Chapter 15: Managing Global Systems Flashcards
Factors Driving internationalization of business
- glocal economics and global world order driven by advanced networks
- growth of international trade
Developing an International IS architecture
basic IS required to coordinate worldwide trade to other activities
- understand global env
- business drivers
- inhibitors creating management challenges
business drivers for global competition
force in environment that businesses msut respond and that influences direction of buiness
organization structure
division of labor, proudction, actt, mkt etc
management issue
- competitng priorities
buss process design
locas vs internation
business drivers
WHITEBOARD
Particularism
making judgerment and acting based on narrow or personal characteristics
- reject concept of shared global culture
- reject penetration of domestion markets by foreign goods
Business Challenges
- particularism
- different cultures, political regimes
- transborder data flo
- language
state of the art
most companies have inherited patchwork systems
- based on outdated systems
face powerful competitive challenges in from int. firms
Difficulties in building appropriate international architectures
Difficulties in building appropriate international architechtures
- planning a system appropriate to firm’s global strategy
- structureing org of system and business units
- solving implementation issues
- choosing right technical platform
Main global strategties
- domestic exporter
- multinational expporter
- franchiser transation
Organizational Structure
- centralized: in home country
- decentralized: local foreign units
- coordinated: all units participate as equals
Doemstic Exporter
- heavy centralization of corporate activities in home of company origin
- International sales can be dispersed using agency agreements
- capital equipment manufacturers
Multinational
concentrates financial management and control out of a central home base while decentralizing production, sales and marketing
- products and services on sale in diff. countries, adapt to suit local market
Franchiser
product is created, designed, finance, inially proudced in home country, but for product specific reasons, relies healvity on foreign personal for further production, marketing, and HR.
- “produced” reasonably close to area of consumption
need extensive coordination and dispersal