Global Information Systems and Technology
•Question: What is Globalization?
Globalization is a social process in which the constraints
of geography on social and cultural arrangements recede
and in which people become increasingly aware that
they are receding (Waters, 1995)
• What are constitutive parts of globalization?
1) material exchanges localize
2) political exchanges internationalize
3) symbolic exchanges globalize
Global Information Systems and Technology
1) Material exchanges tie social relationships to
localities: local concentration of labor capital and raw
materials.
2) Political exchanges tie relationships to territories.
They are directed towards controlling populations,
harnessing its resources, involved in international
relations such as diplomacy and war.
3) Symbolic exchanges takes place anywhere at any
time, require few resources, and are easily transported.
Global Information Systems and Technology
What is transnationalization?
1) Intergovernmental relations at our international level
are supplemented by relations between non-governmental
groups (Roseneau, 1980)
2) Transnational relations involve extra-societal
relationships between governments, governmental and
non-governmental entities.
Global Information Systems and Technology
Managing Across Borders: New Strategic Requirements
• A transnational company seeks a balance between
centralization and decentralization
• A transnational has to balance production, R&D, and
marketing efficiency with local differentiation needs.
• A transnational’s strategic posture has to respond to the
industry’s characteristics and its multidimensional tasks.
• A transnational has to consider and often change its
organizational culture
• Consider the case studies Philips/Uruilwver?ITT
Global Information Systems and Technology
Drivers of Globalization:
1) Micro electronic technologies which reduce distances by
making possible rapid transfer of people, ideas, and
resources.
2) Planetary problems beyond the scope of states to solve.
3) Emergence of subcollectives within national societies.
4) Expertise, education and impowerment of adult citizens
that makes them less susceptible to state authority.
Note: The Role of Technology
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• Capitalism is the vehicle for globalization because it
creates - financial markets, commodities, contracts
labor, property-based, and exchanges commodity over
great distances. (Waters, 1995)
• The Internet and Globalization
The WWW software enables the user to search for
information and order information and commodities
without any consideration of space (Waters, 1995).
Global Information Systems and Technology
• What are the problems in the chapter?
Why are they important?
How can they be solved?
• Globalization forces
new organizational structures
new ways of coordination
new ways of control
new information requirements
Business Strategy
• Multinational
Focus on local markets
HQ & Subsidiaries
Business Structure
Decentralized
Great independence
HQ monitors subsidiaries
Philips/Unilever
• Global
• Centralized Federation
Global scale manufacturing
Little independence at
subsidiaries
Focus on standard world wide
markets
Manufacturing concentrated
Information & products flow
one-way
Consumer electronics
Auto industry Japan
Business Strategy
• International
Knowledge & Expertise
transfer to subsidiaries
Coordination of subsidiaries
Business Structure
• Coordinated Federation
Greater independence
Independent strategies, products,
ideas
• Coordinated Federation
Respond to local preferences
• Interorganizational
• Coordinated Federation
IOS EDJ
Two or more organizations
form cooperative agreement
Pulp industry
Airlines
• Transnational
Companies still compete
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• Interorganizational
Equity collaboration - joint venture
Non-equity collaboration - licensing agreement
• Coordination and Control Strategy
The organizational structure seems to be easier to define
then control strategy
• How to manage these structures?
Functional - Multidimensional - Matrix
Mechanisms don’t work
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• Management Strategies
From Multinational with decentralized control to
Transnational with integrated networks of operations
From individual companies to
Interorganizational Designs with independent
companies
• Business Success depends on the proper mix of
Strategy and structure and
Coordination and control with
Business Demands & Products
Global Information Systems and Technology
GIS is distributed
GIS cross national boundaries
GIS composed of different technologies
GIS responds to different regulative environments
• We need to consider:
Infrastructure - Singapore, USA, Europe
Regulatory Environment - PTTs versus deregulation
Transborder Data flow - impact companies, freedom to
centralize/decentralize
Standards - ISDN, SWIFT, EDIFACT
• How to match Business Strategy with Information
Management Strategy…
• Multinational
• Global
• International &
Interorganizational
• Transnational
• Decentralized
Stand alone databases & processes
• Centralized
Centralized databases
& processes
• Centralized Federation
IOS & linked databases
and processes
• Integrated Networks
Shared databases &
processes
Global Information Systems and Technology
• What is an Information Systems Architecture?
1) Systems Development
2) Integrative of data and applications
3) Integrated corporate systems
• Management Strategy
Structure of the firm’s value chain informs the
architecture of the IS
• Systems Standards
EDIFACT - EDI - SQL
Global Information Systems and Technology
Cont’d
Data Management
Often different data bases cause problems.
Global Information Systems and Technology
• Important Conclusions
The GIS should be aligned with the business.
Includes consideration of value chain
Consider the following issues=
Various organizational forms