IST3e CH02 - Chapter 2 Fueling Globalization through...

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Information Systems Today: Managing in the Digital World 2-1 2 “The idea of charging for calls belongs to the last century.” Niklas Zennström, Skype Fueling Globalization through Information Systems Chapter
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Information Systems Today: Managing in the Digital World 2-2 Learning Objectives
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Information Systems Today: Managing in the Digital World 2-3 Learning Objectives
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Information Systems Today: Managing in the Digital World 2-4 Globalization Globalization created a new world characterized by: o Worldwide communication o Collaboration without barriers
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Information Systems Today: Managing in the Digital World 2-5 Evolution of Globalization Mainly European countries are globalizing Power is the primary driver Industries changed Slow pace of change Globalization 1.0
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Information Systems Today: Managing in the Digital World 2-6 Evolution of Globalization Globalization 2.0 Companies are globalizing Reduction in transportation and telecom- munications costs Mainly Europe and America involved
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Information Systems Today: Managing in the Digital World 2-7 Evolution of Globalization Individuals and small groups are globalizing Fast changes Emergence of new industries Globalization 3.0
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Information Systems Today: Managing in the Digital World 2-8 Evolution of Globalization: Summary “10 Flatteners” o Key factors enabling globalization 3.0 The World is Flat (Thomas Friedman)
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Information Systems Today: Managing in the Digital World 2-9 Flattener #1: The Fall of the Berlin Wall November 9, 1989 Fall of communism People from the former communist countries gained more freedom
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Information Systems Today: Managing in the Digital World 2-10 Flattener #2: Netscape Browser August 9, 1995 First mainstream browser Gave individuals access to the Internet THEN NOW
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Information Systems Today: Managing in the Digital World 2-11 Flattener #3: Work Flow Software Applications that allow people worldwide to communicate XML allows applications to “talk” to each other New possibilities for information sharing
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Information Systems Today: Managing in the Digital World 2-12 Flattener #4: Supply Chaining Integration of retailers, suppliers, and customers RFID tags used Wal-Mart became an early leader
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Information Systems Today: Managing in the Digital World 2-13 Flattener #5: Open Sourcing Software and source code freely available to everyone Wikipedia a huge success
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Information Systems Today: Managing in the Digital World 2-14 Flattener #6: Outsourcing Outsourcing companies profited from the drop in telecommuni- cations costs Companies can now use talented engineers from anywhere
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Information Systems Today: Managing in the Digital World 2-15 Flattener #7: Offshoring Companies set up entire factories in countries such as China o Mass production o Low Costs
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Information Systems Today: Managing in the Digital World 2-16 Flattener #8: In-Sourcing Delegation of company’s key operations to a subcontractor o E.g.: UPS provides complete supply chain solutions to companies
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