Information Systems-Chapter 9 Global Informartion Systems Essay

2406 Words Oct 1st, 2013 10 Pages
Chapter 9: Global Information Systems Why go Global? –Customers demand integrated worldwide services. Example: shoe company. Prerequisites to the success of a global information system: -Clear understanding of factors such as customs, laws, technological issues, and local business needs and practices. Airline reservation systems- first large-scale interactive global system Global products-Products or services that have been standardized for all markets. Manufacturer might “regionalize” operations Globalization- important factor in purchasing and supply chain Global Information Systems at Rohm & Haas: Part of Dow Chemical Production units in many different countries Overhauled its global information system: By upgrading the …show more content…
Focus on local responsiveness –reduces the need for communication between subsidiaries and headquarters Each subsidiary operates on a different platform Global Structure: highly centralized information system, subsidiaries have little autonomy, sometimes called a “franchiser”, extensive communication network necessary, Difficult and impractical: -heavy reliance on headquarters for new products and ideas Ex: McDonald’s and General Motors International Structure: Operated much like a multinational corporation –but subsidiaries depend on headquarters more for process and production decisions Information systems personnel are regularly exchanged among locations –encourages a cooperative culture in geographically dispersed personnel Ex: Caterpillar Transnational Strucrure: Parent and all subsidiaries work together in designing policies, procedures, and logistics Usually forces on optimizing supply sources and using advantages available in subsidiary locations Architecture requires a higher level of standardization and uniformity for global efficiency –Bur must maintain local responsiveness Ex: Citigroup, Sony, Ford Offshore Outsourcing: -alternative for developing information systems Organization chooses an outsourcing firm in another country Used for many

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