1.0- Globalization Mainly European countries are globalizing, Power is the primary driver, industries changed slowly. Evolution brought the world from size large to medium. Globalization 2.0- Companies are globalizing. Reduction in transportation and telecom-communications costs. Mainly Europe and America involved. Globalization 3.0- Individuals and small groups are globalizing. Faster pace of change. Emergence of new industries.
10. enablers of globalization 3.0
Enabler #1: The Fall of the Berlin Wall- November 9, 1989. Fall of communism. People from the former communist countries gained more freedom.
Enabler #2: Netscape Browser- August 9, 1995. "Killer app". First mainstream browser. Gave individuals access to the Internet & set standards. Enabler #3: Work Flow Software- Applications that allow people worldwide to communicate. XML: applications "talk" to each other. New possibilities for information sharing. Global currency to fuel commerce.
Enabler #4: Uploading- Individuals and companies actively participate in content generation on the Web. Wikipedia a huge success. Enabler #5: Outsourcing- Moving of business processes or tasks to another company. Companies can now use talented engineers from anywhere. Enabler #6: Offshoring-Companies set up entire factories in different countries to reduce cost. Enabler #7: Supply Chaining-Integration of retailers, suppliers, and customers. Wal Mart. Enabler #8: In-Sourcing-Delegation of company's key operations to a subcontractor. Example: UPS provides complete supply chain solutions to companies. Enabler #9: In-Forming-Individual's use of powerful search engines on the internet, such as Google to build their own personal supply chain of info, knowledge, and entertainment. Enabler #10: The Steroids-Technology amplifying the other flatteners by making things digital, mobile, and personal. Allow people to collaborate from almost anywhere. Governmental Challenges- Political System Challenges-Political stability. Regulatory Challenges-Tariffs, Embargoes, Export regulations, Quotas.
Transborder data flows- data flowing across national boundaries. Culture Challenges-Power Distance-differences in how societies handle the issues of human inequality. Uncertainty Avoidance-risk taking nature. Individualism/Collectivism-value placed on an individual vs. a group. Masculinity/Femininity--degree to which a society is characterized as masculine/feminine. Concept of Time--long term vs. short term. Life Focus--quantity vs. quality of life Home-Replication Strategy- Companies view international operations as secondary to, or extension of home operations. Focus on core competencies in home market. Inability to react to local market conditions. Global Business Strategy- International business employed to achieve economies of scale by producing identical products in larger quantity for different market. Multidomestic Business Strategy-decentralize international business using a federation of associated business units, employed to be flexible and responsive to needs and demand of heterogeneous local market.
Transnational Business Strategy- Some operations centralized while others decentralized. Difficult to manage. Business intelligence- process of gathering information from both external and internal to sources make better decision and the data derived from these processes. Moore's Law-prediction that computer processing would double every 18 months. On-Demand Computing-Dealing with fluctuating computing needs. Available resources allocated based on user needs.
Grid Computing- Combines computing power of a large number of smaller, independent, networked computers into a cohesive system in order to solve large scale computing problems. Dedicated grid-consisting of large number of homogeneous computer dedicate to perform the grid task.
Edge Computing- Multiple small servers located closer to individual users. Save bandwidth. Decreased access time. Application Service Providers-provide on-demand software access over the Web.
Service Oriented Architecture- Business processes are broken down into individual components that are designed to achieve the desired result for the service consumer.
Transmission media- physical path way use to sending the data info and message. Protocols-procedures that different computers follow when they transmit and receive data. Digitizing: converting information into bits. Bandwidth: transmission capacity or communication channel.
Server- Only provide services. Usually have more advanced microprocessors. More memory. Larger cache. Many users share services.
Clients- Request services. Workstations or PCs. Software applications. Usually one user per client. Peer-May request and provide services. Usually found in small offices and homes. Popular for file sharing. Defense Advanced Research Project Agency (DARPA)- study ways to interconnect network of differ kind. Electronic commerce- Online exchange of goods, services, and money.
7. types of electronic commerce Business-to-consumer (B2C)-A person buys a book from Amazon.com.
Business-to-business (B2B)-Retailer like Wal-Mart ordering from distributors. Business-to-employee (B2E)-Employee uses the Web to change employee benefits. Consumer-to-consumer (C2C)-One person purchases from another on eBay. Government-to-citizen (G2C)-A person filing income taxes online. Government-to-business (G2B)-Government purchases supplies using Internet-enabled procurement system. Government-to-government (G2G)-Foreign government accessing U.S. federal regulations.
Brick-and-Mortar Business Strategy- Physical locations only. Traditional stores. Click-Only Business Strategy-Business conducted in cyberspace--no physical location. Like ebay. Click-and-Mortar Business Strategy-business utilizing both physical and virtual location. Refer to brick and click strategy.
Extranet-Enables firms to use internet to do business together (B2B). One of best ways for organizations to gain return on technology-based investments. Intranet- Business-to-employee (B2E) electronic commerce. Internet based private network using Web technologies. Used to facilitate secured transmission of proprietary information within companies. e-information-providing electronic brochures and other types of information for customers. e-integration-providing customer with the ability to gain personalized information (bank statement). e-transaction-allowing customer to place order and make payment.
e-tailing- Selling goods and services online.
m-commerce- Electronic transactions using wireless mobile devices.