Transcript Class 3: Globalization (7/13/2011) - U

MIS 111: Computers and the
Inter-networked Society
Class 3:0 Globalization
July 163h, 2011
News?
2
Content Outline of the Semester
Today’s Objectives
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List one or two current events in technology news
Define globalization
Explain how technology has affected globalization
List two types of globalization
List what “flatteners” have caused globalization
Discuss how globalization has influenced your ability
to compete
If we have time … we will start discussing how the
internet works and basic e-commerce components
Globalization
Globalization
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“Globalization is a process of interaction and
integration among the people, companies,
and governments of different nations”
Globalization
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My opinion:
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Makes you more competitive
You can compete with corporate giants
Creates more jobs
Creates higher-quality jobs
Globalization Phases
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Globalization 1.0
(1492 – 1800) Countries
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Limited by human
labor and
mechanical systems
(wind and steampowered ships)
Globalization Phases
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Globalization 2.0
(1800 – 2000) Companies
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Multi-nationalism
and efficiencies in
transportation and
telecommunications
Globalization Phases
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Globalization 3.0
(2000 – Present) Individuals
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Driven by the 10
Flatteners
Fast!
IT sent globalization into hyper-speed
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“The accelerated speed of global
interaction has telescoped [globalization’s]
impact and the global spread of the media
has made it instantly visible – something that
in the past happened in slow motion and
often out of sight.”
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- “Coming Together”
Internet-enabled
Globalization Effects
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Time
Location
Design and Relationships
Competitive
Internet Enabled Globalization:
Time Effects
Removes time as a barrier to communication
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News travels instantaneously – Zero
Latency
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Allows for easy interactivity, don’t have to
wait for a response to a question
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Asynchronous Buyer-Seller Interactions
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24/7, All Services, All The Time
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Instantaneous Global Access
Internet Enabled Globalization:
Location Effects
Removes geography as a barrier to relationships
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Can find people with similar interests easily
and business requirements
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Shortest Distance From Your Customer Is
One Click, Not Physical Distance
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Economics of Distance (Transportation
Costs) Replaced By Economics of Attention
(Value)
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Players Are Not Tethered to a Physical
Location, Players Can Virtually Travel to
Where The Work Is
Internet Enabled Globalization:
Design & Relationship Effects
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Removes intermediaries (“go betweens”)
and lets individuals and organizations
directly control the message and
presentation
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Harder for controlling authorities to
manage, filter, or spin information
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Makes “perfect information” more
possible
Mass Interactivity – blogosphere, Wiki’s
Customers Acceptance of Computerbased Business Relationships – Trust
without face-to-face interactions
Internet Impacted Globalization:
Competitive Effects
Your competition is the world of online suppliers
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If the world becomes your market, the world
also becomes your competition
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The process of matching suppliers and
buyers can become exponentially more
complex
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Intermediaries can become critical to
facilitate effective commerce
(reintermediation)
Types of Globalization
What is Economic “Globalization”?
You see it through free flows of capital, liberal
international trade, international investments
directly with companies
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“free” and “liberal” mean unrestricted by law,
regulations, tariffs
It happens through international trade,
existence of more multinational corporations
(MNCs), international cooperation, IMF
(International Monetary Fund) or the World
Bank
What is Cultural “Globalization”?
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You see it in different countries through….
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Products (McDonald’s, Levis, sushi, BMW)
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Mass Media (CNN, movies, TV, magazines)
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Language (English, Asian languages, Spanish)
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Values (civil liberties, work hours)
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Connections (personal relationships and
networks)
Key Issue: exposure to other cultures sometimes
leads people to change their own cultures
As discussed in The Lexus and the Olive Tree, so
globalization may be viewed either positively or
negatively, due to its impact on local culture.
Discussion Questions
1. Describe two ways in which you see the
effects of Globalization in everyday life.
2. Describe two ways in which you see that our
world is not completely Globalized.
3. Do you think the world will ever be completely
Globalized? If so, when, and why?
Implications for Business and IT?
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Global competition
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Workforce is changing
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Women, minorities, physically handicapped
Customers are more powerful
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Finding lowest costs of labor is important
Can find info more readily about products
Technology needs to adapt
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Before it becomes obsolete
Reduce information overload
A Product of Globalization
http://www.youtube.com/watch?v=SN9rfrbuPLw
What has led to Globalization
The Flat World
THIS IS RELEVANT TO
YOU!
Thomas Friedman on
Globalization
The World is Flat (2005)
The World is … Flat?
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According to Thomas Friedman…
the world as a level playing field in terms of
commerce, where all competitors have an
equal opportunity.
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Global lines of communication are open
There is a level playing-field in global business
A global Web-based platform has emerged
A global economy has emerged
The world is a single market or community
Ten Forces that Flattened the World
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Fall of the Berlin Wall
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Availability of Netscape
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Automated information system integration
Uploading
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Web navigation for the masses
Workflow Software
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Worldwide markets and communities
Community collaboration
Outsourcing
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Marketplace and workforce specialization
Ten Forces that Flattened the World
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Off-shoring
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Supply Chain Management
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Business process outsourcing
Informing
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Standardization and integration
Insourcing
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Cost efficiency and bypassing trade barriers
Connections through searching
“The Steroids”
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Disruptive technologies – the game changers
Flattener #1
11/9/89 – The Fall of the Berlin Wall
Release of
Windows 3.0
six months
later
Dial-up followed
shortly after.
Flattener #1: Implications
11/9/89 – Fall of the Berlin Wall
Tipped the balance in favor
of capitalism
“Flattened [the market] alternatives to free-market capitalism”
BERLIN WALL BLOCKED OUR VIEW OF THE ENTIRE WORLD AS A GLOBAL ECOSYSTEM.
I’m going to get you!
Now, I’m going to get you!
Flattener #2
8/9/95 – Netscape Went Public
Allowed us to easily drive
around the Internet.
It’s hard to give credit for the
Internet to a specific person
One of the few things that
was created by committee
Netscape started the
dot-com bubble
Netscape helped
guarantee that
open protocols
would remain open.
Led to the overinvestment of
telecommunications
companies in fiber optics
Flattener #3
Work Flow Software
Standardized
Transmission
Protocols
Increased
seamless
communication
Flattener #4
Uploading
Allowed the creation of online communities
• people could participate, instead of just observe
Open-Source
• “nothing more than peer-reviewed science.”
• Blogging
• Citizen Journalists
• Podcasting
• Gold Corp (open-source answers)
• Community-Uploaded Content (Wikipedia)
Think of what we can find on the Internet now…
Flattener #5
Outsourcing
“…always want to be the second buyer…”
• America  India’s intelligence.
• India  dot-com boom fiber-optic network
Brainpower from India  Brainpower in India
EXAMPLES
Healthscribe – medical transcriptions
• Dictations to text via India
Y2K – made America ready to do on a
blind-date with India
India benefited more from dot-com bust
than from boom
Flattener #6
Offshoring
Flattener #6
Offshoring
Flattener #7
Supply-Chaining
“Making stuff – that’s easy. Supply chain, now that is
really hard.”
– Yossi Sheffi, Professor of Engineering Systems at MIT
Implications of Supply Chains:  Wal-Mart is its supply
chain
– Must take advantage of lowest
global prices
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otherwise your competitor will
Shifts concern to total cost of
delivery
 Therefore, must have global
optimization
 Built out of necessity, not so much
out of intention.
 Coefficient of flatness
 Replaced inventory with
information
Flattener #7
Supply Chaining
Flattener #8
Insourcing
Flattener #9
In-forming
THE DEMOCRITIZATION OF INFORMATION
“Google…equalizes access to information – it has no class
boundaries, few education boundaries, few linguistic
boundaries, and virtually no money boundaries.”
The Steroids
Connectivity
Computing Power
Storage
Sharing
New Flatteners Sense 2005
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Cloud Computing available to the common
person
The world is not flat:
People are too sick
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There is no question that poverty causes ill health, but ill health
also traps people in poverty, which in turn weakens them and keeps
them from grasping the first rung of the ladder to middle-class hope
poverty distribution map
malaria distribution map
The world is not flat:
People are too disempowered
They aren’t really getting any of the
benefits
 The anti-globalization movement
Example: China exports
disposable chopsticks to Japan
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Country
Forest
coverage
China
16%
Japan
68%
The world is not flat:
People are too frustrated
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Flat world puts different societies and
cultures in much greater direct contact with
one another
Arabic country:
Americans want to control our oil! Get out of Middle
East!!
United States:
Afghanistan, Iran and Iraq are ‘the Axis of Evil’ !!
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What is the outcome of such direct contact ?
Terrorism and War?
Can I benefit from the flattened
world?
I’m an equal player with
Microsoft!
Benefit From a Flattened World
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http://www.google.com/apps/intl/en/business/
index.html
Insourcing. Google apps can do it all.
Benefit From Globalization
The One Man Corporation
The One Man Corporation
Wet Electronics Don’t Work!
I can sell this!!!
Dry out electronics
The One Man Corporation
Activity
1. Advertising
2. Web site hosting
3. Inventory management
and order fulfillment
4. Product development
5. Office staff; emails, etc.
Personnel Resources
The One Man Corporation
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Advertising
Web site hosting
Application and Web development
Inventory management and order fulfillment
Product development***
With all of the money I make, I’m
going to sit on the beach, so I
need someone to respond to all of
my emails.
The One Man Corporation
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Advertising
Web site hosting
iPhone app development
Web development
Inventory management and order fulfillment
Product development***
With all of the money I make, I’m going to sit
on the beach, so I need someone to respond
to all of my emails.
For Tomorrow’s Class
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E-Business: Components and Money Makers
Read:
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"http://en.wikipedia.org/wiki/Long_Tail
RT chapter 6: 200-223
Tomorrow’s Quiz
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Look at learning objectives for lectures 1, 2,
and 3