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QUESTION:

What are the challenges posed by global information systems and management solutions for these challenges? Provide an example of a global information system and discuss the key management challenges.

RESPONSE:

Global information systems are very important for multinational companies because they let people in different parts of the world receive communication and data. However, using and managing these tools comes with a number of problems.

Differences in culture are a big problem. Languages, business methods, and cultural norms vary from country to country, which can make it hard to understand each other and communicate $($Laudon & Laudon, $2021).$ To get around this, businesses can give training in cultural awareness and localized versions of their systems to make the user experience better.

The protection and safety of data is another big problem. Data security laws vary from country to country, like the General Data security Regulation in Europe. This makes it hard for businesses to manage data consistently $($Laudon & Laudon, $2021).$ Setting up a strong data governance system with clear rules for security and compliance is a good idea. This will help keep sensitive data safe while also following local rules.

Adding data and processes from different places that may use different systems can also cause problems with integration $($Laudon & Laudon, $2021).$ In order to deal with this, businesses can use middleware to combine different systems and standardized protocols to share data.

Also, each country has a very different tech infrastructure, which can affect how quickly and reliably data can be viewed $($Laudon & Laudon, $2021).$ Before building the IT framework they need to run their global operations, companies should look at the technology available in each area. Cost management can also be hard because economies in different areas aren't always the same $($Laudon & Laudon, $2021).$ Skillful project management and the use of cloud solutions can help businesses cut costs and grow or shrink as required.

A good example of a world information system is SAP ERP, which stands for "Enterprise Resource Planning." Putting together areas like finance, supply chain, manufacturing, and human resources into one system helps companies run a variety of business processes in different places. But putting SAP ERP into place can be hard and take a lot of time; different teams need to work together $($Laudon & Laudon, $2021).$ A phased implementation method can help you handle the process better and make changes based on what you hear.

Another problem is that workers might not want to use a new system because they don't know how to or are afraid of change $($Laudon & Laudon, $2021).$ Giving people a lot of training and letting them help with the implementation process can make this change easier. Also, businesses often need specific changes to make it work for them, which can make it cost more and take longer to set up $($Laudon & Laudon, $2021).$ Management should find a good mix between using SAP's built$-$in features and making changes as needed.

Lastly, moving data from older systems to SAP ERP can be hard because of issues with data quality and compatibility $($Laudon & Laudon, $2021).$ Making a thorough plan for moving data that includes cleaning and verifying data can help make sure that the transition goes smoothly. In conclusion, global information systems like SAP ERP help multinational businesses communicate and share data more effectively. However, they also have some problems that need to be carefully managed in order to be put into place and used effectively.

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