Lec4_DigitalEconomy+III

Lec4_DigitalEconomy+III - ISOM 101: Introduction to...

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ISOM 101: Introduction to Information Systems Lecture 4: Digital Economy III Prof. Heather H. Xu
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Admin. Issues Team formation • Submit your team list to Kitty Office Hour reschedule • Wed(today) 3-4pm Thurs(tomorrow) 3-4pm this week only • Next week will return to normal: Wed 3-4pm
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Ten Flatteners… 11/9/1989 Uploading The steroids 8/9/95 Outsourcing Workflow Software Offshoring Supply-chaining Insourcing In-forming Platform for Collaboration New forms Improving Infrastructure
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Flattener #4 Uploading • Community uploading and collaborating on online projects • One-way, top-down distribution from centralized entity to two-way communication • Examples? • Linux, blogs, wiki, Facebook, Youtube
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Open-Source Software Technical Superiority Cost Security
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c,mm,n The world’s first open-source car • Developed by three Dutch technical universities: Delft, Eindhoven and Enschede. • Technical data and blueprints free for download • Open for new ideas
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News Update: Facebook Phone – Do you want one of these?
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Flattener #5 Outsourcing Uses networks to link people, assets, and ideas to create and distribute products and services without being limited by traditional organizational boundaries or physical location Dot-com Bust General Electric The emergence of “virtual organizations” Networked organizations Efficient & cost-effective Software development (Y2K problem) , call centers, Internet products/services, etc.
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Flattener #6 Offshoring • Relocation of an entire business function from one country to another, such as manufacturing, supporting, accounting, customer service, etc.
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Outsourcing vs. Offshoring Company A Company B Company A Company B BP BP
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India is the location of choice for offshore services in both IT and BPO functions 11 50% 35% 65% 63% 37% 40 23 India’s share in the global sourcing market US$ billion India Other locations Offshore Business Process Services Offshore IT services Global sourcing market size US$ billion 100% = US$63 billion (40) (23) Offshore IT services Offshore Business Process Services Source: Everest Research Institute (2007), NASSCOM
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Location choices are starting to explode In mid 2000s, the Everest Research Institute tracked ~20 cities Proprietary & Confidential. © 2007 Everest Partners, L.P. 12 Delhi Shanghai Cincinnati Mexico City Buenos Aires Prague Dublin Budapest Warsaw Belfast Johannesburg Kuala Lumpur Bangalore Copenhagen Toronto Lisbon Barcelona Pune Note: Map not to scale Source: Everest Research Institute
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Today, we know of over 125 locations that are hosting offshore delivery centers Proprietary & Confidential. © 2007 Everest Partners, L.P.
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This note was uploaded on 07/30/2011 for the course ISM 101 taught by Professor Lily during the Spring '11 term at HKU.

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Lec4_DigitalEconomy+III - ISOM 101: Introduction to...

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