GLOBALIZATION OF TECHNOLOGIES

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GLOBALIZATION OF TECHNOLOGIES

• Chapter 11 Lecture 1

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Technology

• Science is exploration for the sake of knowing
  and for creating a body of knowledge
• Technology is the application of science, usually
  in the interests of improving human life
• product technologies
• process technologies

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Technology Can Be

• Low tech
• High tech
• Some combination
• Each approach provides opportunities for
  organizational advantage

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Technological Breakthroughs in Products and
Processes

• are occurring rapidly
• in almost all industries
• all nations
• all businesses
• all lives
• Is this a boon or a bane? Both

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Technological Changes

• Generate both opportunities and threats
• Are difficult to predict in a global world
  because they
• occur rapidly
• often have unintended consequences
• are replaced/refined by people worldwide changes
  occur out of sight
• Stimulate profound societal change in business
  and other spheres
• Make managerial and personal life more
  challenging

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Terrific Breakthroughs of Today

• Medicine organ transplants, other life-saving
  techniques
• Oil exploration via hubbing
• Jet freighters for sea cargo
• Biotechnology, pest resistant seeds and clones
• Laser and free space optics
• Information technologies

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Five Historical Commonalities of Technological
Development

• The work of humans has been supplemented,
  substituted, or amplified by technological
  change. This process now affects knowledge work.
• The importance of technology has increased over
  time.
• The rate of innovation has increased markedly
  over time.
• Innovations and breakthroughs often occur in
  clusters.
• Technological change spills over into personal
  lives. 

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Ten Innovative Products for 2010

• Genetaceuticalstreatments that combine genetic
  research and pharmaceuticals
• Personalized computerscustomized to adapt to
  your way of working
• Multi-fuel automobilescombine electricity,
  reformulated gasoline, natural gas, or other
  fuels
• Next-generation televisionhigh definition,
  wall-sized flat screens for information,
  communication, and entertainment
• Electronic walleta smart card to replace money,
  keys, drivers license, medical records, etc.
• Home health monitorsautomatic analysis of your
  vitals
• Smart maps and tracking devicesto find what you
  want
• Smart materialssensors that detect stress in
  buildings
• Weight control and anti-aging products
• Never owned, leased only products such as
  computers and appliances that age rapidly
• Source Batelle

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Computer Eras

• Data processing
• Mainframes and vacuum tubes
• Microcomputers
• Transistors and microprocessors
• Networked era
• Computers, Internet, telephones, televisions
  begin to converge

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Telephones

• Invented in 1876
• First regular transatlantic service in 1956
• 1930 cost of a 3-minute transatlantic call from
  New York to London was 230 in 1930
• 196949
• 19902.33
• 2000 gt 2
• 2005pennies

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The Internet

• Exemplifies globalization of information
  technology
• U.S. Pentagon project in 1969
• Allows any number of computer networks to act
  transparently (as one)
• Uses almost any physical channel, e.g., satellite
  links, telephone, fiber-optics, wireless
• Many parts of the network move information
  without charge
• Is difficult to monitor or control
• Linked 48,000 networks by 1994 9.4 m in 1996
  29.6 m by 1998
• Network reaches 195 countries most with full
  service
• 1 million users in 1988 20 m in 1994 4050 m.
  in 1996 100 m. in 1998 250 m. in 2000 700 m
  in 2003
• The total number of websites had grown to 43.2 m
  in January, 1999, an increase of 46 from a year
  earlier

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Information Technology

• If the aircraft industry had progressed as
  rapidly as the computer business in recent years,
  Concorde would now hold 10,000 passengers, travel
  at 60,000 miles an hour and a ticket would cost 1
  US cent
• Concorde was phased out in 2003
• A credit card approval for an American Express
  card in Paris moves information across 46,000
  miles of telephone and computer lines, and is
  completed in less than five seconds.

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IT Breakthroughs

• Digital reproduction rights to cultural treasures
• Electronic smell sensors for wine, illness,
  detection
• e-cash from Digicash (anonymous and universally
  acceptable) or Beenz
• Shared research electronic journals

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Information Technology Demonstrates Global
Interconnectivity

• Information alters culture by providing
  alternative views
• Information alters economy via electronic
  transfers
• Information alters politics by providing ways for
  NGOs and dissident groups to mobilize
• Information alters work by vesting influence in
  knowledge rather than in role, age, or position,
  stage of industrialization, or political clout

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Internet Growth

• Daily e-mails in North America tripled from
  19992004 to equal 11.9 billion (does not count
  Spam) office workers spend 12 hours daily on
  e-mail.
• Top e-commerce category in U.S. leisure travel
• U.S. 1999 b-to-c e-commerce20 billion
• 58 in US had bought online
• 12 in Germany
• 8 in the Netherlands
• 2004 b-to-b e-commerce is estimated at 5.9
  trillion
• 2005 estimate is 8.5 trillion (Gartner).

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Changes the Dynamics of Business

• Centralized information sources
• Reduces costs of information transmission, e.g,
  Retail banking transaction
• 1.07 at a branch
• 0.68 by telephone
• 0 .27 at an ATM
• 0.05 on the Internet
• Improves communication flow in terms of speed and
  accuracy
• Permits legitimate and fraudulent business

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Changes in the Dynamics of Business

• Stimulates creativity and innovation
• Increase in exposure to new ideas
• Diversity of contacts
• Affects both products and processes
• Continuous improvement is possible
• New audiences can be reached

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Changes in the Dynamics of Business

• Improves equality of access between
• Large and small competitors
• Rich and poor countries
• Closer to ideal of perfect information

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Changes in the Dynamics of Business

• Creates new industries
• Hardware and software
• Access service industry

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Changes Assumptions about Business

• Any person can produce and consume information
• Provides global links for any business
• Reduces reliance on paper
• Reduces transaction costs
• Stimulates new thinking
• Makes information central
• Increases speed of change
• Creates demand for knowledge

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Changes Structure of Companies

• Information technologies as control systems
• IT as a means of communications within the
  organization
• Everyone can have access to everything