1 Pertemuan 04 International Market Place and Global Business Strategy Matakuliah: M0084/Sistem Informasi dalam Manajemen Tahun: 2005 Versi: 1/1

2 Learning Outcomes Pada akhir pertemuan ini, diharapkan mahasiswa akan mampu : Mahasiswa dapat Menunjukkan peranan dari sistem informasi dalam menunjang perusahaan untuk bersaing dalam perkembangan Dunia Global (C3)

3 Outline Materi The Multinational corporation (MNC) The special need for coordination in an MNC Global Business Strategy Global Business Driver Global system configuration Problems in implementing Global Information System

4 CHALLENGES FROM GLOBAL COMPETITORS The biggest players in today’s global marketplace are multinational corporations (MNCs) Information processing and communications- based coordination are especially crucial for an MNC due to the scale and geographic dispersal of their business activities Coordination, in particular, has become a key to achieving competitive advantage in a global marketplace

1.5 © 2003 by Prentice Hall Four main ways of organizing businesses internationally: Domestic Exporter: Heavy centralization of corporate activities in the home country of originDomestic Exporter: Heavy centralization of corporate activities in the home country of origin Multinational: Financial management and control out of a central home base, production, sales and marketing operations decentralizedMultinational: Financial management and control out of a central home base, production, sales and marketing operations decentralized Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTERNATIONAL INFORMATION SYSTEMS Forms of Global Business Organization

1.6 © 2003 by Prentice Hall Franchiser: Product created, designed, financed, and produced in the home country, relies on foreign personnel for production, marketing and human resourcesFranchiser: Product created, designed, financed, and produced in the home country, relies on foreign personnel for production, marketing and human resources Transnational: No national headquarters; value-added activities managed from a global perspective, no reference to national borders, sources of supply and demand and local competitive advantage optimizedTransnational: No national headquarters; value-added activities managed from a global perspective, no reference to national borders, sources of supply and demand and local competitive advantage optimized Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTERNATIONAL INFORMATION SYSTEMS Forms of Global Business Organization

7 GLOBAL BUSINESS STRATEGIES Bartlett and Ghoshal identified 4 main strategic ways that MNCs can use information to coordinate the activities of a parent company with its subsidiaries (see Figs ): 1.Decentralized control strategy 2.Centralized control strategy 3.Centralized expertise strategy 4.Centralized control and distributed expertise strategy

1.8 © 2003 by Prentice Hall Four types of system configuration: Centralized SystemsCentralized Systems Duplicated SystemsDuplicated Systems Decentralized SystemsDecentralized Systems Networked SystemsNetworked Systems Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise INTERNATIONAL INFORMATION SYSTEMS Global System Configuration

1.9 © 2003 by Prentice Hall Essentials of Management Information Systems Chapter 2 Information Systems in the Enterprise Global System Configuration INTERNATIONAL INFORMATION SYSYTEMS Figure 2-18

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14 Global Business Drivers (GBD) Joint resources Flexible operations Rationalized operations Risk reduction Global products Scarce supplies Corporate customers 4-14

15 GBDs Cautions All GBDs do not apply to all MCNs Drivers have many influences –Industry –Country –Own characteristics –Business units within firm Provide vehicle for mapping out SPIR 4-15

16 Global Information Systems (GISs) Implementation Problems Politically imposed constraints –Hardware purchases and imports –Data processing –Data communications Transborder data flows (TDF) –Operational data –Personal data –Electronic funds transfer –Technical and scientific data 4-16

17 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 4-17

18 GIS Implementation Strategies Multinational strategy –Development teams derived from subsidiaries Global strategy –Development teams derived from parent location 4-18

19 GIC Implementation Strategies (cont.) International –Development teams can travel from parent to subsidiaries Transnational strategy –Development team includes members from both parent and subsidiaries 4-19

20 Transnational Strategy 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 4-20

21 End of Session 4