Kind of Challenges by Global Information System

Contributor : Mochammad Yusuf Fanany

Global Information System bring a shiftment between the rule of business strategy, changing the process of business. Internet is a representation of openness and speed, which is people can access almost everything in internet and it cut a lot of times to access something. In the other side, Global Information System bring many advantages for company who wanted to expand their own business across the world and able to keep that company worked even in many miles away. But, what is the challenge should the company face for them who wanted to use this system?

Technology Challenge

Not every country has capable infrastructure technology to make international information system. Because every country has their own bandwith size, some country has small bandwith for full-designed graphic and website animation.

 Language and Cultural Differences

Each country have their own language and culture. Not every country can be applied with one country’s strategy, because what some country considered right, not considered right in other country. It means, every country has their own strategy based on the culture so the people in that country will feel related with the company who adopting the country’s nature characteristic.

 Rules and Rates Differences

Every country’s government has their own regulations to control things in their country. In this case, for company who wanted to expand their business in the country should follow the rules of the country. But sometimes, the rules aren’t profitable for the company. The rates also has their own difference. Here are what the company should consider to make branches around the world.

Distance and Time Challenge

Time differences is a challenge for people to communicate with others that resides in a different part of the world. The products may have a delivery time of days, weeks or even months to be received to other countries. This creates delays and disruption with business transaction which causes employees and customers located in different countries to have difficulty with getting connected. VF, an apparel manufacturer company has formed an idea of constructing “new communication tools that make it easier for everyone to work together”. (reading review1) By doing this, it allowed them to combat these challenges and provided a solution they need to increase the longevity of their company.

 Payment Mechanism Differences

With the foreign trade, made possible the exchange of the currency of a country with another country’s currency. For example, an Indonesian importers to buy goods from a US exporter, the payment is made using American currency or the dollar, but the currency applicable to an importer is Rupiah. So an importer in implementing the payment had to buy dollars first on a foreign bank with the prevailing exchange rate, then transferred to exporters in the United States. on the other hand they make payments via credit and cash. However, this practice is not widespread in other parts of the world. The high rate of stolen credit cards, especially in Eastern Europe, the risks attached to these payments and deter potential online customers. Also, most Europeans prefer to use debit cards rather than credit cards. And the solutions can be, Web sites for international firms must have multiple payment mechanisms.

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