1. Factors to be considered before acquiring IS ???

Cultural challenges
Geo-economics Challenges Digital Divide

Political Challenges Network Management Issues

Ethical standards of IT Investments Regulatory Issues

Return on Investment Technology Issues

Complementary Assets Country Oriented Issues

 Assets [supportive values] / Structures and behavior patterns

required to derive greater value from their IT investments.
Organizational
COMPLEMENTARY
Appropriate business model / Efficient business processes
ASSETS
Managerial
Incentives for management innovation/Teamwork & collaborative work environment
Social
Internet & telecommunications infrastructure / Technology standards
RETURN ON ROI = Income-Cost = Earnings Before Interest & Tax (EBIT)
INVESTMENT Cost Capital Employed
1. Adopting codes of conduct
ETHICAL STANDARDS
2. Avoiding regulatory violations,
OF IT INVESTMENTS
3. Aligning values,
4. Managing conflicts of interest.
 Rules of countries which regulating or prohibiting transfer of data across their national
POLITICAL CHALLENGES boundaries.
 Reciprocal(joint) trade agreements of countries
 Physical distances
 Difficult to communicate in real time across the world’s 24 time zones
GEO-ECONOMICS
 Difficult to get good quality telephone and telecommunications service
 Difficult to find specialists from other countries to live and work there
 Great differences in the cost of living and labor costs in various countries.
CULTURAL  Differences in languages, cultural interests, religions, customs, social attitudes, and political
CHALLENGES philosophies.
 Differences in work styles and business relationships.
Unequal distribution in the Access, Use, Impact of ICT
DIGITAL DIVIDE between any number of distinct groups
based on Social, Geographical or Geopolitical criteria,
Because of ICT high cost, its adoption and utilization
 Improving the operational efficiency of networks
NETWORK
 Dealing with different networks
MANAGEMENT
 Controlling data communication security
P ISSUES  Burgeoning growth of data
L  Dealing with transborder data flow restrictions
REGULATORY Managing international telecommunication regulations
A 
ISSUES  Handling international politics
T  User auditability
F  Managing network infrastructure across countries
TECHNOLOGY  Managing international integration of technologies
O ISSUES  Limits on scalability of data management platforms
R  The need for 24/7 data and application recovery services
 Reconciling national differences
M COUNTRY
 Dealing with international tariff structures
ORIENTED
 Lack of qualified people
ISSUES  Data security and transborder data regulations
 Global Customers [people who travel anywhere /companies with global]
 Global Products [Products same throughout the world / assembled by subsidiaries throughout
the world.
IT APPLICATIONS  Global Operations. [Parts of a production or assembly process are assigned to Subsidiaries]
 Global Resources [use & cost of common equipment/facilities/people are share
 Global Collaboration.[knowledge and expertise in a global company can be quickly accessed,
shared,