Growth of Growth of International International Information Information

SystemsSystemsIntroduction to CBISIntroduction to CBIS

Module 13(a)Module 13(a)

Global ISGlobal IS

The emergence of a global economic The emergence of a global economic system through information systemssystem through information systems

So, how do we build an international So, how do we build an international information systems architecture to information systems architecture to suit an organizations international suit an organizations international strategy?strategy?

Business DriversBusiness Drivers

Business ChallengesBusiness Challenges

SummarySummary

Growth of global information Growth of global information systemssystems

Drivers of global systemsDrivers of global systems

Evolution of an international Evolution of an international information systems architecture. information systems architecture.

Organizing Organizing International International Information Information

SystemsSystemsIntroduction to CBISIntroduction to CBIS

Module 13(b)Module 13(b)

Issues Facing Issues Facing OrganizationsOrganizations

Three issues face organizations Three issues face organizations seeking a global position:seeking a global position: Choosing a strategyChoosing a strategy Organizing the businessOrganizing the business Organizing the information systems Organizing the information systems

management areamanagement area

Global StrategiesGlobal Strategies

Four main global strategies form the Four main global strategies form the basis of organizational structurebasis of organizational structure Domestic ExporterDomestic Exporter MultinationalMultinational FranchiserFranchiser TransnationalTransnational

Strategies characterized by 3 Strategies characterized by 3 organizational structuresorganizational structures

Three Organizational Three Organizational StructuresStructures

Centralized (in the home country)Centralized (in the home country)

Decentralized (to local foreign units)Decentralized (to local foreign units)

Coordinated (all units participate as Coordinated (all units participate as equals) equals)

Global IS to Fit StrategyGlobal IS to Fit Strategy

Four IS StructuresFour IS Structures

Centralized systems:Centralized systems: Systems Systems development and operation occur development and operation occur totally at the domestic home basetotally at the domestic home base

Duplicated systems:Duplicated systems: Development Development occurs at the home base but occurs at the home base but operations are handed over to operations are handed over to autonomous units in foreign autonomous units in foreign locationslocations

Four IS StructuresFour IS Structures

Decentralized systems:Decentralized systems: Each Each foreign unit designs its own unique foreign unit designs its own unique solutions and systemssolutions and systems

Networked systems:Networked systems: Systems Systems development and operations occur in development and operations occur in an integrated and coordinated an integrated and coordinated fashion across all unitsfashion across all units

Developing a Global Developing a Global Company and a IS Support Company and a IS Support

StructureStructure Organize value-adding activities Organize value-adding activities

along lines of comparative advantage along lines of comparative advantage

Develop and operate systems units Develop and operate systems units at each level of corporate activity —at each level of corporate activity —regional, national, and international regional, national, and international

Establish at world headquarters Establish at world headquarters

SummarySummary

Global strategy influenceGlobal strategy influence Structure of the organizations, which Structure of the organizations, which

influenceinfluence Structure of the IS, andStructure of the IS, and IS area management IS area management

Global organizational strategy and Global organizational strategy and structure influence IS strategy and structure influence IS strategy and structurestructure

Managing Global Managing Global SystemsSystems

Introduction to CBISIntroduction to CBIS

Module 13(c)Module 13(c)

Management Challenges in Management Challenges in Developing Global Systems Developing Global Systems

Global Systems StrategyGlobal Systems Strategy

Global Systems StrategyGlobal Systems Strategy Define the core business processes:Define the core business processes: Conduct Conduct

workflow analysis, identify centers of excellence workflow analysis, identify centers of excellence for these processes for these processes

Identify the core systems to coordinate Identify the core systems to coordinate centrally:centrally: Conquer the core systems and define Conquer the core systems and define these systems as truly transnationalthese systems as truly transnational

Choose an approach:Choose an approach: Incremental, Grand Incremental, Grand Design, Evolutionary Design, Evolutionary

Make the Benefits Clear Make the Benefits Clear

SummarySummary

Management challenges in Management challenges in developing global ISdeveloping global IS

Global business strategyGlobal business strategy

Technology Issues Technology Issues and Opportunities and Opportunities

for Global for Global Information Information

SystemsSystemsIntroduction to CBISIntroduction to CBIS

Module 13(d)Module 13(d)

Technology ChallengesTechnology Challenges

Hardware, software, and networking Hardware, software, and networking challengeschallenges

Requires systems integration, Requires systems integration, connectivity, appropriate software connectivity, appropriate software development to overcome challengesdevelopment to overcome challenges

Systems IntegrationSystems Integration

Develop global, distributed, and Develop global, distributed, and integrated systems to support digital integrated systems to support digital business processes spanning national business processes spanning national boundariesboundaries

Use of same hardware and operating Use of same hardware and operating system does not guarantee integration.system does not guarantee integration.

Establish data and technical standards Establish data and technical standards

ConnectivityConnectivity

Overcoming disparate national Overcoming disparate national technical standards, data exchange technical standards, data exchange restrictions and service levels is restrictions and service levels is difficultdifficult

Use of Internet technology to create Use of Internet technology to create global intranets, extranets, virtual global intranets, extranets, virtual private networks (VPNs) private networks (VPNs)

Challenges for Software Challenges for Software DevelopmentDevelopment

Cost of new interface designsCost of new interface designs

Integrating new systems with oldIntegrating new systems with old

User interface designUser interface design

Differences in language and Differences in language and conventions conventions

Managing Global Software Managing Global Software Development Development

Offshore software outsourcingOffshore software outsourcing Outsourcing portions of new systems Outsourcing portions of new systems

like development work or maintenance like development work or maintenance of existing systems to external vendors of existing systems to external vendors in another country in another country

Managing Global Software Managing Global Software Development Development

Contract costContract cost Vendor selection costsVendor selection costs Transition management and knowledge Transition management and knowledge

transfer costs transfer costs Domestic human resources costs Domestic human resources costs Costs of improving software development Costs of improving software development

processesprocesses Costs of adjusting to cultural differences Costs of adjusting to cultural differences Cost of managing an offshore contractCost of managing an offshore contract

SummarySummary

Technology challengesTechnology challenges

Global software development Global software development challenges challenges