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

Globalization: The World is Flat: A Brief History of the 21 st Century Ten forces that flattened the world. Berlin Wall came down and Windows went up: 11/9/89 Free market economy; for Communist block India, Brazil, China. Flattener #2. Netscape went public: 8/9/95

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

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  1. Globalization:The World is Flat: A Brief History of the 21st CenturyTen forces that flattened the world

  2. Berlin Wall came down and Windows went up: 11/9/89 • Free market economy; for Communist block • India, Brazil, China

  3. Flattener #2 • Netscape went public: 8/9/95 • Files, FTP; e-mail, SMTP; POP; TCP/IP; • HTTP and HTML; SSL for security

  4. Flattener #3 • Workflow software • XML and SOAP; seamless communication • C2C: E-bay and PayPal

  5. 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

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

  7. A New World Economy • The balance of power will shift to the East as China and India evolve AUGUST 22, 2005    Business Week

  8. 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

  9. Invent new industries

  10. 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

  11. Open sourcing • Self-organizing collaborative communities; peer-reviewed software shared and improved through an online community • Examples: • Apache • IBM • Red Hat • Linux • Mozilla

  12. 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

  13. 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

  14. Supply Chaining • A method of collaborating horizontally—among suppliers, retailer, and customers to create value; Value Chain: activities, functions, and business process that support a product or service. • Example: Walmart

  15. Insourcing • Definition “synchronized commerce solutions”; manage firms manufacturing, packaging, and delivery process; design and manage global supply chain. • UPS

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

  17. Digital technologies • VoIP • PDA • Computers • WiFi • Ipods

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