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GLOBAL SYSTEMS STRATEGY

Contributor : Reyhan Yusuf Almer





Consider that not all systems should be coordinated on a transnational basis only some
core systems are truly worth sharing from a cost and feasibility point of view. Core systems
support functions that are absolutely critical to the organization.

Define The Core Business Process

The first step is to define a short list of critical core business processes. Business
processes are sets of logically related tasks to produce specific business results, such as
shipping out correct orders to customers or delivering innovative products to the market.
Dealing with these processes is very crucial as these are the fundamental processes which
affect directly the deliverables to the customers. Well-defined core business processes help
organizations to adapt to any market change smoothly, providing at the same time boundless valuable information. The way to identify these core business processes is to conduct a business process analysis. You should be able to identify and set priorities in a short list of ten business processes that are absolutely critical for the firm. Next, You should be able to identify some areas of the company, for some lines of business, where a division or unit stands out in the performance of several business functions. When you understand the business processes of a firm, You can decide which processes should be core applications, centrally coordinated, designed, and implemented on the world, and which should be regional and local.

Identify the Core Systems to Coordinate Centrally

The second strategic step is to conquer the core systems and define these systems as
truly transnational. Let experience be the guide and erring on the side of minimalism. By
dividing off a small group of systems as absolutely critical, you divide opposition to a
transnational strategy.

Choose an Approach: Incremental, Grand Design, Evolutionary

A third step is to choose an approach. Avoid piecemeal approaches.
The Incremental Approach
  • Approach that prioritizes certain elements or subsystems as prioritized
  • This approach does not need to be supported by detailed data on certain priority elements or subsystems.
The Grand Design approach
  • Try to do everything at once, but its difficult to focus resources
An Alternative Approach
  • Evolve transnational applications incrementally from existing applications with a precise and clear vision of the transnational capabilities the organization should have in five years.

Make the Benefits Clear

Global systems truly integrated, distributed, and transnational systems contribute to
superior management and coordination. A second major contribution is vast improvement in
production, operation, and supply and distribution, senior managers can locate value-adding
activities in regions where they are most economically performed. Third, global systems mean
the ability to optimize the use of corporate funds over a much larger capital base. For example,
capital in surplus areas is moved to areas that lack capital so that more finance can be
controlled and efficient

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