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TECHNOLOGY ISSUES AND OPPORTUNITIES FOR GLOBAL VALUE CHAINS

Contributor : Rifqi Fajar Khairul

Once firms have defined a global business model and systems strategy, they must select hardware, software, and networking standards along with key system applications to support global business processes. Hardware, software, and networking pose special technical challenges in an international setting.
One major challenge is finding some way to standardize a global computing platform when there is so much variation from operating unit to operating unit and from country to country

COMPUTING PLATFORMS AND SYSTEMS INTEGRATION

The development of a transnational information systems architecture based on the concept of core systems raises questions about how the new core systems will fit in with the existing suite of applications developed around the globe by different divisions, different people, and for different kinds of computing hardware.

CONNECTIVITY 

Truly integrated global systems must have connectivity—the ability to link together the systems and people of a global firm into a single integrated network just like the phone system but capable of voice, data, and image transmissions. The Internet has provided an enormously powerful foundation for providing connectivity among the dispersed units of global firms. However, many issues remain. The public Internet does not guarantee any level of service (even in the U.S.). Few global corporations trust the security of the Internet and generally use private networks to communicate sensitive data, and Internet virtual private networks (VPNs) for communications that require less security.

SOFTWARE LOCALIZATION 

The development of core systems poses unique challenges for application software: How will the old systems interface with the new? Entirely new interfaces must be built and tested if old systems are kept in local areas (which is common). These interfaces can be costly and messy to build. If new software must be created, another challenge is to build software that can be realistically used by multiple business units from different countries given that business units are accustomed to their unique business processes and definitions of data.

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