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 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 requirements b)Difficulties in agreeing on common system features (design and interface) Strategies? 1. Transform an application into global application / multinational development 2. Parallel Development 3. 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!