1 / 51

Navigating Globalization through Information Systems

Explore the evolution of globalization and its impact on communication, collaboration, and industries. Learn about the challenges and opportunities of operating in a digital world. Discover the key factors driving globalization 3.0 and the flattening of the world economy.

wayde
Télécharger la présentation

Navigating Globalization through Information Systems

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2 Chapter Fueling Globalization through Information Systems “The idea of charging for calls belongs to the last century.” Niklas Zennström, Skype MGT 330 - Information Systems for Managers

  2. Learning Objectives MGT 330 - Information Systems for Managers

  3. Learning Objectives MGT 330 - Information Systems for Managers

  4. Globalization • Globalization created a new world characterized by: • Worldwide communication • Collaboration without barriers MGT 330 - Information Systems for Managers

  5. Evolution of Globalization • Mainly European countries are globalizing • Power is the primary driver • Industries changed • Slow pace of change Globalization 1.0 MGT 330 - Information Systems for Managers

  6. Evolution of Globalization • Companies are globalizing • Reduction in transportation and telecom-munications costs • Mainly Europe and America involved Globalization 2.0 MGT 330 - Information Systems for Managers

  7. Evolution of Globalization • Individuals and small groups are globalizing • Fast changes • Emergence of new industries Globalization 3.0 MGT 330 - Information Systems for Managers

  8. Evolution of Globalization: Summary • The World is Flat (Thomas Friedman) • “10 Flatteners” • Key factors enabling globalization 3.0 MGT 330 - Information Systems for Managers

  9. Flattener #1: The Fall of the Berlin Wall • November 9, 1989 • Fall of communism • People from the former communist countries gained more freedom MGT 330 - Information Systems for Managers

  10. Flattener #2: Netscape Browser • August 9, 1995 • First mainstream browser • Gave individuals access to the Internet THEN NOW MGT 330 - Information Systems for Managers

  11. Flattener #3: Work Flow Software • Applications that allow people worldwide to communicate • XML allows applications to “talk” to each other • New possibilities for information sharing MGT 330 - Information Systems for Managers

  12. Flattener #4: Supply Chaining • Integration of retailers, suppliers, and customers • RFID tags used • Wal-Mart became an early leader MGT 330 - Information Systems for Managers

  13. Flattener #5: Open Sourcing • Software and source code freely available to everyone • Wikipedia a huge success MGT 330 - Information Systems for Managers

  14. Flattener #6: Outsourcing • Outsourcing companies profited from the drop in telecommuni-cations costs • Companies can now use talented engineers from anywhere MGT 330 - Information Systems for Managers

  15. Flattener #7: Offshoring • Companies set up entire factories in countries such as China • Mass production • Low Costs MGT 330 - Information Systems for Managers

  16. Flattener #8: In-Sourcing • Delegation of company’s key operations to a subcontractor • E.g.: UPS provides complete supply chain solutions to companies MGT 330 - Information Systems for Managers

  17. Flattener #9: In-Forming • In-Forming is to individuals what outsourcing, offshoring, and in-sourcing is to companies • Individuals have access to massive amounts of information MGT 330 - Information Systems for Managers

  18. Flattener #10: The Steroids • Technologies that support different types of collaboration • Greater mobility • Convergence MGT 330 - Information Systems for Managers

  19. Learning Objectives MGT 330 - Information Systems for Managers

  20. Opportunities of Operating in the Digital World • Opportunities of Reaching New Markets • Former Eastern Bloc countries provide new opportunities for international companies to reach new customers MGT 330 - Information Systems for Managers

  21. Opportunities of Operating in the Digital World • Opportunities of a Global Workforce • Low communications costs • Highly-skilled labor pool Engineering Graduates in the US, Europe and India MGT 330 - Information Systems for Managers

  22. Learning Objectives MGT 330 - Information Systems for Managers

  23. Challenges of Operating in the Digital World • Globalization also created a set of unprecedented challenges: • Governmental challenges • Geoeconomical challenges • Demographic challenges • Cultural challenges MGT 330 - Information Systems for Managers

  24. Governmental Challenges • Political System Challenges • Political stability • Regulatory Challenges • Tariffs • Embargoes • Export regulations • Quotas MGT 330 - Information Systems for Managers

  25. Governmental Challenges II. • Data-Sharing Challenges • Transborder data flow regulations • Internet Access and Individual Freedom • Content blocking by governments/censorship • China – Use of VoIP restricted • Germany – Sites with fascist symbols prohibited • Internet access blocking • Cuba, North Korea MGT 330 - Information Systems for Managers

  26. Geoeconomic Challenges • Time Zone Challenges • Real time meetings across continents difficult • Working around the clock possible MGT 330 - Information Systems for Managers

  27. Geoeconomic Challenges II. • Infrastructure-Related Challenges • Traditional infrastructure – roads, electricity • Connectivity – reliable Internet connections • Challenges Related to Economic Welfare • GDP growth not distributed evenly throughout the world MGT 330 - Information Systems for Managers

  28. Demographic Challenges • Differing rates of population growth MGT 330 - Information Systems for Managers

  29. Demographic Challenges II. • Expertise related challenges • Different concentration of skilled workers • Different costs of workers MGT 330 - Information Systems for Managers

  30. Cultural Challenges • National Cultures • Power Distance – differences in how societies handle the issues of human inequality • Uncertainty Avoidance – risk taking nature • Individualism/Collectivism – value placed on an individual vs. a group • Masculinity/Femininity – degree to which a society is characterized as masculine/feminine • Concept of Time – long term vs. short term • Life Focus – quantity vs. quality of life MGT 330 - Information Systems for Managers

  31. Cultural Challenges II. • Cultural Barriers • Language – communication language and norms • Work Culture – work skills, habits and attitudes • Aesthetics – art, music and culture • Education – attitudes towards education and literacy • Religion, Beliefs and Attitudes – spiritual institutions and values • Social Organizations – family and social cohesiveness MGT 330 - Information Systems for Managers

  32. Cultural Challenges III. • Other Challenges • Differences in what is regarded as appropriate • Standards of dealing with intellectual property • Different standards • E.g., writing paper, pillowcases MGT 330 - Information Systems for Managers

  33. Learning Objectives MGT 330 - Information Systems for Managers

  34. Going Global: International Business Strategy in the Digital World • Multidomestic Business Strategy • Global Business Strategy • Transnational Business Strategy MGT 330 - Information Systems for Managers

  35. Multidomestic Business Strategy • Low degree of integration between subunits • Flexible and responsive to the needs and demands of local markets • E.g.: General Motors • Opel in Germany • Vauxhall in Great Britain MGT 330 - Information Systems for Managers

  36. Global Business Strategy • Centralized • Used to achieve economies of scale • E.g.: Coca-Cola • Same core product • Some different tastes made for local markets MGT 330 - Information Systems for Managers

  37. Transnational Business Strategy • Some operations centralized while others decentralized • Flexibility • Economies of scale • Difficult to manage • E.g.: Unilever MGT 330 - Information Systems for Managers

  38. Business Strategies: Summary • Different types of information systems can support these organizational forms MGT 330 - Information Systems for Managers

  39. Information Systems Strategies • Multinational Information Systems Strategy • Often used by multidomestic companies • Decentralized systems • Communication between home office and subsidiaries • No focus on communication between different subsidiaries • Decentralized local data processing centers MGT 330 - Information Systems for Managers

  40. Information Systems Strategies II. • Global Information Systems Strategy • Used by companies with global business strategy • Centralized infrastructure • Home office coordinates most of the strategic decisions • Communication and data sharing networks between home office and subsidiaries • Data does not stay with local subsidiaries but flows back to the home office MGT 330 - Information Systems for Managers

  41. Information Systems Strategies III. • Transnational Information Systems Strategy • Pursued by transnational businesses • Extensive communication between home office and subsidiaries as well as among subsidiaries • Key data shared throughout the company MGT 330 - Information Systems for Managers

  42. IS Strategies: Summary MGT 330 - Information Systems for Managers

  43. End of Chapter Content MGT 330 - Information Systems for Managers

  44. Opening Case: Managing in the Digital World: Casino Gaming • RFID tags will revolutionize the gambling industry by providing real time information such as the amount held in chips • Mobile gambling using PDAs • Online gambling on the rise MGT 330 - Information Systems for Managers

  45. Detecting Intermittent Electrical Faults • Hard to find intermittent electrical faults caused by small damage to wires • Pulse arrested sparks discharge (PASD) – developed to help find these faults • Nanosecond bursts of high voltage sent through wires • Problem areas light up and are identified • Boeing uses the technique • U.S. military is interested in the technology MGT 330 - Information Systems for Managers

  46. Online Searching • To “Google” has become a household verb meaning search MGT 330 - Information Systems for Managers

  47. Niklas Zennström: Cofounder and Chief Executive Officer, Skype • “The idea of charging for calls belongs to the last century.” • Skype has 28 million subscribers • Among the 100 most influential people transforming the world MGT 330 - Information Systems for Managers

  48. Underground Gaming Economy • Massive Multiplayer Online Role-Playing Game – MMORPG • Virtual world – players live through avatars • Players started selling virtual tools for real money – farmers • Banned from various gaming sites due to behavior being unethical and fear of turning users away MGT 330 - Information Systems for Managers

  49. E-Waste • Disposal of electronics containing hazardous materials is a rising issue • U.S. exports much of its e-waste to third world countries • China banned the import in 2002 • Other countries to follow • In mid 2006, EU banned toxic ingredients • Production of “green” hardware • US government working on making changes – currently state-level legislation most effective MGT 330 - Information Systems for Managers

  50. Transnational Development • Wrigley Company • World’s largest manufacturer of chewing gum • Sold in 150 countries • Good information systems key to conducting marketing research • Russian marketing research branch initiated the development of a marketing research work flow automation system • After successful testing, system was implemented in other marketing research branches MGT 330 - Information Systems for Managers

More Related