ch15global

ch15global - Managing global systems Think global Act local...

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Managing global systems Think global Act local
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DHL builds a global IT organization Overnight and express package deliveries Serving 140,000 destinations in over 220 countries 4,400 local offices 238 gateways 450 hubs, warehouses 4.2 millions customers Employ 170,000 people More than 400 aircrafts
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Challenges Keep track of its own operations Customer packages
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Act local Local language Important country regulations Think global DHL can check on status and location of any package around the world Info is current & accurate
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Original IT design 50 data centers in each major countries Coordinate loosely » Common set of core database application Info exchanged on a messaging and communication network Operate well until traffic volume expanded
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Maintain 50 data centers to a single standard was difficult Raise cost Slow down changes » Upgrades has to deploy in 50 different countries » Take more than 18 months to complete “info is more important than the package” Customer might understand package lost due to hurricane Customer is intolerable to failure of tracking
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New configuration Global computing infrastructure 3 low-cost, regional global centers Outsourcing software Initially » India software company Changed » Design: USA » Implementation & execution: India
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Benefits Cost » Maintain IT infrastructure fallen by 40% Deploy new software » In hours (not months) Simplify management communication
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15.1 The growth of international info systems 15.2 Organizing international info systems 15.3 Managing global systems 15.4 Technology issues & opportunities for global value chains
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15.1 Growth of international IS Global economic system International trade 22% of US economy 1/3 of the world’s total GDP
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Developing an international info systems architecture Basic info system To coordinate worldwide trade & other activities
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International IS architecture
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Understand global environment Business drivers Force in the environment which business must respond » Global competition » Global funds Challenges Inhibitors or negative factors » o ¨ ( o ¨ ª ) » o ¨ “8
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Corporate strategy to compete Ignore global market Focus on domestic markets Sell to globe from a domestic base Organizing production & distribution around the globe Structure of organization Division of labor across a global environment Where to locate Production, administration, …. .
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Management issues Business processes How can you reengineer on a global scale Technology platform Choose the right technology to support business processes
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The global environment: Business drivers General culture factors
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ch15global - Managing global systems Think global Act local...

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