Globalization and Information Systems Richard T. Watson University of Georgia rwatson@terry.uga.edu
Outline Globalization Fundamental enterprise & individual issues Global information exchange Information drivers looking forward
Globalization A synergy of Trade & Technology
Globalization Skin boats downstream Grain, cloth Donkeys upstream Skins Bernstein, W. J. (2008). A Splendid Exchange: How Trade Shaped the World. Atlantic Monthly Press.
Globalization Bernstein, W. J. (2008). A Splendid Exchange: How Trade Shaped the World. Atlantic Monthly Press.
Globalization Bernstein, W. J. (2008). A Splendid Exchange: How Trade Shaped the World. Atlantic Monthly Press.
Globalization Today Synonymous with the fall of Berlin Wall (1989) Technologies free-market capitalism Information and communication technologies
Globalization Today s trade is highly dependent on Information Systems Information is the most globalized of goods & services Low cost to transport information Information work is readily traded
Fundamental enterprise issues High Global Transnational Global coordination International Multinational Low Low National di!erentiation High
Fundamental enterprise issues High Global Transnational Global coordination International Multinational Low Low National di!erentiation High
Fundamental enterprise issues High Global Transnational Global coordination International Multinational Low Low National di!erentiation High
Fundamental enterprise issues High Global Transnational Global coordination International Multinational Low Low National di!erentiation High
Definition A global information system supports the operations and decision making of an enterprise s multi-country strategy High Global Transnational Global coordination International Multinational Low Low National di!erentiation High
High Global coordination Low Global International Transnational Multinational Strategies & Systems Low National di!erentiation High Remembering the past (Databases ) Transactions People & technology Data Handling the present (Transaction Processing) Preparing for the future (Business Intelligence) New business systems
Global Efficiency Highly centralized Economies of scale The right information for each employee to enable global coordination High Global Transnational Use IS for coordination Global coordination Low International Multinational Low National di!erentiation High
Global Efficiency Highly centralized Economies of scale The right information for each employee to enable global coordination High Global Transnational Use IS for coordination Global coordination Low International Multinational Low National di!erentiation High
Multinational Effectiveness Regional units are relatively autonomous The right product or service for each market The right information in the right format for each customer and employee in each market Adapt to culture, economy, infrastructure, language Use IS to support national differentiation High Global coordination Low Low Global International Transnational Multinational National di!erentiation High
Multinational Effectiveness Regional units are relatively autonomous The right product or service for each market The right information in the right format for each customer and employee in each market Adapt to culture, economy, infrastructure, language Use IS to support national differentiation High Global coordination Low Low Global International Transnational Multinational National di!erentiation High
Transnational Effectiveness & efficiency cojointly Perform functions in the right place for a particular market Localization around global platforms IS to coordinate and respond IS for sharing knowledge High Global coordination Low Low Global International Transnational Multinational National di!erentiation High
Transnational Effectiveness & efficiency cojointly Perform functions in the right place for a particular market Localization around global platforms IS to coordinate and respond IS for sharing knowledge High Global coordination Low Low Global International Transnational Multinational National di!erentiation High
Fundamental Individual Issues Bounded rationality Limited capacity to process information Attention Deficit society Conscious attention is a scarce resource
Amplify
Attenuate
Definition A global information system supports the operations and decision making of a person over space and time Amplify & attenuate information exchanges to free up conscious attention
The core goal of an IS Knowledge Data Request Interpretation Decision Conversion Information
Data Data exchange Standards XML Data conversion SQL Business Intelligence software
Information & Knowledge Dependencies Language Culture Education Context
Language A local information system The corporate language The language of science English is a global information system The language of opportunity Production and consumption disparity English writers have a comparative advantage
Native Language
Native Language 873
Native Language 873 Mandarin
Native Language 873 Mandarin 366
Native Language 873 Mandarin Hindustani 366
Native Language 873 Mandarin Hindustani 322 366
Native Language 873 Mandarin Hindustani Spanish 322 366
Native Language 309 873 Mandarin Hindustani Spanish 322 366
Native Language 309 322 873 Mandarin Hindustani Spanish English 366
Native Language 206 309 322 873 Mandarin Hindustani Spanish English 366
Native Language 206 309 322 873 Mandarin Hindustani Spanish English Arabic 366
Machine translation 1. Substitution via a bilingual dictionary Naive 2. Lexical analysis Analyze the source language and transfer structure to the target language Requires expensive linguistic knowledge Ambiguity Computing intensive 3. Machine learning Google translate
Special English Developed by Voice of America in 1959 About 1500 words Describe objects, actions, and emotions Short, simple sentences with one idea Active voice Books are a high cost of higher education. But the Global Text Project hopes to create a free library of one thousand electronic textbooks for students in developing countries. The Global Text Project aims to fill a Webbased library with 1,000 books The aim is to offer subjects that students may take in their first few years at a university. The books could be printed or read on a computer or copied onto a CD or DVD. Two professors in the United States are leading the Global Text Project. No idioms
Culture An information system for defining behavior The software of the mind National Childhood Professional University education Corporate What gets rewarded
National culture Cultural dimension High score Mid score Low score Performance orientation Improvement and excellence Anglo Confucian Asia Middle East Latin America Assertiveness Aggressiveness in relationships Germanic Europe Anglo Confucian Asia Nordic Europe Future orientation Planning and investing for the longer term Germanic Europe Anglo Confucian Asia Middle East Humane orientation Fairness, generosity, and caring Southern Asia Anglo Confucian Asia Germanic Europe Institutional collectivism Collective distribution of rewards Confucian Asia Anglo Germanic Europe In-group collectivism Pride, loyalty, and cohesiveness in organizations or families Confucian Asia Anglo Germanic Europe Gender egalitarianism lack of gender inequality Nordic Europe Anglo Confucian Asia Middle East Power distance Distribution of power Anglo Confucian Asia Nordic Europe Uncertainty avoidance Reliance on rules and norms to alleviate unpredictable events Germanic Europe Anglo Confucian Asia Middle East Source: Javidan, M., Dorfman, P. W., Luque, M. S., & House, R. J. (2006). In the Eye of the Beholder: Cross Cultural Lessons in Leadership from Project GLOBE. The Academy of Management Perspectives, 20(1), 67-90.
National culture Behavior & Decisions Professional culture Behavior & Decisions Corporate culture National IS Corporate Global IS
The Informational & Physical Drivers of Global IS Ubiquity Uniqueness Unison Universality
Ubiquity Informational Access to information unconstrained by time and space Physical The ready availability of the desired resource
Uniqueness Informational Knowing precisely the characteristics and location of a person or entity Physical The capability to tailor precisely a physical resource to one s particular needs
Unison Informational Information consistency Physical Procedural consistency
Universality Informational Reduce the friction of information systems incompatibilities Physical Reduce the friction of physical differences
U-space (extends/enhances awareness) Ultra-conscious/Amplify Hyper-real Post-human Unique (time-space dependent) Ubiquitous (time-space independent) Node Matrix Unconscious/Attenuate (behind or out of conscious awareness)
Hyper-real Ultra-conscious & unique Remote monitoring Enhance interaction Extraordinary experience Teleimmersion
Post-human Ultra-conscious & ubiquitous Permanent enhancement Cell phone Advanced prosthetics Genetic enhancement Body change The network is always on
Matrix Unconscious & ubiquitous Automated consumption Congestion pricing Smart cards Wireless metering Move tasks from conscious to unconscious
Node Unconscious & unique reduce the necessity to consciously interact in specific contexts Subscription services Google alerts
The Critical Global problems High CO2 emissions Degradation of the oceans Declining fresh water supplies Loss of biodiversity
Green IS The design and implementation of information systems that contribute to sustainable business processes
Energy informatics Energy + Information < Energy Analyzing, designing, and implementing systems to increase energy efficiency Collection and analysis of energy data sets Optimization of energy distribution networks Optimization of energy consumption systems
Green IS IS has been the driver of productivity change for half a century Fleet management Wireless measurement Building management Measuring to manage
Global IS Global information systems Ubiquitous networks International standards English Professional & corporate cultures Local information systems Culture
Globalization and Information Systems Success Global information systems furnish goods & services to the developed economies Unsolved problem Sustainability meets the needs of the present without compromising the ability of future generations to meet their own needs
How do we create global information systems that propel the world to sustainability?
Questions