18 Jun 2022

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Management of Global Business

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Academic level: University

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Information technology has become the core of many businesses regardless of the industry in which these firms operate. Majorly, the reason for increased use of technology in business processes is the higher rate of digitization of many functions that make it impossible for an organization to do without information technology. Furthermore, information technology is at the center of competitive advantage in such a way that it provides leverage that many companies can rely on in order to drive their growth. As it has been demonstrated in many business organizations, adoption and operation of information technology is usually spearheaded by management in collaboration with the relevant departments. Both small and large organizations have resorted to IT in order to survive competition in the ever changing digital world. 

When it comes to business information technology, there are many challenges, but key among them is data security and interoperability of different technologies to attain maximum customer satisfaction. Data is one of the most important assets for any business organizations because business decisions including strategies and financial management are made based on the available company information. Traditionally, malicious hackers used to target huge organizations only but that has changed over time because even systems for small companies are attacked (Hasib, 2014) . An organization is formed by integrating different business processes together to work as a single unit. Because globalization involves integration of various business units finance, human resources, manufacturing, sales and marketing across the boundary, it poses a big threat to an organization. As business information flow is automated through IT, it touches on numerous functionalities including business intelligence, enterprise application, transaction processing and other core business functions. 

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Some of the typical scenarios under which data security is of great importance for globalized businesses include addition of new geographical locations, mergers and acquisitions, integration of new technologies, hiring of new executive employees, and bringing on board of new third-party vendors. In globalization, new locations are usually added in order for the organization to serve its local customers but different data security considerations must be checked (Hasib, 2014) . The new location may not meet the established cyber security standards or the employees in the location may not be competently trained in terms of security awareness. Due to the above limitations as a result of information technology it becomes a challenge for an organization to expand to new locations. 

With the ever changing business environment implementation and adoption of new technologies poses a bigger challenge to business organizations because management needs to maintain acceptable cyber security at the same time. This limitation means that some efficiencies and interconnectivity cannot be attained because of data security concerns. 

Due to the increase in cyber-attacks in different countries because of mergers and acquisitions that emanate from globalization, Companies have added another security layer of scrutiny. Regardless of the different entities involved in mergers or acquisitions, cyber security risks must be evaluated in terms of business valuations and impact (Hasib, 2014) . Also, as technologies evolve in globalization so will vulnerabilities and security gaps in data security. To address this challenge, organizations need to know which technologies that they currently use the level of vulnerability for the technologies and the effort needed to secure the business information technology against intrusions and data breaches. Lastly, it is important for any global organization to have the culture of data privacy right from the top in its internal governance structure. With such a measure in place, the organization will be aware of the existing cybersecurity posture when any new location is added to the business. 

Reference 

Hasib, M. (2014).  Cybersecurity leadership: Powering the modern organization . Lexington, KY?] : [CreateSpace?], 

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StudyBounty. (2023, September 15). Management of Global Business.
https://studybounty.com/management-of-global-business-essay

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