Week No. 10-Topic14-Globalization.pptx

Globalization Managers are facing unique challenges as digital technologies permeate the workplace Copyright © 2016 Pearson Education, Ltd. 1-1 Information System Today  Today, information systems (IS) are ubiquitous: • Traditional desktop computers, laptop computers, smartphones, tablets, ... •...

Globalization Managers are facing unique challenges as digital technologies permeate the workplace Copyright © 2016 Pearson Education, Ltd. 1-1 Information System Today  Today, information systems (IS) are ubiquitous: • Traditional desktop computers, laptop computers, smartphones, tablets, ... • Information systems are all around us, whether you see them or not. Copyright © 2016 Pearson Education, Ltd. 1-2 Emergence of Digital World • Over the past decades, the advent of powerful, relatively inexpensive, easyto-use computers has had a major impact on business and society. • Increasing global competitiveness has forced companies to find ways to be better and to do things less expensively. Copyright © 2016 Pearson Education, Ltd. 1-3 Emergence of Digital World (Cont.) • Many organizations use information systems to support innovative business models, or build their entire business models around technological innovations and that IS is also global. Copyright © 2016 Pearson Education, Ltd. 1-4 Emergence of Digital World (Cont.) • We are living in a digital world, some have even argued that we are living in the post-PC era, where wireless, mobile devices will replace traditional desktop and laptop computers. • Initially created as consumer devices, tablets have become common in warehouses, showrooms, airplane cockpits, and hospitals. Copyright © 2016 Pearson Education, Ltd. 1-5 Emergence of Digital World (Cont.) • Changes in technology have enabled new ways of working and socializing; whereas traditionally, people were bound to a stationary PC to do essential tasks, they can now perform such tasks from almost anywhere they have a cell phone signal. • Likewise, it enabled performing tasks anytime. Copyright © 2016 Pearson Education, Ltd. 1-6 The Digital Divide • In the new economy there is a Digital Divide, where those with access to information systems have great advantages over those without access to information systems. • The digital divide is one of the major ethical challenges facing society today when you consider the strong linkage between computer literacy and a person’s ability to compete in the digital world. Copyright © 2016 Pearson Education, Ltd. 1-7 The Digital Divide (Cont.) • For example, access to raw materials and money fueled the Industrial Revolution, “but in the informational society, the fuel, the power, is knowledge Copyright © 2016 Pearson Education, Ltd. 1-8 Five IT Megatrends in the Information Age • Five megatrends in information technologies that influence individuals, organizations, and society. Copyright © 2016 Pearson Education, Ltd. 1-9 Five IT Megatrends in the Information Age • Understanding the influence of these megatrends will be increasingly important: – Individuals will feel the impact of these megatrends on their private and work lives – Businesses need to have a business strategy that is fit for today’s digital world and the digital future. Copyright © 2016 Pearson Education, Ltd. 1-10 Five IT Megatrends in the Information Age: 1- Mobile Computing • In the developing world mobile devices often leapfrog traditional PCs. • For organizations, this increase in mobility has several Implications: – Increased collaboration – New ways to reach customers – The ability to manage business in real time Copyright © 2016 Pearson Education, Ltd. 1-11 Five IT Megatrends in the Information Age: 1- Mobile Computing (Cont.) • For organizations, this trend can be worrying (due to concerns related to security), but it can also provide opportunities, such as: – Increased productivity, – Higher customer satisfaction. Copyright © 2016 Pearson Education, Ltd. 1-12 Five IT Megatrends in the Information Age: 2- Social Media • The rise of social media is largely based on the network effect. It refers to the notion that the value of a network (or application based on a network) increases with the number of other users. • Organizations use social media to encourage employee collaboration or to connect with their customers Copyright © 2016 Pearson Education, Ltd. 1-13 Five IT Megatrends in the Information Age: 3- The Internet of Things • Devices have embedded computers and sensors, enabling connectivity over the Internet. • Internet of Things (IoT): a network of physical objects that can automatically share data over the Internet. • By 2008, more devices were connected to the Internet than people living on earth Copyright © 2016 Pearson Education, Ltd. 1-14 Five IT Megatrends in the Information Age: 3- The Internet of Things (Cont.) • Examples of IoT include: – Monitoring home temperatures while on vacation – Alerting drivers of parking spaces and traffic volumes – Cardiac monitors alerting physicians of potential health risks – Smart cities, smart homes, and e-health • As the number of sensors and devices IoT will evolve to become the Internet of Everything (IoE), where just about any device’s functionality is enhanced through connectivity and intelligence. • https://www.youtube.com/watch?v=kYQ_PHOCjyg Copyright © 2016 Pearson Education, Ltd. 1-15 Five IT Megatrends in the Information Age: 4- Cloud Computing • Web technologies enable using the Internet as the platform for applications and data • Applications that used to be installed on individual computers are increasingly kept in the cloud – e.g., Gmail, Google Docs, Google Calendar. • It frees users from the task of installing or updating traditional desktop applications or worrying about storing or backing up data. Copyright © 2016 Pearson Education, Ltd. 1-16 Globalization in the Digital World • The process by which businesses or other organizations develop international influence or start operating on an international scale. • You can see the effects of globalization in many ways, such as the greater international movement of commodities, money, information, and labor as well as the development of technologies, standards, and processes to facilitate this movement. Copyright © 2016 Pearson Education, Ltd. 1-17 Key Driving Impacts of Globalization • Economic change – International trade, global finance, labor outsourcing • Cultural change – Multiculturalism from media, international travel, ethnic foods • Technological change – Computing and communication platforms, global patent and copyright laws Copyright © 2016 Pearson Education, Ltd. 1-18 GLOBALIZATION: OPPORTUNITIES AND CHALLENGES. • For organizations, globalization has opened up many opportunities: – People can make voice or video calls around the globe for free using services such as Skype, Google Hangouts, or WhatsApp. – To a large extent fueled by movies, television, and other forms of media, the increasing globalization has moved cultures closer together. Copyright © 2016 Pearson Education, Ltd. 1-19 GLOBALIZATION: OPPORTUNITIES AND CHALLENGES (Cont.) • The rapid rise of a new middle class in many developing countries has enabled established companies to reach new markets, enabling them to sell their products to literally millions of new customers. Copyright © 2016 Pearson Education, Ltd. 1-20 GLOBALIZATION: OPPORTUNITIES AND CHALLENGES (Cont.) • Yet globalization has also brought about a number of operational challenges for organizations: – Organizations face governmental challenges related to differences in political systems, regulatory environments, laws, standards, or individual freedoms. – Likewise, geoeconomic challenges include differences in infrastructure, demographics, welfare, or workers’ expertise. – Organizations face cultural challenges, such as dealing with differences in languages, beliefs, attitudes, religions, or life focus. Copyright © 2016 Pearson Education, Ltd. 1-21 Strategies for building global systems  The strategies for building global systems : • Understand global environment.  Understanding business drivers and forces for global competition  Examine the inhibitors and negative factors creating management challenges • Develop corporate strategy for global competition. • Develop organization structure and division of labor. • Consider management issues.  Design of business process, discover user requirements , change in  local units to conform global requirements, and coordinate system development. • Consider technology platform. Copyright © 2016 Pearson Education, Ltd. 1-22