INT_DIM-2 Study Questions Copyright 2015 Pearson Education,
Inc. Q1: How does the global economy affect organizations and
processes? Q2: What are the characteristics of international IS
components? Q3: What are the challenges of international enterprise
applications? Q4: How do inter-enterprise IS facilitate global
supply chain management? Q5: What are the challenges of
international IS management?
Slide 3
INT_DIM-3 Q1: How Does the Global Economy Impact Organizations
and Processes? After World War II, Japan and other Asian countries
increased manufacturing. Fall of Soviet Union opened economies of
Russia and Eastern Europe. N. American and European economies
integrated. Plentiful, cheap telecommunications. Booming economies:
India, China, Brazil are some examples. EU- and U.S.-based
companies find greatest opportunities outside their own national
markets. Copyright 2015 Pearson Education, Inc.
Slide 4
INT_DIM-4 Percent of Cross Border Commerce: Opportunities
Abounds Copyright 2015 Pearson Education, Inc.
Slide 5
INT_DIM-5 Organizational Strategy Determines Information
Systems Copyright 2015 Pearson Education, Inc.
Slide 6
INT_DIM-6 How Does the Emerging Global Economy Change
Competitive Strategy? Impact of Internet Wider range of customers
Wider range of vendors Facilitates new entrants Intensifies rivalry
Copyright 2015 Pearson Education, Inc.
Slide 7
INT_DIM-7 How Does the Global Economy Change Competitive
Strategy? (cont'd) Accelerates flow of data about price, product,
availability, and service. Products localized to language and
culture. Internet supports unprecedented market size and product
differentiation. Copyright 2015 Pearson Education, Inc.
Slide 8
INT_DIM-8 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 2015 Pearson Education, Inc.
Slide 9
INT_DIM-9 Q2: What Are the Characteristics of International IS
Components 1.Hardware sold worldwide. 2.Software and interfaces in
multiple, local languages. 3.Data choosing language(s) for data
descriptions and remarks. 4.Procedures reflect local cultural
values and norms. 5.People job descriptions and reporting
relationships appropriate to culture. Copyright 2015 Pearson
Education, Inc.
Slide 10
INT_DIM-10 Whats Required to Localize Software? Copyright 2015
Pearson Education, Inc.
Slide 11
INT_DIM-11 Whats Required to Localize Software? (cont'd)
Localizing programs much more difficult, expensive, and time
consuming than translating documents. Plan for localization from
the beginning. When considering acquisition of a company in a
foreign country, budget time and expense for localization of
information systems. Copyright 2015 Pearson Education, Inc.
Slide 12
INT_DIM-12 What Are the Problems and Issues of Global
Databases? Commit to a single company language. Single database is
not possible for companies using multiple languages. Applications
are needed to export and import data among separated databases.
Slow data transmission speeds may require distributed, partitioned
databases and highly skilled personnel. Copyright 2015 Pearson
Education, Inc.
Slide 13
INT_DIM-13 Types of Distributed Database Processing Distributed
database Single database resides in multiple locations. Replicated
database Multiple copies of a database distributed. Updating
requires highly skilled personnel. Partitioned database Database
divided into non-overlapping segments. Copyright 2015 Pearson
Education, Inc.
Slide 14
INT_DIM-14 Q3: What Are the Challenges of International
Enterprise Applications? Independent Functional Systems Inherent
Processes Unnecessary to accommodate language, business, and
cultural differences Differences in language, culture, norms, and
expectations Requires adequate data interface Developing and
evaluating as is models and alternative international processes
incredibly challenging Integrated, cross-functional, international
system with high-level processes connected by SOA standards and the
cloud Copyright 2015 Pearson Education, Inc.
Slide 15
INT_DIM-15 Advantages of Functional Systems Lack of integration
can have advantages for international organizations and
international systems. U.S. order-processing systems operate in
English, reflect practices and culture of U.S. Taiwanese
manufacturing information systems operate in Chinese and reflect
business practices and culture of Taiwan. Need adequate data
interface between two systems. Copyright 2015 Pearson Education,
Inc.
Slide 16
INT_DIM-16 Problems of Inherent Processes Some inherent
processes may conflict with cultural norms. Very difficult to
convince employees to follow those inherent processes, or more
difficult in some cultures. Future inter-enterprise business
processes will be defined to document service responsibilities of
each international unit. The cloud and Web service standards used
to connect services into an integrated, enterprise, international
system. Copyright 2015 Pearson Education, Inc.
Slide 17
INT_DIM-17 Q4: How Do Inter-enterprise IS Facilitate Global
Supply Chain Management? Copyright 2015 Pearson Education,
Inc.
Slide 18
INT_DIM-18 Supply Chain Example Copyright 2015 Pearson
Education, Inc.
Slide 19
INT_DIM-19 Importance of Information in the Supply Chain Global
information systems increase supply chain profitability by:
Reducing inventories. Reducing or eliminating bullwhip effect.
Producing comprehensive, accurate, timely information. Choosing
delivery option that optimize value. Enabling 24/7 global shipment
tracking. Copyright 2015 Pearson Education, Inc.
Slide 20
INT_DIM-20 Example of Walmart Supply Chain Copyright 2015
Pearson Education, Inc.
Slide 21
INT_DIM-21 How Can Information Relieve the Bullwhip Effect?
Copyright 2015 Pearson Education, Inc.
Slide 22
INT_DIM-22 Eliminate Bullwhip Effect with True Demand
Information Copyright 2015 Pearson Education, Inc.
Slide 23
INT_DIM-23 Q5: What Are the Challenges of International IS
Management? International information systems larger, more complex
International IT depts. bigger, more cultures, languages More IT
assets, risks, greater uncertainty Complex international law,
security incidents complicated to investigate. Copyright 2015
Pearson Education, Inc.
Slide 24
INT_DIM-24 Why Is International IS Development More
Challenging? 1.Define a set of standard business processes Requires
adapting to different work processes. People resist change,
especially if it violates cultural norms. 2.Develop alternative
versions of system to support different processes in different
countries High maintenance expenses. Copyright 2015 Pearson
Education, Inc.
Slide 25
INT_DIM-25 Why Is International IS Development More
Challenging? (cont'd) Copyright 2015 Pearson Education, Inc.
Slide 26
INT_DIM-26 What Are the Challenges of International Project
Management? Copyright 2015 Pearson Education, Inc.
Slide 27
INT_DIM-27 What Are the Challenges of International IS
Management? Aligning IT and IS resources with competitive strategy
more complex and difficult. Conducting operations in different
countries, cultures, and languages adds complexity. Integrating
different company systems. Integrating with outsource vendors
information systems. Protecting IS and IT infrastructure. Copyright
2015 Pearson Education, Inc.
Slide 28
INT_DIM-28 How Does the International Dimension Affect Computer
Security Risk Management? IT assets subject to more threats
Political threats, civil unrest, terrorists, natural disasters.
Likelihood of a threat more difficult to estimate. Uncertainty
about risks high. Human safeguards chosen and evaluated on a
culture-by- culture basis. Copyright 2015 Pearson Education,
Inc.
Slide 29
INT_DIM-29 Setting Up Information Systems in Foreign Offices
Obtain hardware and networking equipment from the local economy.
Purchase or lease a facility, local vendors supply and set up
hardware, a local area network, and access to internet. Bring in
own IT professionals to install software. Use same accounting
software and chart of accounts, and same business processes,
worldwide. Twice a year conduct internal audits to verify
compliance. Allow transactions in local currency. ERP system
centralized database in home country. Copyright 2015 Pearson
Education, Inc.
Slide 30
INT_DIM-30 Active Review Q1: How does the global economy affect
organizations and processes? Q2: What are the characteristics of
international IS components? Q3: What are the challenges of
international enterprise applications? Q4: How do inter-enterprise
IS facilitate global supply chain management? Q5: What are the
challenges of international IS management? Copyright 2015 Pearson
Education, Inc.