3) Globalization:


Today, IS provide the communication and analytic power that firm needs to conduct trade & manage business on a global scale.


* There are many activities that form a major business challenge that require powerful IS response, such as:

- Communicating with distributors & suppliers.
- Operating 24 hours a day in different national environments.
- Coordinating global work teams.
- Servicing local & international reporting needs.



Globalization and IT bring new threats to domestic business firms: because of global communication & management systems; customers can now shop in a world-wide marketplace, obtaining price and quality information 24 hours a day.

To be a competitive participants in international markets; firms need powerful information & communicating systems.