Information Technology Capabilities for Global Enterprises
Anonymous

Question Description

Developing global IT capabilities.pdf
Core IS capabilities for exploiting information technology.pdf

Supported by the readings from above link and at least three additional scholarly references:

  1. Identify and analyze what managers can do to accomplish core Information Technology capabilities.
  2. Describe the issues and challenges faced by managers in managing information systems in a multinational corporation.
  3. Summarize what managers can accomplish with core IT capabilities and how managers can exploit IT capabilities to address the issues and overcome the challenges in a global enterprise.

Paper should be 3 pages in length, well-written, and formatted according to APA Requirements.

Unformatted Attachment Preview

IT STRATEGY AND INNOVATION DEVELOPING GLOBAL IT CAPABILITIES William R. King O GLOBAL AND MULTINAtional companies that espouse a global strategic vision for themselves actually enact that vision? Further, do those that do implement their global strategic vision develop global IT capabilities to support the vision? If they do, what are the most important mechanisms through which global IT capabilities are developed? These were the three questions that Dr. Paulo Flor of Deloitte & Touche and I asked in a research study we conducted among 130 U.S.-based multinationals. Answers to the three questions are key to understanding how companies are evolving toward globalization and what role IT plays in their evolution. D THE RESEARCH MODEL The research model shown in Figure 1 is a global IT capabilities development model, not a business process model. (In a business process version of this model, some arrows might go in the other direction.) It relates the firm’s global strategic vision to the enacted global business strategy, which, in turn, drives the development of global WILLIAM R. KING holds the title university professor in the Katz Graduate School of Business at the University of Pittsburgh. He has served as president of TIMS (now INFORMS), founding president of the Association for Information Systems (AIS), and editor-in-chief of MIS Quarterly. 78 IT capabilities. In the study, we set out to determine if this model is actually valid. The data were gathered using a questionnaire survey of two persons in each firm — a senior executive who could provide information concerning the strategic vision and enacted strategy and a senior IT executive who could provide information concerning IT capabilities. The data were analyzed using a sophisticated statistical technique called structural equation modeling (SEM).The results were quite interesting. DO COMPANIES ENACT THEIR GLOBAL VISIONS? We concluded that, in the main, the answer to the first question is “yes.” Companies that talk about their global strategic vision actually do many things to enact that vision.This means that they operate in a globally interdependent manner in terms of four types of resources: physical, information, human, and financial. In other words, companies that are enacting a global strategic vision exchange these resources among national entities on a regular, as well as an “as needed,” basis. Companies that haven’t enacted their global vision exchange these resources less regularly and frequently or, in the case of information, only in a limited fashion. The only resource category that global enactors fall short on is physical resources, which means that information, human, and financial W W W . I S M - J O U R N A L . C O M F A L L 2 0 0 6 exchanges are much more common than are exchanges of products, raw materials, machinery, etc. This result cannot be said to be unexpected, but it is clear that for many years, not all companies that spoke about globalization enacted that strategy. Now, it seems that they do. DO THESE COMPANIES DEVELOP GLOBAL IT CAPABILITIES? The answer to the second question is also positive. Companies that have a global vision and enact that vision tend to develop more, and more sophisticated, IT capabilities. IT capabilities were measured in terms of the extent and importance of IT planning, the range and reach of their communications networks, and the level of IT support services they provide. This conclusion is not at all unexpected because IT is necessary if a complex organization is going to conduct and coordinate the extensive resource exchanges that characterize truly global enterprises. WHAT ARE THE MAIN DRIVERS OF GLOBAL IT CAPABILITIES? In terms of global IT capabilities, we found that companies that meet the first two criteria (e.g., have a global vision and enact it through resource exchanges) indicate that human resource and information exchanges are the main drivers of global IT capabilities, assessed in terms of IT planning and IT STRATEGY AND INNOVATION FIGURE 1 Global IT Capabilities Development Model Global Strategic Vision the range, reach, and level of support services they provide. Other types of resource interdependence do not affect the development of IT capabilities nearly so much. This result suggests that the increased flow of people across the multinational company has prompted firms to develop a set of shared IT capabilities to support their information needs. Managers traveling across borders must be provided with a set of shared IT capabilities that allow them to perform their tasks efficiently and effectively. For example, data must be standardized across units for easier understanding and interpretation by the people transferring to, or visiting, these units. Similarly, network connectivity must be made available for easier and faster communication of managers in the various national units Enacted Global Business Strategy Global IT Capabilities of the multinational company. In this sense, the needs and requirements of people moving across the boundaries of the national units has been a primary motivator for the development of a global IT infrastructure. However, the need to share information, independent of the demands created by the flows of people, is also a great motivator of global IT capabilities. SUMMARY This study’s results suggest that globalization is real in every sense. Companies that state that their objective is globalization proceed to enact that strategy. In doing so, they develop global IT capabilities to support the extensive resource exchanges that are required by globalization. Because the primary drivers for developing these IT capabilities are I N F O R M A T I O N S Y S T E M S F A L L 2 0 0 6 M A N A G E M E N T the exchanges of human resources and information that are required in a globalized company, this suggests a strategy for firms that wish to globalize or to speed up the globalization process: ❚ Transfer people between national units in substantial quantity and often ❚ Develop standardized information that must be exchanged among units or between units and headquarters Because people who are transferred undoubtedly drive information exchange and standardization, independent of the requirements placed on units by upper management, it seems that people exchange is the real key to globalization. 79 Core IS Capabilities for Exploiting Information Technology Feeny, David F;Willcocks, Leslie P MIT Sloan Management Review; Spring 1998; 39, 3; ProQuest pg. 9 Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. Reproduced with permission of the copyright owner. Further reproduction prohibited without permission. ...
Purchase answer to see full attachment

Final Answer

henryprofessor (62985)
Carnegie Mellon University

Anonymous
The tutor was pretty knowledgeable, efficient and polite. Great service!

Anonymous
Heard about Studypool for a while and finally tried it. Glad I did caus this was really helpful.

Anonymous
Just what I needed… fantastic!

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors