The Context For Information Technology Since The Late 20th Century


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Review of the book by Manuel Castells. 2000(2nd edition)The Rise of the Network Society Volume I of The Information Age: Economy, Society and Culture. Blackwell. pp.77-215

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The Context For Information Technology Since The Late 20th Century

  1. 1. Saturday, June 6, 2009 iiit-b Presentation by: Sumeet Raj
  2. 2. <ul><li>Informational </li></ul><ul><li>Global </li></ul><ul><li>Networked </li></ul>Saturday, June 6, 2009 iiit-b
  3. 3. <ul><li>What is productivity ? </li></ul><ul><li>Research by Robert Solow. </li></ul><ul><ul><ul><li>Productivity is function of technological change. </li></ul></ul></ul><ul><li>Year 1870 – 1950 Moderate Growth </li></ul><ul><li>Year 1950 – 1973 High Growth Rate </li></ul><ul><li>Year 1973 – 1993 Low Growth Rate </li></ul><ul><ul><ul><li>Relation b/w productivity and technology is not simple and direct. </li></ul></ul></ul><ul><li>Reasons . . .?? </li></ul>Saturday, June 6, 2009 iiit-b
  4. 4. <ul><li>Why and How these technology had to wait to deliver their promise in enhancing productivity ? </li></ul><ul><li>What are the conditions for such enhancements ? </li></ul><ul><li>How different is the rate of diffusion of technology and thus its impact on productivity in different industries ? </li></ul>Saturday, June 6, 2009 iiit-b
  5. 5. <ul><li>To increase profit: </li></ul><ul><ul><ul><ul><li>Reduce production cost </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Increase productivity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Broaden the market </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Accelerate capital turnover </li></ul></ul></ul></ul><ul><li>Scan– Search – Open new markets. </li></ul>Saturday, June 6, 2009 iiit-b
  6. 6. <ul><li>World economy </li></ul><ul><li>Global economy </li></ul><ul><li>World economy goes Global . . . </li></ul>Saturday, June 6, 2009 iiit-b
  7. 7. <ul><li>Global interdependence of financial market: </li></ul><ul><ul><ul><li>De-regulation of financial market and liberalization of cross-border transaction. </li></ul></ul></ul><ul><ul><ul><li>Development in technological infrastructure. </li></ul></ul></ul><ul><ul><ul><li>Connectedness </li></ul></ul></ul><ul><ul><ul><li>Speculative movements of financial flows </li></ul></ul></ul><ul><ul><ul><li>Market valuation firms </li></ul></ul></ul>Saturday, June 6, 2009 iiit-b
  8. 8. <ul><li>Emerged at a given time, 1990’s </li></ul><ul><li>In a given space, United States </li></ul><ul><li>Around specific industries, </li></ul><ul><ul><ul><li>Information Technology </li></ul></ul></ul><ul><ul><ul><li>Finance </li></ul></ul></ul><ul><ul><ul><li>Biotechnology </li></ul></ul></ul>Saturday, June 6, 2009 iiit-b
  9. 9. <ul><li>Few facts </li></ul><ul><li>Internet related firms </li></ul><ul><li>Classification of Internet related industries </li></ul><ul><li>By the turn of the century, the internet economy and IT industries had become the core of US economy. </li></ul>Saturday, June 6, 2009 iiit-b
  10. 10. <ul><li>Market capitalization of internet companies sky rocketed. </li></ul><ul><li>Financial world was transformed in 1990’s by institutional change and technological innovation. </li></ul><ul><ul><li>deregulation of industry and liberalization of cross border transactions </li></ul></ul><ul><ul><li>The process culminated in 1999, when president Clinton abolished the institutional barriers to consolidation between different segments of the finance industry legislated in the 1930s and 1940s to prevent the kind of financial crisis that led to The Great Depression of 1929. </li></ul></ul>Saturday, June 6, 2009 iiit-b
  11. 11. <ul><ul><li>US signaled the freedom for the private companies to manage money and securities in any way the market would bear. </li></ul></ul><ul><ul><li>Major merges between financial firms led to the consolidation of the industries in few mega groups, capable of global reach. </li></ul></ul><ul><ul><li>IT changed the way financial transaction were conducted. </li></ul></ul><ul><ul><ul><ul><li>Powerful computers, adv mathematical models, we are able to forecast diff things both in real time and future time. </li></ul></ul></ul></ul><ul><ul><li>Consequences: </li></ul></ul><ul><ul><ul><ul><li>Large no. of individual investors. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>E-trading quickly spread from stocks to bonds. </li></ul></ul></ul></ul>Saturday, June 6, 2009 iiit-b
  12. 12. <ul><li>Why does technology of transaction matter? How does it affect finance industries ? </li></ul><ul><ul><ul><li>Reduces transaction cost </li></ul></ul></ul><ul><ul><ul><li>Reduce cost of active trading </li></ul></ul></ul><ul><ul><ul><li>More no. of individual investors </li></ul></ul></ul><ul><li>Consequences: </li></ul><ul><ul><ul><li>Substantial increase in the amount of value traded. </li></ul></ul></ul><ul><ul><ul><li>Financial volatility increases exponentially </li></ul></ul></ul><ul><li>Overall outcome: greater Complexity and Volatility </li></ul>Saturday, June 6, 2009 iiit-b
  13. 13. <ul><li>Why is the judgment formed ? What are the criteria for market evaluation? </li></ul><ul><li>Stock valuation, 1995-1999:the Standard & Poor top growth stocks: </li></ul><ul><ul><ul><ul><ul><li>Dell Computers 9402 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cisco Systems 2356 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Sun Microsystems 2304 </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Profits and Dividends are among the criteria to value a company stock value but they are not the over-riding factor. What is then….?? </li></ul></ul></ul>Saturday, June 6, 2009 iiit-b
  14. 14. <ul><li>Several organizational trends evolved from the process of capitalist restructuring and industrial transition: </li></ul><ul><ul><li>From mass production to flexible production </li></ul></ul><ul><ul><li>Crisis of large corporations, and the resilience of small and medium firms as agents of innovation and sources of job creation. </li></ul></ul><ul><ul><li>Toyotism </li></ul></ul><ul><ul><ul><ul><li>Management – worker cooperation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Having multi functional labor </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Total quality control </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Reduction of uncertainty </li></ul></ul></ul></ul><ul><ul><li>Corporate Strategic Alliances </li></ul></ul>Saturday, June 6, 2009 iiit-b
  15. 15. <ul><li>Company based in San Jose, California </li></ul><ul><ul><ul><li>Few facts </li></ul></ul></ul><ul><li>The business model pioneered by the company was the key to its: </li></ul><ul><ul><ul><ul><li>Productivity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Profitability </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Competitiveness </li></ul></ul></ul></ul>Saturday, June 6, 2009 iiit-b
  16. 16. Saturday, June 6, 2009 iiit-b Presented by: Sumeet Raj