BUS101_ch09_Lecture_111010_4in1

BUS101_ch09_Lecture_111010_4in1 - Objectives Management...

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Management Information Systems, Sixth Edition Chapter 9: Challenges of Global Information Systems 2 Objectives Explain why multinational corporations must use global information systems Provide elementary advice for designing Web sites for an international audience Cite the cultural, legal, and other challenges to implementing international information systems 3 Multinational Organizations An increasing number of corporations are becoming multinational Global information system : a system that serves organizations in multiple countries – Used by multinational corporations Overseas operations must abide by local laws, yet be sensitive to local cultures and standards 4 The Web and International Commerce The Web has become an important vehicle for B2B and B2C commerce The ratio of non-English speakers to English speakers on the Web is growing Internet opens enormous global opportunities Chinese market is expected to be the largest in the future For some businesses, the Web offers opportunities to increase revenue and to save on costs
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5 6 The Web and International Commerce (continued) Online manuals with animation replace paper documents Web sites and documentation are presented in many languages Global businesses must be sensitive to local audiences Globalization : designing global sites to cater to local needs and preferences – Example: McDonalds menu changes to appeal to local palates 7 8
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9 Think Globally, Act Locally International companies must “think globally, act locally” Acting locally means being sensitive to regional customs and language nuances Control must be decentralized Strategic planning should be global, but can be followed with a local flavor 10 Think Globally, Act Locally (continued) 11 Challenges of Global Information Systems Global information systems face challenges such as: – Technological barriers – Regulations and tariffs – Electronic payment mechanisms – Different languages and cultures – Economic and political considerations – Different measurement and notation standards – Legal barriers – Different time zones 12 Regulations and Tariffs Countries have different import regulations and tariffs Executives may be reluctant because of hassles of learning the laws, taxes, tariffs, and regulations of other countries Companies must comply with the laws of destination countries NextLinx, now owned by Management Dynamics Inc., help importers and exporters for Web commerce by providing tariffs, customs delay information, license requirements, etc.
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13 Differences in Payment Mechanisms E-commerce allows easy payment for online purchases Credit cards are the preferred payment method in North America Not all countries have adopted this preference. 14
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This note was uploaded on 08/14/2011 for the course BUS 101 taught by Professor Pavlou during the Spring '08 term at UC Riverside.

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BUS101_ch09_Lecture_111010_4in1 - Objectives Management...

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