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PowerPoint Presentation Module 9 Global Information Systems Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (1 of 2) Discuss the reasons for globalization and for using global information systems, including e-business and Internet growth Describe global information systems and their requirements and components Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives (2 of 2) Explain the four types of organizational structures used with global information systems Examine five obstacles to using global information systems Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Go Global? (1 of 3) Global economy Creating increased customer demand for integrated worldwide services Expansion of global markets Major factor in developing global information systems whose success requires understanding: Customs and laws Technological issues Local business needs and practices Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Go Global? (2 of 3) Increased importance of global products in international marketing efforts Operations are often regionalized; advantages available in certain regions Important factor in purchasing and the supply chain Worldwide purchasing provides suppliers the incentive to consider domestic and foreign competition Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Go Global? (3 of 3) Large global organizations can reduce costs in purchasing, manufacturing, and distribution Access to cheaper labor Ability to sell products and services locally and internationally Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. E-Business: A Driving Force (1 of 2) Major factor in the widespread use of global information systems Revenue-generating transactions; focus on buying and selling goods and services Adds the flexibility that networks offer to the existing advantages and structures of traditional business Creates new opportunities for conducting commercial activities Easier for different groups to cooperate and share information Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. E-Business: A Driving Force (2 of 2) Enables consumers to engage in comparison shopping New opportunities for intermediaries Provides cost benefit to small companies Companies can replace internal networks with the Internet Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Growth of the Internet Part of daily life in most parts of the world Rapidly growing Requires global businesses to create Web sites that appeal to the global customer Localization of a Web site: creating separate Web sites for each country in which the company does business Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Rise of Non-English Speakers on the Internet Top ten languages represent about 77 percent of the world’s Internet users English, Chinese, Spanish, Arabic, Portuguese, Indonesian/Malaysian, Japanese, Russian, French, and German Growing diversity of language on the Internet Offers great opportunities and some challenges for global companies Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Mobile Computing and Globalization Mobile apps play a major role in globalization by offering Basic social services Commerce such as banking, payment, and agricultural information Apps bringing more people online around the world: M-Pesa (mobile payment service) SoukTel (job information) Esoko (social networking for farmers) Frogtek (small retailer inventory tracking) Ver Se’ Innovation (classified ads) Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Information Systems: An Overview (1 of 2) Global Information System (GIS): information system that works across national borders Facilitates communication between headquarters and subsidiaries Incorporates technologies and applications found in a typical information system Gathers, stores, manipulates, and transmits data across cultural and geographic boundaries Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Information Systems: An Overview (2 of 2) Enables international companies to: Increases control over their subsidiaries Better coordinates activities and access new global markets Defined along two dimensions: Control: managerial power ensures adherence to organization’s goals Coordination: interaction among different, specialized parts of organization Control and coordination may be used in different combinations Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of a Global Information System (1 of 3) Global database Design and implementation challenges: Designing and implementing a global database Currency conversion Information-sharing technologies Small companies can outsource Large companies may develop customized technologies Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of a Global Information System (2 of 3) Responsibilities of information system managers Determine the best communication media to meet global performance and traffic needs Choose the best transmission technology for the global network’s needs Consider the company’s objectives when determining the network architecture Decide on the type of information-sharing technology to be used Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of a Global Information System (3 of 3) Standardized software and hardware are ideal but not always feasible Using the same software in other countries is complicated because of differences Language and business practices Transborder data flow (TDF): restricts what type of data can be captured and transmitted in foreign countries Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Requirements of Global Information Systems (1 of 2) Multinational corporation (MNC) Organization with assets and operations in at least one country other than its home country Delivers products and services across national borders Centrally managed from its headquarters Global risks of operating an MNC: political, foreign exchange, and market risks Bidgoli, MIS, 10th Edition. © 2021 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole