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 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-enabledGlobalization 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 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)

Types of 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 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

A Product of Globalization

http://www.youtube.com/watch?v=SN9rfrbuPLw

The Flat World

THIS IS RELEVANT TO YOU!

What has led to Globalization

The World is Flat (2005)

Thomas Friedman on Globalization

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 #3Work Flow Software

Increased seamless

communication

Standardized Transmission

Protocols

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 #6Offshoring

Flattener #6Offshoring

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 #7Supply Chaining

Flattener #8Insourcing

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 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 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?

I’m an equal player with Microsoft!

Can I benefit from the flattened world?

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 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

Tomorrow’s Quiz

Look at learning objectives for lectures 1, 2, and 3