Information Systems 5 - Globalisation and the Digital Divide PDF

Information Systems CHAPTER 5: GLOBALIZATION AND THE DIGITAL DIVIDE  Learning Objectives  explain the concept of globalization;  describe the role of information technology in globalization;  identify the issues experienced by firms as they face a global economy; and ...

Information Systems CHAPTER 5: GLOBALIZATION AND THE DIGITAL DIVIDE  Learning Objectives  explain the concept of globalization;  describe the role of information technology in globalization;  identify the issues experienced by firms as they face a global economy; and  define the digital divide and explain Nielsen’s three stages of the digital divide.
 Introduction  The Internet has wired the world.  Today it is just as simple to communicate with someone on the other side of the world as it is to talk to someone next door. What Is Globalization?  Globalization refers to the integration of goods, services, and culture among the nations of the world.  As of 2012, the Internet was being used in over 150 countries by 2.4 billion people worldwide, in 10 years, (2023) there are 5.39 billion people and growing.  Further advances in telecommunication and transportation technologies accelerated globalization  Current Trends  Globalization continues to evolve, driven by factors like advances in communication and transportation technologies, trade agreements, and the interconnectedness of the world economy.  However, recent trends show an increased focus on sustainability and ethical business practices in a global context.  There's a growing emphasis on environmental and social responsibility in international business operations.  WORLD INTERNET USAGE AND POPULATION STATISTICS
2023 Year Estimates Population
Population
Internet Users
Penetration
Growth
Internet
World Regions ( 2022 Est.) % of World 31 Dec 2021 Rate (% Pop.) 2000-2023 World % Africa 1,394,588,547 17.6 % 601,940,784 43.2 % 13,233 % 11.2 % Asia 4,352,169,960 54.9 % 2,916,890,209 67.0 % 2,452 % 54.2 % Europe 837,472,045 10.6 % 747,214,734 89.2 % 611 % 13.9 % Latin America / 664,099,841 8.4 % 534,526,057 80.5 % 2,858 % 9.9 % Carib. North America 372,555,585 4.7 % 347,916,694 93.4 % 222 % 6.5 % Middle East 268,302,801 3.4 % 206,760,743 77.1 % 6,194 % 3.8 % Oceania / Australia 43,602,955 0.5 % 30,549,185 70.1 % 301 % 0.6 % Role of Information Technology in Globalization  Current Trends: Information technology plays a central role in globalization, enabling instant communication, efficient supply chains, and global collaboration.  Recent trends include the use of AI and machine learning for personalized international marketing, blockchain for transparent cross-border transactions, and the increasing importance of cybersecurity in protecting global data flows.  Additionally, the COVID-19 pandemic has accelerated trends in remote work and digital collaboration tools, further facilitating globalization. The Network Society o “an economy with the capacity to work as a unit in real time on a planetary scale.” o In 1996, social-sciences researcher Manuel Castells published The Rise of the Network Society, o he identified new ways in which economic activity was being organized around the networks The World Is Flat o In 2005, Thomas Friedman’s seminal book, The World Is Flat, was published. o It talked about impacts that the personal computer, the Internet, and communication software have had on business, specifically the impact they have had on globalization. Three eras of globalization by Thomas Friedman “Globalization 1.0″ occurred from 1492 until about 1800. In this era, globalization was centered around countries. It was about how much horsepower, wind power, and steam power a country had and how creatively it was deployed. The world shrank from size “large” to size “medium.” “Globalization 2.0″ occurred from about 1800 until 2000, interrupted only by the two World Wars. In this era, the dynamic force driving change was multinational companies. The world shrank from size “medium” to size “small.” “Globalization 3.0″ is our current era, beginning in the year 2000. The convergence of the personal computer, fiber-optic Internet connections, and software has created a “flat-world platform” that allows small groups and even individuals to go global  Specific technologies listed by Thomas Friedman 1. The graphical user interface for the personal computer popularized in the late 1980s: Friedman points out that this digital storage of content made people much more productive and, as the Internet evolved, made it simpler to communicate content worldwide. 2. The build-out of the Internet infrastructure during the dot-com boom during the late-1990s: telecommunications companies laid thousands of miles of fiber-optic cable all over the world, turning network communications into a commodity 3. The introduction of software to automate and integrate business processes: Examples include payment-processing systems and shipping calculators. The Global Firm Advantages of globalization to the firms 1. The ability to locate expertise and labor around the world. 2. The ability to operate 24 hours a day: 3. A larger market for their products. Once a product is being sold online, it is available for purchase from a worldwide consumer base  Challenges of globalization to the firms  Infrastructure differences: Different Internet speeds  Labor laws and regulations  Legal restrictions: in China, it is illegal to put anything sexually suggestive online.  Language, customs, and preferences: unique culture  Timing of International shipping  Issues Faced by Firms in a Global Economy  Current Trends: Firms in the global economy face ongoing challenges related to cybersecurity, data privacy, and regulatory compliance, especially with stricter data protection laws like GDPR.  Geopolitical tensions and trade disputes are impacting global supply chains.  Environmental and sustainability concerns are becoming increasingly important, with customers and regulators demanding more eco-friendly practices.  Companies are also addressing social responsibility issues, such as diversity and inclusion, to adapt to changing global  The Digital Divide A term that refers to the gap between those who have access to this global network and technology (the telephone, television, personal computers and the Internet) and those who do not. The digital divide can occur between countries , regions, or even neighborhoods  One Laptop per Child “The mission of One Laptop per Child (OLPC) is to empower the children of developing countries to learn by providing one connected laptop to every school-age child. In order to accomplish our goal, we need people who believe in what we’re doing and want to help make education for the world’s children a priority, not a privilege.”  Reasons for OLPC project failure  different cultures, corruption, and competition.  Nielsen's Three Stages In 2006, web-usability consultant Jakob Nielsen wrote an article that help us to an understanding of this problem. He breaks the digital divide up into three stages  Jakob Nielsen's Digital Divide: The Three Stages 1. Economic Divide: the idea that some people can afford to have a computer and Internet access while others cannot. 2. Usability Divide: Many are not able to fully access the Internet and the full potential of digital technologies due to lack of literacy and comprehensive training. 3. Empowerment Divide: It is concerned with how we use technology to empower ourselves.  Nielsen's Three Stages These can further be explained as follows:  First-Level Divide This stage deals with the basic infrastructure and access to the internet. It includes individuals and communities who lack physical access to the internet or affordable devices. Current trends in addressing this divide involve initiatives to expand broadband infrastructure, provide affordable internet access, and support the deployment of ICT in underserved or remote areas. Projects like satellite-based internet and community networks are helping bridge this gap.  Second-Level Divide At this stage, people have access to the internet, but disparities exist in terms of digital literacy, skills, and knowledge. It involves understanding how to use digital tools effectively, navigate the internet, and critically evaluate online information. Current trends for addressing the second-level divide include digital literacy programs, educational resources, and training to help individuals, especially those in marginalized communities, develop the skills needed to use  Third-Level Divide The third-level divide centers on issues related to the quality and relevance of digital content and services. This includes disparities in the availability of meaningful, culturally relevant, and useful online content. Addressing the third-level divide involves promoting the creation of local content, fostering digital entrepreneurship, ensuring that digital services are accessible in various languages, and making online content more inclusive and culturally sensitive.  Summary Information technology has driven change on a global scale. As documented by Castells and Friedman, technology has given us the ability to integrate with people all over the world using digital tools. These tools have allowed businesses to broaden their labor pools, their markets, and even their operating hours. But they have also brought many new complications for businesses, which now must understand regulations, preferences, and cultures from many different nations. This new globalization has also exacerbated the digital divide. Nielsen has suggested that the digital divide consists of three stages (economic, usability, and empowerment), of which the economic stage is virtually solved