Global Information Systems aid to rise the control over its businesses which helps to coordinate well with their activities and access new global markets.
Following are the key Information System factors leading to globalization of organizations:
Multinational Companies (MNC’s):
Organizations have their companies spread across the globe operating remotely from every place. Effective functioning and running an MNC globally will be challenging both in terms of operational and functions risks. The global Information systems should collect, process and generate information to support every process in operational and strategic way.
Issues such as business opportunities should be identified and addressed at a global market place level and the organization’s investment should be justified
Outsourcing:
Organizations choose an offshore outsourcing firm from another country which can provide products and services used for Information technology. Outsourcing is attractive due to huge availability of the Internet everywhere, improved telecommunication systems, reduced cost of communication, increased bandwidth and connectivity. The impact is due to not having skilled labor such as analysts and programmers, poor infrastructure and lack of standardization.
Too much standardization impacts reducing the organization flexibility in responding to local preferences which leads to differences in values, attitudes and behaviors.
Supply Chaining:
The method of integrating horizontally between suppliers, retailers and customers which creates a value for the company. It influenced globalization because as the supply chain grows, the more global standards are needed. It helps companies build their supply chains as companies can find both the best producers as well as the lowest prices around the globe.
Digital Communications:
There are many technologies which allows people to communicate immediately at any point of time using Skype, instant messaging, VoIP (Voice-over Internet Protocol) etc. Internet is the one that serves as a input to use any kind of digital / remote communication mode. VoIP allows to make virtual calls at free of cost where mobile phones alone will cost lots of money, particularly when making remote calls.
Globalization also had downside for organizations:
The job security is not assured or guaranteed, jobs are always at stake.
Imposing high taxes, the rate of foreign exchange has increased
Cultural facets have been extensively ignored which leads to mass scale conflicts
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