Globalization and It Case Study

Topics: Strategic management, Globalization, Management Pages: 3 (803 words) Published: December 6, 2012
Case study 2

1. What are some of the forces driving IT organizations to globalize? There are many different reasons for companies to globalize. Companies that have presence all around the world need to fulfill the needs of their global customers, like banks for example. Other types of companies, like manufacturers of goods, want to expand their brands and make a bigger name for themselves in all the important markets. Especially young and new markets where there is great potential for expanding and growing, like in less developed countries. Once you’re established in as a front runner in the new market, then you will have a certain edge against future competition. IT organizations naturally need to expand regularly in order to compete and increase their profits. Another big reason for globalizing is the opportunity to attract stronger and more efficient knowledge abroad, in the form av IT staff and resources, especially if it’s cheaper than in the country where the company is residing in. 2. What are some of the local forces and challenges facing modern IT organizations? A big challenge is that the strategic motivation for globalization in an IT organization is not matched by operational approaches to meet enterprise needs. In order for globalization to be successful the IT strategy and the execution of it must go well together with the business strategy and goals of the enterprise. But this is a very difficult task to get right, especially among IT organizations, which are under constant pressure to innovate, deliver valuable output while also keeping down costs. A big challenge is also the ability for IT to adapt to changes within the organization, to be able to keep up with the ever changing business environment of the world. If this feature isn’t up to par within the organization then it will fall behind its competitors, in terms of pure productivity and efficiency and finally in delivering value. Even though companies are going more global with its...
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