One might think, given the opportunities for achieving competitive advantages as outlined previously and the interest in future applications, that most international companies have rationally developed marvelous international systems architectures. Nothing could be further from the truth. Most companies have inherited patchwork international systems from the distant past, often based on outdated concepts of information processing, with reporting from independent foreign divisions to corporate headquarters, manual entry of data from one legacy system to another, and little online control and communication. Corporations in this situation increasingly face powerful competitive challenges in the marketplace from firms that have rationally designed truly international systems. Still other companies have recently built technology platforms for international systems but have nowhere to go because they lack global strategy.
As it turns out, there are significant difficulties in building appropriate international architectures. The difficulties involve planning a system appropriate to the firm’s global strategy, structuring the organization of systems and business units, solving implementation issues, and choosing the right technical platform. Let’s examine these problems in greater detail.
Source: Laudon Kenneth C., Laudon Jane Price (2020), Management Information Systems: Managing the Digital Firm, Pearson; 16th edition.
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