Information Technology - Its Impact on Global Management
Irfan Ahmed, 1Akmal Shahzad Qadri, 2Rana Khurram Shahzad and 3Bashir Ahmed Khilji 1
Iqra University, 5, Khayaban-e-Johar, H-9, Islamabad-44000, Pakistan Netsolace Information Technology (Pvt) Limited, Islamabad, Pakistan 3 National University of Modern Languages, Islamabad, Pakistan
Abstract: 21st century is the century of information technology (IT) and globalization. Information technology is playing its significant role in the betterment of the organizations. This paper explores another very important role of IT on global management i.e., IT helps to redefine the vision of global corporations which is the primary component of global corporate strategy. IT also plays a role in managing the global talent in an environment of cultural diversity and in managing global supply chain management. The paper employs the archival method of reviewing related literature (theoretical, applied and empirical) and organizing and presenting the propositions for future empirical research. Key words: Information Technology % Global management % Vision % Corporate strategy % Global supply chain management INTRODUCTION Advancements in information technology (IT) and the rapid globalization of businesses, both are realities and opportunities of the 21st Century . The term information technology refers to techniques and facilities designed to enable the transfer, storing and processing of data . This includes not only computers but also facilities for mailing services, telephone and fax networks, information centers and libraries. Internet is definitely one of its manifestations. Consumer markets are growing more global every day. Brands like Coca-Cola, McDonald’s and Microsoft are popular not only in USA but also well known across the world. Manufacturing companies have got the opportunity of globalization and today, much of the world’s manufacturers and suppliers are located in the lower-cost countries (e.g. Nike has its manufactures in Thailand and Sony has in China). The Internet has further linked the overseas suppliers of services and goods and their buyers. Internet traffic is increasing day by day and e-business is in hyper growth. At the same time, borders are becoming increasingly extraneous, while people and organizations are intermingling in very different ways . This rapid growth in globalization has demanded the need of integrated strategies in promoting organizational change technology innovation and entrepreneurship [4, 5, 6]. Globalization, at one end, is an opportunity, but at another end it also creates challenges for the multinational companies. Global corporations have two primary challenges; talent management - as they have to share resources and knowledge across a number of business units inside and outside the country  and supply chain management . Moreover, before going global it is very important to have global mindset or global vision. This paper presents the impact of IT on global management. The areas covered in this paper are vision, corporate strategy, cultural diversity and global supply chain management. Construction of the paper is as follows: All areas are discussed one by one. Under each heading, importance of that particular area is discussed with the references of previous literature and case studies and discusses how IT can play a role in supporting or redefining that particular area. After discussion, propositions are made for future empirical study. This study also presents a theoretical framework. Secondary data i.e. previous literature like research papers, research articles and case studies etc., is used to support the arguments. In the end, concluding remarks are given along with limitations and future directions. IT and Global Vision: Global leadership development must be determined by an organization’s global...