Organizing Global IS Management to Meet Competitive Challenges

Abstract

Despite the widely acknowledged importance information technology plays in multinational corporations, many companies lack an understanding of when and how to (re)organize global IS management. The issues of timing and organization of global IS management, however, seem to be of utmost importance in a company's attempt to implement a new, global business strategy. Based on three case studies from the pharmaceutical industry, this paper analyzes the sequence in which business strategy, organizational structure and global IS strategy/structure should be designed to respond to changes in the competitive environment. Furthermore, it argues that new ways of designing IS management in MNC might be needed to meet the information processing requirements resulting from global business strategies. The paper concludes with suggestions for future research.The relationship between an organization's environment, business strategy and organizational structure on the one hand, and IS strategy and structure on the other hand, has been widely discussed in literature. However, as the competitive environment in most industries has changed dramatically over the last few years and the companies adopt new strategies and structures, more research is required as these changes have not been sufficiently incorporated in the research yet.Over the last few years most industries have become multinational industries. Globalization forces many multinational corporations (MNC) to seek new ways to manage their worldwide operations. In order to achieve economies of global scale, to develop products for worldwide sale, and to provide high quality service to customers around the world, careful coordination of activities across national borders is required (Welge/ Böttcher, 1991; Macharzina, 1992).Despite the widely acknowledged importance information technology has in MNC (Senn, 1994), many companies lack the understanding of when and how to (re)organize global IS management. Although some anecdotal evidence exists on the role IT can play in global firms (Reck, 1989, Runyan, 1989, Carlyle, 1990, the IS strategies and structures needed to support the multinational firm's global business are yet to be systematically investigated. Several authors suggest contingency approaches describing IS strategies/structures that fit certain types of business strategy and organizational structure. But, as Earl/Feeny put it, "the resolution is not as straight forward as speculative practitioner and academic articles suggest" (1992, p. 20). Furthermore, the timing of adapting IS strategy and structure to the new business strategy and organizational structure appears to play an important role but has hardly been considered in literature.This paper addresses the issue of organizing global IS management to meet the new competitive challenges based on case studies from the pharmaceutical industry. The analysis focuses on the sequence in which changes in business and IS strategy and structure are implemented and the way IS management is organized. The Winter 1995 Jour...

Pharmaceutical information: A 30‐year perspective on the literature

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“…The first is the continuing consolidation of pharmaceutical companies into multinational big pharma (e.g., Guay, 1988; Koenig & Mezick, 2004; Spilker, 1994). This has had direct consequences in a need for global information provision and for the merging of services (e.g., Culley, Hoffman, & Slavik, 2000; Di Nallo & Schopfel, 2008; Marsh, 2000; Riggins, Ferguson, Miller, & Gorham, 1999; Robson & Riggens, 2001; Schwartzer, 1995). Similar information‐related issues arise from the creation of alliances of separate companies (Whitehead, Lomma, Tran, Miao, & Pikalov, 2009).…”

Is a Stock Exchange a Computer Solution?

“…An active member of the New York financial academic scene, professor at the Stern School of Business of New York University and then at the Zicklin School of Business at Baruch College of the City University of New York, Schwartz, perhaps more than anyone else, was responsible for the dissemination of academic research, assessment and scientific promotion of the call auction mechanism. Schwartz has also contributed as editor of a number of publications on the microstructure of financial markets and trading technologies (Bloch & Schwartz, 1979;Amihud, Ho, & Schwartz, 1985;Cohen, Maier, Schwartz, & Whitcomb, 1986;Lucas & Schwartz, 1989;Schwartz, 1995), and as a consultant for a number of stock exchanges and related services, including the Arizona Stock Exchange.…”