Sunday, April 21, 2013

Chapter 15 Summary: Managing Global Systems


As we are all aware, global business has increased over the last several years and through the use of international information technology, companies can now design part of a product in one country, engineer it in another, manufacture it in a different country on the other side of the globe, and lastly sell it to whatever countries will buy the product. But first, a framework must be constructed and it’s called the international information systems architecture. This simply means understanding the key information your company needs to conduct global trade or business. The flow begins with your business drivers and challenges to corporate global strategies, organization structure, management and business processes and lastly, technology platform. Once the company knows each piece of the flow chart, then you will be able to choose the right technology platform to meet your needs for global business.

Just thinking of the hundreds of different software applications and hardware we have at my employer is a chore to keep up with. Imagine the mixture of hardware, software, and telecommunications you would have across the globe, even within one company. Many systems won’t be compatible with others and one laptop in the US will vary greatly from a laptop in Africa. Companies need to recognize these challenges and agree on common user requirements and coordinate applications and software development in an effort to manage the global IT systems. Also, updating and improving key business processes can help.

In addition to the basic challenges of different hardware and software, there are also cultural, political, religious, and language diversities that can affect global systems. These factors should be kept in mind when designing a global IT system. Also, a company needs to decide if they will build their own global network or use a virtual or Internet network to support their global IT system. Implementing an incredibly in depth and detailed global system is overall a huge undertaking and can be met with many challenges but in the end, an effective global IT system can take a mediocre company and change it into a global success.

Source: Laudon, Kenneth C. & Jane P. Laudon. Management Information Systems: Managing the Digital Firm 12th ed. Pearson Hall, 2010.


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