ITC 5301 VIII J

ITC 5301, Management Information Systems 1

Course Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to:

2. Examine emerging trends in information technology for organizations. 2.3 Examine global business trends.

3. Explain how information technology systems influence organizational strategies.

3.7 Discuss organizational challenges of globalization.

5. Critique core information systems applications from a business perspective. 5.5 Explain the importance of information systems in global corporations.

Required Unit Resources Chapter 15: Managing Global Systems Unit Lesson

Complexity of Information Technology (IT) Take a look at technology in its simplest form. Does it seem daunting or complex? For example, a simple website asks you to input information (e.g., your name, address, phone number). That information is stored in a record database somewhere. This seems simple, right? What if you consider the information stored by Amazon.com or some other major organization; what happens to your data is much more complex. A large retailer will store the input in multiple databases as operational information. That information is likely processed in different ways and turned into an output, and then the information is scrubbed. It may be stored in data warehouses for data mining purposes. Marketing decisions are made based on your sales information. Information systems provide the information that businesses need in order to be strategic in their practices. Managers need that information to be strategic with regard to decision-making. Information systems help operations to be more efficient, and they help all facets of business to be better, faster, and more effective. Years ago, computer systems were much more simplistic as well. Most organizations had large mainframe computers. Transactions were processed in batches at night. Today, there is a demand for instant, real-time information. In the past, systems did not talk to each other. You might have to go to three or four different systems to look up customer information. Today, there is a demand for integration across all systems. In the past, applications were platform specific (e.g., Unix, Windows). Now, there is a demand for applications that run on any platform. In the past, the best tool for making decisions might be an Excel spreadsheet. Now, there are expert systems that emulate the decision-making ability of humans.

Globalization We are hearing this term more and more each day. Globalization can be described as the operation and production of goods and services on a global scale. Many companies will compete globally using global information systems (GIS). These systems allow organizations to compete in global markets. The opening case in Chapter 15 of the eTextbook, “New Systems Help Eli Lilly Standardize as a Global Company,” illustrates how a global company can have the same information system requirements as a local or domestic company but on a larger and more complex scale. In this example, the company had dozens of subsidiaries, each with its own business processes and reports. Can you imagine the chaos and confusion at corporate headquarters as they try to make sense of all the data? Imagine all of the data redundancies and

UNIT VIII STUDY GUIDE Managing Global Systems

ITC 5301, Management Information Systems 2

UNIT x STUDY GUIDE Title

inefficiencies when the subsidiaries execute monthly financial data from all of the different systems and data standards. In short, the company needed to retire all legacy systems and use a common IT platform such as a single enterprise resource planning (ERP) system. In 2010, the company did just that—they started implementing a single global instance of Systems, Applications, and Products (SAP) to all of their subsidiaries. Today, the company runs on SAP ERP and at least a dozen other SAP software solutions, including systems for governance, risk management, and compliance (GRC). Of significance was the implementation of the SAP GRC process controls so that the company could better manage key compliance activities across all business processes, such as compliance with Sarbanes-Oxley (SOX), segregation of duties (SoD) and operational controls for managing the business. The SAP GRC process control serves as a central repository to store data from a global control matrix for Lilly’s entire enterprise and improves management of those controls with automated monitoring. Because Lilly standardized and streamlined the execution of its processes and business rules throughout the organization, Lilly has become even more efficient and effective as a global company. Organizational challenges of globalization. There are several factors to take into account when operating globally. Organizations must take into consideration a country’s culture, social expectations, and political laws. These factors often are not part of our domestic policies, but they will add layers to the organization’s processes, information system requirements, and management strategies. For example, a trading company sent out informational brochures to its global investors that included the state of the company; production statistics; and a strengths, weaknesses, opportunities, and threats (SWOT) analysis. In the SWOT analysis, the company used a red flag to indicate a problematic area. In the United States, a red flag symbolizes “danger” or a “warning.” However, in other countries, the red flag symbolizes political socialism. You can imagine the trading company’s surprise when they were bombarded with e-mails asking why a socialist revolution (the red flag) was a threat to the company. Using the example above, we can see why there may be challenges conducting business with global companies because of language and cultural differences. Internationalization of business. Many companies do not construct all of their products in the United States. Apple’s iPhone is an excellent example of how the company relies on suppliers in other countries to manufacture parts for their phones. For example, some components are made in China, Malaysia, and Japan, and the assembly of the phones take place in Taiwan. This is only possible because of the advanced networks and information systems that Apple uses.

Global Organization Business Strategies A company’s headquarters is not always located in the United States either; they can be in other countries, such as Germany and Japan, and have local or regional operations in the United States. There are four types of business strategies and structures that global organizations can use. They are domestic exporter, multinational, franchiser, and transnational. Domestic exporter. This is a company that conducts most, if not all, corporate activities in the home country of origin. Caterpillar is an example of a domestic exporter of construction and mining equipment as well as heavy duty diesel and gas engines. Multinational. This type of organization centralizes its financial management and control from within a central location such as the corporate headquarters. Product marketing, production, and sales are decentralized to suit local market environments. Intel is an example of a multinational organization because it is headquartered in California but also operates out of other countries such as Israel and the Ukraine. Franchiser. This structure relies on local manufacturing and finance, but foreign resources are used to complete production and marketing. Examples of this structure are companies that manufacture perishable products. McDonald’s is an example of a franchiser because it operates restaurant franchises throughout the United States and around the world.

ITC 5301, Management Information Systems 3

UNIT x STUDY GUIDE Title

Transnational. This type of organization is truly transnational because it does not have a centralized location but, instead, operates using regional headquarters or a global headquarters. Activities are managed from a global perspective and without the confines of national borders. An example of a transnational company is Sony (Japanese) because it produces its products in other countries to save on manufacturing costs.

Difficulties of Internationalization In “E-Commerce in China: Opportunities and Obstacles,” a case study from Chapter 15 of the eTextbook, a good example is provided regarding how China became one of the largest markets in e-commerce. E- commerce is strictly regulated in China by the Great Firewall of China. The Great Firewall of China is a set of rules, regulations, and technologies that regulate the Internet in China, according to Laudon and Laudon (2022). Chinese consumers have limited or no access to many foreign resources such as Google, Facebook, Snapchat, and some news sources (e.g., New York Times). By restricting access to foreign products, the Great Firewall of China forces the Chinese people to purchase products produced in China, reducing the demand for foreign products. As a result, China is home to several Internet giants such as Tencent, one of the world’s largest Internet and technology companies and the most valuable gaming and social media company, according to Laudon and Laudon (2022). From a cultural perspective, China is home to a large population of online shoppers who tend to be young, urban, and highly educated. This young generation of online shoppers are huge consumers of apparel, food and beverages, household goods, electronics, and healthcare products. There are a few select online social platforms that Chinese consumers can use to discover and evaluate products. But, because of the Great Firewall, only Chinese retailers are benefiting from engaging with consumers on these social platforms. This means it is extremely difficult for foreign companies to break through and reach the Chinese population with their products. To make matters even more difficult, in 2017, China passed a cybersecurity law, requiring foreign companies to undergo a security check and to store key data in China. Foreign companies that can conduct business with China must deal with the costs of doing business there. The main issue is the lack of high-quality logistic providers, resulting in the damage or loss of merchandise, slow or missing deliveries, and problems with other essential logistical services. These logistical issues can significantly increase e-commerce operating costs and consequently decrease profit margins.

Summary Operating a global company is very much like operating a domestic company; both have the same information system requirements but on a larger and more complex scale. The example of Eli Lilly illustrated how a company with several subsidiaries could overcome business process issues by implementing a single enterprise-wide ERP system. By using a single global instance of SAP at all of its locations, the company became more efficient and effective as a global company. Global corporations often face challenges and problems when designing, building, and managing their technology infrastructure. Operating globally means removing a hodgepodge of hardware and software and arriving at a solution that streamlines the company’s processes to make them more effective and proficient. There are other challenges to operating globally such as cultural and political differences between countries. For example, when a company develops a user interface for an application, which language should be used? Will some colors, graphics, or designs be construed as problematic or perceived differently from what was intended?

Reference Laudon, K. C., & Laudon, J. L. (2022). Management information systems: Managing the digital firm (17th ed.).

Pearson.

ITC 5301, Management Information Systems 4

UNIT x STUDY GUIDE Title

Suggested Unit Resources In order to access the following resources, click the links below. To reinforce the concepts from this unit, you are encouraged to review the following:

• Chapter 15 PowerPoint Presentation (PDF for Chapter 15 PowerPoint presentation)

The following video cases mentioned in your eTextbook augment the information presented in the assigned chapter readings. You are encouraged to review the Chapter 15 video cases linked below. Global Shop Solutions. (2012, February 7). Lean manufacturing & ERP Success Story: Humanetics and

Global Shop Solutions [Video]. YouTube. https://www.youtube.com/watch?v=bOy1Q7s9lls Oracle Video. (2008, April 3). Daum runs Oracle Apps on Linux [Video]. YouTube.

https://www.youtube.com/watch?v=ayZ3OLmjAp0

ITC 5301, Management Information Systems 1

Course Learning Outcomes for Unit V Upon completion of this unit, students should be able to:

3. Explain how information technology systems influence organizational strategies. 3.3 Discuss how electronic commerce provides competitive advantages.

5. Critique core information systems applications from a business perspective.

5.4 Explain the value added to organizations by implementing advanced information systems solutions.

Required Unit Resources Chapter 9: Achieving Operational Excellence and Customer Intimacy: Enterprise Applications Chapter 10: E-Commerce: Digital Markets, Digital Goods Unit Lesson

Advanced Information Systems What exactly are advanced information system solutions? Most people who have worked in an office setting have a good understanding of the processes that affect their everyday lives. They understand the data they enter or scan is stored in a database, and certain processes they run may close out a monthly account, process a payroll run, or bill a customer. These types of processes, while they seem separate, are often very integrated. In years past, organizations had large mainframes. These mainframes had to process transactions in batches, usually at night, and until that batch process happened, the screens you were viewing were not always completely correct. For example, you could place an order for a customer, but you might not see the order until the next day. Unfortunately, that also meant that you could not see the inventory reduction until the next day as well. This means that you might place an order, and there might not be any of that item left in stock at the time. A salesperson or customer service representative might have to go look at three or four different screens to get a good picture of the customer’s account health or to research a problem, even with this batching process. Once client-servers came to organizations, you might have to look at two completely different computers to research that same problem. This was commonplace until organizations could get all of their data and processes moved off of those old mainframes. Now that businesses have grown so much, many of them have multiple product lines, systems, servers, and databases. In the past, managers would have to wait for big printouts of various reports to make business decisions. An enterprise resource planning (ERP) system works to integrate all of those critical systems together so they can talk to each other. The applications that make-up the enterprise software are created based on predefined best business practices. For example, when a business purchases a piece of equipment, that order is entered into accounting the same way for all businesses. If a customer makes a purchase, it should generally be handled the same way. When you hire someone, you have the same laws to follow. There may be some customization, but that is handled in the application as well (Laudon & Laudon, 2016). So, from a management perspective, what is the value in enterprise systems?

UNIT V STUDY GUIDE Advanced Information System Solutions and E-Commerce

ITC 5301, Management Information Systems 2

UNIT x STUDY GUIDE Title

This is the question we have to ask ourselves when adopting any sort of information systems solution. We do not just spend a large amount of money on something without understanding the value it offers us as a company. We have discussed the value of data in previous chapters. One of the other reasons enterprise systems bring us value is that they also help us to have firm-wide information to make better decisions.

(Vaeenma, n.d.)

Supply Chain Management (SCM)

Many large organizations such as Walmart and Amazon use SCM to help their organization manage its suppliers and goods more efficiently. If you have thousands of suppliers and hundreds of thousands of orders, it would be impossible to keep up with everything. SCM software can manage all of this and allow for forecasting and decision-making as well. Imagine if many of your suppliers are in other countries; this means you have a global supply chain that is even more complex to manage. The case study “The Coronavirus Pandemic Disrupts Supply Chains Around the World Case Study” in Chapter 9 of your eTextbook provides a good example of the current supply chain problem. According to the Global Health Policy website, the COVID-19 pandemic's impact on the global economy has been significant, with the International Monetary Fund (IMF) estimating that the median global GDP dropped by 3.9% from 2019 to 2020, making it the worst economic downturn since the Great Depression (Oum, Kates, & Wexler, 2022). During the pandemic, social distance and quarantining created spikes in demand for certain products, such as toilet paper and hand sanitizer, and drops in demand for others. Businesses such as retail stores and restaurants are hit especially hard. Port congestion and transportation and delivery service disruptions paralyzed the supply chain worldwide. The problem is that companies do not have visibility into their supply chains. They outsource their products (auto parts, fashion, technology, medical gear, and drug components) to external suppliers with a thin margin of safety stock, thus vulnerable to supply chain disruptions. In addition, many companies do not have supply chain/inventory management systems. Even when they do, they are not sophisticated enough to react to the situation in a timely manner. Intelligence solutions can help organizations in many different ways, such as assisting them to establish interconnected networks of supply chain processes and to manage their supply chains more flexibly. “Gartner, Inc., predicts that by 2023, at least 50 percent of global companies will be using artificial intelligence, advanced analytics, and the Internet of Things (IoT) in supply chain operations” (Laudon & Laudon, 2022, p. 366).

ITC 5301, Management Information Systems 3

UNIT x STUDY GUIDE Title

Customer Relationship Management (CRM) CRM involves managing customers. Again, if you have 50,000 customers, how do you keep up with what they purchased? Sure, you can store that information in a database, but would it be easy to manage those relationships? How would you keep up with the marketing incentives you have offered them? Better yet, what about the marketing incentives that you want them to pass on to their customers?

Systems, Application, and Products (SAP) SAP is a brand of an enterprise resource system. Oracle and Microsoft both have their own brand of an enterprise resource system. While all of these vendors offer very similar base functionalities, each of them compete against each other by bringing their own special capabilities to their enterprise resource system offerings. What are digital markets, and how can e-commerce transform business?

Digital Markets Digital markets are marketplaces where millions of people can exchange a massive amount of information for free. Digital markets are very efficient and flexible, and they cost less for search and transactions, offer lower menu expenses, and can adapt to a dynamically changing marketplace. Digital markets provide opportunities for selling directly to customers, bypassing middlemen, distributors, and other intermediaries. Digital goods are goods that can be delivered over a digital network and include such items as music, videos, software, newspapers, and books. Digital products are relatively inexpensive to produce. For example, digital books do not require paper, ink, binding, screening, or other printing costs. This digital delivery method is presenting challenges to merchants that use the traditional production and delivery of goods.

E-commerce Another type of advanced information system involves e-commerce. The explosion of Internet purchasing is no surprise to anyone, but the technology involved in e-commerce is pretty unique. In the past, retailers had fairly tight control over everything. The options for consumers were not plentiful. Still, word-of-mouth was still prevalent, so a business could suffer if it did not treat its customers well. Now, retailers have invited the world to comment on their websites. Have you ever had a bad experience at a store and wondered if it ever got past the customer service person that you complained to? E-commerce gives retailers global reach that can be an advantage and a disadvantage as well. Advanced information systems have given retailers the ability to allow customers to interact with each other through social media platforms. Retailers can now personalize your viewing experience based on your Internet searches. This type of customer targeting was not possible before more advanced information systems were developed. The case study “Engaging ‘Socially’ with Customers” in your textbook speaks on the evolution of e- commerce. E-commerce evolved from electronic storefronts selling goods online to creating social experiences shared by thousands of people. Social media platforms such as Facebook, Instagram, Twitter, and Snapchat create perfect environments to engage consumers, advertise products and services and discover trends and influencers. Companies gather information about their users to provide a more personalized experience via still imagery, animated imagery, and videos that might interest them. They have discovered that different social media platforms attract different audiences, so they use Instagram to appeal to a young audiences and Facebook to attract older ones. Nike, one of the most popular Instagram business brands with over 86 million followers, uses Instagram to promote their products as a lifestyle successfully. NBC Sports has over 50 channels for connecting with their 20 million primetime viewers socially on Instagram, Facebook, Twitter, Vine, Snapchat, and Pinterest. Would any of this be possible without advanced information system solutions? What do you think the future holds for information systems and technology as businesses grow bigger and bigger?

ITC 5301, Management Information Systems 4

UNIT x STUDY GUIDE Title

References Laudon, K. C., & Laudon, J. L. (2016). Management information systems: Managing the digital firm (14th ed.).

Pearson. Laudon, K. C., & Laudon, J. L. (2022). Management information systems: Managing the digital firm (17th ed.).

Pearson. Oum, S., Kates, J., & Wexler, A. (2022). Economic impact of COVID-19 on PEPFAR countries.

https://www.kff.org/global-health-policy/issue-brief/economic-impact-of-covid-19-on-pepfar- countries/#:~:text=The%20toll%20the%20COVID%2D19,downturn%20since%20the%20Great%20De pression

Vaeenma. (n.d.). ID 85647109 [Graphic]. Dreamstime. https://www.dreamstime.com/stock-photo-benefits-

enterprise-systems-presenting-image85647109 Suggested Unit Resources In order to access the following resources, click the links below. To reinforce the concepts from this unit, you are encouraged to review the following:

• Chapter 9 PowerPoint Presentation (PDF for Chapter 9 PowerPoint presentation)

• Chapter 10 PowerPoint Presentation (PDF for Chapter 10 PowerPoint presentation)

The following video cases mentioned in your eTextbook augment the information presented in the assigned chapter readings. You are encouraged to review the Chapter 9 and 10 video cases linked below. A transcript can be accessed for each video within the YouTube player by clicking on the three dots below the video title on the right. Closed-captioning can be turned on by clicking the “cc” icon at the bottom of each video. Teradata. (2016, November 4). Maersk line: Global supply chain overhaul [Video]. YouTube.

https://www.youtube.com/watch?v=KEC5DQqCykI CNBC. (2016, August 8). Wal-Mart to acquire Jet.com for $3.3B | Tech Bet | CNBC [Video]. YouTube.

https://www.youtube.com/watch?v=WxQXvmnfCaw

ITC 5301, Management Information Systems 1

Course Learning Outcomes for Unit VIII Upon completion of this unit, students should be able to:

2. Examine emerging trends in information technology for organizations. 2.3 Examine global business trends.

3. Explain how information technology systems influence organizational strategies.

3.7 Discuss organizational challenges of globalization.

5. Critique core information systems applications from a business perspective. 5.5 Explain the importance of information systems in global corporations.

Required Unit Resources Chapter 15: Managing Global Systems Unit Lesson

Complexity of Information Technology (IT) Take a look at technology in its simplest form. Does it seem daunting or complex? For example, a simple website asks you to input information (e.g., your name, address, phone number). That information is stored in a record database somewhere. This seems simple, right? What if you consider the information stored by Amazon.com or some other major organization; what happens to your data is much more complex. A large retailer will store the input in multiple databases as operational information. That information is likely processed in different ways and turned into an output, and then the information is scrubbed. It may be stored in data warehouses for data mining purposes. Marketing decisions are made based on your sales information. Information systems provide the information that businesses need in order to be strategic in their practices. Managers need that information to be strategic with regard to decision-making. Information systems help operations to be more efficient, and they help all facets of business to be better, faster, and more effective. Years ago, computer systems were much more simplistic as well. Most organizations had large mainframe computers. Transactions were processed in batches at night. Today, there is a demand for instant, real-time information. In the past, systems did not talk to each other. You might have to go to three or four different systems to look up customer information. Today, there is a demand for integration across all systems. In the past, applications were platform specific (e.g., Unix, Windows). Now, there is a demand for applications that run on any platform. In the past, the best tool for making decisions might be an Excel spreadsheet. Now, there are expert systems that emulate the decision-making ability of humans.

Globalization We are hearing this term more and more each day. Globalization can be described as the operation and production of goods and services on a global scale. Many companies will compete globally using global information systems (GIS). These systems allow organizations to compete in global markets. The opening case in Chapter 15 of the eTextbook, “New Systems Help Eli Lilly Standardize as a Global Company,” illustrates how a global company can have the same information system requirements as a local or domestic company but on a larger and more complex scale. In this example, the company had dozens of subsidiaries, each with its own business processes and reports. Can you imagine the chaos and confusion at corporate headquarters as they try to make sense of all the data? Imagine all of the data redundancies and

UNIT VIII STUDY GUIDE Managing Global Systems

ITC 5301, Management Information Systems 2

UNIT x STUDY GUIDE Title

inefficiencies when the subsidiaries execute monthly financial data from all of the different systems and data standards. In short, the company needed to retire all legacy systems and use a common IT platform such as a single enterprise resource planning (ERP) system. In 2010, the company did just that—they started implementing a single global instance of Systems, Applications, and Products (SAP) to all of their subsidiaries. Today, the company runs on SAP ERP and at least a dozen other SAP software solutions, including systems for governance, risk management, and compliance (GRC). Of significance was the implementation of the SAP GRC process controls so that the company could better manage key compliance activities across all business processes, such as compliance with Sarbanes-Oxley (SOX), segregation of duties (SoD) and operational controls for managing the business. The SAP GRC process control serves as a central repository to store data from a global control matrix for Lilly’s entire enterprise and improves management of those controls with automated monitoring. Because Lilly standardized and streamlined the execution of its processes and business rules throughout the organization, Lilly has become even more efficient and effective as a global company. Organizational challenges of globalization. There are several factors to take into account when operating globally. Organizations must take into consideration a country’s culture, social expectations, and political laws. These factors often are not part of our domestic policies, but they will add layers to the organization’s processes, information system requirements, and management strategies. For example, a trading company sent out informational brochures to its global investors that included the state of the company; production statistics; and a strengths, weaknesses, opportunities, and threats (SWOT) analysis. In the SWOT analysis, the company used a red flag to indicate a problematic area. In the United States, a red flag symbolizes “danger” or a “warning.” However, in other countries, the red flag symbolizes political socialism. You can imagine the trading company’s surprise when they were bombarded with e-mails asking why a socialist revolution (the red flag) was a threat to the company. Using the example above, we can see why there may be challenges conducting business with global companies because of language and cultural differences. Internationalization of business. Many companies do not construct all of their products in the United States. Apple’s iPhone is an excellent example of how the company relies on suppliers in other countries to manufacture parts for their phones. For example, some components are made in China, Malaysia, and Japan, and the assembly of the phones take place in Taiwan. This is only possible because of the advanced networks and information systems that Apple uses.

Global Organization Business Strategies A company’s headquarters is not always located in the United States either; they can be in other countries, such as Germany and Japan, and have local or regional operations in the United States. There are four types of business strategies and structures that global organizations can use. They are domestic exporter, multinational, franchiser, and transnational. Domestic exporter. This is a company that conducts most, if not all, corporate activities in the home country of origin. Caterpillar is an example of a domestic exporter of construction and mining equipment as well as heavy duty diesel and gas engines. Multinational. This type of organization centralizes its financial management and control from within a central location such as the corporate headquarters. Product marketing, production, and sales are decentralized to suit local market environments. Intel is an example of a multinational organization because it is headquartered in California but also operates out of other countries such as Israel and the Ukraine. Franchiser. This structure relies on local manufacturing and finance, but foreign resources are used to complete production and marketing. Examples of this structure are companies that manufacture perishable products. McDonald’s is an example of a franchiser because it operates restaurant franchises throughout the United States and around the world.

ITC 5301, Management Information Systems 3

UNIT x STUDY GUIDE Title

Transnational. This type of organization is truly transnational because it does not have a centralized location but, instead, operates using regional headquarters or a global headquarters. Activities are managed from a global perspective and without the confines of national borders. An example of a transnational company is Sony (Japanese) because it produces its products in other countries to save on manufacturing costs.

Difficulties of Internationalization In “E-Commerce in China: Opportunities and Obstacles,” a case study from Chapter 15 of the eTextbook, a good example is provided regarding how China became one of the largest markets in e-commerce. E- commerce is strictly regulated in China by the Great Firewall of China. The Great Firewall of China is a set of rules, regulations, and technologies that regulate the Internet in China, according to Laudon and Laudon (2022). Chinese consumers have limited or no access to many foreign resources such as Google, Facebook, Snapchat, and some news sources (e.g., New York Times). By restricting access to foreign products, the Great Firewall of China forces the Chinese people to purchase products produced in China, reducing the demand for foreign products. As a result, China is home to several Internet giants such as Tencent, one of the world’s largest Internet and technology companies and the most valuable gaming and social media company, according to Laudon and Laudon (2022). From a cultural perspective, China is home to a large population of online shoppers who tend to be young, urban, and highly educated. This young generation of online shoppers are huge consumers of apparel, food and beverages, household goods, electronics, and healthcare products. There are a few select online social platforms that Chinese consumers can use to discover and evaluate products. But, because of the Great Firewall, only Chinese retailers are benefiting from engaging with consumers on these social platforms. This means it is extremely difficult for foreign companies to break through and reach the Chinese population with their products. To make matters even more difficult, in 2017, China passed a cybersecurity law, requiring foreign companies to undergo a security check and to store key data in China. Foreign companies that can conduct business with China must deal with the costs of doing business there. The main issue is the lack of high-quality logistic providers, resulting in the damage or loss of merchandise, slow or missing deliveries, and problems with other essential logistical services. These logistical issues can significantly increase e-commerce operating costs and consequently decrease profit margins.

Summary Operating a global company is very much like operating a domestic company; both have the same information system requirements but on a larger and more complex scale. The example of Eli Lilly illustrated how a company with several subsidiaries could overcome business process issues by implementing a single enterprise-wide ERP system. By using a single global instance of SAP at all of its locations, the company became more efficient and effective as a global company. Global corporations often face challenges and problems when designing, building, and managing their technology infrastructure. Operating globally means removing a hodgepodge of hardware and software and arriving at a solution that streamlines the company’s processes to make them more effective and proficient. There are other challenges to operating globally such as cultural and political differences between countries. For example, when a company develops a user interface for an application, which language should be used? Will some colors, graphics, or designs be construed as problematic or perceived differently from what was intended?

Reference Laudon, K. C., & Laudon, J. L. (2022). Management information systems: Managing the digital firm (17th ed.).

Pearson.

ITC 5301, Management Information Systems 4

UNIT x STUDY GUIDE Title

Suggested Unit Resources In order to access the following resources, click the links below. To reinforce the concepts from this unit, you are encouraged to review the following:

• Chapter 15 PowerPoint Presentation (PDF for Chapter 15 PowerPoint presentation)

The following video cases mentioned in your eTextbook augment the information presented in the assigned chapter readings. You are encouraged to review the Chapter 15 video cases linked below. Global Shop Solutions. (2012, February 7). Lean manufacturing & ERP Success Story: Humanetics and

Global Shop Solutions [Video]. YouTube. https://www.youtube.com/watch?v=bOy1Q7s9lls Oracle Video. (2008, April 3). Daum runs Oracle Apps on Linux [Video]. YouTube.

https://www.youtube.com/watch?v=ayZ3OLmjAp0