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GLOBALIZATION OF TECHNOLOGIES

GLOBALIZATION OF TECHNOLOGIES. Chapter 11 Lecture 1. 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.

JasminFlorian
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GLOBALIZATION OF TECHNOLOGIES

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  1. GLOBALIZATION OF TECHNOLOGIES Chapter 11 Lecture 1

  2. 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

  3. Technology Can Be • Low tech • High tech • Some combination • Each approach provides opportunities for organizational advantage

  4. 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

  5. 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

  6. 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

  7. 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.

  8. Ten Innovative Products for 2010 • Genetaceuticals—treatments that combine genetic research and pharmaceuticals • Personalized computers—customized to adapt to your way of working • Multi-fuel automobiles—combine electricity, reformulated gasoline, natural gas, or other fuels • Next-generation television—high definition, wall-sized flat screens for information, communication, and entertainment • Electronic wallet—a smart card to replace money, keys, driver’s license, medical records, etc. • Home health monitors—automatic analysis of your vitals • Smart maps and tracking devices—to find what you want • Smart materials—sensors 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

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

  10. 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 • 1969—$49 • 1990—$2.33 • 2000 >$2 • 2005—pennies

  11. 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; 40–50 m. in 1996; 100 m. in 1998; 250 m. in 2000; 700+ m in 2003 • The total number of websites had grown to 43.2m in January, 1999, an increase of 46% from a year earlier

  12. 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.

  13. 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

  14. 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

  15. Internet Growth • Daily e-mails in North America tripled from 1999–2004 to equal 11.9 billion (does not count Spam); office workers spend 1–2 hours daily on e-mail. • Top e-commerce category in U.S.= leisure travel • U.S. 1999 b-to-c e-commerce=$20 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).

  16. 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

  17. 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

  18. 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”

  19. Changes in the Dynamics of Business • Creates new industries • Hardware andsoftware • Access service industry

  20. 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

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

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