Ch09 (1)l./;uuu the rise of the machineries hahaha

Chapter 9: Challenges of Global Information Systems

Management Information Systems, Fifth Edition

Management Information Systems, Fifth Edition 2

Objectives

• Explain why multinational corporations must use global information systems

• Provide elementary advice for designing Web sites for an international audience

• Cite the cultural, legal, and other challenges to implementing international information systems


Multinational Organizations

• Increasing number of corporations becoming multinational

• Global information system: serves organizations in multiple countries– Used by multinational corporations

• Overseas operations must abide by local laws


The Web and International Commerce

• Web became important vehicle for B2B and B2C commerce

• Ratio of non-English speakers to English speakers growing

• Internet opens enormous global opportunities• Chinese market expected to be largest in future• Web offers opportunities to save on costs


The Web and International Commerce (continued)

Figure 9.1: Two-thirds of Internet users come from non-English-speaking countries



• Manuals prepared with animation• Presented in many languages• Global businesses must be sensitive to

audiences• Glocalization: design global sites to cater to

local needs• McDonalds menu changes to appeal to local

palates



Figure 9.2: Imperatives to heed when designing Web sites for an international audience


Think Globally, Act Locally

• International companies “think globally, act locally”

• Be sensitive to regional customs• Control must be decentralized• Strategic planning should be global• Can be followed with local flavor


Think Globally, Act Locally (continued)

Businesses that cater to international audiences must “glocalize” their Web sites


Think Globally, Act Locally (continued)

Businesses that cater to international audiences must “glocalize” their Web sites


Challenges of Global Information Systems

• Global information systems face challenges– Technological barriers– Regulations and tariffs

– Electronic payment mechanisms

– Different language and culture– Economic and political considerations– Different measurement standards

– Legal barriers


Technological Challenges

• Not all countries have adequate information technology infrastructures

• Unable to build international IS• Broadband communication lines needed• Can offer two versions of Websites to

compensate for slower bandwidth


Technological Challenges (continued)

• Language is technological challenge– Eight-bit bytes not sufficient for languages with

large character sets

– Unicode allows for 65,536 characters– Must coordinate with databases and applications

• Telephone numbers different in different countries


Regulations and Tariffs

• Countries have different importing regulations• Executives reluctant because of hassles• Comply with laws of destination countries• NextLinx help importers and exporters for Web

commerce


Differences in Payment Mechanisms

• E-commerce allows easy payment for online purchases

• Credit cards preferred payment method in North America

• Not all countries adopt this preference– Japanese avoid using credit cards


Language Differences

• International parties must agree on common language

• Data not transmittable internationally because information must be translated

• English considered de facto international language

• Largest companies translate Web sites into local languages


Cultural Differences

• Different countries vary– Tastes– Gestures

– Treatment of people

– Ethical issues

• Conservative groups against “Americanization”• Web designers must be sensitive to cultural

differences


Cultural Differences (continued)

Some nations are afraid that cross-border information flow promotes cultural imperialism


Conflicting Economic, Scientific, and Security Interests

• Goal of corporate management– Seize large market share– Maximize organization profits

• Scientific information important national resource

• Occasionally interests conflict


Conflicting Economic, Scientific, and Security Interests (continued)

• Weapons manufacturers have technical drawings– Valuable to both company and security of country– Governments may not allow exchange of weapon

designs

• PGP encryption application was opposed by government– Thought to compromise national security


Conflicting Economic, Scientific, and Security Interests (continued)

The U.S. government controls the export of encryption software


Political Challenges

• Information is power• Some countries oppose policy of free access to

information– Gives other nations opportunity to control

indigenous resources

• Government may require software to be purchased within borders

• Government may limit Internet use


Different Standards

• Standards considered when integrating ISs internationally

• Records may be incompatible• United States uses English system of weights

and measures• Rest of world uses metric system


Different Standards (continued)

• Different standards– Communicating dates

– Times

– Temperatures– Addresses

• United States uses month/day/year format• Rest of world uses day/month/year



Differences in standards pose a challenge to companies that wish to integrate their information systems across national borders



• Different standards very costly– NASA lost spacecraft because of measurement

unit discrepancy

• European Article Number (EAN): barcode that includes an extra number to identify country

• Universal Product Code (UPC): American standard without last extra number

• Uniform Code Council (UCC): promoted use of European standard



• Companies must adapt ISs to de facto (formal) standards

• Global Trade Item Numbers (GTINs): large enough to identify much larger set of items

• Support global supply chains• Major push for using RFID tags


Legal Barriers

• Countries have different laws– Affects global business in general

– Poses challenges• International transfer of data• Free speech• Location of legal proceedings


Legal Barriers (continued)

• Privacy laws– Respect for privacy in international business is

unresolved challenge– Majority of democratic nations protect individual

privacy

– Laws reflect difference in approach to issue of privacy



• Data protection laws described by three criteria– Apply to private or public sector– Manual or automated data

– Concern human beings or legal entities

• US privacy laws– Both public and private– Mostly encompass manual and computerized

systems



• European Union practices may conflict with U.S. practices– Personal data collected only for specified

purposes

– Personal data must be given consent to be processed

– Collecting organizations must identify themselves– People have right to object to processing of

personal data



• American companies busy collecting data for marketing

• Discrepancy between European and American approaches prevents unrestricted flow of information

• EU directive just a framework• Safe Harbor: arrangement for U.S. companies

complying with EU directive to trade



• Applicable law– Free speech laws different in other countries– Impacts what can or cannot be displayed online

• Other laws– Gambling– Auctioning– Sale of alcohol and drugs


Different Time Zones

• Different global regions require policies for work and information systems

• Teleconferencing available most of day• Sometimes 24 hours per day• Allow employees from different time zones to

discuss problems• Teams in support centers may work shifts


Different Time Zones (continued)

Different time zones must be considered by all organizations that do business in multiple countries


Different Time Zones (continued)

• Managers must be aware of incorrect time stamping

• Systems at both locations can be designed to record local times of both locations

• Or record single time (company headquarters)


Summary

• Companies using Web for business must accommodate non-English speaking audiences

• Companies must tailor to local preferences• Must be aware of cultural differences and

payment preferences• Tariff and legal issues• Linguistic, cultural, economic, and political

challenges must be addressed


Summary (continued)

• Laws governing collection of data in United States and European Union are different

• Incompatible data privacy laws• Restricted flow of personal data between United

States and EU• Safe Harbor arrangement enables EU to do

business with US


Summary (continued)

• Old legal approach of territorial jurisdiction inadequate

• Too much information communicated and business conducted on Internet

• Free speech and consumer litigation of e-tailers brought need for legal reform for cyberspace

Education

Ch09 (1)l./;uuu the rise of the machineries hahaha