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Pertemuan 04International Market Place and Global

Business Strategy

Matakuliah : M0084/Sistem Informasi dalam Manajemen

Tahun : 2005

Versi : 1/1

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Learning Outcomes

Pada akhir pertemuan ini, diharapkan mahasiswa

akan mampu :

• Mahasiswa dapat Menunjukkan peranan dari sistem informasi dalam menunjang perusahaan untuk bersaing dalam perkembangan Dunia Global (C3)

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Outline Materi

• The Multinational corporation (MNC)

• The special need for coordination in an MNC

• Global Business Strategy

• Global Business Driver

• Global system configuration

• Problems in implementing Global Information System

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CHALLENGES FROM GLOBAL COMPETITORS

• The biggest players in today’s global marketplace are multinational corporations (MNCs)

• Information processing and communications-based coordination are especially crucial for an MNC due to the scale and geographic dispersal of their business activities

• Coordination, in particular, has become a key to achieving competitive advantage in a global marketplace

1.5 © 2003 by Prentice Hall

Four main ways of organizing businesses Four main ways of organizing businesses internationally:internationally:• Domestic Exporter:Domestic Exporter: Heavy centralization of Heavy centralization of

corporate activities in the home country of origincorporate activities in the home country of origin

• Multinational:Multinational: Financial management and Financial management and control out of a central home base, production, control out of a central home base, production, sales and marketing operations decentralizedsales and marketing operations decentralized

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise

INTERNATIONAL INFORMATION SYSTEMS

Forms of Global Business Organization

1.6 © 2003 by Prentice Hall

• Franchiser:Franchiser: Product created, designed, Product created, designed, financed, and produced in the home country, financed, and produced in the home country, relies on foreign personnel for production, relies on foreign personnel for production, marketing and human resourcesmarketing and human resources

• Transnational:Transnational: No national headquarters; No national headquarters; value-added activities managed from a global value-added activities managed from a global perspective, no reference to national borders, perspective, no reference to national borders, sources of supply and demand and local sources of supply and demand and local competitive advantage optimized competitive advantage optimized

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise

INTERNATIONAL INFORMATION SYSTEMS

Forms of Global Business Organization

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GLOBAL BUSINESS STRATEGIES

• Bartlett and Ghoshal identified 4 main strategic ways that MNCs can use information to coordinate the activities of a parent company with its subsidiaries (see Figs. 2.10-13):

1. Decentralized control strategy

2. Centralized control strategy

3. Centralized expertise strategy

4. Centralized control and distributed expertise strategy

1.8 © 2003 by Prentice Hall

Four types of system configuration:Four types of system configuration:

• Centralized Systems Centralized Systems

• Duplicated SystemsDuplicated Systems

• Decentralized SystemsDecentralized Systems

• Networked SystemsNetworked Systems

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise

INTERNATIONAL INFORMATION SYSTEMS

Global System Configuration

1.9 © 2003 by Prentice Hall

Essentials of Management Information SystemsEssentials of Management Information SystemsChapter 2 Information Systems in the EnterpriseChapter 2 Information Systems in the Enterprise

Global System Configuration

INTERNATIONAL INFORMATION SYSYTEMS

Figure 2-18

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Global Business Drivers (GBD)

• Joint resources

• Flexible operations

• Rationalized operations

• Risk reduction

• Global products

• Scarce supplies

• Corporate customers4-14

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GBDs Cautions

• All GBDs do not apply to all MCNs

• Drivers have many influences– Industry– Country– Own characteristics– Business units within firm

• Provide vehicle for mapping out SPIR

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Global Information Systems (GISs)

Implementation Problems• Politically imposed constraints

– Hardware purchases and imports– Data processing– Data communications

• Transborder data flows (TDF)– Operational data

– Personal data

– Electronic funds transfer

– Technical and scientific data

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Global Information Systems (GISs) Implementation

Problems (cont.)

• Technological problems– Unreliable power– Slow telecommunications– Software copyrights and blackmarket products

• Lack of support from subsidiary managers– View corporate office as an ‘outsider’– Drag heels to improve local profitability

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GIS Implementation Strategies

• Multinational strategy– Development teams derived from subsidiaries

• Global strategy– Development teams derived from parent

location

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GIC Implementation Strategies (cont.)

• International– Development teams can travel from parent to

subsidiaries

• Transnational strategy– Development team includes members from

both parent and subsidiaries

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Transnational Strategy

• Link the GIS to business strategy

• Define the information resources

• Provide for data sharing

• Consider the cultural environment

Caution: the tasks and issues listed above are issues to be addressed, not steps to always be followed in strict sequence

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End of Session 4