global information systems and technology question: what is globalization? globalization is a social...

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


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.


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.


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


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


• 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).


• 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 Business Structure• Multinational DecentralizedFocus on local markets Great independenceHQ & Subsidiaries HQ monitors subsidiaries

Philips/Unilever

• Global • Centralized FederationGlobal scale manufacturing Little independence at

subsidiariesFocus on standard world widemarketsManufacturing concentrated Information & products flow

one-wayConsumer electronicsAuto industry Japan

Business Strategy Business Structure• International • Coordinated FederationKnowledge & Expertise Greater independencetransfer to subsidiaries Independent strategies, products,

ideas• Transnational • Coordinated FederationCoordination of subsidiaries Respond to local preferences

• Interorganizational • Coordinated FederationIOS EDJTwo or more organizations Pulp industryform cooperative agreement Airlines

Companies still compete


• 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

Global Information Systems and Technology• 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 TechnologyGIS 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 • DecentralizedStand alone - databases & processes

• Global • CentralizedCentralized databases & processes

• International & • Centralized FederationInterorganizational IOS & linked databases

and processes• Transnational • Integrated Networks

Shared databases & processes


• 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


Cont’d

Data Management

Often different data bases cause problems.


• Important Conclusions

The GIS should be aligned with the business.

Includes consideration of value chain

Consider the following issues=

Various organizational forms

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