CESA IB 2011 03
-
Upload
stephan-langdon -
Category
Education
-
view
677 -
download
4
description
Transcript of CESA IB 2011 03
![Page 1: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/1.jpg)
International BusinessStephan Langdon, MBA, M.ED
![Page 2: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/2.jpg)
Flatteners
![Page 3: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/3.jpg)
Flatteners: first three are platforms contributing to collaboration
• 11/9: the fall of the Berlin Wall opening Windows • Fall of the “Wall” between East and West Berlin• Political systems that were once closed opened up•Windows
• 8/9: Netscape goes public• Emergence of an internet browser
• Work flow software: • Development of software which when installed in different computers and in different places allows them to work with each other
![Page 4: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/4.jpg)
11/9 as a platform for collaboration• 11/9: the fall of the Berlin Wall which
separated East and West Berlin and Germany
• The fall of the “wall” resulted in the eventual collapse of countries that were part of the Council for Mutual Economic Assistance or COMECON, • sometimes referred to as the “Eastern bloc”, or the Soviet empire• Included in this “bloc” were countries like the Czech Republic, Bulgaria, Romania, East Germany, Poland, etc.
![Page 5: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/5.jpg)
Friedman’s claim• this event tipped balance of power across
the world towards more democratic, free-market oriented governments
![Page 6: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/6.jpg)
11/9 as a platform for collaboration (Continued)
• Centrally planned countries “opened up”• In 1991, India abolished trade controls• China accelerated reforms (although some of china’s economic reforms started in the 70s)
• Global exchange of digital information now possible as political restrictions eased up• Huge personal empowerment
![Page 7: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/7.jpg)
8/9 as a platform for collaboration• 8/9: Netscape goes public• The initial browser was Mosaic which was
designed to allow researchers/scientists in remote locations to access each other’s work
• Mosaic was transformed into the first browser to be made available to the public (for free)
• Coupled with introduction of Windows 95, including GUI capability, these made accessing the internet much easier• Early access to the internet were text based
![Page 8: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/8.jpg)
8/9 as a platform for collaboration (Continued)
• Browsers as gateway to Internet • From internal systems to systems of
systems• Dot com bubble allowed massive
investments in the internet highway; by the time the bubble burst, an initial physical infrastructure – fiber optic cables, switches, etc. – was in place
• From resistance to email and cell phones (early 90s) to emergence of terms like B2B and B2C.
![Page 9: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/9.jpg)
Work-flow software as a platform for collaboration• Work flow software: software that allows
computers and in different places to communicate and work with each other using different modes, e.g. audio, video, etc.
• Example: Wild Brain produces cartoons in SF• Recording sessions• Design and direction•Writers• Animation• All in different locations using Virtual Private Network (VPN)
![Page 10: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/10.jpg)
Work-flow software as a platform for collaboration (Continued)
• Example 2: Pay Pal• Emergence of protocols and standards to facilitate
communication among systems
![Page 11: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/11.jpg)
Flat World and NIN
Flat World• Berlin Wall• Windows• Netscape Browser• Workflow
NIN
![Page 12: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/12.jpg)
Flat World and NIN
Flat World• Berlin Wall• Windows
• Netscape Browser• Workflow
NINGlobal MarketWebsitesFacebook.comAccessMusician Work
Danial LanoisPay Pal
![Page 13: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/13.jpg)
Flatteners: the next seven are new forms of collaboration
![Page 14: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/14.jpg)
Flatteners: the next seven are new forms of collaboration
• Uploading• Outsourcing• Offshoring• Supply-chaining• In-sourcing• In-forming• Steroids
![Page 15: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/15.jpg)
Flattener 4: Uploading• Power or capability of individuals to send up, out,
and around their own products and ideas• Apache – a web server that allow web browsers (in
different computers) to interact with different web servers. Web servers allow a user to use his or her home or office to host a web site.
![Page 16: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/16.jpg)
Flattener 4: Uploading (Continued)
• Open source communities• “community rules”• Examples:• Linux operating system - offers a family of operating
systems; can be adapted to run on the smallest desk top computer, laptop, palm pilot, etc.
• Firefox (Mozilla)
• Blogging, Wikis, etc.
![Page 17: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/17.jpg)
Flattener 5: Outsourcing
• India as an example of how outsourcing began
• Educational infrastructure in India• 7 Indian Institute of Technology • 6 Institute of Management• As a result, Indian nationals would go to the US or developed countries to find work
• Dot-com boom created “physical highway” to allow for India to get “connected”
• Reform of telecommunications system in India
![Page 18: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/18.jpg)
Flattener 5: Outsourcing (Continued) • US companies start looking for opportunities to
utilize labor pool in India• Late in the 1990s, the Y2K issue emerged• Indian “expats” return to India after “dot.com
bubble” burst• Friedman sees the massive amount of
programming to prevent a “Y2K” disaster and return of expats catalysts India’s emergence as an outsourcing destination
![Page 19: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/19.jpg)
Flattener 6: Offshoring• Offshoring: move a strategic process or portion of
a company’s value chain to a foreign location• Distinction • Outsourcing: have another company do a specific, but
limited function, e.g. accounting• Offshoring: move production or an important process
offshore
![Page 20: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/20.jpg)
Flattener 6: Offshoring (Continued)
• China as an example of the emergence of offshoring
• 1977: Deng Xiaoping starts economic reforms in China
• Mid 1980s: applies for membership in WTO• Finally accepted into WTO mid 1990s•Watershed moment in the sense that as a member of WTO, China has to play by international rules
![Page 21: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/21.jpg)
Flattener 6: Offshoring (Continued)
• Example: ASIMCO• From efforts to find “new china” managers to manage their business to investing in the US • US operation takes care of finishing, also allows company to keep abreast with technology
• Film: China Brands• Friedman does mention possible limits to
growth in China, including need for further reforms
![Page 22: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/22.jpg)
Work-types companies avoid offshoring• Relationship-oriented work • Process where repeatable process map cannot be
created• Roles with complex industry structure and/or long
product learning curves• Success criteria are not well defined or
measurable• Strategic aspect to the business• High levels of sensitive intellectual property are
shared across wide groups of people
![Page 23: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/23.jpg)
Work-types companies push offshoring
• High transaction volume• High repeatability• Low domain knowledge needed• Low mission criticality• Few touch points• Low complexity• Low training efforts• Non-strategic• Well defined process and metrics• Easily transmitted over electronic wires• Outcomes can be easily managed
![Page 24: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/24.jpg)
![Page 25: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/25.jpg)
India Advantages• Low cost• Native English• Early market entrance• Governmental software export strategy since 1972
• Early adoption to quality standards• Strong educational programs• Government incentives • Technology park development• Tax advantages and tax breaks• Low import duties
![Page 26: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/26.jpg)
India Disadvantages• Geo-political risk with Pakistan• Electrical Power issues • 24 hour travel• Time zone• Costly Turnover • Salaries rising 20% annually for skilled workers• Mid-manager staffing difficulties• Cultural differences
![Page 27: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/27.jpg)
Brazil Advantages• Low cost• Time Zone and Proximity• Early adoption to quality standards• Strong educational programs• Multilingual Support (Spanish and Portuguese
support)• Government incentives • Technology park development (but need more)• Tax advantages and tax breaks
![Page 28: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/28.jpg)
Brazil Disadvantages• Corruption• Lack of Qualified People• Delays• Infrastructure• IP Problems• English• Brain Drain• Higher cost than India and China• Poor infrastructure especially off coast• High sunk cost• Costly turnover
![Page 29: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/29.jpg)
China Advantages• Scale• Labor• Speed• Low cost• Strong educational programs and joint university
programs• Government incentives • Technology park development• Tax advantages and tax breaks
![Page 30: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/30.jpg)
China Disadvantages• Focus on Asia• English • Cultural differences and inward thinking • Uncertain governmental actions• Communist effect on property laws • Communist bureaucracy • Intellectual property theft is rampant• Data Privacy• Poor infrastructure especially off coast• Manufacturing focus • Poor customer service • Need for local representation/local partner • Indian offshore companies are having problems with
offloading their own work to China
![Page 31: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/31.jpg)
Flattener 7: Supply Chaining• Wal-Mart as an example of a company that
pursues supply chain management aggressively• Coefficient of Globalization• Learning to sell new products: sushi
![Page 32: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/32.jpg)
Flattener 8: Insourcing• World Synchronized: Supply Manager• Trust through systemes• Toshiba Repairs• Shoes.com• UPS
![Page 33: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/33.jpg)
Flattener 9: In-forming• In-forming: capability to build your own supply
chain . . . of information, knowledge, entertainment
![Page 34: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/34.jpg)
Flattener 10: Steroids• Computing capability has increased in terms of
computational, storage, and input/output capacity• Instant messaging and file sharing• VOIP• Video conferencing• Computer graphics• Wireless communication
![Page 35: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/35.jpg)
Flat World and NIN
Flat World• Uploading• Outsourcing• Offshoring• Supply-chaining• In-sourcing• In-forming• Steroids
NIN
![Page 36: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/36.jpg)
Flat World and NIN
Flat World• Uploading• Outsourcing• Offshoring• Supply-chaining• In-sourcing• In-forming• Steroids
NIN
![Page 37: CESA IB 2011 03](https://reader037.fdocuments.us/reader037/viewer/2022103015/54c7a4fc4a795989488b4628/html5/thumbnails/37.jpg)
The world is flat . . . (Friedman) Three converging developments
A global, Web-enabled playing field that allows multiple forms of collaboration
Gradual adaptation of organizations through horizontal collaboration in the value creation process extends this platform to different countries
3 billion people join the party - opening of economies like China, India, Russia, and in Eastern Europe, Latin America, and Central Asia to the world economy