Globalization: The World is Flat: A Brief History of the 21st Century Ten forces that flattened the

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GlobalizationThe World is Flat A Brief
History of the 21st CenturyTen forces that
flattened the world
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• Berlin Wall came down and Windows went up
  11/9/89
• Free market economy for Communist block
• India, Brazil, China

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Flattener 2

• Netscape went public 8/9/95
• Files, FTP e-mail, SMTP POP TCP/IP
• HTTP and HTML SSL for security

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Flattener 3

• Workflow software
• XML and SOAP seamless communication
• C2C E-bay and PayPal

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Effects on CSB Business Majors

• Tax returns done in India
• 2003 25,000
• 2004 100,000
• 2005 400,000
• 245,000 Indians functioning in call centers
• 500 per month

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• Anything that can be digitized can be outsources
• What is your value-added?

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A New World Economy

• The balance of power will shift to the East as
  China and India evolve AUGUST 22, 2005   
  Business Week

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• High tech stuff
• American culture
• Mortgages, brokerage, retirement planning
• American farmers
• Fluent in foreign language
• McKinsey Global Institute America gains 1.14
  each dollar of output sent offshore

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• Invent new industries

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Work flow software

• Definition seamlessly connected applications to
  applications, so that people can manipulate all
  their digitized content, using computers and the
  Internet
• Examples
• Microsoft
• Paypal
• Technology
• TCP/IP
• XML
• SOAP

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Open sourcing

• Self-organizing collaborative communities
  peer-reviewed software shared and improved
  through an online community
• Examples
• Apache
• IBM
• Red Hat
• Linux
• Mozilla

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Outsourcing

• Definition a contractual relationship with
  enterprises outside of the organization for the
  accomplishment of a single task of the value
  chain.
• The purchase of a value-creating activity from
  and external supplier.
• Example
• GE
• Dell
• Nike

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Offshoring

• Definition when a company takes one of its
  factories and moves it overseas chaper labor
  lower taxes, subsidized energy, and lower health
  care costs.
• China joining WTO
• ASIMCO Technologies
• Dell

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Supply Chaining

• A method of collaborating horizontallyamong
  suppliers, retailer, and customers to create
  value Value Chain activities, functions, and
  business process that support a product or
  service.
• Example Walmart

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Insourcing

• Definition synchronized commerce solutions
  manage firms manufacturing, packaging, and
  delivery process design and manage global supply
  chain.
• UPS

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Informing

• Ability to build and deploy a personal supply
  chain of information, knowledge, and
  entertainment.
• Google
• Yahoo
• MSN web search

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Digital technologies

• VoIP
• PDA
• Computers
• WiFi
• Ipods