How Do Information Systems Help Businesses Compete Globally

3 2 How Do Information Systems Help Businesses Complete Globally Des

Describe how globalization has increased opportunities for businesses. List and describe four main ways of organizing a business internationally and the types of systems configuration for global business organizations, including domestic exporter, multinational, franchiser, and transnational models.

Explain the role of business process management (BPM) in enhancing competitiveness. Define BPM and discuss how it helps firms become more competitive. Distinguish between BPM and business process reengineering (BPR). List and describe the steps companies should take to ensure successful BPM implementation, including identifying processes for change, analyzing existing processes, designing new processes, implementing them, and continuously measuring performance.

Explain how supply chain management systems coordinate planning, production, and logistics with suppliers. Define a supply chain and its components. Discuss how supply chain management systems help reduce the bullwhip effect and add value to businesses. Define and compare supply chain planning systems and supply chain execution systems. Describe challenges of global supply chains and how Internet technology can aid in managing these challenges. Distinguish between push-based and pull-based models of supply chain management, and explain how modern systems facilitate a pull-based approach.

Identify challenges posed by enterprise applications and how emerging technologies address these issues. List and describe these challenges, and explain solutions involving SOA, web services, open source software, and wireless technology. Define social CRM and describe how customer relationship management systems leverage social networking to improve customer engagement.

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Globalization has dramatically transformed the landscape of business operations, unlocking new opportunities for companies to expand their markets, optimize supply chains, and improve competitiveness. This phenomenon refers to the increasing interconnectedness of economies and organizations across the globe, driven by advances in technology, reduction in trade barriers, and liberalization of markets. As a result, businesses have adopted various organizational structures and systems to capitalize on these opportunities, each with distinct configurations suited to their strategic goals and geographic reach.

One common way of organizing a business internationally is the domestic exporter model. In this setup, companies focus mainly on their home country market but export products to international markets, often using centralized systems primarily tailored to domestic operations. This model benefits from standardization and economies of scale but can face challenges in adapting to local market preferences. Conversely, multinational organizations operate with separate subsidiaries in different countries, allowing for local responsiveness. These organizations implement decentralized systems that support localized decision-making, marketing, and supply chain management, enabling them to meet regional demands effectively.

The third organizational structure is franchising, where a parent company licenses its business model and brand to local franchisees across various regions. This model relies on standard processes enabled by enterprise systems that ensure consistency while allowing franchisees some flexibility. The transnational model combines elements of multinational and global strategies, aiming for global efficiency while maintaining responsiveness to local needs. Such organizations employ integrated systems across borders to coordinate processes worldwide for optimized performance.

Business Process Management (BPM) plays a vital role in improving organizational competitiveness by enabling continuous process improvement and agility. BPM is a systematic approach to making an organization's workflow more effective and adaptable. It involves modeling, automating, executing, monitoring, and optimizing business processes, thereby increasing efficiency, reducing costs, and enhancing customer satisfaction. This contrasts with Business Process Reengineering (BPR), which focuses on radical redesigns of processes to achieve dramatic improvements. While BPM promotes incremental improvements through ongoing monitoring, BPR advocates for fundamental, transformative changes.

Implementing successful BPM requires a structured approach. First, organizations must identify which processes need change, often driven by strategic goals or performance metrics. Next, analyzing current processes helps uncover inefficiencies, bottlenecks, or redundancies. Designing improved processes involves rethinking workflows and leveraging automation technologies. The implementation phase involves deploying new systems and ensuring staff are trained and support the transition. Continuous measurement through key performance indicators ensures the process remains effective and adaptable over time.

Supply chain management (SCM) systems are crucial for coordinating the flow of goods, information, and finances from suppliers to customers. A supply chain encompasses all activities involved in producing and delivering a product, including procurement, manufacturing, distribution, and logistics. SCM systems facilitate integration and collaboration among partners, enhancing responsiveness and reducing costs. These systems help mitigate the bullwhip effect—where small demand fluctuations at the retail level cause larger variances upstream—by providing accurate, real-time data sharing.

Modern supply chain planning systems focus on forecasting, demand planning, and production scheduling, enabling organizations to align their production with actual market needs. Supply chain execution systems, on the other hand, manage order processing, inventory management, and transportation logistics. Challenges become more pronounced in global supply chains due to differences in regulations, customs procedures, and geopolitical risks. Internet technology and advanced SCM software help overcome these hurdles by providing real-time visibility, improving coordination, and allowing flexible response strategies.

Typically, supply chains operate under push-based or pull-based models. Push systems forecast demand and produce to stock, which can lead to excess inventory or stockouts if forecasts are inaccurate. Conversely, pull systems respond directly to actual customer demand, reducing waste and increasing responsiveness. Contemporary SCM systems leverage just-in-time principles and real-time data to facilitate a pull-based approach, aligning production and distribution closely with actual consumption patterns.

Enterprise applications, while powerful, pose several challenges including implementation complexity, high costs, integration issues with existing systems, and difficulty in managing change within organizations. These challenges can be addressed through strategic planning, stakeholder engagement, and investing in flexible, scalable technologies. Emerging technologies such as Service-Oriented Architecture (SOA), web services, open-source software, and wireless communication are revolutionizing enterprise applications by enhancing interoperability, reducing costs, and enabling real-time data access from anywhere.

Customer Relationship Management (CRM) systems are increasingly incorporating social CRM features that leverage social networking platforms to foster stronger customer relationships. Social CRM combines traditional CRM functionalities with social media tools to better understand customer sentiments, preferences, and feedback. This integration allows businesses to engage with customers more effectively, personalize marketing efforts, and respond swiftly to customer inquiries and issues, ultimately driving loyalty and revenue.

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