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Chapter 13(Global information systems management) - Coggle Diagram
Chapter 13(Global information systems
management)
Enterprise IT architecture approach X strategy
‘International’ approach
attempts to leverage parent-company IT infrastructure resources to gain cost efficiencies within local BUs, while still fostering sense-and-respond capabilities at the local level.
fits with the international approach
Weakness:
Because the use of shared services is optional, incompatibility and duplication of systems can still increase operating costs
Common systems often lack ownership and buy-in at the local level
Data are still embedded in local applications, limiting best-practice sharing and organisational learning
Strengths:
Smaller markets and/or underdeveloped regions gain the ability to share a more robust IT infrastructure than the local economy and knowledge/skill base would allow.
Some companies manage to reduce the overall costs of IT operations by consolidating data centres and economising on networks.
‘Transnational’
approach
The goal of the enterprise IT architecture for the ‘transnational’ approach is a corporate-wide, standard global IT infrastructure with a transnational business application environment
To succeed with the transnational approach, policy decisions often involve negotiations between global product managers pushing for increased business standardisation and local managers advocating the ability to modify products and services to deliver maximum value to local market segments.
‘Multinational’ (localisation) approach
flexible ESs and IT infrastructure country by country and business unit by business unit.
similar to the localisation strategy
Strengths:
Local responsiveness: Local deployment of IT resources for delivering applications tailored to each BU’s unique needs provides the required business flexibility to deliver maximum value to the customer and growing the business locally
Weakness:
There are substantially higher operating costs across the company.
Duplication: The emphasis on business flexibility leads to duplicate ES implementations across BUs.
‘Global’ (global
standardisation) approach
Weakness:
Global standardisation can be problematic if business conditions or markets change very rapidly and the global business model is not capable of being reconfigured to accommodate the change
Local customers may reject ‘one-size-fits-all’ regional or global product and service delivery. Businesses must guard against an overly rigid enterprise IT architecture that undermines needed business flexibility
the globalising company can seek to
enforce a global corporate-driven IT strategy across all business units.
Strengths:
The ability to create tight alignment between business strategy and the IT deployed worldwide.
Systems are implemented only once rather than in every region or country, saving substantial money and time