Class 3: Globalization (7/13/2011) - U
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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
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
“Globalization is a process of interaction and integration among the people, companies, and governments of different nations”
Globalization
My opinion: – – – –
Makes you more competitive You can compete with corporate giants Creates more jobs Creates higher-quality jobs
Globalization Phases
Globalization 1.0 (1492 – 1800) Countries –
Limited by human labor and mechanical systems (wind and steampowered ships)
Globalization Phases
Globalization 2.0 (1800 – 2000) Companies –
Multi-nationalism and efficiencies in transportation and telecommunications
Globalization Phases
Globalization 3.0 (2000 – Present) Individuals – –
Driven by the 10 Flatteners Fast!
IT sent globalization into hyper-speed
“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.”
- “Coming Together”
Internet-enabled Globalization Effects
Time Location Design and Relationships Competitive
Internet Enabled Globalization: Time Effects Removes time as a barrier to communication News travels instantaneously – Zero Latency Allows for easy interactivity, don’t have to wait for a response to a question – Asynchronous Buyer-Seller Interactions 24/7, All Services, All The Time Instantaneous Global Access
Internet Enabled Globalization: Location Effects Removes geography as a barrier to relationships Can find people with similar interests easily and business requirements Shortest Distance From Your Customer Is One Click, Not Physical Distance Economics of Distance (Transportation Costs) Replaced By Economics of Attention (Value) Players Are Not Tethered to a Physical Location, Players Can Virtually Travel to Where The Work Is
Internet Enabled Globalization: Design & Relationship Effects
Removes intermediaries (“go betweens”) and lets individuals and organizations directly control the message and presentation – Harder for controlling authorities to manage, filter, or spin information – 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 If the world becomes your market, the world also becomes your competition The process of matching suppliers and buyers can become exponentially more complex 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
–
“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”?
You see it in different countries through…. – Products (McDonald’s, Levis, sushi, BMW) – Mass Media (CNN, movies, TV, magazines) – Language (English, Asian languages, Spanish) – Values (civil liberties, work hours) – 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?
Global competition –
Workforce is changing –
Women, minorities, physically handicapped
Customers are more powerful –
Finding lowest costs of labor is important
Can find info more readily about products
Technology needs to adapt – –
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?
According to Thomas Friedman… the world as a level playing field in terms of commerce, where all competitors have an equal opportunity. – – – – –
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
Fall of the Berlin Wall –
Availability of Netscape –
Automated information system integration
Uploading –
Web navigation for the masses
Workflow Software –
Worldwide markets and communities
Community collaboration
Outsourcing –
Marketplace and workforce specialization
Ten Forces that Flattened the World
Off-shoring –
Supply Chain Management –
Business process outsourcing
Informing –
Standardization and integration
Insourcing –
Cost efficiency and bypassing trade barriers
Connections through searching
“The Steroids” –
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
–
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
Cloud Computing available to the common person
The world is not flat: People are too sick
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
Country
Forest coverage
China
16%
Japan
68%
The world is not flat: People are too frustrated
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’ !! –
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
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
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
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
E-Business: Components and Money Makers Read: – –
"http://en.wikipedia.org/wiki/Long_Tail RT chapter 6: 200-223
Tomorrow’s Quiz
Look at learning objectives for lectures 1, 2, and 3
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