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.
