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10 Cards in this Set

  • Front
  • Back
IT Issues Due to Globalization
Duplication of Resources
Proliferation of IT Systems
Increased Complexity and Risk
Compromise of Key Business Requirements
Common IT Structures
IT Shared Services
IT Centers of Excellence –CoEs
Value Managers - VMs
IT Shared Services
Structural Units that Consolidate Common IT Functions
Helpdesk, Operations, Development
Eliminates Duplication of Resources
Improves Utilization of IT Assets
MNCs often had Shared Services in Regions
Some MNCs then Outsourced the Shared Services to Save Even More
Global IT Problems
Wide diversity in cost, quality, and maturity of national IT structures

Local manufacturing and distribution technologies can impede the adoption of an IT

Scope and sophistication of IT application might not be appropriate for some cultures
Challenges and Obstacles to Global Business Systems
General:
Cultural Particularism
Social Expectations
Political Laws

Specific:
Telecommunication Standards
Network Reliability
Data Transfer Speeds
Shortage of Consultants
Domestic Exporter
Centralization in home country
Multinational
Central home base; decentralized production, sales, and marketing in other countries
Franchiser
Product created, initially produced in home country; relies heavily on local workers to produce and market in other countries
Transnational
Truly global firm; no national headquarters; value-added activities managed from a global perspective; optimizes supply and demand taking advantage of local competitive strengths
Developing Global Systems
Agree on common user requirements
Induce procedural business changes
Coordinate applications development
Coordinate software releases
Encourage local users to accept ownership