Chapter 15, Problem 3RQ

Explanation of Solution

Management issues in developing international systems

• The major management issues include agreeing on common user requirements, introducing changes in business processes, coordinating application development, coordinating software releases and encouragement of local users for supporting global systems...

Explanation of Solution

Principles for organizing global business

• The main principle is a sensible strategy for reducing agency costs by developing only a few core global systems that are vital for global operations, leaving other systems in the hands of regional and local units.
• Not all systems should be coordinated on a transnational basis.
• Core systems are those that support functions that are absolutely critical to the organization...

Explanation of Solution

Steps for developing and implementing global systems

• The first step is that a company must define its core business processes before it can build an information system that supports them.
• The second step is to identify the core systems to coordinate centrally.
• The list must be kept to an absolute minimum and then a small group of systems are categorized as absolutely critical...

Explanation of Solution

Cooptation and its use in building global systems

• Cooptation is defined as bringing the opposition into the process of designing and implementing the solution without giving up control over the direction and nature of the change.
• Cooptation is used to find a way where local units in transnational companies are brought into the process of ...