Experiencing MIS 8th by m kronenke ID
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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 do 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?
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Q1: How Does the Global Economy Impact Organizations and Processes?
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After World War II, Japanese and other Asian countries increase manufacturing
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Fall of Soviet Union opened economies of Russia and Eastern Europe
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N. American and European economies integrated
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Plentiful, cheap telecommunications
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Booming economies: India, China, Brazil
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EU- and U.S.-based companies find greatest opportunities outside own national markets
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Percent of Cross‐Border Commerce: Opportunities Abounds
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Organizational Strategy Determines Information Systems
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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
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How Does the Global Economy Change Competitive Strategy? (cont'd)
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•
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Accelerates flow of data about price, product, availability and service
Products localized to language and culture
Internet supports unprecedented market size and product differentiation
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How Does the Global Economy Change Value Chains and Business Processes?
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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
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Ability to work 24/7 by moving work into other time zones increases productivity
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Q2: What Are the Characteristics of International IS Components
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2.
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4.
5.
Hardware – sold worldwide
Software and interfaces – 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
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What’s Required to Localize Software?
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What’s 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
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What Are the Problems and Issues of Global Databases?
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Commit to a single company language
Single database not possible for companies using multiple languages
Need applications to export and import data among separated databases
Slow data transmission speeds may require distributed, partitioned databases and highly
skilled personnel
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Types of Distributed Database Processing
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Distributed database
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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
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Challenges of International Enterprise Applications
Independent Functional Systems
Unnecessary to accommodate language, business,
and cultural differences
Requires adequate data interface
Inherent Processes
Differences in language, culture, norms, and expectations
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
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Advantages of Functional Systems
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Lack of integration can have advantages for international organizations and international
systems
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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
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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
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Q3: How Do Inter-enterprise IS Facilitate Global
Supply Chain Management?
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Supply Chain Example
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Importance of Information in the Supply Chain
Global information systems increase supply chain profitability by:
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•
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Reducing inventories
Reducing or eliminating bullwhip effect
Producing comprehensive, accurate, timely information
Choosing delivery option that optimize value
Enabling 24/7 global shipment tracking
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Example of
Walmart Supply
Chain
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How Can
Information Relieve
the Bullwhip Effect?
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Eliminate Bullwhip Effect with True Demand Information
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Q4: What Are the Security Challenges of International IS?
• Legal Environment
– Encryption is illegal or highly restricted in many countries
– Censorship problems with stored content
– Dozens of countries regularly block access to certain Internet companies
– Variations in privacy laws
– Intersection of international law and technology forcing organizations to carefully evaluate how they
manage their information systems and location of their data
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Q4: What Are the Security Challenges of International IS? (cont'd)
• Physical Security
– Threats to infrastructure in the form of natural disasters, geopolitical risks, civil unrest,
terrorist attacks
– Physical infrastructure vulnerable to outright seizure
– Employees who run critical infrastructure can be targeted
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Q4: What Are the Security Challenges of International IS? (cont'd)
• Cultural Norms
– Bribery in some countries is expected
– Graft is 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
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