Concepts and Models 2nd Half of Course

1
Concepts and Models2nd Half of Course

• Issues in International Information Systems
• Winter 2003
• (As of March 18, 2003)

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Internet and Traditional Advertising
Chapter 12 Palvia and Vemuri
Criterion Driver Hyperlinks View
Timing Effectiveness Measures Control over
Exposure Time Interactivity Image Pay for
Performance Targetting
Traditional Advert Advertising None View when
Broadcast None or little based on samples
focus gps. Determined by advertiser except in
print media None Perference for upscale Not
normal Limited
Internet Advert Contents Network of HLs View on
demand All hits recorded based on actual
data Determined by web surfer upon use As much as
desired Preference for relevance Increasingly
tied Multiple paths for targetting
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Global E-Commerce Predictions
Chapter 12 Palvia and Vemuri

• Intermediaries will decrease (disintermediation)
• Disintermediation will be more rapid in service
  industry
• Disintermediation is sensitive to product and
  service characteristics
• Promotions will inhibit disintermediation
• New intermediaries will arise (navigators, eg.)
• Logistics and Distribution are enhanced by
  E-commerce (fulfillment functions)

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Critical Success Factors for Global E-Commerce
Chapter 12 Palvia and Vemuri

• High tech also requires high touch
• Globalize operations, but localize service
• Simplify and expedite transaction process
• Foster trusting relationships with among
  customers
• Focus on convenience, info, intermediation,
  pricing
• Get yourself found often and on top in portals
• Plan to evolve to transactions

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Types of Websites
Chapter 12 Huff Wade
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The Richness-Reach Tradeoff-1
Chapter 12 Evans Wurster
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The Richness-Reach Tradeoff-2
Chapter 12 Evans Wurster
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The Richness-Reach Tradeoff-3
Chapter 12 Evans Wurster
Attempting to increase richness incurs costs,
which lower the available distribution reach
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The Richness-Reach Tradeoff-4
Chapter 12 Evans Wurster
The new media BREAK the relationship between
richness and reach. No reasonable move to
increase richness or reach will have any real
cost and hence no effect on the other
characteristic.
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Intermediation
Chapter 12 Licker
BUYER
SELLER
Owners of the market space get a fee for this
intermediation service.
SIMPLE INTERMEDIATION
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Intermediation-2
In the traditional marketspace, the owners
provide safety, security, standards,
replicability, recording, transportation, etc. to
increase the confidence of buyers and sellers.
Chapter 12 Licker

Each of these represents a business opportunity
BUYER
SELLER
These complex interactions result in a hierarchy
made possible by layers of intermediation
COMPLEX INTERMEDIATION
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Intermediation-3
A more complex form of intermediation is being a
navigator among brokerages
Chapter 12 Licker
HIERARCHY
One possibility for intermediation is brokerage
BUYER
SELLER
An even more complex form of intermediation is
trraining or consulting in how to use navigators
COMPLEX INTERMEDIATION GIVES RISE TO HIERARCHIES
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Intermediation-4
The user can take over many of the intermediation
functions, resulting in dis-intermediation
hierarchies are broken down and the market space
is recreated
Chapter 12 Licker
MARKET SPACE
Assuming the user has the tools and the skills
and the opportunities
As Internet replaces the Hierarchies of the
Marketspace, the user becomes empowered
BUYER
SELLER
DISINTERMEDIATION
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Intermediation-5
Providers can find niches within the interstices
and reintermediate the market space,
reintroducing hierarchical structures.
Chapter 12 Licker
MARKET SPACE
However, the complexity of the Internet creates
more interstices.
BUYER
SELLER
REINTERMEDIATION
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Culture and Global E-Commerce
Chapter 13 Kaarst-Brown and Evaristo
International/Cross-national
National
Regional/Industry
Firm
Individual(?!)
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Managing SME Globally
Chapter 14 Tetteh and Burn
Virtual Face
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Key Attributes of the SME Environment
Chapter 14 Tetteh and Burn
Size No. Employees, branches, assets,
turnover Market Share of market, product mix,
geo span Activities Nature of activities,
information intensity of Processes activities
products, mediation level Linkages No. of
strategic partners, nature of partner- ships,
contractual arrangements Locational Spread of
branches, range of time zones, Diversity Extent
of synchronous working
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Customer Product Life Cycle
Chapter 14 Ives Learmouth 1984
On-line Advertising and Customer Awareness
Campaigns
Ordering And Payment
Selection And Customization
Delivery (Fulfill- Ment)
Info Search Data Transfer
Workflow Management
Installation And Custom User
Relationship Manage- ment
After Sales Services
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Pareto and the Digital Divide
Chapter 14 Licker
Each economy can be characterized by a
coefficient x such that x of the wealth is
controlled by 100-x of the population. Where
opportunity is equally available and skills are
equally distributed, x50 (Blandania). Where
only a few elite have skills and opportunity, x
approaches 100 (Dystopia). In a typical free
market economy, x is between 70 and 80.
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Issues for Community Website Development
Chapter 15Mason Milne
Content Source Developers or Community?Acceptab
ilityRisk Is community ready to accept risk of
change?Commitments Does the community have the
time to commit?Cultural Values Clash between
open information and closed societal values wrt.
InformationRewarding Efforts Unequal costs and
rewards create problemsMeasurement What are the
effects? Is the website successful? How do we
know?
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Dual Interest Web Methodology
Chapter 15Mason Milne
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4-Stage Attitude Change Model
Chapter 15, Yale University
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Attitude, Behavior Change and E-Commerce
Chapter 15, Licker

• Attitude Change Model
• Attention
• Comprehension
• Yielding
• Action/Behavior

• Website/E-commerce
• User has got there by own actions strong
• Literacy, language, culture are hurdles
• Multimedia, interaction, links are advantages
• Can initiate buying, ful-filment of intellectual
  services

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Global IS Development Strategies
Chapter 16, Akmanligil Palvia

• Development with a multinational design team
  (MDT)
• Parallel development (PD)
• Central development (CD)
• Core vs. local development (CL)
• Best-in-Firm Software adoption (BIF)
• Outsourced custom development (OD)
• Unmodified package software acquisition (UP)
• Modified package software acquisition (MP)

-- in practice all acquired packages are
modified to some extent
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Evolution of Global IT Development
Next, the firm either adopts best-in-firm (BIF)
or puts together a multinational design team
Which is really just another way of exercising
core control
Chapter 16, Licker see also Ch. 18
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Categorizing and Selecting GIS Development
Strategies
Chapter 16, Akmanligil Palvia
Orgl Characteristics Attitudes,
constraints structure
System Characteristics Commonality, size,
technology appln type, criticality

• Domestic vs. International Team
• Package vs. Custom Approach
• Internal customization
• External customization

HQ/Subs. Diffs Technical, requmts, culture
IS Dept. Charstics Maturity, staff skills
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Risk Assessment
Chapter 16, Licker
Risk Sum (risk factors) Risk Factor
Probability of harmful event Probability that
event will cause harm Cost of harm.
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Risk Assessment
Chapter 16, Licker
Risk Factor Probability of harmful event
Probability that event will cause harm Cost
of harm.
Our exposure this year to this particular risk
factor is the product of 0.5, 0.03 and
1,000,000, which is 15,000. Hence we should
spend up to 15,000 to counter or reduce this
risk.
Note These numbers and values are not static
and may change abruptly or over time. All
estimates are controversial and subject to debate.
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McFarlans Risk Analysis
Chapter 16, McFarlan

• Risk is due to three factors Size of project,
  technology gap and project definition stability.
• Global projects are all large
• Global projects are all subject to strong
  technology strains thus increasing gap
• Global projects are generally fluid and have
  multiple parties and interests and are subject to
  many stresses
• Thus global project risk is always High.

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Transnational Implementation Tactics
Chapter 17, Janz, et al
Mass customization Global Supply Chain
Management Global Intelligence and Information
Resources Global Customer Service Global Alliances
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Evolution of System Architectures
Chapter 17, Licker
Integrated architectures enable virtual center
to create global teams and projects while
responding to local demands and needs yet working
in concert with other localities
Deentralized architectures enable independence of
peripheral (local) IT groups to respond to local
demands
Centralized architectures enable tight control by
the center
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Evolution of Global Structures
Chapter 17, Licker
Pressure (Response) towards Localization
Low High
Pressure (Response) towards Globalization
Low High
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Global Software Teams
Chapter 18, Carmel
Cohesion
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Global Software Teams -- Advice
Chapter 18, Carmel
Encourage lateral communication and
coordination Be more formal, yet more informal,
too Give everyone a 360o view Establish trust
early in the project and foster it
throughout Establish a team memory Be aware of
culture and language
Items in red are especially important in global
software teams
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Migration through Global Business Strategies
Chapter 19, Lehmann Licker
Global
Trans- national
Low Global Control High
Inter- national
Multi- national
Low Local Autonomy High
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Grounded Theoretical Approach
Chapter 19, Lehmann
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Example of a Local Theory
Loop of Cause and Effect Rejection/Re
action Cycle
Chapter 19, Lehmann
IS Initiative
Rejection of Global IS
IS by Force
Global IS Design
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Coordination Control
Chapter 20, Simon

• Getting specialized parts to work together
• Counters independence coincides with need for
  integration
• Information sharing

• Getting the organization as a whole to adhere to
  a target
• Reduces uncertainty, increases predictability
• Standardized reporting procedures
• Formalization, rigid rules and regulations
• Closely related to strategy

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Enterprise Resource Planning Systems
Chapter 20, Simon
RedundancyCommunication
Issue Coupling
Central Data Base
Modular Servers
Functional Clients
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A Framework for Enterprise Information
Architecture Fit
Chapter 20, Simon
Global International(tightly centralized
dispersed) Multinational Transnational(semiauton
omous networked)
Need Hi for Con- trol Lo
Low Need for Coordination High