Concepts and Models

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Concepts and Models

• Issues in International Information Systems
• Winter 2003
• (As of February 18, 2003)

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IT Diffusion
Chapter1 Palvia et al
Economic growth or other economic measure
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IT MNC Strategy
Chapter1 Palvia et al
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Critically Reading a Graph
Does this relationship make sense?
Chapter1 Licker
Is this a valid measure of what is talked about?
Four questions worth asking
Dependent Variable
Is this a valid measure of what is talked about?
Independent Variable
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IT Development
Chapter 4 Kuula
Necessary conditions for IT industrial
Development Located in a world-wide logistic
area Situated in convenient time zone Secure and
friendly political and economic
environment Telcoms infrastructure Pleasant,
safe, attractive environment Rich and unique
history and culture Good supply of talented and
gifted IT professionals, artists, etc. Educated
people Low wages Low taxes Fluency in English
Successful Location of distributed IT industry
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General Strategies (Porter)
Chapter 4 Licker

• Lowest cost
• Nearly always implies mass production/marketing
• Niche Marketing
• Seek specialized market, perhaps specialized
  product
• Differentiation
• Make product look or act differently sell to
  same market as before

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General IT Strategies (Porter)
Chapter 4 Licker

• Lowest cost
• Seek low labor costs distribution is often free
• Niche marketing
• Requires special knowledge, skills labor costs
  are often higher vulnerable to competition
• Differentiation
• Usually achieved through extra features or
  specialized marketing techniques a favorite of
  E-commerce

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Thematic Structure Part I
Chapters 1-4 Licker

• Ch. 1 What does it mean for a country to have a
  specific level of IT development?
• Ch. 4What kinds of IT development are needed to
  achieve certain business outcomes?
• Ch. 2 What does it mean for a country to change
  its level of IT development?
• Ch. 3 What are the implications of a certain
  level of IT development?

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Hollowing Out
Chapter 2 Licker
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IT-led Development
Education SkillsTechnology PolicyInfrastructur
e
Chapter 2 Dedrick and Kraemer
Industrial Policy
Environmental Factors
IT Diffusion
Economic Payoffs
Political, Social and Economic Environment
IT Production and Use
Employment, Productivity and Economic Growth
Industry Structure
Indigenous vs. MNC RD
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Development of E-Commerce
Chapter3 Chepaitis

• Hygiene Factors
• Unsuccessful, intrusive government planning and
  regulation
• Barriers to entry and dictated pricing in
  distribution, supply, production
• Clandestine entrepreneurship, black markets
• Odd managerial accounting
• Unanticipated shortages that distort supply or
  demand
• Political fear, widespread avoidance of
  information disclosure and sharing
• Inconvertible, unstable currency, nascent
  financial regulations, few fin. Services
• Reluctance to divulge info. W/o compensation or
  reciprocity
• Proprietary attitudes towards data, IT and
  training by elites local and foreign
• Rigid, hierarchical, paternalistic management
  style with data hiding and hoarding
• Reliance on oral traditions in retailing and
  multiple languages for recordkeeping
• and business relations
• An emphasis on price and availability to the
  exclusion of quality ? low customer attention and
  proximity

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Information and Trust
Chapter 3 Licker

• Information is a surrogate for trust
• Information between people can be covert or
  overt the latter requires communication
• Consider Prisoners Dilemma

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Sense and Response
Chapter 5 Roche
Sense
Model
Respond
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Models of Globalization
Chapter 5 Roche
Invite World Have the world visit, market to the
world, outsource to the world
Become the World Expand own operations, Intranet
Enter the World Visit the world, relocate,
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Globalization Factors to Consider
Chapter 5 Roche
Role and Function of IT Strategic vs. Support
Definition
CompanyOrientation Product vs. Customer
Structure
Organiza- tion
IT Mgmt
Operations
ConsolidationOrientation Centralized vs.
Distributed
Innovation Orientation Innovative
vs. Non-innovative
Decision Making
IT Leadership Orientation Strong (proactive) vs.
Weak (reactive)
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Laws?
Chapter 5 Licker

• Metcalfe Value of network increases as square
  of membership
• Gilders Speed of telcoms doubles every 16
  months
• Moores Speed of microprocessors doubles every
  18-24 months
• These are not laws.

Output Measrue (time, value, speed)
Input Factor (time, membership)
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Hertzbergs Theory of Motivation
Motivationk M H
Chapter 5 Licker
Typical Motivator (M) Behavior
An increase in the motivator is accompanied by an
increase in motivation in some pattern.

Sufficient to induce increases in
motivation Necessary to have any motivation at
all.
Motivation
Level of Input Factor
Motivation increases are not possible without a
minimum level of a hygiene factor.
-
Typical Hygiene (H) Factor Behavior
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Cybernetic System-Characteristics
Chapter 5 Licker

• System that seeks and maintains a goal
• Is thus goal-driven
• Depends on input from environment to determine
  how close it is to the goal
• Is fairly complex and brittle because of
  architecture
• Combines informational and action features

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Cybernetic System-Behavior
Chapter 5 Licker
ENVIRONMENT
SYSTEM
System acts on environment to achieve its goals
environment reacts (possibly to defend itself)
system senses results of action and adjusts its
subsequent behavior accordingly
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Cybernetic System-Architecture
Chapter 5 Licker
Decision module ooks up specific alarm(s) in
table to determine action to command the system
to do. Where does table come from?
Commands
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Cybernetic System-Analysis Where are the
Potential Problems?
Environment is too flexible or smart
System cant under-stand sense data
System cant sense or senses wrong info
System doesnt send out alarm or sends wrong one
DM fails to send command or sends wrong one
Alarm doesnt reach DM module
Commands
System has no way to act
System is just too weak
Entire apparatus is complex, error-prone,
cumbersome, slow, data-dependent, and is a drag
on system resources
DM module cant make decision or is too slow or
acts before all alarm info is in or decision
table is incorrect
Chapter 5 Licker
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Information System Role
Designing and implementing data storage and
reduction procedures
Designing data capture interface and data quality
controls
Developing managerial reporting procedures
Designing dissemination systems and procedures
Developing Decision Support Systems
Commands
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GLITS (Global IT Strategy)
Chapter 6 Palvia
Opinions of Executives in 36 Firms about RELATIVE
IMPACT OF IS ON EACH ORGANIZATIONAL VARIABLE
IT
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Underlying Reasoning
Chapter 6 Licker
Perception by Executives
IT Characteristics
Reality
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Using GLITS
Chapter 6 Palvia

• G(a,t) GLITS for orgn a at time t
• G(ax,t) GLITS focusing on specific factors
• G(axy,t) GLITS focusing on specific questions
• G(a,now) G(a,later) baselining
• G(a,now) G(competition,now) competition
• G(a,now) G(a, desired or potential) planning
• G(a,now) G(industry average,now) positioning
• G(ax,now)G(a,now) impact analysis
• G(axy,now)G(ax,now) improvement

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Porters 5 Competitive Forces
Chapter 7 Shore, Licker
New Entrants
Lock out via barriers to entry
Lock in via switching costs
Traditional Rivalry Among Firms
Lock in via switching costs
Suppliers
Buyers
Where does IT contribute? Do things work
differently internationally?
Lock out via barriers to entry
Substitutes
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International Supply Chain Management
Four Trends Outsourcing Worldwide Trade IT
Interorganizational Alliances
Chapter 7 Shore, Licker
Firms Operations
Suppliers
Buyers
Movement towards Integration, Standardization,
Offloading
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ReEngineering Global Business Processes
Typology for MNCs MultinationalGlobalInternation
alTransnational
Chapter 8 Basu Palvia
Top Management Sponsorship strong and
consistentCompelling Business Case for Change
with Measurable ObjectivesProven Methodology
With a vision processEffective Change
Management, addressing cultural
transformationSecure BP Ownership by line
management, paired with accountabilityCorrect
composition of reengineering team, breadth and
depthInvolvement of employees, communication,
empowermentAvailability of Resources from day
1Established time limit on projectEstablished
relationship between IS staff and line
management creating internal
championsEnsured strategic alignment between
project goals and company strategic
direction
ButGLOBAL???
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Chapter 8 Bartlett and Ghoshal
Typology for MNCs Multinational Global Transnat
ional International
Control /Coordination Low Low High Low Low H
igh High High
Highly independent subsidiaries
Centralized Decision Makingone world market
Adaptation is key acts globally and locally
Parent company transfers knowledge to subsidiaries
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Framework for ReEngineering Global Business
Processes
Chapter 8 Basu Palvia
Strategy-Structure Organizational
Strategy Organizational Structure
People Intl Mgmt Experience Teams and
Consultants Employee Envolvement
GBR Project Profile Resource AvailabilityProject
Timeline Emphasis of RE Phases
GBR Impln Success Perceived Actual
Technology IT Strategy Technology
Infrastructure Compatibility of systems and
platforms
Global Global Process ( countries) Technology
Infrastructure Economic Development Legal/Politica
l Issues Degree of Internationalization Cultural
Homogeneity
Scope of Redesign Breadth of Change Depth of
Change
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Comparing GBR and BPR Critical Success Factors
Again
Chapter 8 Basu Palvia
1. Top Management Sponsorship strong and
consistentCompelling Business Case for Change
with Measurable ObjectivesProven Methodology
With a vision processEffective Change
Management, addressing cultural
transformationSecure BP Ownership by line
management, paired with accountabilityCorrect
composition of reengineering team, breadth and
depth2. Involvement of employees, communication,
empowerment3. Availability of Resources from
day 17. Established time limit on
projectEstablished relationship between IS staff
and line management creating
internal championsEnsured strategic alignment
between project goals and company strategic
direction4. Compatibility of IT and platform
across organizations8. Formation of Global
Teams9. Degree of International Experience among
Managers
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Levels of Culture
Models Hofstede Cooper Cooper2
Chapter 9 Shore
Head Office Subsidiary
National
National
Organi- zational
Organi- zational
Information Systems
Information Systems
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National Culture
Chapter 9 Shore
Machine Pyramid
Uncertainty AvoidanceLow
High
Market Family
Low High Power
Distance
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Organizational Culture
Chapter 9 Shore
Productivity Survival
Internal External
Stability Human Relations
Order Flexibility
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Information Systems Culture
Chapter 9 Licker
These needs result in a desire to define the
group relative to others and thus create an
acquired need for formalization of process
(rites, rituals, membership) and control
(relationships, hierarchy)
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Organizational Culture Gap Factors
Chapter 9 Shore
HQ National Culture
Host National Culture
HQ IS Culture
Host IS Culture
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Transborder Data Flow Inhibitors
Chapter 10 Oz
Connectivity Few countries not linked Some
countries insufficient serversBandwidth Many
countriesnarrow bandwidthSecurity Largely
resolved (!)Political Constraints Some
countries Govt controlLanguage,
Measures Dynamic translation imperfect US vs.
the world on distance, weights, address, date
standardsCultural Differences Fear of cultural
imperialism Colors, icons,Legal Issues Lack
of privacy regulation in US
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Transborder Data Flow the Situation
Chapter 10 Licker
Issue I Protecting against unwanted incoming
info. imperialism issue
Issue III Taking part in the growth of ICT in the
world issue of participation
Entity
Issue II Protecting against prying eyes of others
not of us protectionism or privacy issue
Entity could be a country, a state, a region, a
community, an organization, a family
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Internet and Traditional Advertising
Chapter 12 Palvia and Vemuri
Criterion Driver Hyperlinks View
Timing Effectiveness Measures Control over
Exposure Time Interactivity Image Pay for
Performance Targetting
Traditional Advert Advertising None View when
Broadcast None or little based on samples
focus gps. Determined by advertiser except in
print media None Perference for upscale Not
normal Limited
Internet Advert Contents Network of HLs View on
demand All hits recorded based on actual
data Determined by web surfer upon use As much as
desired Preference for relevance Increasingly
tied Multiple paths for targetting
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Global E-Commerce Predictions
Chapter 12 Palvia and Vemuri

• Intermediaries will decrease (disintermediation)
• Disintermediation will be more rapid in service
  industry
• Disintermediation is sensitive to product and
  service characteristics
• Promotions will inhibit disintermediation
• New intermediaries will arise (navigators, eg.)
• Logistics and Distribution are enhanced by
  E-commerce (fulfillment functions)

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Critical Success Factors for Global E-Commerce
Chapter 12 Palvia and Vemuri

• High tech also requires high touch
• Globalize operations, but localize service
• Simplify and expedite transaction process
• Foster trusting relationships with among
  customers
• Focus on convenience, info, intermediation,
  pricing
• Get yourself found often and on top in portals
• Plan to evolve to transactions

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Types of Websites
Chapter 12 Huff Wade
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Culture and Global E-Commerce
Chapter 13 Kaarst-Brown and Evaristo
International/Cross-national
National
Regional/Industry
Firm
Individual(?!)
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The Richness-Reach Tradeoff-1
Chapter 12 Evans Wurster
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The Richness-Reach Tradeoff-2
Chapter 12 Evans Wurster
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The Richness-Reach Tradeoff-3
Chapter 12 Evans Wurster
Attempting to increase richness incurs costs,
which lower the available distribution reach
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The Richness-Reach Tradeoff-4
Chapter 12 Evans Wurster
The new media BREAK the relationship between
richness and reach. No reasonable move to
increase richness or reach will have any real
cost and hence no effect on the other
characteristic.
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Intermediation
Chapter 12 Licker
BUYER
SELLER
Owners of the market space get a fee for this
intermediation service.
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Intermediation-2
In the traditional marketspace, the owners
provide safety, security, standards,
replicability, recording, transportation, etc. to
increase the confidence of buyers and sellers.
Chapter 12 Licker
MARKET SPACE
BUYER
SELLER
Each of these represents a business opportunity
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Pareto and the Digital Divide
Chapter 14 Licker
Each economy can be characterized by a
coefficient x such that x of the wealth is
controlled by 100-x of the population. Where
opportunity is equally available and skills are
equally distributed, x50 (Blandania). Where
only a few elite have skills and opportunity, x
approaches 100 (Dystopia). In a typical free
market economy, x is between 70 and 80.
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Managing SME Globally
Chapter 14 Tetteh and Burn
Virtual Face
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Key Attributes of the SME Environment
Chapter 14 Tetteh and Burn
Size No. Employees, branches, assets,
turnover Market Share of market, product mix,
geo span Activities Nature of activities,
information intensity of Processes activities
products, mediation level Linkages No. of
strategic partners, nature of partner- ships,
contractual arrangements Locational Spread of
branches, range of time zones, Diversity Extent
of synchronous working
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Customer Product Life Cycle
Chapter 14 Ives Learmouth 1984
On-line Advertising and Customer Awareness
Campaigns
Ordering And Payment
Selection And Customization
Delivery (Fulfill- Ment)
Info Search Data Transfer
Workflow Management
Installation And Custom User
Relationship Manage- ment
After Sales Services