Globalization and Information Systems

1 Globalizationand Information SystemsRichard T. WatsonUniversity of February 2, 2009 Outline Globalization Fundamental enterprise & individual issues Global Information exchange Information drivers looking forwardMonday, February 2, 2009 GlobalizationA synergy of Trade & TechnologyMonday, February 2, 2009 Globalization Skin boats downstream Grain, cloth Donkeys upstream SkinsBernstein, W. J. (2008). A Splendid Exchange: How Trade Shaped the World. Atlantic Monthly , February 2, 2009 GlobalizationBernstein, W. J. (2008). A Splendid Exchange: How Trade Shaped the World. Atlantic Monthly , February 2, 2009 GlobalizationBernstein, W.

2 J. (2008). A Splendid Exchange: How Trade Shaped the World. Atlantic Monthly , February 2, 2009 Globalization Today Synonymous with the fall of Berlin Wall (1989) Technologies free-market capitalism Information and communication technologiesMonday, February 2, 2009 Globalization Today s trade is highly dependent on Information Systems Information is the most globalized of goods & services Low cost to transport Information Information work is readily tradedMonday, February 2, 2009 Monday, February 2, 2009 Fundamental enterprise issuesTransnationalTransnationalTransnat ionalGlobalGlobalcoordinationNational di!erentiationLowHighLowHighInternationa lMultinationalMonday, February 2, 2009 Fundamental enterprise issuesTransnationalTransnationalTransnat ionalGlobalGlobalcoordinationNational di!

3 ErentiationLowHighLowHighInternationalMu ltinationalMonday, February 2, 2009 Fundamental enterprise issuesTransnationalTransnationalTransnat ionalGlobalGlobalcoordinationNational di!erentiationLowHighLowHighInternationa lMultinationalMonday, February 2, 2009 Fundamental enterprise issuesTransnationalTransnationalTransnat ionalGlobalGlobalcoordinationNational di!erentiationLowHighLowHighInternationa lMultinationalMonday, February 2, 2009 DefinitionTransnationalTransnationalTran snationalGlobalGlobalcoordinationNationa l di!erentiationLowHighLowHighInternationa lMultinational A global Information system supports the operations and decision making of an enterprise s multi-country strategyMonday, February 2, 2009 Strategies &SystemsTransnationalTransnationalTransn ationalGlobalGlobalcoordinationNational di!

4 ErentiationLowHighLowHighInternationalMu ltinationalRemembering the past(Databases )People&technologyTransactionsDataPrepar ing for the future(Business Intelligence)New business systemsHandling the present(Transaction Processing)Monday, February 2, 2009 Global Efficiency Highly centralized Economies of scale The right Information for each employee to enable global coordination Use IS for coordinationTransnationalTransnationalTr ansnationalGlobalGlobalcoordinationNatio nal di!erentiationLowHighLowHighInternationa lMultinationalMonday, February 2, 2009 Global Efficiency Highly centralized Economies of scale The right Information for each employee to enable global coordination Use IS for coordinationTransnationalTransnationalTr ansnationalGlobalGlobalcoordinationNatio nal di!

5 ErentiationLowHighLowHighInternationalMu ltinationalMonday, February 2, 2009 Monday, February 2, 2009 Monday, February 2, 2009 Multinational Effectiveness Regional units are relatively autonomous The right product or service for each market The right Information in the right format for each customer and employee in each market Adapt to culture, economy, infrastructure, language Use IS to support national differentiationTransnationalTransnationa lTransnationalGlobalGlobalcoordinationNa tional di!erentiationLowHighLowHighInternationa lMultinationalMonday, February 2, 2009 Multinational Effectiveness Regional units are relatively autonomous The right product or service for each market The right Information in the right format for each customer and employee in each market Adapt to culture, economy, infrastructure, language Use IS to support national differentiationTransnationalTransnationa lTransnationalGlobalGlobalcoordinationNa tional di!

6 ErentiationLowHighLowHighInternationalMu ltinationalMonday, February 2, 2009 Monday, February 2, 2009 Monday, February 2, 2009 Transnational Effectiveness & efficiency co-jointly Perform functions in the right place for a particular market Localization around global platforms IS to coordinate and respond IS for sharing knowledgeTransnationalTransnationalTrans nationalGlobalGlobalcoordinationNational di!erentiationLowHighLowHighInternationa lMultinationalMonday, February 2, 2009 Transnational Effectiveness & efficiency co-jointly Perform functions in the right place for a particular market Localization around global platforms IS to coordinate and respond IS for sharing knowledgeTransnationalTransnationalTrans nationalGlobalGlobalcoordinationNational di!

7 ErentiationLowHighLowHighInternationalMu ltinationalMonday, February 2, 2009 Monday, February 2, 2009 Fundamental Individual Issues Bounded rationality Limited capacity to process Information Attention Deficit society Conscious attention is a scarce resourceMonday, February 2, 2009 AmplifyMonday, February 2, 2009 AttenuateMonday, February 2, 2009 Definition A global Information system supports the operations and decision making of a person over space and time Amplify & attenuate Information exchanges to free up conscious attentionMonday, February 2, 2009 The core goal of an ISDecisionKnowledgeInformationDataConver sionRequestInterpretationMonday, February 2, 2009 Data Data exchange Standards XML Data conversion SQL Business Intelligence softwareMonday, February 2, 2009 Information & Knowledge Dependencies Language Culture Education ContextMonday, February 2, 2009 Language A local Information system English is a global Information system The language of opportunity The corporate language The language of science Production and consumption disparity English writers have a comparative advantageMonday, February 2, 2009 Native LanguageMonday, February 2.

8 2009 Native Language873 Monday, February 2, 2009 Native Language873 MandarinMonday, February 2, 2009 Native Language366873 MandarinMonday, February 2, 2009 Native Language366873 Mandarin HindustaniMonday, February 2, 2009 Native Language322366873 Mandarin HindustaniMonday, February 2, 2009 Native Language322366873 Mandarin Hindustani SpanishMonday, February 2, 2009 Native Language309322366873 Mandarin Hindustani SpanishMonday, February 2, 2009 Native Language309322366873 Mandarin Hindustani Spanish EnglishMonday, February 2, 2009 Native Language206309322366873 Mandarin Hindustani Spanish EnglishMonday, February 2, 2009 Native Language206309322366873 Mandarin Hindustani Spanish English ArabicMonday, February 2, 2009 Machine via a bilingual dictionary analysis Analyze the source language and transfer structure to the target language Requires expensive linguistic knowledge Ambiguity Computing learning Google translateMonday, February 2, 2009 Special English Developed by Voice of America in 1959 About 1500 words Describe objects, actions, and emotions Short, simple sentences with one idea Active voice No idiomsBooks are a high cost of higher education.

9 But the Global Text project hopes to create a free library of one thousand electronic textbooks for students in developing Global Text project aims to fill a Web-based library with 1,000 booksThe aim is to offer subjects that students may take in their first few years at a university. The books could be printed or read on a computer or copied onto a CD or professors in the United States are leading the Global Text , February 2, 2009 Culture An Information system for defining behavior The software of the mind National Childhood Professional University education Corporate What gets rewardedMonday, February 2, 2009 National cultureCultural dimensionHigh scoreMid scoreLow scorePerformance orientationImprovement and excellenceAssertivenessAggressiveness in relationshipsFuture orientationPlanning and investing for the longer termHumane orientationFairness, generosity.

10 And caringInstitutional collectivismCollective distribution of rewardsIn-group collectivismPride, loyalty, and cohesiveness in organizations or familiesGender egalitarianismlack of gender inequalityPower distanceDistribution of powerUncertainty avoidanceReliance on rules and norms to alleviate unpredictable eventsAngloConfucian AsiaMiddle EastLatin AmericaGermanic EuropeAngloConfucian AsiaNordic EuropeGermanic EuropeAngloConfucian AsiaMiddle EastSouthern AsiaAngloConfucian AsiaGermanic EuropeConfucian AsiaAngloGermanic EuropeConfucian AsiaAngloGermanic EuropeNordic EuropeAngloConfucian AsiaMiddle EastAngloConfucian AsiaNordic EuropeGermanic EuropeAngloConfucian AsiaMiddle EastSource: Javidan, M.