1. Week 2: Globalization and Information Systems
MIS 2101: Management Information Systems

2. Agenda for the Week Role of IT in Globalization
Opportunities for Globalization
Operating in a Digital World
Global IT Strategy

3. Globalization Globalization created a new world characterized by:
Worldwide communication
Collaboration without barriers

4. Tom Friedman
Tom Friedman Pulitzer Prize-winning New York Times foreign affairs columnist and author of the renowned book on globalization, “The World is Flat”
Tom’s book discusses the factors that have contributed to the increasing connectedness — or “flattening”— of the world
Information Technology is playing a key role

5. Tom Friedman’s “The World is Flat” Video
As you watch the video, take notes and be ready to discuss:
What was the Overall Point of the video (and the book)?
What are the 10 Flatteners --- What are their implications according to Friedman?
Based on the video, what does someone need to do to be successful in the 21st Century
You can also view the video on the Internet at

6. Evolution of Globalization
Mainly European countries are globalizing
Power is the primary driver
Industries changed
Slow pace of change

7. Evolution of Globalization
Companies are globalizing
Reduction in transportation and telecom-munications costs
Mainly Europe and America involved

8. Evolution of Globalization
Individuals and small groups are globalizing
Fast changes
Emergence of new industries

9. The overall idea The global economic playing field has been leveled
Competition is worldwide
Few jobs or markets are constrained by geographic boundaries
There are steps you can take to succeed in this world

10. Flattener #1: 11/9/1989: The Fall of the Berlin Wall Windows 3
Flattener #1: 11/9/1989: The Fall of the Berlin Wall Windows 3.1 released
The Wall was a physical and symbolic barrier to a flat economy
Windows removed a barrier to the creation of digital content
Started a major change from large centralized systems to small decentralized systems on a mass scale.

11. Flattener #2: Netscape went public
Triggered
New services
Dot com boom
Overbuild of fibre optics
Boston, Bethesda, and Bangalore are now neighbors.
Companies no longer control collaborative development of technology products

12. Flattener #3: Hardware and software interoperability
Easier for applications to work with other applications (with some exceptions)

13. Flattener #4: Outsourcing
Moving Jobs
Outsourcing companies profited from the drop in telecommunications costs
Companies can now use talented staff from anywhere

14. Flattener #5: Offshoring
Offshoring: Moving entire operations

15. Flattener #6: Uploading*
Open source products: developed collaboratively and free
Wikipedia
Open office
Creation/distribution of material by anyone
Potentially threatening to Microsoft, The New York Times, Record Labels, and others
* Listed as “Open Sourcing” in the book

16. Flattener #7: Supply Chaining
Integration of retailers, suppliers, and customers
Increases efficiency. (Why?)

17. Flattener #8: In-Sourcing
Delegation of company’s key operations to a subcontractor
What does UPS do in this area?

18. Flattener #9: Informing
Individuals have access to massive amounts of information
What types of information are easily available to you now that weren’t 10 years ago?
How has this affected car dealers?

19. Flattener #10: The Steroids
Technologies that support different types of collaboration
Greater mobility
Convergence of media and technoloigies

20. Discussion
What does someone need to do to be successful in the 21st century?

21. Agenda for the Week Role of IT in Globalization
Opportunities for Globalization
Operating in a Digital World
Global IT Strategy

22. Opportunities of Operating in the Digital World
Opportunities of Reaching New Markets
Former Eastern Bloc countries provide new opportunities for international companies to reach new customers

23. Opportunities of Operating in the Digital World
Engineering Graduates in the US, Europe and India
Opportunities of a Global Workforce
Low communications costs
Highly-skilled labor pool

24. Agenda for the Week Role of IT in Globalization
Opportunities for Globalization
Operating in a Digital World
Global IT Strategy

25. Challenges of Operating in the Digital World
Globalization also created a set of unprecedented challenges:
Governmental challenges
Geoeconomical challenges
Demographic challenges
Cultural challenges

26. Governmental Challenges
Political System
Regulatory
Internet Access and Individual Freedom

27. Geoeconomic Challenges
Time Zone Challenges
Real time meetings across continents difficult
But working around the clock possible
Infrastructure-Related Challenges
Roads, electricity, communications services

28. Demographic Challenges
Expertise related challenges
Different concentration of skilled workers
Different costs of workers

29. Cultural Challenges Risk taking Language Work skills/habits
Intellectual property concepts

30. Agenda for the Week Role of IT in Globalization
Opportunities for Globalization
Operating in a Digital World
Global IT Strategy

31. Going Global: International Business Strategy in the Digital World
Multidomestic Business Strategy
Global Business Strategy
Transnational Business Strategy

32. Multidomestic Business Strategy
Low degree of integration between subunits
Flexible and responsive to the needs and demands of local markets
E.g.: General Motors
Opel in Germany
Vauxhall in Great Britain

33. Information Systems Strategy
Multinational Information Systems Strategy
Often used by multidomestic companies
Decentralized systems
Communication between home office and subsidiaries
No focus on communication between different subsidiaries
Decentralized local data processing centers

34. Global Business Strategy
Centralized
Used to achieve economies of scale
E.g.: Coca-Cola
Same core product
Some different tastes made for local markets

35. Information Systems Strategies
Global Information Systems Strategy
Used by companies with global business strategy
Centralized infrastructure
Home office coordinates most of the strategic decisions
Communication and data sharing networks between home office and subsidiaries
Data does not stay with local subsidiaries but flows back to the home office

36. Transnational Business Strategy
Some operations centralized while others decentralized
Flexibility
Economies of scale
Difficult to manage
E.g.: Unilever

37. Information Systems Strategies
Transnational Information Systems Strategy
Pursued by transnational businesses
Extensive communication between home office and subsidiaries as well as among subsidiaries
Key data shared throughout the company

38. Transnational Development
Wrigley Company
World’s largest manufacturer of chewing gum
Sold in 150 countries
Good information systems key to conducting marketing research
Russian marketing research branch initiated the development of a marketing research work flow automation system
After successful testing, system was implemented in other marketing research branches

39. Questions!!!