Transcript Slide 1

Fueling Globalization
through Information
Systems
“The idea of charging for calls belongs to the last
century”
Niklas Zennström, Skype
2-1
Learning Objectives
• Define globalization, describe how it
•
•
evolved over time, and describe the key
drivers of globalization.
Describe the emerging opportunities for
companies operating in the digital world.
Explain the factors companies have to
consider when operating in the digital
world.
2-2
Learning Objectives
• Define globalization, describe how it
•
•
evolved over time, and describe the key
drivers of globalization.
Describe the emerging opportunities for
companies operating in the digital world.
Explain the factors companies have to
consider when operating in the digital
world.
2-3
World is Flat Video
• www.cb.wsu.edu/~pclay/CSPAN
Friedman-1.wmv
Globalization
• Globalization
created a new world
characterized by:
o Worldwide
communication
o Collaboration
without barriers
2-5
Evolution of Globalization
• Mainly
•
•
•
Globalization 1.0
European
countries are
globalizing
Power is the
primary driver
Industries
changed
Slow pace of
change
2-6
Evolution of Globalization
•
•
•
Globalization 2.0
Companies are
globalizing
Reduction in
transportation
and telecommunications
costs
Mainly Europe
and America
involved
2-7
Evolution of Globalization
Globalization 3.0
•
•
•
Individuals
and small
groups are
globalizing
Fast changes
Emergence
of new
industries
2-8
Evolution of Globalization: Summary
• The World is Flat (Thomas Friedman)
o “10 Flatteners”
o Key factors enabling globalization 3.0
2-9
Flattener #1: The Fall of the Berlin Wall
•
•
•
November 11,
1989
Fall of
communism
People from the
former communist
countries gained
more freedom
2-10
Flattener #2: Netscape Browser
THEN
• November
9, 1995
• First
•
NOW
mainstream
browser
Gave
individuals
access to
Internet
2-11
Flattener #3: Work Flow Software
•
•
•
Applications that
allow people
worldwide to
communicate
XML allows
applications to
“talk” to each
other
New possibilities
for information
sharing
2-12
Flattener #4: Supply Chaining
• Integration of
•
•
retailers,
suppliers, and
customers
RFID tags
used
Wal-Mart
became an
early leader
2-13
Flattener #5: Open Sourcing
• Software and
source code
freely
available to
everyone
• Wikipedia a
huge success
2-14
Flattener #6: Outsourcing
•
•
Outsourcing
companies
profited from the
drop in
telecommunications costs
Companies can
now use talented
engineers from
anywhere
2-15
Flattener #7: Offshoring
• Companies set
up entire
factories in
countries such
as China
o Mass production
o Low Costs
2-16
Flattener #8: In-Sourcing
• Delegation of
company’s key
operations to a
subcontractor
o E.g.: UPS
provides
complete
supply chain
solutions to
companies
2-17
Flattener #9: In-Forming
• In-Forming is to
•
individuals what
outsourcing,
offshoring, and
in-sourcing is to
companies
Individuals have
access to
massive amounts
of information
2-18
Flattener #10: The Steroids
• Technologies that
support different
types of
collaboration
o Greater mobility
o Convergence
2-19
Learning Objectives
• Define globalization, describe how it
•
•
evolved over time, and describe the key
drivers of globalization.
Describe the emerging opportunities for
companies operating in the digital world.
Explain the factors companies have to
consider when operating in the digital
world.
2-20
Opportunities of Operating in the
Digital World
• Opportunities of
Reaching New
Markets
o Former Eastern
Block countries
provide new
opportunities for
international
companies to
reach new
customers
2-21
Opportunities of Operating in the
Digital World
• Opportunities of
a Global
Workforce
Engineering Graduates in the US,
Europe and India
o Low
communications
costs
o Highly-skilled
labor pool
2-22
We are at the beginning of the IT Revolution!
• All products that can be digitized can be
broken apart and reassembled
• Work (and jobs) will flow to where it can be
done cheapest (e.g., China)
• NO career or industry is immune!
• New technologies and improving infrastructure
will fuel great change
• Learn to be “horizontal” for success – who /
how you collaborate
Learning Objectives
• Define globalization, describe how it
•
•
evolved over time, and describe the key
drivers of globalization.
Describe the emerging opportunities for
companies operating in the digital world.
Explain the factors companies have to
consider when operating in the digital
world.
2-24
Challenges of Operating in the
Digital World
• Globalization also created a set of
unprecedented challenges:
o Governmental challenges
o Geoeconomical challenges
o Demographic challenges
o Cultural challenges
2-25
Governmental Challenges
• Political System Challenges
o Political stability
• Regulatory Challenges
o Tariffs
o Embargoes
o Export regulations
o Quotas
2-26
Governmental Challenges II.
• Data-Sharing Challenges
o Transborder data flow regulations
• Internet Access and Individual Freedom
o Content blocking by governments/censorship
• China – Use of VoIP restricted
• Germany – Sites with fascist symbols prohibited
o Internet access blocking
• Cuba, North Korea
2-27
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Worldwide Internet Usage
In 2006 about 20% of active Internet users located in
the US
The Internet usage
o Highest - North America: 70% of population
o Lowest – Africa: 2.6% penetration of use
1-28
Geoeconomic Challenges
• Time Zone Challenges
o Real time meetings across continents difficult
o Working around the clock possible
2-29
Geoeconomic Challenges II.
• Infrastructure-Related Challenges
o Traditional infrastructure – roads, electricity
o Connectivity – reliable Internet connections
• Challenges Related to Economic Welfare
o GDP growth not distributed evenly
throughout the world
2-30
Demographic Challenges
• Differing rates of population growth
2-31
Demographic Challenges II.
• Expertise
related
challenges
o Different
concentration
of skilled
workers
o Different costs
of workers
2-32
Shift Happens
• http://www.youtube.com/watch?v=ljbI363A2Q
Cultural Challenges
• National Cultures
o Power Distance – differences in how societies
handle the issues of human inequality
o Uncertainty Avoidance – risk taking nature
Individualism/Collectivism – value placed on
an individual vs. a group
o Masculinity/Femininity – degree to which a
society is characterized as masculine/feminine
o Concept of Time – long term vs. short term
o Life Focus –quantity vs. quality of life
2-34
Cultural Challenges II.
• Cultural Barriers
o Language – communication language and norms
o Work Culture – work skills, habits and attitudes
o Aesthetics – art, music and culture
o Education – attitudes towards education and
literacy
o Religion, Beliefs and Attitudes – spiritual
institutions and values
o Social Organizations – family and social
cohesiveness
2-35
Cultural Challenges III.
• Other Challenges
o Differences in what is regarded as
appropriate
o Standards of dealing with intellectual
property
o Different standards
• E.g., writing paper, pillowcases
2-36
The Face of Globalization
• http://www.youtube.com/watch?v=8Bhod
yt4fmU&mode=related&search=