MIS 111: Computers and the Inter-networked Society Class 3:0 Globalization July 16 3h , 2011
Dec 25, 2015
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 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 steam-powered 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:
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 Computer-based
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)
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 Economic “Globalization”?
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– Finding lowest costs of labor is important
Workforce is changing– Women, minorities, physically handicapped
Customers are more powerful– Can find info more readily about products
Technology needs to adapt– Before it becomes obsolete– Reduce information overload
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– Worldwide markets and communities
Availability of Netscape– Web navigation for the masses
Workflow Software– Automated information system integration
Uploading– Community collaboration
Outsourcing– Marketplace and workforce specialization
Ten Forces that Flattened the World
Off-shoring– Cost efficiency and bypassing trade barriers
Supply Chain Management– Standardization and integration
Insourcing– Business process outsourcing
Informing– Connections through searching
“The Steroids”– Disruptive technologies – the game changers
Flattener #111/9/89 – The Fall of the Berlin Wall
Release of Windows
3.0 six months
later
Dial-up followed shortly after.
Flattener #1: Implications11/9/89 – Fall of the Berlin Wall
BERLIN WALL BLOCKED OUR VIEW OF THE ENTIRE WORLD AS A GLOBAL ECOSYSTEM.
“Flattened [the market] alternatives to free-market capitalism”
Tipped the balance in favor of capitalism
I’m going to get you! Now, I’m going to get you!
Flattener #28/9/95 – Netscape Went Public
Allowed us to easily drive around the Internet. It’s hard to give credit for
the Internet to a specific personOne of the few things that was created by committee
Netscape started thedot-com bubble
Netscape helped guarantee that open protocols would remain
open. Led to the overinvestment
of telecommunications companies in fiber optics
Flattener #4Uploading
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 #5Outsourcing
“…always want to be the second buyer…”
• America India’s intelligence.• India dot-com boom fiber-optic network
Brainpower from India Brainpower in India
India benefited more from dot-com bust than from boom
EXAMPLES
Healthscribe – medical transcriptions
• Dictations to text via India
Y2K – made America ready to do on a blind-date with India
Flattener #7Supply-Chaining
Implications of Supply Chains:– Must take advantage of lowest global prices
otherwise your competitor will
– Shifts concern to total cost of delivery Therefore, must have global optimization
“Making stuff – that’s easy. Supply chain, now that is really hard.” – Yossi Sheffi, Professor of Engineering Systems at MIT
Wal-Mart is its supply chain
Built out of necessity, not so much out of intention. Coefficient of flatness
Replaced inventory with information
Flattener #9In-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 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 coverag
e
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?
Benefit From a Flattened World
http://www.google.com/apps/intl/en/business/index.html
Insourcing. Google apps can do it all.
The One Man Corporation
Activity Personnel Resources
1. Advertising
2. Web site hosting
3. Inventory management and order fulfillment
4. Product development
5. Office staff; emails, etc.
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