answered: MIPP#8 It is important to understand what information systems are and why they are essential for ru

MIPP#8

It is important to understand what information systems are and why they are essential for running and managing a business. The case studies below will provide you with an opportunity to review many of the concepts covered in this course. These case studies provide you with an opportunity to critically analyze events that are taking place in real-life organizations. This helps to develop your critical thinking and research skills as you research each of these scenarios.

For this assignment, you will review four case studies. Then, in a PowerPoint presentation, you will evaluate the studies and respond to each of the questions below, using both critical thinking and theory as well as supporting documentation.

1. Based on your reading of the case study “Can You Run the Company with Your iPhone?” on pages 9–10 of the textbook, discuss how emerging trends in technology are helping Network Rail improve railway performance and safety.

2. Based on your reading of the case study “Enterprise Social Networking Helps Sanofi Pasteur Innovate and Improve Quality” on pages 41–42 of the textbook, discuss how information systems influenced the company’s organizational strategy. Critique their core information system applications from a business perspective. Analyze how information system projects are aligned with organizational goals and strategies.

3. Based on your reading of the case study “Meltdown and Spectre Haunt the World’s Computers” on pages 309–310 of the textbook, discuss the ethical and security issues that could result from flaws in central processing unit (CPU) chip design. Assess their procedures for securing information systems.

4. Based on your reading of the case study “AbbVie Builds a Global Systems Infrastructure” on pages 586 of the textbook, discuss the problems that the company was experiencing as a global enterprise and how the company was able to solve them. Explain their information technology infrastructure. Discuss information system solutions that can be applied to this issue.

When formatting your PowerPoint presentation, do not use the question-and-answer format; instead, use bullets, graphics, and/or charts in your slides to identify important points, and then discuss those points in the speaker notes of each slide.

Your PowerPoint presentation must be at least 12 slides in length (not counting the title and reference slides). You are required to use a minimum of three peer-reviewed, academic sources that are no more than 5 years old (one may be your textbook). All sources used, including the textbook, must be referenced; all paraphrased material must have accompanying in-text citations.

MBA 5401, Management Information Systems 1

Course Learning Outcomes for Unit VIII

Upon completion of this unit, students should be able to:

1. Analyze the use of information systems in business.

2. Examine emerging trends in information technology for organizations.

3. Explain how information technology systems influence organizational strategies.

4. Evaluate the prevailing ethical issues of information systems.

5. Critique core information systems applications from a business perspective.

6. Assess the procedures for securing information systems.

7. Discuss an information technology infrastructure.

Course/Unit
Learning Outcomes

Learning Activity

1
Unit Lesson
Chapter 15, pp. 564–587, 591–593
Unit VIII PowerPoint Presentation

2 Unit VIII PowerPoint Presentation

3 Unit VIII PowerPoint Presentation

4 Unit VIII PowerPoint Presentation

5
Unit Lesson
Chapter 15, pp. 564–587, 591–593
Unit VIII PowerPoint Presentation

6 Unit VIII PowerPoint Presentation

7 Unit VIII PowerPoint Presentation

Required Unit Resources

Chapter 15: Managing Global Systems, pp. 564–587, 591–593

Unit Lesson

Information Technology (IT)

Complexity of IT: Take a look at technology in its simplest form. Does it seem daunting or complex? For
example, a simple website asks you to input information (e.g., your name, address, phone number). That
information is stored in a record database somewhere. This seems simple, right? What if you consider the
information stored by Amazon.com or some other major organization; what happens to your data is much
more complex.

UNIT VIII STUDY GUIDE

Managing Global Systems

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Title

A large retailer will store the input in multiple databases as operational information. That information is likely
processed in different ways and turned into an output, and then the information is scrubbed. It may be stored
in data warehouses for data mining purposes. Marketing decisions are made based on your sales information.
Information systems provide the information that businesses need in order to be strategic in their practices.
Managers need that information to be strategic with regard to decision-making. Information systems help
operations to be more efficient, and they help all facets of business to be better, faster, and more effective.

Years ago, computer systems were much more simplistic as well. Most organizations had large mainframe
computers. Transactions were processed in batches at night. Today, there is a demand for instant, real-time
information. In the past, systems did not talk to each other. You might have to go to three or four different
systems to look up customer information. Today, there is a demand for integration across all systems. In the
past, applications were platform specific (e.g., Unix, Windows). Now, there is a demand for applications that
run on any platform. In the past, the best tool for making decisions might be an Excel spreadsheet. Now,
there are expert systems that emulate the decision-making ability of humans.

Globalization

We are hearing this term more and more each
day. Globalization can be described as the
operation and production of goods and
services on a global scale. Many companies
will compete globally using global information
systems (GIS). These systems allow
organizations to compete in global markets.
The opening case in Chapter 15 of the
textbook, ”New Systems Help Eli Lilly
Standardize as a Global Company,” illustrates
how a global company can have the same
information system requirements as a local or
domestic company but on a larger and more
complex scale. In this example, the company
had dozens of subsidiaries, each with its own
business processes and reports. Can you
imagine the chaos and confusion at corporate
headquarters as they try to make sense of all
the data? Imagine all of the data redundancies
and inefficiencies when the subsidiaries execute monthly financial data from all of the different systems and
data standards.

In short, the company needed to retire all legacy systems and use a common IT platform such as a single
enterprise resource planning (ERP) system. In 2010, the company did just that—they started implementing a
single global instance of Systems, Applications, and Products (SAP) to all of their subsidiaries. Today, the
company runs on SAP ERP and at least a dozen other SAP software solutions, including systems for
governance, risk management, and compliance (GRC). Of significance was the implementation of the SAP
GRC process controls so that the company could better manage key compliance activities across all business
processes, such as compliance with Sarbanes-Oxley (SOX), segregation of duties (SoD) and operational
controls for managing the business. The SAP GRC process control serves as a central repository to store
data from a global control matrix for Lilly’s entire enterprise and improves management of those controls with
automated monitoring. Because Lilly standardized and streamlined the execution of its processes and
business rules throughout the organization, Lilly has become even more efficient and effective as a global
company.

Organizational challenges of globalization: There are several factors to take into account when operating
globally. Organizations must take into consideration a country’s culture, social expectations, and political
laws. These factors often are not part of our domestic policies, but they will add layers to the organization’s
processes, information system requirements, and management strategies.

Business person making global decision on business
strategy
(Stnazkul, n.d.)

MBA 5401, Management Information Systems 3

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For example, a trading company sent out informational brochures to its global investors that included the state
of the company; production statistics; and a strengths, weaknesses, opportunities, and threats (SWOT)
analysis. In the SWOT analysis, the company used a red flag to indicate a problematic area. In the United
States, a red flag symbolizes “danger” or a ”‘warning.” However, in other countries, the red flag symbolizes
political socialism. You can imagine the trading company’s surprise when they were bombarded with e-mails
asking why a socialist revolution (the red flag) was a threat to the company.

Using the example above, we can see why there may be challenges conducting business with global
companies because of language and cultural differences.

Internationalization of business: Many companies do not construct all of their products in the United States.
Apple’s iPhone is an excellent example of how the company relies on suppliers in other countries to
manufacture parts for their phones. For example, some components are made in China, Malaysia, and Japan,
and the assembly of the phones take place in Taiwan. This is only possible because of the advanced
networks and information systems that Apple uses.

A company’s headquarters is not always located in the United States either; they can be in other countries,
such as Germany and Japan, and have local or regional operations in the United States. There are four types
of business strategies and structures that global organizations can use. They are domestic exporter,
multinational, franchiser, and transnational.

Domestic exporter: This is a company that conducts most, if not all, corporate activities in the home country
of origin. Caterpillar is an example of a domestic exporter of construction and mining equipment as well as
heavy duty diesel and gas engines.

Multinational: This type of organization centralizes its financial management and control from within a central
location such as the corporate headquarters. Product marketing, production, and sales are decentralized to
suit local market environments. Intel is an example of a multinational organization because it is headquartered
in California but also operates out of other countries such as Israel and the Ukraine.

Franchiser: This structure relies on local manufacturing and finance, but foreign resources are used to
complete production and marketing. Examples of this structure are companies that manufacture perishable
products. McDonald’s is an example of a franchiser because it operates restaurant franchises throughout the
United States and around the world.

Transnational: This type of organization is truly transnational because it does not have a centralized location
but, instead, operates using regional headquarters or a global headquarters. Activities are managed from a
global perspective and without the confines of national borders. An example of a transnational company is
Sony (Japanese) because it produces its products in other countries to save on manufacturing costs.

Difficulties of Internationalization: In “E-Commerce in China: Opportunities and Obstacles,” a case study
from Chapter 15 of the textbook, a good example is provided regarding how China became one of the largest
markets in e-commerce. E-commerce is strictly regulated in China by the Great Firewall of China. The Great
Firewall of China is a set of rules, regulations, and technologies that regulate the Internet in China, according
to Laudon and Laudon (2020). Chinese consumers have limited or no access to many foreign resources such
as Google, Facebook, Snapchat, and some news sources (e.g., New York Times).

By restricting access to foreign products, the Great Firewall of China forces the Chinese people to purchase
products produced in China, reducing the demand for foreign products. As a result, China is home to several
Internet giants such as Tencent, one of the world’s largest Internet and technology companies and the most
valuable gaming and social media company, according to Laudon and Laudon (2020).

From a cultural perspective, China is home to a large population of online shoppers who tend to be young,
urban, and highly educated. This young generation of online shoppers are huge consumers of apparel, food
and beverages, household goods, electronics, and healthcare products. There are a few select online social
platforms that Chinese consumers can use to discover and evaluate products. But, because of the Great
Firewall, only Chinese retailers are benefiting from engaging with consumers on these social platforms. This
means it is extremely difficult for foreign companies to break through and reach the Chinese population with

MBA 5401, Management Information Systems 4

UNIT x STUDY GUIDE

Title

their products. To make matters even more
difficult, in 2017, China passed a cybersecurity
law, requiring foreign companies to undergo a
security check and to store key data in China.

Foreign companies that can conduct business with
China must deal with the costs of doing business
there. The main issue is the lack of high-quality
logistic providers, resulting in the damage or loss
of merchandise, slow or missing deliveries, and
problems with other essential logistical services.
These logistical issues can significantly increase e-
commerce operating costs and consequently
decrease profit margins.

Summary

Operating a global company is very much like operating a domestic company; both have the same
information system requirements but on a larger and more complex scale. The example of Eli Lilly illustrated
how a company with several subsidiaries could overcome business process issues by implementing a single
enterprise-wide ERP system. By using a single global instance of SAP at all of its locations, the company
became more efficient and effective as a global company.

Global corporations often face challenges and problems when designing, building, and managing their
technology infrastructure. Operating globally means removing a hodgepodge of hardware and software and
arriving at a solution that streamlines the company’s processes to make them more effective and proficient.

There are other challenges to operating globally such as cultural and political differences between countries.
For example, when a company develops a user interface for an application, which language should be used?
Will some colors, graphics, or designs be construed as problematic or perceived differently from what was
intended?

References

Laudon, K. C., & Laudon, J. L. (2020). Management information systems: Managing the digital firm (16th ed.).

Pearson.

Stnazkul. (n.d.). ID 46229114 [Graphic]. Dreamstime. https://www.dreamstime.com/stock-photo-

businessman-making-decision-business-strategy-globalization-concept-image46229114

Tanaonte. (n.d.). ID 115966076 [Graphic]. Dreamstime. https://www.dreamstime.com/padlock-china-flag-

smartphone-china-map-great-firewall-china-concept-padlock-china-flag-smartphone-china-map-
image115966076

Suggested Unit Resources

In order to access the following resources, click the links below.

To reinforce the concepts from this unit, view the Chapter 15 Presentation (PDF for Chapter 15 Presentation).

Your textbook has video cases that correlate with the information being presented in the assigned chapter
readings. You are encouraged to review the video cases relating to Chapter 15 below.

Great Firewall of China Concept
(Tanaonte, n.d.)

MBA 5401, Management Information Systems 5

UNIT x STUDY GUIDE

Title

Global Shop Solutions. (2012, February 7). Lean manufacturing & ERP Success Story: Humanetics and
Global Shop Solutions [Video]. YouTube.

hcbfxurg&index=6&feature=plcp

Transcript Lean Manufacturing and Global ERP: Humanetics and Global Shop video

Oracle Video. (2008, April 3). Daum runs Oracle Apps on Linux [Video]. YouTube.

https://www.youtube.com/watch?v=ayZ3OLmjAp0

Transcript Daum Runs Oracle Apps on Linux video

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