Operating Globally Through Technology - A Morgan Stanley case study

Operating Globally Through Technology - A Morgan Stanley case study

Introduction

The following case study highlights how utilization of Information Technology has enabled Morgan Stanley Dean Witter to work in a competitive global financial market and maintain a competitive position. Morgan Stanley Dean Witter is a company providing financial services and has an important position in the areas of securities, credit card transactions and asset management. It is a multi-national with four major centers in London, New York, Tokyo and Hong Kong. With the changing demands of information technology and continuous upgradation in the area, Morgan Stanley Dean Witter works for bringing about innovations and acquiring the new technology to operate successfully in the global business environment.

Information technology is an important area for any business. A company needs to stay updated with this technology in order to be successful and achieve the desired outcomes on investments. The following study deals with the securities of a business where securities are assets that can be sold and bought in financial markets. Morgan Stanley Dean Witter is a global financial company that engages in global trade of securities.

Discussion

The Shrinking World

The most important developments that be observed in any business is the globalization of business along with its internationalization where internationalization refers to the involvement in international operations and globalization refers to a belief that the differences in products and their markets around the world are reducing day by day. These trends are reflected in the rapid growth of trade and investments and also the mergers of different companies operating in distinctive countries. This has allowed the companies located in different countries to acquire competitive advantage globally.

Information technology has enabled the financial servicing companies to do trade around the globe, thereby decreasing the number of people who are required to deal with trade. On the other hand, information technology has led to standardization of products and services that has allowed the organizations to increase their efficiency.

However, for any company the differences in regions and cultures cannot be ignored. Morgan Stanley Dean Witter is of the opinion that standardization of services must not affect the unique services the company offers worldwide.

The Changing Environment

One of the basic responses while developing its presence globally is the development of new technology and applying it to the business aspects. This has enabled Morgan Stanley Dean Witter to face the challenges imposed by the global environment. Rapid introduction of new technologies have made the old products and methods obsolete. For this, the company needs to bring about new methods on a timely basis to stay ahead in the market and compete in the market. The company acquires new technology as new innovations come in the market. This helps in increasing the efficiency of global trade.

On the other hand, with the changes in the international financial markets, organizations must acquire the new systems to support the businesses and bring about efficiency and effectiveness. This enables an organization to maintain the competitive ...