Chap04 CompUse Intl MarketPlace

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Chapter 4Computer Use in an InternationalMarketplace

MANAGEMENT INFORMATION SYSTEMS 8/E

Raymond McLeod, Jr. and George Schell

Copyright 2001 Prentice-Hall, Inc.4-1


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The Multinational Corporation

(MNC)

Parent company and group of subsidiaries

Operates across

Products

Markets

Nations

Cultures

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Each Subsidiary Has Its Own

Geography

Goals

Policies

Procedures

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Special Need for Information

Processing in an MNC

Influenced by internal and external

conditions

Seeks to minimize environmentaluncertainty

Uncertainty - Difference between information

required and information possessed Requires good use of information

technology to achieve desired performance

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Types of MNC Organizational

Structure Classifications

Each structure requires its own information

processor

Worldwide functional divisionsOrganized along functional lines

Marketing in subsidiary reports to marketing in

parent companyStrategic planning done at top executive level

Data that integrates operations does not exist at

lower levels4-5


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MNC Classifications (cont.)

International regions

International division separate from domestic

division

Geographic regions

Each region responsible for its subsidiaries

No communication between regions

Communication coordinated by parentcompany

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MNC Classifications (cont.)

Worldwide product divisions

Product division responsible for operations

worldwideHelps recognize product specific needs

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Need for Coordination in an MNC

Greater need than domestic companies

Companies unable to gain strategic control

of their worldwide operations and managethem in a globally coordinated manner will

not succeed in the emerging international

economy Resources are widely distributed

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Need for Coordination

in an MNC (cont.)

Improvements in information technology

and methodology have made global

coordination somewhat easier Still, coordination is big challenge

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Advantages of Coordination

in an MNC

Flexibility in responding to competitors

Ability to respond in one country to a

change in another Ability to keep abreast of market needs

around the world

Ability to transfer knowledge between unitsin different countries

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Advantages of Coordination

in an MNC (cont.)

Reduced overall costs of operation

Increased efficiency and effectiveness in

meeting customer needs Ability to achieve and maintain diversity in

firms products, their production, and

distribution

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Global Business Strategies

Multinational strategy

Global strategy

International strategy

Transnational strategy

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All use global information systems

(GISs) in various ways


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HQ

Loose controls;

strategic decisions

remote

Financial reporting flows

Multinational Strategy

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HQ

Tight controls;

centrally driven

strategy

One-way flows,

goods, information,

and resources

Global Strategy

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Assets, responsibilities

decentralized

HQInternational

mentality

Formal

control

systems

International Strategy

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Transnational Strategy

Complex controls; high

coordination skills,coordinated

strategic decision process

Heavy flows;

materials, people

information, technology

Distributed

capabilities,resources and

decision

making

HQ

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Global Business Drivers (GBD)

Joint resources

Flexible operations

Rationalized operations

Risk reduction

Global products

Scarce supplies

Corporate customers

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GBDs Cautions

All GBDs do not apply to all MCNs

Drivers have many influences

IndustryCountry

Own characteristics

Business units within firm Provide vehicle for mapping out SPIR

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Global Information Systems

(GISs) Implementation Problems

Politically imposed constraints

Hardware purchases and imports

Data processingData communications

Transborder data flows (TDF)

Operational data

Personal data

Electronic funds transfer

Technical and scientific data

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Global Information Systems (GISs)

Implementation Problems (cont.)

Technological problems

Unreliable power

Slow telecommunications

Software copyrights and blackmarket products

Lack of support from subsidiary managers

View corporate office as an outsider

Drag heels to improve local profitability

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GIS Implementation Strategies

Multinational strategy

Development teams derived from subsidiaries

Global strategyDevelopment teams derived from parent

location

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GIC Implementation Strategies

(cont.) International

Development teams can travel from parent to

subsidiaries Transnational strategy

Development team includes members from

both parent and subsidiaries

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Link the GIS to business strategy

Define the information resources

Provide for data sharing

Consider the cultural environment

Caution: the tasks and issues listed above are issues to be

addressed, not steps to always be followed in strict sequence

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Computing Around the World

Group Support Systems (GSS) in Africa

Top management influences

Computing literacy

Referent power

Oral communication preference

Satisfaction with use

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Group Support Systems (GSS)

Systems that typically support problem

solvers meeting in groups settings

Also called group decision support systems(GDSS)

An expansion of the DSS area

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Factors Influencing

Acceptance of GSS

Endorsement

by Top

Management

Satisfaction

with Use

Oral

CommunicationPreference

Referent

Power

Computer

Literacy

Acceptance

of GSS

+

+

+

- -

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Computing Around the World

(cont.)

Strategic Decision Support System (SDS) in

Switzerland

SDS helps managers understand businessstrategy and its implications

Tools and models

CasesTutorials

Applications

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International Computer

Use in Perspective

Great deal of attention given to GIS in past

few years

GIS built on solid foundation Cultural differences can influence computer

work

A better understanding of GIS is required

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Summary

MNC

Four organizational structures

Coordination is the keyMultitude of problems

GIS

Implementation strategiesConsider culture

U.S. is leader in computer use

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Chap04 CompUse Intl MarketPlace

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