Information Technology and Systems
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Chapter 14 : Global IT Management
Information Technology in Global Business
Global Strategies
IT-enabled Services
Global Management Information Systems
Challenges in Global Information Technology Management
Cultural Differences
Geopolitical Challenges
Problem of Control
Information Requirements
Trans-border Flow of Data
Coordination
Varied Set of Skills
Standardized System
Telecommunication Networks
Computing Standards
Alignment of Strategies
Hardware Problems
Developing IT Solutions
Operational Problems
Vendor Problems
Managing Information Technology in the Global Business Environment
Strategies for Managing IT Globally
Approaches to Global IT Management
Numerous Problems, but Few Solutions
Chapter Summary
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IT has become an integral part of every organization. It has enabled
organizations to expand into new international markets, diversify their
business profiles, and come out with new and innovative products and/or
services. With customers spread globally and having local needs, it has
become vital for organizations to adapt to ‘glocal'strategies. Using IT,
organizations are now able to design products globally to meet the
requirements of local customers. The growing importance of IT in various
fields of business has also led to the emergence of IT-enabled services (ITeS).
The Global Management Information System (GMIS) is a sub-discipline of the
information systems which involves managing of information systems globally.
While managing IT globally, managers face a lot of challenges due to
cultural differences, geopolitical differences, control problems, varied
information requirements, trans-border data flow, improper coordination,
varied skill sets, incompatibility of telecommunication networks, varied
computing standards, problems in alignment of strategies, hardware problems,
issues in developing IT solutions, operational problems, vendor problems,
etc. |
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Managing IT globally is therefore a challenging and difficult task. It is
also different from managing it at the local and national levels.
Christopher A. Bartlett and Sumantra Ghoshal have proposed four basic global
business strategy models that companies use to manage their businesses and
compete in the global arena. These strategies are multinational strategy,
global strategy, international strategy, and transnational strategy. Based
on these strategies, four different approaches can be applied for managing
IT in the global business environment. Organizations can manage their
business operations as independent operations, by managing them from the
headquarters, by supporting them through intellectual cooperation, or by
integration.
IT managers face numerous problems and challenges in managing IT globally.
However, there are a few solutions for these problems. The solutions include
developing global systems, focusing on creating inter-organizational
relationships, ensuring uniformity of data worldwide, good infrastructure,
and liberalized telecommunication regulations.
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