “Meltdown and Spectre Haunt the World’s Computers” on pages 309–310 of the textbook, discuss the ethical and security issues that could result from flaws in central processing unit (CPU) chip design. Assess their procedures for securing information systems.
Based on your reading of the case study “AbbVie Builds a Global Systems Infrastructure” on pages 586 of the textbook, discuss the problems that the company was experiencing as a global enterprise and how the company was able to solve them. Explain their information technology infrastructure. Discuss information system solutions that can be applied to this issue.Management Information Systems:
Managing the Digital Firm
Sixteenth Edition
Chapter 15
Managing Global Systems
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Learning Objectives
15.1 What major factors are driving the internationalization of
business?
15.2 What are the alternative strategies for developing global
businesses?
15.3 What are the challenges posed by global information
systems and management solutions for these
challenges?
15.4 What are the issues and technical alternatives to be
considered when developing international information
systems?
15.5 How will MI S help my career?
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Video Cases
• Case 1: Daum Runs Oracle Apps on Linux.
• Case 2: Lean Manufacturing and Global ER P: Humanetics
and Global Shop
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New Systems Help Eli Lilly
Standardize as a Global Company
(1 of 2)
• Problem
– Global footprint
– Disparate local processes, systems, and data
• Solutions
– Design global strategy and business model
– Globalize business processes
– Deploy SA P ER P and G R C Process Control
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New Systems Help Eli Lilly
Standardize as a Global Company
(2 of 2)
• Global E R P System
• Demonstrates I T’s role in helping organizations pursue a
global growth strategy
• Illustrates the ability of I T systems to standardize global
processes and rules
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What Major Factors Are Driving the
Internationalization of Business?
• Global economic system and global world order driven by
advanced networks and information systems
• The 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
– For example: Apple iPhone’s global supply chain
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Figure 15.1: Apple Iphone’s Global
Supply Chain
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Developing an International
Information Systems Architecture
• Understand global environment
– Business drivers for global competition
– Inhibitors creating management challenges
• Develop corporate strategy for global competition
• Develop organizational structure and division of labor
• Consider management issues
– Design of business procedures, reengineering,
managing change
• Consider technology platform
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Figure 15.2 International Information
Systems Architecture
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The Global Environment: Business
Drivers and Challenges
• General cultural challenges
– Cultural particularism
– Social expectations
– Political laws
• Specific challenges
– Standards
– Reliability
– Speed
– Personnel
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Table 15.1: The Global Environment:
Business Drivers and Challenges
General Cultural Factors
Specific Business Factors
Global communication and
transportation technologies
Global markets
Development of global culture
Global production and operations
Emergence of global social norms Global coordination
Political stability
Global workforce
Global knowledge base
Global economies of scale
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Table 15.2 Challenges and Obstacles
to Global Business Systems
Global
Specific
Cultural particularism:
Regionalism, nationalism,
language differences
Standards: Different Electronic
Data Interchange (ED I), e-mail,
telecommunications standards
Social expectations: Brand-name
expectations, work hours
Reliability: Phone networks not
uniformly reliable
Political laws: Transborder data
and privacy laws, commercial
regulations
Speed: Different data transfer
speeds, many slower than United
States
Blank
Personnel: Shortages of skilled
consultants
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State of the Art
• Most companies have inherited a patchwork international
system using traditional batch-oriented reporting, manual
data entry, legacy systems, and little online control
• 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
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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
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Table 15.3 Global Business Strategy
and Structure
Business Function
Domestic
Exporter
Multinational
Franchiser
Transnational
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
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Global Systems to Fit the Strategy
• Configuration, management, and development of systems
tend to follow global strategy chosen
• 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
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Figure 15.3 Global Strategy and
Systems Configurations
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Reorganizing the Business
• To develop a global company and information systems
support structure:
1. Organize value-adding activities along lines of comparative
advantage
For example: Locate functions where they can best be
performed, for least cost and maximum impact
2. Develop and operate systems units at each level of
corporate activity—regional, national, and international
3. Establish at world headquarters:
Single office responsible for development of international
systems
Global CI O position
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A Typical Scenario: Disorganization
on a Global Scale
• Traditional multinational consumer-goods company based in
United States and operating in Europe would like to expand into
Asia
• World headquarters and strategic management in United States
• Separate regional, national production and marketing centers
• Foreign divisions have separate I T systems
• E-mail systems are incompatible
• Each production facility uses different ER P system, different
hardware and database platforms, and so on
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Global Systems Strategy (1 of 2)
• 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
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Global Systems Strategy (2 of 2)
• Define core business processes
• Identify core systems to coordinate centrally
• Choose an approach
– Piecemeal and grand design approaches tend to fail
• 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
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The Management Solution:
Implementation (1 of 2)
• 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
– Coordinate change through incremental steps
– Reduce set of transnational systems to bare minimum
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Figure 15.4 Local, Regional, and
Global Systems
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The Management Solution:
Implementation (2 of 2)
• 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
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Issues and Technical Alternatives
When Developing International
Information Systems (1 of 2)
• 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, and
so on
• Connectivity
– Internet does not guarantee any level of service
– Many firms use private networks and VPN s
– Low penetration of PC s, outdated infrastructures in
developing countries
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Issues and Technical Alternatives
When Developing International
Information Systems (2 of 2)
• Software
– Integrating new systems with old
– Human interface design issues, languages
• Software localization
– Converting software to operate in second language
• Most important software applications:
– TP S and MI S
– SC M, ED I, and enterprise systems
– Collaboration tools, e-mail, videoconferencing
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Figure 15.5 Internet Population in
Selected Countries
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Interactive Session: Technology: The
Global Internet Goes Multimedia
• Class discussion
– Why are voice and video becoming the primary means
of communication over the Internet?
– How will this trend impact companies trying to do
business worldwide? How will it affect the way they run
their businesses and interact with customers?
– What kinds of companies are likely to benefit from a
more multimedia Internet? Explain.
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Interactive Session: Management:
AbbVie Builds a Global Systems
Infrastructure
• Class discussion
– What management problems typical of global systems was
AbbVie experiencing? What management, organization, and
technology factors were responsible for those problems?
– What elements of the global systems strategy described in
this chapter did AbbVie pursue?
– How did AbbVie’s new SA P ER P system support its global
business strategy?
– How did AbbVie’s new system improve operations and
management decision making?
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How Will MIS Help My Career?
• The Company: Global Online Stats
• Position Description: Entry-level sales and marketing
trainee
• Job Requirements
• Interview Questions
• Author Tips
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