Experiencing MIS 9th by m kronenke ID

The International Dimension International MIS Study Questions Q1: How does the global economy affect organizations and processes? Q2: What are the characteristics of international IS components? Q3: How inter-enterprise IS facilitate global supply chain management? Q4: What are the security challenges of international IS? Q5: What are the challenges of international IS management? Copyright © 2017 Pearson Education, Inc IntDim-2 Q1: How Does the Global Economy Affect Organizations and Processes? • After World War II, Japanese and other Asian countries increased manufacturing • Fall of Soviet Union opened economies of Russia, Eastern Europe • N American and European economies integrated • Plentiful, cheap telecommunications after dot.com bubble burst • Booming economies: India, China, Brazil • EU- and U.S.-based companies greatest opportunities outside own national markets Copyright © 2017 Pearson Education, Inc IntDim-3 Percent of Cross‐Border Commerce: Opportunities Abounds World Isn’t Flat Copyright © 2017 Pearson Education, Inc IntDim-4 How Does the Global Economy Change the Competitive Environment? Copyright © 2017 Pearson Education, Inc IntDim-5 How Does the Emerging Global Economy Change Competitive Strategy? • • • • Product localization and product differentiation Accelerates flow of data about price, product, availability, service Products localized to language and culture Internet supports unprecedented market size and product differentiation Copyright © 2017 Pearson Education, Inc IntDim-6 How Does the Global Economy Change Value Chains and Business Processes? • • • Value chain activities can be performed anywhere Final product frequently distributed throughout world Abundance of low-cost, well-educated, English-speaking professionals allows outsourcing service and support functions • Ability to work 24/7 by moving work into other time zones increases productivity Copyright © 2017 Pearson Education, Inc IntDim-7 Q2: What Are the Characteristics of International IS Components? Hardware – sold worldwide Emergence of the international cloud User interface – in multiple, local languages Data – choosing language(s) for data descriptions and remarks Procedures – reflect local cultural values and norms People – job descriptions and reporting relationships appropriate to culture Copyright © 2017 Pearson Education, Inc IntDim-8 What’s Required to Localize Software? Copyright © 2017 Pearson Education, Inc IntDim-9 What’s Required to Localize Software? (cont'd) • Localizing programs difficult, expensive, and time consuming than translating documents • Programming techniques can be used to simplify and reduce the cost of localization • Design for localization, long before any code written • Acquisition of foreign company, budget time and expense for localization of information systems Copyright © 2017 Pearson Education, Inc IntDim-10 How Can Information Relieve the Bullwhip Effect? P & G supply chain for diapers Copyright © 2017 Pearson Education, Inc IntDim-22 Eliminate Bullwhip Effect with True Demand Information Sharing Supply Chain Data Copyright © 2017 Pearson Education, Inc IntDim-23 Q4: What Are the Security Challenges of International IS? • Legal Environment – Encryption illegal or highly restricted in many countries – Censorship problems with stored content – Dozens of countries regularly block access to certain Internet companies – Privacy laws vary (“Right to be forgotten”) – Intersection of international law and technology forces evaluation how information systems managed and location of data Copyright © 2017 Pearson Education, Inc IntDim-24 Security Challenges of International IS? (cont'd) • Physical Security – Threats to infrastructure from natural disasters, geopolitical risks, civil unrest, terrorist attacks – Physical infrastructure vulnerable to outright seizure – Employees who run critical infrastructure can be targeted Copyright © 2017 Pearson Education, Inc IntDim-25 Security Challenges of International IS? (cont'd) • Cultural Norms – Bribery in some countries expected – Graft a worldwide problem  Risks control of separation of duties and authorities  Risk loss of valuable intellectual property – Personal references: may be considered exceedingly rude to talk about someone when he or she is not present Copyright © 2017 Pearson Education, Inc IntDim-26 Q5: What Are the Challenges of International IS Management? International information systems larger, International IT depts bigger, more more complex cultures, languages More IT assets, risks, greater Complex international law, security uncertainty incidents complicated to investigate Copyright © 2017 Pearson Education, Inc IntDim-27 Why Is International IS Development More Challenging? Hardware – Running hardware in different countries not a problem, especially using the cloud Software – Localizing software manageable, assuming programs designed to be localized – If underlying business processes differ, requirements for information system will differ Copyright © 2017 Pearson Education, Inc IntDim-28 Why Is International IS Development More Challenging? (cont'd) Data • Databases pose more difficulties • Single database used, can it be distributed? – If so, how will updates be processed? What language, currency, and units of measure will be used to store data? If multiple databases used, how will data be transported among them? • Cloud-based databases reduces difficulties Copyright © 2017 Pearson Education, Inc IntDim-29 Why Is International IS Development More Challenging? (cont'd) Procedures • Customers in different countries treated differently than in U.S – CRM procedures different • • Specific requirements will differ, if underlying business processes differ Options – Define single set of standard business processes – Develop alternative versions of system to support different processes in different countries Copyright © 2017 Pearson Education, Inc IntDim-30 What Are the Challenges of International Project Management? Copyright © 2017 Pearson Education, Inc IntDim-31 What Are the Challenges of International Project Management? (cont'd) • Managing costs in different countries and cultures paying vastly different labor rates • Quality and human resources more complicated for international projects Quality standards vary among countries • Worker expectations vary among cultures and nations – – • Compensation, rewards, and work conditions vary Can lead to misunderstandings, poor morale, and project delays Language and culture differences and geographic separation make communication more difficult and expensive Copyright © 2017 Pearson Education, Inc IntDim-32 What Are the Challenges of International IS Management? Conducting operations in different countries, cultures, and languages adds complexity Dozens of different inventory systems used throughout the world to coordinate and integrate Information systems to be integrated with outsource vendors’ information systems, for different systems, all over the world Protecting IS and IT infrastructure Copyright © 2017 Pearson Education, Inc IntDim-33 Setting Up Information Systems in Foreign Offices • Mahr Group, a midsized, multinational headquartered in Germany • Purchases its hardware and Internet access from local vendors but corporate employees install and configure same software worldwide • Corporate employees perform standardized IT audits at foreign offices • Maintains centralized database in Germany accessed via its own leased communication lines • Same computer-assisted-design (CAD) software be used worldwide Copyright © 2017 Pearson Education, Inc IntDim-34 Active Review Q1: How does the global economy affect organizations and processes? Q2: What are the characteristics of international IS components? Q3: How inter-enterprise IS facilitate global supply chain management? Q4: What are the security challenges of international IS? Q5: What are the challenges of international IS management? Copyright © 2017 Pearson Education, Inc IntDim-35 Copyright © 2017 Pearson Education, Inc ... IntDim-9 What’s Required to Localize Software? (cont'd) • Localizing programs difficult, expensive, and time consuming than translating documents • Programming techniques can be used to simplify... of foreign company, budget time and expense for localization of information systems Copyright © 2017 Pearson Education, Inc IntDim-10 IBM’s Watson Learns Japanese • Improve customer service in... International IS Management? International information systems larger, International IT depts bigger, more more complex cultures, languages More IT assets, risks, greater Complex international law,