compo 15 prepared by: dr. faustino reyes ii. global company a global company is a business that is...
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COMPO 15
Prepared by: Dr. Faustino Reyes II
Global Company
A global company is a business that is driven by a global strategy, which enables it to plan and treat all of its activities in the context of a whole-world system, and therefore serve its local and global customers with excellence.
Global Company cont..
Global Business and IT Strategy
Is IT needed to support the company’s international business operation?
Companies operating internationally are moving toward a transnational (global) strategy.
They integrate their global business activities through close cooperation and interdependence among their international subsidiaries and their corporate headquarters.
International Strategy
Foreign subsidiaries are autonomous but are dependent on headquarters for new processes, products, and ideas
IT Characteristics: Standalone systems Decentralized/ no standards Heavy reliance on interfaces Multiple systems, high redundancy and
duplication of services Lack of common systems and data
Global Strategy
Company’s worldwide operations are closely managed by corporate headquarters
IT Characteristics: Centralized system Interface dependent Some consolidation of application and use of
common systems Reduced duplication of operations Some worldwide IT standards
Transnational Strategy
Integrates its global business activities through close operation and interdependence among its headquarters, operations, and subsidiaries.
- Business depends heavily on its information system appropriate IT to help it integrate its global business activities. World markets and mass customization IT Characteristics:
Logically consolidated, physically
distributed, network connected Common global data resources Integrated systems Internet, intranet, extranet applications Transnational IT policies and standards
Global Information Technology The use of computer-based information
systems and telecommunications networks using a variety of information technologies to support global business operations and management.
Global Business and IT Applications
The applications of information technology developed by global companies depend on their business and IT strategies and their expertise in IT.
Depends on Global Business Drivers-Business requirements caused by the nature of the industry and its competitive or environmental forces.
Global Business Drivers
Global Customers Global Products Global Operations Global Resources Global Collaboration
Global Customers
people who may travel anywhere or companies with global operations.
Global IT can help provide fast and convenient service.
Global Products
Products are the same throughout the world or assembled by subsidiaries throughout the world.
Global IT can help manage worldwide marketing and quality control.
Global Operations
Parts of a production or assemble process are assigned to subsidiaries based on changing economic or other conditions.
Only global IT can support such geographic flexibility.
Global Resources
The use and cost of common equipment, facilities and people are shared by subsidiaries of a global company.
Global IT can keep track of such shared resources.
Global Collaboration
The knowledge and expertise of colleagues in a global company can be quickly accessed, shared and organized to support individual or group efforts.
Only global IT can support such enterprise collaboration.
Global IT Applications
1. Office automation such as fax and email systems
2. Global POS (Point of Sale)3. Global Customer service systems
(helpdesk)4. Global electronic data interchange
(EDI) systems for suppliers. (e-commerce)
Global IT Platform
The choice of technology platform (Technology infrastructure) is another dimension of GITM
The choice of hardware, software, telecommunications networks and computing facilities will be needed to support our global business operations.
Global IT Platforms Implications(Cultural and Political)
1. Hardware choices are difficult in some countries because of:
high prices import restrictions long lead time for government approvals lack of local services or spare parts lack of documentation tailored to local
conditions.
Global IT Platforms Implications(Cultural and Political) cont..
2. Software choices can also present unique problems such as:
Incompatibility no local distributor copyright agreements
Global IT Platforms Implications(Cultural and Political) cont..
3. Establishing computing facilities internationally
potential theft sabotage and terrorism unreliable power sources availability of completely redundant
network backup capability
Global Data Issues
1. have been a subject of political controversy and technology barriers in global business operations.
Examples: Transborder Data Flows
business data flows across international borders over the telecommunication networks of global information systems ( regulations for the import and export goods and services)
Global Data Issues continued
2. Global data management and standardization of data
common data definitions such as Ordered booked (UK) Ordered scheduled (Germany) Ordered produced (France)
Global Systems Development
Implications:a) Conflicts over local versus global
system requirementsb) Difficulties in agreeing on common
system features (design and interface) Strategies?1. Transform an application into global
application / multinational development2. Parallel Development3. Centers of excellence
Global Steps Towards Becoming a Global Company
1. Global Mind set – we must help all our employees make the transition to understanding what being truly global means so we can become global.
2. Local – We must be a complete local company in every country where we do business in order to be respected, contributing member to the society.
3. One system – we must operate the company as one networked integrated systems.
4. Human resources – we must make full use of the superior local brains and talent in every place we do business.
5. Information knowledge based- we must create an information-based organization so that we can be fast, flexible and innovative.
Thank you!
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