Experiencing MIS 10th by m kronenke ID

Using MIS
10th Edition

International
Dimension
International MIS

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-1


Study Questions
QID-1 How does the global economy affect organizations
and processes?
QID-2 What are the characteristics of international IS
components?
QID-3 How do interenterprise IS facilitate global supply chain
management?
QID-4 What are the security challenges of international IS?
QID-5 What are the challenges of international IS
management?

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-2


The Growing Global Economy
QID-1 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.

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-3


Growth in Internet Access
QID-1 How does the global economy affect organizations and processes?

Figure ID-1 Growth in Internet Access
Source: Klaus Schwab, “The Global Competitiveness Report 2015-2016,” World Economic Forum, September 29, 2015,
accessed June 16, 2016, />
Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-4


Percent of Cross‐Border Commerce:
Opportunities Abound
QID-1 How does the global economy affect organizations and processes?

Commerce Type

Cross-Border Percent

Telecommunication

Voice: 2 percent
Internet and voice: 17 percent

Immigration

3 percent immigrants

Investment

8 percent direct investment

Exports

23 percent commerce

Figure ID-2 Percent of Cross-Border Commerce
Source: Pankaj Ghemawat and Steven Altman,
www.dhl.com/content/dam/Campaigns/gci2014/downloads/dhl_gci_2014_study_high.pdf

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-5


How Does the Global Economy Change the

Competitive Environment?
QID-1 How does the global economy affect organizations and processes?

Figure ID-3 Fixed and Mobile Internet Subscriptions
Source: Klaus Schwab, “The Global Competitiveness Report 2015-2016,” World Economic Forum, September 29, 2015,
accessed June 16, 2016, />
Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-6


How Does the Emerging Global Economy
Change Competitive Strategy?
QID-1 How does the global economy affect organizations and processes?

• 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-7


How Does the Global Economy Change
Value Chains and Business Processes?
QID-1 How does the global economy affect organizations and processes?

• Value chain activities can be performed anywhere.
• Final product frequently distributed throughout
world.
• Abundance of low-cost, well-educated, Englishspeaking professionals allows outsourcing service
and support functions.
• Ability to work 24/7 by moving work into other time
zones increases productivity.

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-8


International IS Components
QID-2 What are the characteristics of international IS components?

1. Hardware – sold worldwide.
– Emergence of the international cloud

2. Software – 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-9

What’s Required to Localize Software?
QID-2 What are the characteristics of international IS components?

Figure ID-5 Factors to Address When Localizing a Computer Program

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-10


What’s Required to Localize Software?
(cont’d)
QID-2 What are the characteristics of international IS components?

• Localizing programs more 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-11

IBM’s Watson Learns Korean
QID-2 What are the characteristics of international IS components?

• Wants to use Watson to improve mobile concierge
services and call center interactions.
• Korean language uses different characters
(Hangul) and, relative to English, can be
contextually difficult to decipher.
• Processes some text in Korean, gets feedback
from humans who speak Korean, then processes
more text until it learns to speak Korean.
• Other languages to be learned.
Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-12


Spoken World Languages
QID-2 What are the characteristics of international IS components?

Figure ID-6 Spoken World Languages
Based on the source: “The Most Spoken Languages Worldwide,” Statista.com, June 15, 2016,
/>
Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-13


What Are the Problems and Issues of Global
Databases?

QID-2 What are the characteristics of international IS components?

• Commit to 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.

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-14


Types of Distributed Database Processing
QID-2 What are the characteristics of international IS components?

• 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-15


Challenges of International Enterprise
Applications
QID-2 What are the characteristics of international IS components?

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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-16


Advantages of Functional Systems
QID-2 What are the characteristics of international IS components?

• Lack of integration has 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-17


Problems of Inherent Processes
QID-2 What are the characteristics of international IS components?

• Some inherent processes may conflict with cultural
norms.
• Difficult to convince employees to follow inherent
processes, more difficult in some cultures.
• Future inter-enterprise business processes 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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-18


Supply Chain Relationships
QID-3 How do interenterprise IS facilitate global supply chain management?

Figure ID-7 Supply Chain Relationships

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-19


Supply Chain Example
QID-3 How do interenterprise IS facilitate global supply chain management?

Figure ID-8 Supply Chain Example

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-20


The Importance of Information in the

Walmart Supply Chain
QID-3 How do interenterprise IS facilitate global supply chain management?

Figure ID-9 Example Walmart Supply Chain

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-21


The Importance of Information in the
Supply Chain (cont’d)
QID-3 How do interenterprise IS facilitate global supply chain management?

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 © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-22


How Can Information Relieve the Bullwhip
Effect?

QID-3 How do interenterprise IS facilitate global supply chain management?

• P&G supply chain for
diapers
• Bullwhip effect
– Variability in the size
and timing of orders
increases at each
stage up the supply
chain, from customer
to supplier.
Figure ID-10 The Bullwhip Effect
Source: Adapted from Hau L. Lee, V. Padmanabhan, and S. Whang,
“The Bullwhip Effect in Supply Chains,” Sloan Management Review,
Spring 1997, pp. 93–102.

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-23


Eliminate Bullwhip Effect with True
Demand Information
QID-3 How do interenterprise IS facilitate global supply chain management?

Figure ID-11 Eliminate Bullwhip Effect with True Demand Information

Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-24

The Legal Environment
QID-4 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 of how information systems are
managed and location of data.
Copyright © 2018, 2017, 2016 Pearson Education, Inc. All Rights Reserved

ID-25