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International Information Systems Management

Chapter Vignette Introduction Computer-Based Information Systems Information Architecture (IT) Supply Chain Management Enterprise Resource Planning Electronic Data Interchange Ramifications of Internationalization for the IS Function The IS Function Within the Multinational CorporationInternational IS Issues Intracorporate IS Issues Intergovernmental IS Issues Host Government IS Issues Reactive International IS Issues The Internet Global IS Management IS Security Building a Global Information System Planning Globally Communication Integration in the Global Organization Data Integration in the Global Organization The IS Application Portfolio in the Global OrganizationRedefining the CIO as the Global Information Officer Summary Discussion Questions

AUTHOR’S NOTE: This chapter is coauthored with Mohammad Dadashzadeh, Professor of MIS and Director of Applied Technology in Business (ATiB) at Oakland University, Rochester, Michigan.

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STRATEGIC AND OPERATIONAL

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n this chapter, the basicissues of international information systems (IS) management are introduced. The chapter discusses the characteristics of computer-based information systems (CBIS) and the benefits they will bring to the firm. It elaborates on the IS applications that enable the firm to link with its suppliers, customers, and other organizations, including the government. These include supply chain management (SCM),enterprise resource planning (ERP), and electronic data interchange (EDI), as well as the use of the Internet. The chapter explores the ramifications of internationalization on the IS function in the firm. It examines various IS options and suggests the alternatives available to multinational companies (MNCs). Also in this chapter, we learn about the impact of information technology (IT) on MNCoperations. Based on MNCs’ requirements and the environmental limitations that they experience, this chapter makes several suggestions for the deployment of specific IS. Finally, the impact of the internationalization of the firm on the chief information officer’s (CIO’s) responsibilities and duties is discussed.a

Chapter Vignette
Rohm and Haas (R&H) is one of the world’s largest manufacturers ofspecialty chemicals. R&H’s worldwide headquarters is located in Philadelphia, Pennsylvania. With more than 17,000 employees and billions of dollars in sales, it operates approximately 140 research and manufacturing locations in 27 countries. Some of R&H’s products are adhesives and sealants, automotive coatings, electronic materials, plastics additives, powder coatings, and salt. Inadequateglobal information was causing R&H to spend millions of dollars carrying unwanted inventory, which was costing the company a lot of money and lost business. Its 35 production units around the world operated independently. For example, if a customer needed a product that was out of stock in France but thousands of units of the product were in storage 20 miles away, across the border in Germany, no onehad access to this information. To improve its information-processing capability, R&H installed a new company-wide materials management system and a global demandplanning system. It also upgraded its manufacturing, execution, and control system and its worldwide order-entry system. These changes reduced inventory costs by $40 million and improved on-time delivery performance by 10%. This gave R&H astronger position in the global market. Consequently, customers around the world can now receive the requested products on time even if the products are not available locally. R&H has built a management and IT infrastructure to improve its capacity for receiving and sending the right information within its different global business units. This new management and IT infrastructure also helps...