Synthesis for Mis

Chapter 9

Global Information System

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I. Why go Global?

The expansion of global markets is a major factor in developing global information systems to handle integrated services. An example of this is a shoe company procures leather and has the upper part of shoes produced in Italy because of the high quality of leather and the expertise in shoe stitching, stitched in China because of inexpensive labor fees, and tested in Ireland because of the availability of high concentration of high-tech facilities. Finally, the shoes are shipped to a variety of retail outlets in the United States where they’re sold. Domestics markets are saturated and there is pressure to raise sales and profits. If the competitor is allowed to pursue its international growth alone, the competitor is likely to plough back some of the earning from its international operations to the domestic market, making it difficult for the companies which refrained from pursuing international markets, to focus on the domestic market.

II. E-business

E-business is a major factor in the widespread use of global information systems. It includes generating demand for goods and services, offering sales support and customer service, and facilitating communication between business partners. The customer is the driving force behind an e-commerce channel; he expects the supplier to offer his products on the web. A website with a high traffic web shop helps significantly in building brand awareness.

III. Global Information Systems

It is an information system that works across national borders, facilitates communication between headquarters and subsidiaries in other countries and incorporates all the technologies and applications found in a typical information system to store, manipulate, and transmit data across cultural and geographic boundaries. As a matter of fact, GIS has been providing solutions and software products to manage asset data, business workflows, and regulatory compliance.

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