1. MIS 111: Computers and the Inter-networked Society Class 3:0 Globalization July 16 3h, 2011

2. News? 2

3. Content Outline of the Semester

4. 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

5. Globalization

6. “Globalization is a process of interaction and integration among the people, companies, and governments of different nations”

7. Globalization My opinion: – Makes you more competitive – You can compete with corporate giants – Creates more jobs – Creates higher-quality jobs

8. Globalization Phases Globalization 1.0 (1492 – 1800) - Countries – Limited by human labor and mechanical systems (wind and steam- powered ships)

9. Globalization Phases Globalization 2.0 (1800 – 2000) - Companies – Multi-nationalism and efficiencies in transportation and telecommunications

10. Globalization Phases Globalization 3.0 (2000 – Present) - Individuals – Driven by the 10 Flatteners – Fast!

11. 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”

12. Internet-enabled Globalization Effects Time Location Design and Relationships Competitive

13. 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

14. 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

15. 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

16. 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)

17. Types of Globalization

18. 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”?

19. 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.

20. 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?

21. 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

22. A Product of Globalization http://www.youtube.com/watch?v=SN9rfrbuPLw

23. The Flat World THIS IS RELEVANT TO YOU! What has led to Globalization

24. The World is Flat (2005) Thomas Friedman on Globalization

25. 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.level playing field – 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

26. 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

27. 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

28. Flattener #1 11/9/89 – The Fall of the Berlin Wall Release of Windows 3.0 six months later Dial-up followed shortly after.

29. Flattener #1: Implications 11/9/89 – Fall of the Berlin Wall B ERLIN 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!

30. 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

31. Flattener #3 Work Flow Software Increased seamless communication Standardized Transmission Protocols

32. 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…

33. 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 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

34. Flattener #6 Offshoring

36. Flattener #7 Supply-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

37. Flattener #7 Supply Chaining

38. Flattener #8 Insourcing

39. Flattener #9 In-forming T HE D EMOCRITIZATION OF I NFORMATION “Google…equalizes access to information – it has no class boundaries, few education boundaries, few linguistic boundaries, and virtually no money boundaries.”

40. The Steroids Connectivity Computing Power Storage Sharing

41. New Flatteners Sense 2005 Cloud Computing available to the common person

43. 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

44. 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 CountryForest coverage China16% Japan68%

45. 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?

46. I’m an equal player with Microsoft! Can I benefit from the flattened world?

47. Benefit From a Flattened World http://www.google.com/apps/intl/en/business/ index.html http://www.google.com/apps/intl/en/business/ index.html Insourcing. Google apps can do it all.

48. Benefit From Globalization

49. The One Man Corporation

51. Wet Electronics Don’t Work!

52. I can sell this!!!

53. Dry out electronics

54. The One Man Corporation ActivityPersonnelResources 1. Advertising 2. Web site hosting 3. Inventory management and order fulfillment 4. Product development 5. Office staff; emails, etc.

55. The One Man Corporation Advertising Web site hosting Application and Web development Inventory management and order fulfillment Product development***

56. 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.

57. 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.

58. For Tomorrow’s Class E-Business: Components and Money Makers Read: – "http://en.wikipedia.org/wiki/Long_Tail – RT chapter 6: 200-223

59. Tomorrow’s Quiz Look at learning objectives for lectures 1, 2, and 3