1. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved Business Driven Information Systems 2e CHAPTER 12 GLOBALIZATION, INNOVATION, AND 21 ST ORGANIZATIONAL TRENDS CHAPTER 12 GLOBALIZATION, INNOVATION, AND 21 ST ORGANIZATIONAL TRENDS

2. 12-2 Chapter Twelve Overview SECTION 12.1 - GLOBALIZATION –Global Business Strategies –Global Enterprise Architectures –Global Information Issues –Global Systems Development SECTION 12.2 - 21 ST CENTURY ORGANIZATION TRENDS –Innovation: Finding New –Social Entrepreneurship: Going Green –Social Networks: Who’s Who –Virtual Worlds: It’s A Whole New World

3. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved SECTION 12.1 GLOBALIZATION

4. 12-4 LEARNING OUTCOMES 12.1 Explain the cultural, political, and geoeconomic challenges facing global businesses 12.2 Describe the four global IT business drivers that should be included in all IT strategies

5. 12-5 LEARNING OUTCOMES 12.3 Describe governance and compliance and the associated frameworks an organization can implement 12.4 Identify why an organization would need to understand global enterprise architectures when expanding operations abroad

6. 12-6 LEARNING OUTCOMES 12.5 Explain the many different global information issues an organization might encounter as it conducts business abroad 12.6 Identify global system development issues organizations should understand before building a global system

7. 12-7 GLOBALIZATION Traditional forms of business are simply not good enough in a global environment Many challenges that must be confronted to succeed in a global business environment including: –Cultural –Political –Geoeconomic (geographic and economic)

8. 12-8

9. 12-9 Cultural Business Challenges Cultural business challenges include differences in… –Languages –Cultural interests –Religions –Customs –Social attitudes –Political philosophies

10. 12-10 Cultural Business Challenges A company should ask a few key questions when creating a global website: –Will the site require new navigational logic to accommodate cultural preferences? –Will content be translated? If so, into how many languages? –Will multilingual efforts be included in the main site or will it be a separate site - with a country-specific domain?

11. 12-11 Cultural Business Challenges A few key questions a company should ask when creating a global website (cont…): –Which country will the server be located in to support local user needs? –What legal ramifications might occur by having the website targeted at a particular country, such as laws on competitive behaviors, treatment of children, or privacy?

12. 12-12 Political Business Challenges Political business challenges include: –Numerous rules and regulations surrounding data transfers across national boundaries (especially personal information) –Tax implications –Hardware and software importing and exporting –Trade agreements

13. 12-13 Global Geoeconomic Business Challenges Geoeconcomic - refers to the effects of geography on the economic realities of international business activities Even with the Internet, telecommunications, and air travel the physical distances covering the globe make it difficult to operate multinational business

14. 12-14 Global Geoeconomic Business Challenges Understanding the cultural, political, and geoeconomic business challenges is a good start to understanding global business Business managers must understand four primary areas 1.Global business strategies 2.Global enterprise architectures 3.Global information issues 4.Global systems development

15. 12-15 Global Geoeconomic Business Challenges Four Global IT Business Management Areas

16. 12-16 GLOBAL IT BUSINESS STRATEGIES Global IT business strategies must include detailed information on the application of information technology across the organization IT systems depend on global business drivers such as… –The nature of the industry –Competitive factors –Environmental forces

17. 12-17 GLOBAL IT BUSINESS STRATEGIES Global IT Business Drivers

18. 12-18 Governance and Compliance One fast-growing key area for all global business strategies includes governance and compliance –Governance - is a method or system of government for management or control –Compliance - is the act of conforming, acquiescing, or yielding

19. 12-19 Governance and Compliance IT Governance Institute Five focus areas 1.Strategic alignment 2.Risk management 3.Performance measures 4.Resource management 5.Value delivery

20. 12-20 Governance and Compliance IT governance frameworks: –CoBIT: Information Systems Audit and Control Association (ISACA) –ITIL: The Information Technology Infrastructure Library(ITIL) –COSO: Committee of Sponsoring Organizations (COSO) –CMMI: Capability Maturity Model Integration method (CMMI)

21. 12-21 GLOBAL ENTERPRISE ARCHITECTURES Enterprise architecture - includes the plans for how an organization will build, deploy, use, and share its data, processes, and IT assets An organization must manage its global enterprise architecture to support its global business operations

22. 12-22 GLOBAL ENTERPRISE ARCHITECTURES Top 10 telecommunication issues

23. 12-23 GLOBAL INFORMATION ISSUES Businesses must have the appropriate levels of authentication, access control, and encryption in place, to ensure… 1.That only authorized individuals can gain access to the network 2.That they have access to only those applications for which they are entitled 3.That information cannot be understood or altered while in transit

24. 12-24 GLOBAL INFORMATION ISSUES Physical security integration and best security practices

25. 12-25 GLOBAL INFORMATION ISSUES Deperimeterization - occurs when an organization moves employees outside its firewall, a growing movement to change the way corporations address technology security Companies should focus on beefing up security in end-user devices and an organization's critical information assets

26. 12-26 Information Privacy Transborder data flows (TDF) occur when business data flows across international boundaries over the telecommunications networks of global information systems Many countries view TDF as violating their national sovereignty

27. 12-27 Information Privacy US – EU data privacy requirements

28. 12-28 Information Privacy Information privacy - concerns the legal right or general expectation of individuals, groups, or institutions to determine for themselves, when, and to what extent, information about them is communicated to others Information privacy is about how personal information is collected and shared

29. 12-29 Europe Any organization processing personal data of a person living in the EU must comply with key principles: 1.Fairly and lawfully processed 2.Processed for limited purposes 3.Adequate, relevant, and not excessive 4.Accurate 5.Not kept longer than necessary 6.Processed in accordance with the data subject’s rights 7.Not transferred to countries without adequate protection

30. 12-30 The United States Information privacy is not highly legislated nor regulated There is no all-encompassing law that regulates the use of personal data or information Access to public information is considered culturally acceptable, such as obtaining credit reports for employment or housing purposes

31. 12-31 Canada Canada’s privacy laws follow very closely to the European model Canada as a nation is quite concerned about protecting the personal information of its citizens Its primary privacy law is the Personal Information Protection and Electronic Document Act (PIPEDA)

32. 12-32 GLOBAL SYSTEMS DEVELOPMENT Organizations can use several strategies to solve problems in global information systems development: 1.Transform and customize an information system into a global application 2.Set up a multinational development team 3.Use centers of excellence 4.Outsource the development work

33. 12-33 Integrating Global Systems The IT industry is one of the most dynamic in the global economy The integration of business and technology has allowed organizations to… –Increase their share of the global economy –Transform the way they conduct business –Become more efficient and effective

34. 12-34 Integrating Global Systems Integration of business and technology

35. 12-35 OPENING CASE QUESTIONS E-spionage 1.How can cultural and political issues affect E- spionage? 2.Explain each of the four global IT business management areas and rank them in order of greatest to least potential threats for security breaches 3.How can an organization use governance and compliance to help protect itself from global security breaches?

36. 12-36 OPENING CASE QUESTIONS E-Spionage 4.Why are global enterprise architectures key players in the area of security? 5.What ethical dilemma is the founder of 3322.org, Peng Yong, facing when he allows global information to pass through his hosting services? 6.Identify the different global system development issues the US government might encounter as it deploys new global systems

37. McGraw-Hill/Irwin ©2009 The McGraw-Hill Companies, All Rights Reserved SECTION 12.2 21 ST CENTURY ORGANIZATIONAL TRENDS

38. 12-38 LEARNING OUTCOMES 12.7 Explain the six best practices of innovation 12.8 Identify how energy consumption and recycling IT equipment can lead to greener IT

39. 12-39 LEARNING OUTCOMES 12.9 Describe the three ways organizations can use social networking 12.10 Explain virtual worlds and virtual workforces and their impact on business

40. 12-40 21ST CENTURY ORGANIZATION TRENDS The primary changes and challenges organizations are focusing on in the 21 st century include: –Innovation: finding new –Social entrepreneurship: going green –Social networks: who’s who –Virtual worlds: it’s a whole new world

41. 12-41 INNOVATION: FINDING NEW Innovation is the introduction of new equipment or methods

42. 12-42 INNOVATION: FINDING NEW Innovation six best practices: 1.Find your relevant edge 2.Assemble innovations hothouses 3.Reward risk takers 4.Celebrate diversity 5.Look around 6.Mix practitioners and developers

43. 12-43 SOCIAL ENTREPRENEURSHIP: GOING GREEN Social responsibility - implies that an entity has a responsibility to society Corporate policy - refers to the position a firm takes on social and political issues Corporate responsibility - includes everything from hiring minority workers to making safe products Sustainable, or "green," IT - describes the manufacture, management, use, and disposal of information technology in a way that minimizes damage to the environment

44. 12-44 Energy Consumption

45. 12-45 Energy Consumption

46. 12-46 SUN Microsystems: Throughput Computing Microsystems designed what is known as a multicore chip –Has several processors on a single sliver of silicon –Running cooler with less energy but getting more work done –Each processor can perform more than one task at a time

47. 12-47 Virtualization Virtualization - is a framework of dividing the resources of a computer into multiple execution environments Virtualization software allows multiple programs on a single machine and move programs from one computer to another on the fly

48. 12-48 Energy Rebate Programs Pacific Gas & Electric designed an innovative data center energy-saving program Companies get rebates for reducing the number of servers they use in their data centers

49. 12-49 Smart Cooling HP created a new approach to data center energy use - think of the data center as one giant machine Thousands of heat sensors monitor temperatures, and software directs the air conditioning system to put the big chill on the places that need it most Projected energy savings: 20 to 45%

50. 12-50 Alternative Energy Sources Google has committed to using cutting- edge technologies to power and cool its data centers via.. –Wind –Solar power Google is already using wind to power a data center in the Netherlands

51. 12-51 Biology Meets Chips IBM researchers are applying biological principles to deal with the heat problem in computing Just as the human vascular system cools our bodies IBM is designing devices that cool chips using liquid delivered through capillary-like circulation systems

52. 12-52 Government Involvement The European Union has imposed limits on carbon emissions IT contributes to the total carbon emissions in a company, carbon cap, and trade or tax laws will impact how technology is managed

53. 12-53 Recycle IT Equipment Sustainable IT disposal - refers to the safe disposal of IT assets at the end of their lifecycle ewaste - old computer equipment Toxic substances can leach into groundwater, among other problems

54. 12-54 Greener IT

55. 12-55 SOCIAL NETWORKS: WHO’S WHO Organizational social networking

56. 12-56 Passive Search Finding so-called passive candidates, people who are happy and productive working for other companies LinkedIn has 6.7 million members, is a virtual Rolodex Hiring people as a result of connections through LinkedIn

57. 12-57 Boomerangs Use network to lure back some former employees, or so-called boomerangs Boomerangs cost less to train than new hires and they tend to hit the ground running As the labor market tightens, alumni become an increasingly attractive source of talent

58. 12-58 Marketing Networks Business-oriented networks are increasingly useful in sales and marketing Social networks help forge community with, and among, would-be customers

59. 12-59 VIRTUAL WORLDS: IT’S A WHOLE NEW WORLD Two primary types of virtual that must be considered when looking at the 21 st century world: 1.Virtual worlds 2.Virtual workforces

60. 12-60 Virtual Worlds Second Life, the online realm where real people, under the guise of avatars, mill and mingle - in some cases, make a living Adidas, Sun Microsystems, and Toyota want to promote their products and ensure their brands are getting exposure amid the consumers

61. 12-61 Virtual Workforce Letting employees work from outside the office… –Keeps cars off the road –Helps a company to bolster its green bona fides –Fosters employee retention –Boosts worker productivity –Slashes real estate costs

62. 12-62 Tools for the Virtual Workforce Mobile commerce (m-commerce) - the ability to purchase goods and services through a wireless Internet-enabled device Telematics - blending computers and wireless telecommunications technologies Electronic tagging - a technique for identifying and tracking assets and individuals via technologies such as radio frequency identification and smart cards

63. 12-63 OPENING CASE STUDY QUESTIONS E-spionage 7.How can the U.S. government and large organization like Booz Allen use innovation to protect itself from E-Spionage? 8.Why would recycling IT equipment be a potential threat to the U.S. government? 9.How could the U.S. government use social networking to combat E-Spionage? 10.How could the U.S. government use virtual worlds such as SecondLife to combat E-Spionage?

64. 12-64 CLOSING CASE ONE Tata’s Nano $2,500 Car 1.How can cultural and political issues affect Tata Motor’s Nano car? 2.How would governance and compliance affect Tata Motors? 3.Identify the different global system development issues Tata Motors might encounter as it deploys its Nano

65. 12-65 CLOSING CASE ONE Tata’s Nano $2,500 Car 4.How did Tata Motors use innovation to develop the Nano? 5.How could Tata Motors use social networking to increase business? 6.How could Tata Motors use virtual worlds such as Second Life to improve operations and increase sales?

66. 12-66 CLOSING CASE TWO Collective Innovation 1.Explain how the six best practices of innovation work at the Raymond conference 2.How could social networking influence innovation? 3.How could innovation help create new forms of green IT? 4.How could a virtual world help innovation?

67. 12-67 CLOSING CASE TWO Collective Innovation 5.How could virtual workforces take advantage of innovation to create new products? 6.What ethical issues might a company find when pursing innovation? 7.If you were running a global innovation initiative what global issues might you encounter?

68. 12-68 CLOSING CASE THREE Confusing Carbon 1.How can companies reduce carbon emissions? 2.How can finding alternative energy sources help reduce IT energy consumption? 3.How can labeling IT equipment green help make IT greener?

69. 12-69 CLOSING CASE THREE Confusing Carbon 4.Why do global organizations need to be concerned with green or social entrepreneurship initiatives? 5.What ethical issues are associated with green technology?

70. 12-70 BUSINESS DRIVEN BEST SELLERS HOW TO CHANGE THE WORLD, by David Bornstein

71. 12-71 BUSINESS DRIVEN BEST SELLERS WHAT MATTERS MOST, by Jeffrey Hollender and Stephen Fenichell

72. 12-72 BUSINESS DRIVEN BEST SELLERS MANAGEMENT CHALLENGES FOR THE 21 ST CENTURY, by Peter F. Drucker

73. 12-73 BUSINESS DRIVEN BEST SELLERS NEW VISIONS, STRATEGIES, AND PRACTICES FOR THE NEXT ERA, by Peter F. Drucker Foundation