Technical Issues of Significance in the International or Global Management of Information Systems - Essay Example

? Organizational and Technical Issues of Significance in the International or Global Management of Information Systems Introduction Currently, it is acknowledged that information systems knowledge is crucial for managers because many organizations need information systems to survive and flourish. Information systems aid organizations expand their reach to distant places, provide fresh products and services, redesign jobs, work flow, and possibly alter the way corporations accomplish business. There has been intensive use of information technology in businesses from mid-1990s together with significant organizational redesign that creates conditions for fresh phenomenon in digital firms. In a digital world, key business assets such as intellectual property, essential capabilities and human being resources are controlled through digital means. Moreover, any information required to support key business decisions is available any given time and anywhere within digital firms, which gives digital firms the ability to respond rapidly compared to the traditional firms making digital firms flexible and able to survive in turbulent times. Information systems offer digital firms extraordinary opportunities to global organizations and management because information systems enable business firm to possess the potential of achieving unprecedented levels of prosperity and competitiveness. International information systems are made up of fundamental information systems necessary for corporations to coordinate global business and various other activities. Digital firms are distinguished by their reliance on information technology in organizing and managing their activities; hence, managers consider information systems as useful enablers as well as the core of business and a primary management tool despite the various challenges to information systems. Information System components Information System (IS) is technically a set of interconnected components capable of collecting, processing, storing and distributing information in order to maintain decision-making, coordination and control within organizations. A part from supporting decisions, controlling and coordinating business activities; information systems aid managers as well as workers evaluate problems, envisage intricate subjects and develop new products. Information systems contain information regarding considerable people and things within an organization or even within the surroundings of the organization. Information system from business perspective is considered a managerial tool that has its basis on information technology useful in solving challenges within the environment. Therefore, information systems form an integral part in organizations because some companies like credit reporting firms would not be in business without information systems. A significant part of management involves creative work that is propelled by knowledge and information; hence, information system plays a significant and powerful role in redirecting and redesigning an organization. Information technology is a tool managers use to tackle change where computer hardware is used to input, process and output information within an information system. Information systems consist of various components that include the processing unit, several input, and output and storage devices as well as physical media that connects the devices. Computer software involves detailed programmed instructions that coordinate computer hardware within an information system, while storage technology involves physical media for keeping data like optical disks as well as software that governs the organization of data on the physical media. Communication technology incorporates physical gadgets and software in linking the several parts of hardware and transferring data from one place to another through computer networks in order to share resources. Technology resources that can be shared throughout an organization constitute the organization’s information technology infrastructure, which provides a platform for the organization to build its information system (Petter, DeLone, and McLean, 2013). The technical perspective to information systems highlights models that study the IS and physical technology as well as the formal competencies of the system. Computer science establishes theories of computation, techniques of computation and proficient data storage and access, while management emphasizes creation of models useful in decision-making and management practices. The reason information systems play a significant role in organizations and influence many people is the increasing power and declining cost of computer technology because computing power doubles every 18 months because of improved performance of microprocessors since their invention 30 years ago. The increased power of computer technology spawns powerful communication networks that organizations use to access vast storehouses of information from across the globe and coordinating activities. The computer networks are transforming the shape and form of business enterprises with the most common used network being the internet that links various networks around the globe. The explosive growth within computing and networking is turning corporations into networked enterprises that allow distribution of information instantly within as well as beyond an organization. Organizations use information to improve business processes and coordinate the business processes with those of other organizations with the international marketplace. The new technology of connectivity enables collaboration that helps redesign and shape organizations by transforming their structure, scope of operation, control mechanisms, workflows, products and services. Companies use communication technology to manage flexible ways in order to increase the capacity to sense and react to changes within the marketplace in an attempt to take advantage of fresh opportunities. Information systems offer small and large businesses extra flexibility that allows them overcome the limitation created by their size (Laudon and Laudon, 2012). Information Systems in corporations Many world corporations are engaged in international businesses and earn a good share of their profits from these activities thus firms are engaged in locating problem-solving techniques that are unique to global businesses. Information technology plays a significant role in worldwide marketplace, which brings radical changes in organizations and management with many businesses relying on global information networks. The key feature of information systems is the ability to conduct business across an organization’s boundaries as efficiently and effectively as if it was conducted within the organization. Networked information systems allow organizations to coordinate with various organizations across great distances since transactions can be performed electronically which reduces the cost of accessing products and services from outside the organization. In an international marketplace, organizations are able to share business data and catalogs through networks; thus, networked information systems create new efficiencies and relations between an organization and its customers and suppliers as well as redefining organizational boundaries. Inter-organizational systems are increasingly being web-based technology that provides intense sharing of knowledge, business processes and resources; moreover, organizations use these systems to work jointly with suppliers and various business partners (Laudon and Laudon, 2006). Although information technology advances at a fast pace, nothing is easy or mechanical regarding development as well as use of information systems because there are various key challenges that confront managers. One challenge is the strategic company challenge that involves organization’s use of information technology to ensure competitiveness and effectiveness because creating IS and achieving benefits is an intricate long journey for many organizations. Moreover, the power of computer hardware and software has increased rapidly than the capability of organizations to apply and use the technology; hence, some organizations need to be redesigned. Another challenge is the globalization since it involves firms understanding the business as well as the system necessary for a worldwide economic environment. Rapid growth of in international trade and emergence of global economy necessitate information systems that are able to support production and trade of good in various nations. Previously, regional offices for multinational corporations focused on solving their unique problems; however, with the diverse language, culture and political differences across nations, the focus has resulted in chaos in international management. Therefore, to develop incorporated and international information systems, businesses have to create global hardware, software as well as communication standards that generate cross-cultural accounting and reporting. Information systems not only allow suitable decision-making, but also enables control of faraway operations making IS especially useful to multinational corporations. IT through Information systems influences multinational corporations in various ways like providing coordinating mechanisms for geographically dispersed activities that facilitate globalization. Moreover, Information Systems offer a mechanism for developing a connection among separate organizations, which makes global operations cost-effective (Deans, Karwan, Goslar, Ricks and Toyne, 1991). In addition, management faces the challenge of information architecture and infrastructure that involves an organization developing information architecture and IT infrastructure that supports the organization’s goals even when business conditions and technologies are constantly changing. Creating information architecture and IT infrastructure is a formidable task since incompatible computer hardware, software and telecommunication networks and information systems that prevent information from flowing between parts of the organization cripple most companies. Although the internet resolves some connectivity problems, developing data and computing foundations that span the whole enterprise is seldom flawless as guaranteed. Managers also face the challenge of responsibility and control that involves organizations ensuring that their information systems are utilized in an ethical and social manner that depict responsibility. Although information systems offer huge benefits and competencies, information systems also create new uncertainties for managers like the ongoing problem of security and control. Hardware, software and networking pose technical challenge within an international setting one of which is finding a way that standardizes global computing platform where there is much variation in operating units from one nation to another. Another technical challenge involves finding certain software patches that are user friendly and improve efficiency of global work teams. The acceptance of internet around the world greatly decreases networking problems; however, the presence of internet never guarantees seamless flow of information throughout the globe since not all business units use same applications (Koumpis, 2012). To overcome challenges posed by information systems requires system integration and connectivity on a global basis; however, development of international information systems architecture based on core systems concept raises questions regarding the way they core systems fit into the existing applications across the globe. The goal involves developing global, distributed and integrated systems that support digital business processes that span national boundaries, although the problems are similar to those within domestic system development, the problems become magnified within the international environment. For instance, consider integrating systems based on Windows, UNIX, Linux and proprietary software running in IBM, HP and other hardware in various operating units in different nations. Truly incorporated systems have the capacity to connect the systems and people within a global organization into a solitary integrated network. Although, the internet offers enormous foundation for offering connectivity between dispersed units of a global organization, many issues remain with internet since it does not guarantee any level of service. Therefore, few global corporations trust security offered on the internet; hence, they use their private networks to communicate sensitive date and internet-based virtual private networks for communication that does not require high security. It has been recognized that company information security efforts are under threat from employee negligence as well as insider breach. Moreover, information security cannot be ensured by use of technological solutions alone; therefore, to deal with insider issues companies focus on various management and control mechanisms like security policies in addition to continuous updating of security technologies (Chen, Ramamurthy and Wen, 2012). The main impact of information system on corporate strategy is that today’s managers have be not only computer literate but also IS literate because information system has essential aspects like information needs and decision-making. In the current world, no company regardless of the modest size can operate without Information system; however, this increased dependence on IT, a field that is constantly changing threatens business by its pace of change because new developments arise before old ones get assimilated. Therefore, management of IT investment has become a crucial concern since there are real risks associated with inept organizational response to rapid pace of developments within IT (Backhouse, Hsu, and Silva, 2006; Laudon and Laudon, 2006). Expansion of a company from domestic to a multinational corporation brings special challenges to the function of the information system because the expansion overseas causes problems with scheduling and coordination. Because of technological advances and use of internet, communication costs have decreased; however, communication costs will continue to increase with distance until the use of the internet becomes universal. This drawback results in an incentive of dispersing data in order to reduce transmission costs; however, the strategy can result in loss of control in information as well as increased security risks. Expansion into other nations causes problems in language; hence, a global IS has to be designed to support people speaking various languages; moreover, programs have to be able to accommodate different alphabets. Moreover, there are great disparities in local technical support from one nation to another, which can result in considerable reliance on parent company for system development (Lu and Ramamurthy, 2011). To overcome challenges faced by multinational corporations, multinational corporations adopt different approaches for their information system functions with some systems being centralized, decentralized and others being distributed; as well, others are integrated. Multinational information system is the widespread model that is typified by independent data-processing centers within each country where multinational corporations operate. However, this approach suffers from the problem of redundancy and duplication in data, applications and operations although the model historically represents the easiest solution for multinational corporations in national markets. International information system is ‘another model distinguished by computer networks that operate in various nations where data crosses international boundaries in finishing a transaction. However, this model faces a serious problem of data privacy in trans-border data flow through the internet. Another approach is the global information system, which is a relatively new approach that is characterized by integration of data. These systems support manufacturing operations that coordinate inputs and outputs of plants within different nations on a real-time basis, which remain the driving force for the establishment of the systems (Laudon and Laudon, 2006; Dadashzadeh, 2007). IT is an essential mechanism for facilitating, sustaining and promoting international business; however, international information system issues can be categorized into intra-corporate, intergovernmental, host government and reactive international IS issues. Intra-corporate interactions offer the interface for corporate unit IS and its overseas subsidiary IS, which results in two issues pertaining IS function and those pertains role of IS in promoting competitive strategy. The interaction between IS and intergovernmental units raises concerns regarding technical or regulatory issues. Issues concerning the interaction between information system function and the host government originate from multinational corporations’ installation of information technology and the government’s response to the installation. Often national IS-related policies are developed in response to changes in other nations regarding the same policies and the policies have an enduring impact on IS functions in multinational corporations (Laudon and Laudon, 2006). Conclusion The explosion of information technology including the use of internet has been a boon for big and small businesses because the internet reduces the cost international business transactions. Nevertheless, the explosion in IT has also made it easy for various groups to engage in activities that risk business interactions over the internet because the groups pose serious security risks to business information. This adversely influences international business and create questions regarding activities that involve international transactions. Security of electronic media has drawn attention of various scholars since illegal use of electronic information forms results in national and international security issue. The challenge of developing an information system that spans continents is not limited to large corporations since firms that operate globally grow from the increased earnings, which lure even the small corporations to embrace global operations. Once the corporations venture into the global marketplace, the multinational corporations then embrace various models for their information system deployment to avoid the challenges that face information systems. Venturing into foreign markets firms quickly realize challenges faced by IS from the broad organizational issues to the detailed dilemmas of programming. Since the geographical distances separate multinational corporations’ global divisions from their firms’ headquarters and from one another, information systems play essential role of strategic planning and controlling multinational corporations. References Dadashzadeh, M. (2007). International Information Systems management. Retrieved from http://www.sagepub.com/upmdata/19325_entire_chapter_devoted_to_information_systems.pdf Backhouse, J., Hsu, C. W., & Silva, L. (2006). CIRCUITS OF POWER IN CREATING DE JURE STANDARDS: SHAPING AN INTERNATIONAL INFORMATION SYSTEMS SECURITY STANDARD. MIS Quarterly, 30413-438. Chen, Y., Ramamurthy, K. K., & Wen, K. (2012). Organizations' Information Security Policy Compliance: Stick or Carrot Approach?. Journal Of Management Information Systems, 29(3), 157-188 Deans, P., Karwan, K. R., Goslar, M. D., Ricks, D. A., & Toyne, B. (1991). Identification of Key International Information Systems Issues in U.S.-Based Multinational Corporations. Journal Of Management Information Systems, 7(4), 27-50. Koumpis, A. (2012). Management information systems for enterprise applications: Business issues, research and solutions. Hershey, PA: Business Science Reference. Laudon K. & Laudon J. (2006). Management Information Systems: Managing the Digital Firm. 9th ed. New Jersey: Prentice Hall. 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