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American firms are facing problems and issues in the management of Data Oriented Global Network

American firms are facing problems and issues in the management of Data Oriented Global Network

Abstract
Data oriented global networks are successful in the shift of local competitions towards global competitions as local firms can compete with foreign firms through such global networks. In other words, local companies, generally, possess better knowledge of the particular market and, thus, can compete with the global companies more effectively. Yet, such successful rivalry is only possible if the local company is supported (with resources and finances) by the global parent company: that is if the two firms (global and local ones) form some sort of relationships (parent-subsidiary, partnership, etc). It is very difficult for any these organizations to become truly efficient on the global market if they decide to operate separately. At the same time, by combining their efforts, knowledge, and resources the global/local company can achieve excellent results. Such practices lead to further concentration. For instance, convergence takes place between local mobile operators and satellite networks. The planned Iridium network consists of a number of low-earth-orbiting satellites (LEO) which allow world-wide communication using mobile telephony handsets. Using LEOs one significantly lessens the telephone voice delay which occurs if the transmission has to travel too far from earth.

Hence, the local companies, which are part of the data oriented global networks, are considered as a backbone to the success of these global enterprises. These networks perform very challenging tasks e.g. transfer of data globally, linking all the computers throughout the world via data oriented global network and transfer of data in a timely manner. This study will shed light on issues that have not been discovered prior to this study. These are the issues that are involved in the development of data oriented global network for data communication. In other words, this study will reveal the factors that are essential for the development and success of data oriented global network. Because almost every piece of the IP network may be considered global in the modern world, we have to properly define the "international data communication network" term. It may be described as the system (a group of companies or government establishments) of global networks (different telecommunications systems in various countries) forming the united structure (e.g. mobile operator providing mobile services in a number of countries and using the local service systems in each of these countries) and serving one common goal.

A survey of American data communication companies shows that technical problems are the most common problem in the development and success of an international data communication network. The technical problems are related to the quality of services that foreign telephone network provides and compatibility issues involving hardware and software. We elaborate on this problem later in the paper and explain that the major problems are: old telephone and cable connections in the foreign countries, absence of modern technologies (hence high costs associated with implementation of such), absence of trained workers and managers, slow Internet connection speed, absence of satellite networks or very high costs charged for their usage.

Sometimes, the political pressures do not allow the firms to choose the way to manage their data oriented global network and thus worsening the technical problem. In other words, the local regulations may seriously impede the company's operations. Telecommunications in Developing Countries has been a highly subsidized public service for a long time that benefited individuals and organizations involved in the provision of services as well as consumers. Reversal of this arrangement, initiated by the global companies coming to the emerging markets encounters considerable resistance from telephone workers, equipment providers, politicians, certain customers, and citizens with political preferences for welfare state policies. Opposition from these fairly powerful political actors has often hindered and dismantled reform initiatives. Pressures from civil society, therefore, played a major role in privatization efforts. But resistance is not limited to societal actors. Since privatization implies the dismantling of state agencies and enterprises, there is also a strong resistance within the state itself. In most cases government officials, state managers, and civil servants have resorted to institutional instruments to delay or block the implementation of privatization projects.

Finally, it is the different ownership structure of private and public institutions around the globe that determines many of the differences between the two. Ownership determines the purpose of management by articulating the business goals of the company. In turn, those goals shape the character of the job functions and the measurements for success and failure. In the case of economic institutions, such as a company that provides telecommunications services, one can reasonably speak of a continuum of ownership options available: total ownership by the state, to total ownership by the private sector. There are various alternative arrangements that exist along that continuum, and many economies in transition have decidedly complex arrangements whereby ownership between government and the private sector is shared.


Table of Contents

Introduction 6
Main points 9
Industry review 13
Analysis 13
Results 17
Supplemental Data Collection and Analyses 25
Conclusions and Implications 27


Introduction
Telecommunications Management Network (TMN) used to be a pretty well kept garden, perhaps overgrown a bit with weeds in some corners and under-fertilized in others, but at least there was a sense that things were under control in the telecommunications sector. Governments owned the networks, provided the services, and kept the system running most of the time in the developed world, some of the time in poorer countries (Sarasota Herald Tribune December 30, 2002). Competition did not exist, infrastructure development was tied to public sector budget priorities or regulations, and the telecommunications sector provided the best investments for widows and orphans that Wall Street had to offer. But today`s global telecommunications sector looks more and more like a jungle each day.

The organizational boundaries of the telecommunications sector shift on a daily basis. From internal reorganizations to external alliances and mergers, a pattern of evolution has been set in motion by the policies of privatization and liberalization worldwide. The species and creatures of this jungle are mutating and now provide new kinds of features and service offerings. The biodiversity of the telecommunications jungle is rapidly evolving as well, moving quickly away from the undifferentiated substance of plain old telephone service. In fact, there are almost as many theories about how to use the rich natural resources of this competitive jungle as there are new technologies, companies, and government regulators emerging on the scene. Understandably, telecommunications companies are under tremendous economic pressure and the problem is obvious: too many rivals on the market. Local, long-distance and international markets are all competing for the same business. New calling features and suites of local and long-distance services helped, but the industry suffered a huge blow at the hands of the cable companies, who stepped in to provide complete solutions encompassing computers, televisions and plain old telephone service (POT). Selecting and entering international markets yielded mixed results. That dynamic of change has irrevocably altered the path of telecommunications development and requires a re-examination of the sustainability of telecommunications infrastructures in this new environment. In this regard, the analogy to the sustainability of the jungle is apt and timely. The rainforest, much like a telecommunications network, is a resource. People draw on that resource for the purposes of development. Given the right conditions, the ecosystem can thrive and provide riches for those who protect the forest`s sustainability. But what are the right conditions for this rainforest known as the telecommunications sector?

To take our cues from the language of sustainable development pioneered by the environmental economists and policymakers, what we are looking for is a process for leveraging existing resources while simultaneously protecting them for future use (Fischer 2002). The art is balance. We need to give back to the forest what we take out, or eventually the forest will no longer exist. In many ways, sustainable development for the telecommunications management sector means the same thing as for a tree in a tropical rainforest: Given a sufficient amount of sunlight and water (investment), the appropriate soil (regulation), and a community to feed from and compete with (the market), the trees and various inhabitants of the jungle (telecommunications companies) should grow and thrive. But then humans come along and mess it all up. Slash and burn policies take away from the viability of institutions. New technologies are put on the shelf by companies who profit from existing technologies. Regulators, afraid of losing their jobs to the give and take of market competition, fence off territory and restrict activity (Alexander, 1997). Thinking globally and acting locally takes on a whole new meaning as public and private sector institutions pull resources from the vast ecosystem that is beginning to thrive in our midst.

Background of the Study
American corporations need to globalize in order to gain competitive advantage (Monge & Contractor, 2003; Contractor, N., & Baldwin 2001; Porter, 1990). Strong communication and coordination are required as essential elements for the management of organization globally to perform effectively in the dispersed regions (Monge & Contractor 2001). In order to globalize effectively, financial and operating data is to be transferred globally. The most effective way to transfer the data is to implement a global computer network in which computers throughout the world are connected in a network. Such networks transfer the data in a timely manner. Apart from the capability to transfer of financial and operating data, the computer networks can also play an important role by forming linkage between a firm and its customers and suppliers through inter-organizational systems (IOS). Hence, senior executives should emphasize on the building of global networks to get competitive advantage globally (Katz et al. 2004; Shapiro et al. 2001).

Problem Statement
Several problems may be encountered in the implementation of global computer networks. There has been no empirical research that addresses those problems. There is a lack of information about the type of problems in the implementation of global computer network and the methods to solve those problems (Contractor & Monge 2002; Katz et al. 2004).

Purpose of the Study
The purpose of this study is to find out the solutions of the problems encountered in the implementation of global computer network. Such solutions can be found by gaining knowledge from the experiences of American firms that have established and managed the global computer networks for the data transfer throughout the world. Specifically, a mail questionnaire was used to collect information about both the types of problems typically encountered in establishing such networks and also about the methods found to be successful in overcoming those problems.

Specifically, the survey was designed to collect information about the following issues:
The prevalence and nature of politically imposed constraints on global networks and data flow;
The perceived seriousness of various problems not directly the result of politically imposed constraints;
The effectiveness of strategies for managing global networks;
The extent of top management support for and understanding of the issues involved in global networks;
Degree of success in establishing and managing global networks

To increase the volume, the Telecommunication Companies senior leadership team has developed a bilateral aggressive approach. First, they plan to realize growth through the introduction of new services, primarily to its small business and consumer customers, who will now be served in both local and long-distance markets across the country. To compete with the local telephone and cable companies, Global has created alliances with a satellite provider to offer video services as well as a satellite version of broadband. Partnership with a wireless provider will allow the small business owner anytime Internet access using wireless telephone or PC cards. Even company information hosted in mainframes can be accessed remotely. Second, the senior team has identified cost-cutting measures that will improve profitability. To maximize both of these initiatives, the company plans to market itself more aggressively on an international level with the goal of becoming a truly global resource (Fischer 2002).

This paper was written to try to make sense of the various strategies that connect the development of the telecommunications sector to successful corporate
strategy and good public policy. Many commentators from academic, corporate and public sector circles have drawn connections between advanced telecommunications technology and the potential for economic growth, political participation, and social development. Increased competition has shifted some of the arguments made to guide government regulation and corporate investment policy, but the themes have largely remained the same. All around the world, corporate and public sector managers are still searching for the right combination of competition and development appropriate to the needs of today's customers and tomorrow's global information society. Interestingly enough, one of the newer creatures in this jungle may be able to fight off the predators that roam largely unchecked through the underbrush--and provide a foundation for sustainability (Beltz 1997). Wireless communications, such as cellular, satellite, and wireless local loop technologies, have been developed to provide personal access to the telecommunications infrastructure.
d. Identify two to four potential solutions.
One potential alternative to the present Telecommunication Companies' troubles is a policy called strategic liberalization. Strategic liberalization is defined as the implementation of specific policy measures to increase competition in the market for telecommunication services, such as cellular, wireless local loop, and satellite communications (Beltz 1997). It argues that a strategic focus on wireless communications will provide a sustainable foundation for the continued growth of the telecommunications sector and the successful introduction of new products and services in an environment of facilities-based competition.
But why should public and private sector managers place a strategic focus on wireless communications, as opposed to the variety of other possible access technologies and service offerings that may be made available in an increasingly competitive market? Why should regulators think of wireless communications as more than just an ancillary service to the traditional wire-line network, and understand its potential as a cornerstone for telecommunications development? Those are just the opening questions in this comparative analysis of infrastructure development strategies and discussion of the potential role for new wireless telecommunications technologies throughout the world.

The second solution lies in increasing the quality of the company's IT base. Appropriate level of technology will help Telecommunication Companies win in this over-competitive market. There are a number of ways Information Technology can improve a company's performance. Increased efficiency: if programmed correctly, computers can monitor the data collection processes very efficiency, while also checking for human errors and providing help and guidance to the user. Most medium-scale organizations are using computer-assisted quality monitoring as standard in many of their surveys simply because of the remarkable achievement good data collection programs. Modern computers are fast. They are able to complete tasks 100's of times faster than we would be able to. The average PC can already perform most multimedia functions such as reproducing photographic pictures as sharp as any film.

Telecommunication Companies should use networks to deliver information to employees, suppliers and customers. Computer networks consist of a group of two or more computers systems linked together by communications channels to share data and information. Networks have been in use for more than 20 years (Noam et al. 1994). Microcomputers have made the use of Networks more affordable for the companies like Telecommunication Companies. Networks in use today connect thousands of users. Users of networks can transmit audio video and data. In business it is imperative that companies have the ability to share resources. File sharing enables managers, regardless of location to have access to the same information. Shared databases also eliminate duplication of work. Networks make it possible for companies to run software that will manage all of the companies internal operations. This can include finance, human resources, manufacturing, sales and order distribution and management and procurement. These modules work independently, then exchange information, creating a company wide system that includes current deliver dates, inventory status, quality control and other critical information (Beltz 1997). The cost of technology has plunged since the 1960s resulting in enormous investments in applications that have stimulated increasingly complex organizational changes. Protecting the information stored in computers is not an easy task. With the ever-increasing dependence on computers, companies must develop plans to cover power outages, equipment failure, human error and disasters such as major fires, earthquakes or floods (Noam et al. 1994).

Assessing the alternative solutions
The alternative solutions would be installing the system of information auditing that could enable the management increase its efficiency and, thus, the market share. A system of Information Audit should be implemented by the senior service managers. An information audit is the assessment of the information held by senior managers concerning its information activities (Graham and Marvin 1996). The purpose of an information audit is to assess, not only what types synthetic products a firm may hold, but how well it meets the needs of the clientele as well as of the company in order to gain a competitive advantage over newly emerged rivals with the cheaper production and manufacturing cost and more elaborate management and IT systems. Different components of information feedback may already be controlled, such as naming conventions or security transactions, but in most cases firms have little understanding of the relevance, cost or value of the goods they hold. Therefore in order to ensure that all relevant areas were covered, a formal plan must be first drawn up. To ensure that useful conclusions could be drawn, the objectives and scope of the audit were assessed. These included: What types of competition sources exist? Are company's products still relevant to the market of London area or should other area be considered? Are they currently accessible? Do all managers know they exist? Formal documentation must then be designed, in order to maintain a consistent theme by all involved (Graham and Marvin 1996).

Completing a risk assessment
The institutions that have been constructed to provide telecommunications and information services to the people of the world are under increasing pressure. The pressure from customers is evident in both the developing and developed world: Improve the quality of existing services, lower the cost, and make advanced services more accessible to everyone. At the same time, new technologies are quickly making parts of the traditional telecommunications network obsolete (Sarasota Herald Tribune December 30, 2002). The development and introduction of new services requires a further institutional transformation for the world's private and public telecommunications providers. So there are forces driving the transformation of public and private.

To put it simply, corporate institutions used to be public utilities, either owned by governments directly in single shareholder arrangements or highly regulated and closely watched. The justifications for this approach were based on assessments of the economies of scope and managerial needs of telecommunications providers; high fixed costs made new entry difficult, and the duplication of infrastructure was considered a wasteful investment. Institutional structures were based on those assessments, and highly bureaucratized, highly centralized models for telecommunications development were born (Fischer 2002).
But the technological foundation for providing telecommunications services has been altered by the development of digital switching, transmission technology, computerization, and a host of related innovations. New providers found that the barriers for entry were not as high as once thought. Customers demanded new kinds of services, new kinds of connections and new capabilities that the old copper telephone network could not really support. Now the demands on government institutions are more varied. Government institutions are now being called on to act as investment bankers to provide financing, as arbiters in disputes between competitive adversaries, as repositories of knowledge and capabilities, and as identifiers of new technological developments (Hare 2001). But there are few, if any, models for this kind of proactive governmental institution, and there are many voices calling for the outright abolition of regulatory agencies and government institutions involved in the telecommunications sector. In theory, a highly competitive market should require less regulation, not more. But because there are jobs at stake among professional regulators and government bureaucrats, there will be an increasingly apparent effort to define roles where government institutions can play a credible and active role in telecommunications development.

Presenting the recommended solution and the rationale behind the recommendation

The common agenda that has been defined and enacted over the past 15 years in the global telecommunications sector has been the privatization of state-owned and operated assets and the opening of markets through liberalization. The reasoning for why this agenda has been accepted and implemented throughout the world as a strategy for telecommunications development probably comes down to a simple equation (Hare 2001). New telecommunications technology requires money, and privatization brings in money. So, especially for developing countries hungry for capital and investment, privatization is an agenda to which both corporate and government institutions can agree.
But the values of liberalization are not as clearly defined and are, as one may expect, much more a point of contention (Hare 2001). Because there are so many corporate institutions around that want to play the game and build telecommunications infrastructures, the market should allow them to flourish--within manageable bounds, of course, to ensure that certain social needs are met. But what is the criterion for the common management of telecommunications development in a competitive environment? Until those values are defined and agreed upon by corporate and government institutions, the debate will remain and the contention will hinder our ability to connect telecommunications development with economic growth, social modernization, and political participation.
Identifying the expected impact and value/ Provide a summary of how you would approach implementing the recommended solution and measuring its effectiveness.
It is at this point that we enter the debate in earnest and begin to sketch out the possible responses to the challenges of institutional transformation. It is important to begin, then, with a discussion of the values that underlie the strategies of privatization and liberalization that have been at the foundation of recent telecommunications development programs. From there, various kinds of liberalization schemes can be examined and compared, thereby launching the broader discussion of strategic liberalization as a policy proposition and as the basis for corporate strategy.
Even though public and private-sector institutions are very different, there are a number of similarities when it comes to the problems and techniques of management. A politician, as a representative of the people, chooses to use the authority available to change policy on a given issue (Beltz 1997). A corporate chief chooses to implement one plan over another, and alters the balance sheet and the kinds of products and services available to the community the corporation serves. Both of them are working to control resources in a fashion that serves either their interests or the interest of the community as a whole (Fischer 2002).
Nevertheless, it is the different ownership structure of private and public institutions that determines many of the differences between the two. Ownership determines the purpose of management by articulating the business goals of the company. In turn, those goals shape the character of the job functions and the measurements for success and failure. In the case of economic institutions, such as a company that provides telecommunications services, one can reasonably speak of a continuum of ownership options available: total ownership by the state, to total ownership by the private sector (Graham and Marvin 1996). There are various alternative arrangements that exist along that continuum, and many economies in transition have decidedly complex arrangements whereby ownership between government and the private sector is shared.
In this paper, we have examined two different types of telecommunications players, including media organizations and common carriers. The electronic media organization is in the business of creating information and entertainment content. The nature of information and entertainment product requires that media organizations produce new product in regular production cycles which can be daily, as in the case of broadcasting, or weekly (monthly), as in the case of magazines.

Another kind of telecommunications player is the common carrier which is a company engaged in the business of message delivery. Common carriers transmit messages on a nondiscriminatory basis to anyone who is willing to pay for it. Such messages can include a telephone conversation, facsimile, video conference, and Internet data transmission.

Economics provides an important lens by which to understand the important structures and interplay of forces that occur in the marketplace. This paper argues that different market structures give rise to different patterns of behavior by the firms that operate in them. The term competition can be used to describe the degree of rivalry among sellers or buyers in the marketplace. It can also be used to describe the degree of openness that may exist in a market with respect to the availability of certain products or services.

Elements of market structure term refers to the interaction of buyers and sellers in the marketplace and the structural features that affect the behavior of firms in the marketplace. They include seller concentration, product differentiation, barriers to entry, buyer concentration, and demand growth. Seller concentration describes the number of sellers in a given marketplace. At one end of the marketplace spectrum is the pure monopoly, where there is a single seller who controls the product. In a telecommunications context, a monopoly refers to a single service provider like the local telephone company. The term oligopoly refers to a situation where a few sellers are dominant within an industry, as evidenced by the major television networks of ABC, CBS, NBC, and FOX. Together, they account for 59% to 62% of prime-time television viewing. Pure competition suggests there are multiple players providing service within the marketplace. There is a constant entering and exiting of the field among product and service providers. Current examples include new Internet service providers.

In a market economy, the principal goal for both public and private corporations is profitability and increasing market share. A company's competitive behavior toward its professional rivals says a lot about its professional conduct in the marketplace. This paper has also examined the issue of market conduct in terms of three kinds of competitive behaviors, including product quality and the pursuit of excellence, legislating against the competition, and engaging in anticompetitive behavior.

Supply is the products and services that a manufacturer or service provider is willing and able to sell to the consumer for a select period of time. The classic supply and demand relationship describes the ratio between the availability of a product or service and its corresponding cost. There are five factors that can influence supply and its corresponding cost: a change in technology or method of production, the methods of product distribution, the price of raw materials or product substitutes, a change in the price and availability of related goods, and the expectations of product manufacturers.

A change in the technology or method of production can directly affect supply and its corresponding cost. One such example is the audio compact disc (CD), which has made music production more efficient and less expensive to produce than in years past. One contributing factor is the issue of economies of scale. A company or organization is said to realize an economy scale when the long-term average cost for producing something declines as output increases.

Strategic planning is perhaps the most critical task facing the telecommunications manager in an industry marked by technological change and subject to the whims of consumer demand. The success of any business is dependent on its ability to plan for the future. Media and telecommunications companies will typically adopt one or more of the following growth strategies: horizontal integration, diversification, and vertical integration. Horizontal integration is a strategic growth strategy that allows a business to spread its influence by expanding into different geographic markets while maintaining a commitment to its primary business. The cable television multiple system operator (MSO) provides a good example of a telecommunications industry that operates on the basis of horizontal integration.

Diversification is a growth strategy that recognizes the value of owning a wide variety of related and unrelated businesses. In principle, a company like General Electric that owns a diverse portfolio is said to spread the risk of investment across a large section of the economy. Thus, a downturn in any one business during a fiscal year is more than offset by the company's successful performance in other areas.

Vertical integration represents a third way that a major corporation can strategically plan for its future. Vertical integration presupposes that a large company can achieve greater efficiency by owning multiple aspects of the production process. The goal is to be more efficient and creative by promoting greater operating efficiencies between various operating divisions.

Finally, the field of media and telecommunications is a fast-paced and high-pressure environment. It is a world that is highly competitive where success is measured in rating points, market share, and sales volume. The clear lines and historic boundaries that once separated broadcasting, cable, telephony, and Internet communication are becoming less distinct. A natural convergence of industries and information technologies is blurring those distinctions. As we begin the 21st century, tomorrow's manager will be faced with a different set of industry players and issues than was the case in past years.








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