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These are my notes for the Monday Global Information Systems class.


Monday 29 August 2005

Why study global IS? International Business <--> Global Information Systems <--> Information Systems IS is a key enabler for IB. IB also impacts GIS.

See www.cyborlink.com

We went over some countries's manners and social mannerisms.

   My Guess		The Answer

1. Possibly France Brazil 2. Canada 3. France 4. Saudi Arabia 5. Japan Japan 6. India

Power Distance (Degree of equality or inequality between people): 19 out of 35 for my personal score Individualism (Individual or collective achievement and interpersonal relationships): 19 out of 40 for my personal score Masculinity(Traditional masculine work role model of male achievement, control, and power): Not tested due to suspected bias Uncertainty avoidance (Level for uncertainty and ambiguity): 21 out of 30 for my personal score (high does not like uncertanty) Long-term orientation (Long-term devotion to traditional, forward thinking values): Not tested


International Corps Positives Negatives Economic Culture Culture Economic Can be seen any way, depends on the observer.

Did an explanation of global trade history on page 3-27 of Global Inc.

Getting involved in international trade generally start as exporting.

Transportation People Migration Communication Stable Monentary System/Foreign Exchange Economic Intergration NAFTA CAFTA EU


Small local vs. International Hardees McDonalds Joe's Pizearia

Differences Include: Scale Econ Power Supply Chain Control Agility Diversified Lower Costs Brand Recognition

Read first 30 pages of OECD

Monday 12 September 2005

Install Elluminate Read through the handouts

Opportunity for extra credit: Sign a release for a study allowing the prof. to study the online interactions

Global digital divide The gap between those who have access to information technology and those who don't Between countris within countries age divisions

OECD (Organization for Economic Cooperation and Development) 30 member nations What it does It tries to encorage IT development in developing nations Member nations To become a nation you must be in good international standing and agree to obey any treaties

Why do ICT (information and communication technologies) and the global digital divide matter To a country? Allows for larger more efficent economies essiential to a knowledge based economy education rises as well To a company? Allows for easier more efficent information exchange communication and intergration costs decrease Without it the modern economy wouldnt exist

What statistics are presented by the OECD that demonstrate how countries differ in ICT? Phone lines per capita Computers per household total IT sector number of secure servers percent of business that buy&sell on online edi transactions What are the factors that contribute to differences in the impact of ICT on an individual country's growth and productivity? extent of fusion cost of equipment cost of service amount of local skills degree of competition size of the ICT sector access of skills in the workforce What does it mean if a country has an ICT sector? Is it important?

What do countries need to do in order to overcome the global digital divide? remove trade barriers education issues reduce barriers of entry security against cybercrime reliable networks reduce costs remove meter rates Can a country or a firm over-invest in ICT? yes, if the country/company doesnt need it or does it the wrong way dont invest for the sake of investing question of cutural preservation For our focus on global information systems, why does the information in the OECD report matter?

See Brazil 2005 internet Initiative See World Bank's Global Development Learning Network Did some quick presentations.

Issues for Global Systems What are global IT solutions? IT systems that supports global business in software in hardware and in networks What drives the deployment of global IT solutions? Standardization Global expectatons Cost reductions need for global intergration demand for product serendipity the best way to achieve some other goal How is the success of global IT solutions measured? Tangible Meeting budget On schedule functionality Intangible customer satisfaction enabliing transforamtion to a global compan technical elegance flexible Levels of business globalness Exporter Crosses international borders in business Global Strong central control in multiple countries International Little more flexibility Transnational More distributed Multinational Loose association

Methods for Global Systems Development (not in readings) What are the different ways that organizations can get new systems? When might they use each? buy it pre-packaged custom build customize it outsource it build it

What is the system development life cycle? How does it change with outsourcing? plan design build implement use evolve What are some classic and newer approaches to SAD? What sorts of projects do each work on? disipline waterfall document focused, limited flexibility agile extreme programming little documentation Why is it that 20-40% of software development projects fail; including projects that are delivered late, over budget, and/or without desired functionalty, and 25% of all large, complex projects are cancelled before completionm but after significant work has been done? security culture coordination legal non constant requirements lack of user buyin What are some key differences in how global systems are developed? large scope change champion fear of electronic imperialism transborder data flow and other laws management of vendor relationships may be no local distributors different prices for HW and SW by country monopoly distributorships software piracy laws and practices differing liability laws different acocunting standards what is profit political involvement cultural and national differences in what an invoice is and when it is sent

Another perspective on software development differences Entry: Intial team formation Work: Problem description and analysis Action: Decision-making and implementation

How do these change on global teams?

Monday 12 September 2005

Work groups on Blackboard Please jump in She will not intervene, but am glad to answer questions about the assignment posed by email Shall we try Elluminate next week? Set-up and test no later than during office hours on Monday Allow 30 minutes over dial up Purchase of inexpensive headset with microphone recommended CIS labs can also do it Likely to have time for country group breakouts Extra credit Reminder on handouts Feedback from you

Barriers to deploying global information solutions cultural boundaries readiness for change differences in communication and decision-making a lower context meeting can help lower resistance to certain things physical boundaries historical hatreds laws, work regulations language and currency time and place technology infrastructure structural boundaries business processes business priorities scope and nature of change to use global IT few/no global coordination mechanisms data quality technological boundaries differences in methods/techniques mutilple versions/adaptations

Selected dimensions of culture Power distance Individualism/Collectivism Risk/Uncertainty Avoidance High Context Cultures: most of the message is the person, surroundings, social perspective Low Context Cultures: most information is stated in the actual message content Time: short or long term orientation, linear or polychronic (multitasking)? Space: social distance, how much space is needed to function Friendship: transitory or long term, easy or hard to form, importance for business? Agreement: can it be given verbally (does a verbal 'yes' or 'no' have meaning?), can disagreements be openly voiced or can there be a loss of face? Localization what is i18n? what is l10n? What are some challenges of software localization? Cost the l10n industry need l0n teams in target countries? lots of boundaries to overcome - easier to centralize? Quality of planning and user input at stake Involve real users and have them do tasks without help what are options for doing this What about readiness for change? What are the following and how do they relate to each other in global IS? Presentation Processing Storage and retrieval

Presentation object Business object What s an integrating business object? What are some items that must be l10n? Be able to explain why/what they mean.

Monday 26 September 2005

Agenda Technology Check E-mail through Blackboard Elluminate Your feedback Revisiting localization exercise Localization project tips Global IS in manufacturing Production case Possibly country group break-out time

Egypt localization exercise Disclaimer - These are examples, not project models For your project you should be specific with what needs to change and why

Translate into Arabic While english maybe spoken in commerce and government, Arabic is the common language At 70 million, Egypt is by far the largest Arab country

Holiday celebrated Egypt doesn't have Memorial Day Some countries shut down stores instead of having sales

Flag US emblem is inappropiate the emblem may not be accurately represent the flag, and may be seen as vandalism Dog They are a luxury

Use of metaphors ('Make a splash') Zip code box Page Layout - e.g. vert nav down right Items offered for sale eg. local taste Fewer images Colors Don't change price saving emphasis cost is more important than quality probably dont need to change e-mail subscription option

Types of info you might consider Dept of Commerce AFROL etc... (see power point information)

Localization project pointers describe why localization is important for your country Give specifics of localization requirements

Prof is going to fast, download and look over after class ends

Monday 10 October 2005

logistics drivers of 2005

  • logistics are growing like crazy in asia
  • NAFTA growth
    • Mentions trucker issues
    • but it seems to have incurred an inmense amount of growth
  • Increased security considerations
    • CTPAT
    • You cannot select the path and people for shipping
  • Coordination with orgs
    • Procurement, transportation, and 'international'
  • Time sensitive
  • Customs / tariffs
    • there are 19,000 variations
  • hard to get enough info
  • growing capacity
  • need for deregulation of carriers

It solutions to these challenges

  • logistics software - order fulfillment systems and Enterprise Planning Systems
  • bar code and handheld scanners
  • gamma ray scanners
  • biometrics
  • wireless
    • RFID
    • GPS -- to tell where it is
  • electronic container seals
  • databases
    • facilitate tracking, iding, and controlling goods


  • Standards
    • UN/EDIFACT in EU and Asia
    • ANSI X.12 in US, Canada, Australia
    • Unknown for latin america
  • Message Types
    • Customs
    • Credit
    • Hazardous cargo
    • Insurance
  • Use
    • long lead times
    • larger firms
    • limited globally

Fedex vs UPS vs USPS

    • contracted employees
  • UPS
    • employeed per hour
    • 11th largest airfleet in the world
  • USPS
    • twice as big as their biggest competitor
    • Covers the majority of the world

Shipments Case

  • what is the IT history?
    • internal apps
    • in house development
  • What is the system like?
    • paperless
    • manifests, accounts, billing
  • what is the SDLC stage?
  • what are the issues?
  • Manager's definition of success
    • see quote on page 71

What happened

bought a competitor and scaled it up, they ditched the origional design

TradeNet Case

another shipping case

  • had large time requirements for the origional system, often two days
  • cost of doc was 4-7% of the value of goods shipped
  • error-prone pross
    • had problems getting their credit apps filled out properly (50% rejected on first time)
  • boards
  • got together interested parties
    • build consensus
    • streamlining process 20+ forms to 1
  • IBM saw it as a systems intergration problem more than a development process

Initial Results

  • 45% of all trade done by TradeNet
  • Large companies loved it
  • mandated deadline moved up two years to 1991
    • Small and medium companies got assistance to help them along
  • open 24/7 availible

How is it TradeNet different from other cases?

  • Seemed to be a well liked sucess
  • the end-user was in one place
  • the country started a country wide IT push
    • attracted foreign workers
  • this was a case for a country not just a company
  • vendor developed
  • reused and slightly changed an in house EDI

Monday 17 October 2005

Went over software piracy

  • piracy laws
  • competitive advantage
  • Price Discrimination;>affordable-> <piracy
  • cultural impact
    • needs to be ingrained in the society to get status

privacy laws

  • few US privacy laws
  • OECD
  • can restrict legitamite uses
  • transborder data flows


  • cross country
  • censorship
  • jurisdiction

much more in developing countries Tata export licensing requirements


  • collectivism vs. individualism

see handout



Monday 07 November 2005

She went over the regrade policy.

We will be using elluminate in class next week.


What is an ERP?

  • ERP: an IS that manges through intergration all aspects of a business including:
    • Sales
    • Distribution
    • Accounting
    • Customer Service
    • Production
    • Planning
    • Purchasing
    • Manufacturing
  • To provide
    • Automation
    • Data-sharing
    • real time operations

Why are ERPs important to global companies? What are some potential advantages and disadvantages?

  • Coordination and control
  • Already come i18n
  • Can be 'aware' of local regulations and accouning requirements to facilitate
    • Can make its easier to customize to a local accounting standards


  • Consolidated data
  • Transparency across entire organization
  • Intergration of all standard business processes
  • Lower Costs
  • reduced assembly-line down time
  • more flexible production processes
  • Allows for easier use of Just-In-Time
  • more efficent lot sizes and scheduling
  • greater customer and employee satisfaction


  • huge implementation and maintaince costs
  • too rigid and hard to adapt
  • user-unfriendly
  • problems spread across departments quicker
  • vendor lockin
  • blurring company boundaries
  • employee morale issues
  • resistance to share information
  • legacy systems issues
  • layoff fears
  • ERP is a poor fit with culture
  • cascading errors
  • concentration of responsibilities

What is the difference between ERP and SCM?

  • SCM optimizes the supply chain
    • Considers more for each aspect of the company
  • SCM does not encompass all parts of a company
    • This is changing as packages expand

Success criteria for ERP

  • Value creation
    • Shareholder value
    • Customer value
    • ROI
  • Cost effectiveness
  • Tangible financial impact
  • Goal attainment
  • Competitive advantage
  • Yes and no

How does ERP implementation typically proceed?

  • choose which modules to use
  • reenginer processes while implementing or
  • reenginer processes then implement
  • define and configure 100s or 1000s of data tables and flow of data processes (including external interfaces)
  • lots of training needing

What are some of the challenges and risks specific to ERP implementation? How can the risks be managed?

  • ERP is very risky: 1/3 actually succeed
  • typical sucess (in 2000): $10M
  • typical failure (in 2000): $90M
  • how much analysis done upfront is very important for long term sucess
  • can improve the system over time

ERP Costs

A LOT 'nuf said

ERP Training needs

  • Each Core modules
  • Specialized product
  • OS
  • Database training
  • Backup and disaster recovery
  • Maintenance training

How do business process, culture, and other national differences affect ERP adoption and use?

  • Most ERPs reflect U.S. and European practices
  • Greater adjustment in Asia
    • Change the system?
    • Change the Asian ways of doing business?
  • Culture/Language
  • Management style
  • Politics
  • Regulations/legal requirements
  • Technical/personnel resource/labour skills
  • geography/time zone

Roles of national culture: penetration

  • negatively associated with ERP penetration
    • risk aviodance
    • masculinity
    • power distance
  • positively associated with ERP penetration
    • long term orientation
  • Inconclusive
    • individualism

Roles of national culture: training

  • an example
    • how should training be different in Asia?

Enterprise case study

  • Dow Corning
  • We're going to act, we're going to learn, and we're going to design
    • strategy was to implement and then improve it
  • seemed more successful
  • she went over boundaries

Accounting Issues

Why do accounting standards of other companies matter to U.S. based companies?

What is the significance of International Financial Reporting Standards?

What are some of the requirements for global accounting systems?

Global accounting systems musts

  • Must be able to apply different rules
  • must be able to store results differently
  • insure integrity of books
  • reconcile differences
  • produce reports
  • support changes

Monday 21 November 2005

Technical Issues

  • Bandwidth availibility
  • Tariffs
  • Interconnection
  • Security

Lowest Common Denominator (weakest link dictates the whole)

  • Architecture
  • Telecoms capabilities
  • Hardware
  • Development processes
  • Quality standards
  • encryption
  • etc.

Basic character encoding

  • ANSI
  • Unicode
    • UCS-2
    • UTF-8

Monday 28 November 2005

Knowledge management

knowledge - information, expertise, professional skills, experience, and processes; 'know how'

knowledge management - creation, storage, processing, and transfer of knowledge

system types

  • repository of codified knowledge
  • facilitate connections between people to support person-to-person knowledge transfer
  • hybrid between the two
  • examples
    • customer relationship management systems
    • document sharing
    • databases of internal experts, skills
    • data warehousing

data warehousing

  • large repository of data
  • grows continually
    • hard to justify removal of historical data
    • the more flexible the better the data can be extracted
    • query cost can be high
  • metadata is very important
  • extraction
    • SQL
    • OLAP
    • Data mining
  • encourages redundancy in the database

there a number of challenges to data knowledge

  • global
  • cognitive
  • operational
  • informatics
  • behavioral
  • security

metrics case

discussed it

Monday 05 December 2005

Went over final outline:

  • define terms
  • give examples
  • why are concepts important
  • how concepts are accomplished
  • trend drivers
  • challenges related to drivers
  • short answer

Final Topics


  • Definition (what and how)
    • ERP: an IS that manages, through integration, all aspects of a business including
      • Sales
      • Production
      • Distribution
      • Planning
      • Accounting
      • Purchasing
      • Customer service
      • Manufacturing
    • To provide
      • Automation
      • Data sharing
      • Real-time operations
  • Importance in global setting
    • Facilitate coordination and control
    • Come internationalized
    • Can be “aware” of local regulations and accounting requirements to facilitate compliance
  • Pros
    • Consolidated data/information
    • Transparency across entire organization
    • Integration of all standard business processes
    • Lower costs
      • Inventory carrying
      • Ordering
      • Production
      • Accounting and record keeping
      • Investment in equipment
      • Investment in plant
    • Reduced assembly line down-times
    • More flexible production processes
    • More efficient lot sizes and scheduling
    • Reduced errors due to better coordination
    • Greater profitability or market share given efficiency
    • Reduced fulfillment times
    • Increased process transparency for customers
    • Flexibility for greater product customization
    • Greater customer satisfaction so higher sales
  • Cons
    • Expensive to install and maintain
    • Too rigid, and difficult to adapt to co. needs
    • some systems can be difficult to use
    • A problem in one department or at one of the partners will affect all the other participants
    • Labor problems affect all on system
    • High switching costs
    • Blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale
    • Resistance to sharing essential info
    • Incompatibility with legacy systems
    • Resistance to system given layoff fears
    • ERP is a poor fit with culture
    • Cascading errors – inability to quickly stop processing
    • Concentration of responsibility
  • Implementation process
    • Choose which modules to implement
    • Adapt system to existing processes, or
    • Reengineer processes while implementing, or
    • Reengineer processes, then implement
    • Define and configure 100s or 1000s of data tables and flow of data processes (including external interfaces)
    • Lots of training before, during and after implementation
  • Risks and how to manage
    • ERP is very risky: 1/3 of ERP projects are successful
      • Typical success (in 2000): Make $10M
      • Typical failure (in 2000): Lose $90M
    • What distinguishes successful and unsuccessful implementations
      • Time and effort upfront analyzing Systems, Business, Process needs
        • Those who work upfront: successful 56% of the time
        • Those who fail to do this upfront analysis: successful 8% of the time
    • Can typically make more successful after implementation
  • Cost components
    • Hardware
    • Software - a startup license cost and yearly fees
      • Original license: In 2005, SAP is about $5,700 per seat (user); how the number of seats is determined varies widely by vendor.
      • Annual maintenance costs: 14-20% of purchase price for upgrades and helpdesk access
    • Database - license cost and yearly fees
    • Configuration of the ERP
    • Linking the ERP to other systems
    • Virtual private network access (not mandatory)
    • Customization of the ERP for each business process
    • Training (users and the IT departments)
  • Why greater challenges for Asia
    • Most ERPs reflect U.S. and European practices
    • Greater adjustment required in Asia
      • Change the system?
      • Change Asian ways of doing business?
        • In Enterprise case, had to get Asian customers’ approval to change system output
      • Different training needs

Global accounting

  • IFRS
    • Why standards are needed
  • System requirements

Technical issues

    • Networking challenges
    • “Lowest common denominator”
    • Encryption
    • Character encoding

Financial services

    • Definition/purpose
    • Need for global capital movement
    • Letters of Credit vs. Just in Time financing
    • Role of IT in FS
    • FS requirements

Knowledge management

    • Definition of knowledge and KM
    • Importance including high pace of change role
    • KMS types and examples
      • Data warehouse
        • Definition
        • Challenges
        • Ways to extract data
      • KM challenges

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