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This 0 page Class Notes was uploaded by Grace Lee on Monday November 2, 2015. The Class Notes belongs to 73728 at Pace University taught by Dr. Linda-Jo Calloway in Summer 2015. Since its upload, it has received 25 views. For similar materials see Introduction to Information Technology in Information technology at Pace University.
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Date Created: 11/02/15
Chapter 9 Global Information Systems 91 Why Go Global ebusiness include transactions that support revenue generation as well as those that focus on buying and selling goods and services is an advantage to traditional businesses by adding exibility that networks offer made possible with the Internet that simpli es communication improves business relationships and offers new opportunities to both consumers and businesses Some suggestions to making a company Web site global language local involvement font currency cultural differences email services data format international marketing spare use of graphics and ash features 92 Global Information Systems An Overview Global information system GIS an info system that works across national borders facilitates communication between headquarters and subsidiaries in other countries and incorporates all the technologies and applications found in typical information system to gather store manipulate and transmit data across cultural and geographic boundades with a GIS in place an international company can increase its control over its subsidiaries and better coordinate their activities thereby gaining access to new global markets GIS can de ned along two dimensions 1 control using managerial power to ensure adherence to the organization s goals 2 coordination the process of managing the interaction among activities in different specialized parts of an organization 2 basic components of a GIS 1 global database 2 informationsharing technologies transborder data ow TDF restricts what type of data can be captured and transmitted in foreign countries multinational corporation MNC an organization with assets and operations in at least one country other than its home country An MNC delivers products and services across national borders and is usually centrally managed from its headquarters a GIS like any other information system can be classi ed according to the different kinds of managerial support it provides 1 operational 0 global data access 0 consolidated global reporting 0 communication between headquarters and subsidiaries 0 management of shortterm foreign exchange risks 2 strategic o strategic planning support 0 management of global tax risks 93 Organizational Structures and Global Information Systems multinational structure in this production l g l ilwuctwre sales and marketing are decentralized and nancial management remains the parent s responsibility global structure aka quotfranchiserquot uses highly Emmmg centralized information systems Subsidiaries have little Gilnlaallstrwmlure autonomy and rely on headquarters for all process 39 and control decisions as well as system design and implementation international structure operates much like a Emhm multinational corporation but subsidiaries Irlllerlnatiumalstructer de end on head uarters more for rocess and Exfil39f im39 p I I p TralrIlnimal structure production deCISIons l transnational structure the parents and all subsidiaries work together in designing policies procedures and logistics for delivering products and services to the right market 395 CEi39QEQQ LEE II 39 offshore outsourcing with this an organization chooses an outsourcing rm in another country that can provide needed services and products in some cultures using technology is considered a boring low level task in others being technologically knowledgeable is seen as a sign of social importance Are You Ready To Move On 1 TRUE FALSE Designing and implementing a global database is usually easier than designing a domestic one 2 TRUEFALSE TDF comprises national laws and international agreements on privacy protection and data security 3 TRUEFALSE Cultural differences are irrelevant when designing a global Web site A ASIA has the highest number of Internet users D Cross national is not an example of a GIS organizational structure 6 B Fast Internet access is not an obstacle to using GlSs U39lgt