Definition of GlobalizationGlobalization is the system of interaction among the countries of the world in order to develop the global economy. Globalization refers to the integration of economics and societies all over the world. Globalization involves technological, economic, political, and cultural exchanges made possible largely by advances in communication, transportation, and infrastructure.There are two types of integration—negative and positive. Negative integration is the breaking down of trade barriers or protective barriers such as tariffs and quotas. In the previous chapter, trade protectionism and its policies were discussed.You must remember that the removal of barriers can be beneficial for a country if it allows for products that are important or essential to the economy. For example, by eliminating barriers, the costs of imported raw materials will go down and the supply will increase, making it cheaper to produce the final products for export (like electronics, car parts, and clothes).Positive integration on the other hand aims at standardizing international economic laws and policies. For example, a country which has its own policies on taxation trades with a country with its own set of policies on tariffs. Likewise, these countries have their own policies on tariffs. With positive integration (and the continuing growth of the influence of globalization), these countries will work on having similar or identical policies on tariffs.Effects of GlobalizationAccording to economists, there are a lot of global events connected with globalization and integration.It is easy to identify the changes brought by globalization.1. Improvement of International Trade. Because of globalization, the number of countries where products can be sold or purchased has increased dramatically.2. Technological Progress. Because of the need to compete and be competitive globally, governments have upgraded their level of technology.3. Increasing Influence of Multinational Companies. A company that has subsidiaries in various countries is called a multinational. Often, the head office is found in the country where the company was established.An example is a car company whose head office is based in Japan. This company has branches in different countries. While the head office controls the subsidiaries, the subsidiaries decide on production. The subsidiaries are tasked to increase the production and profits. They are able to do it because they have already penetrated the local markets.The rise of multinational corporations began after World War II. Large companies refer to the countries where their subsidiaries reside as host countries. Globalization has a lot to do with the rise of multinational corporations.4. Power of the WTO, IMF, and WB. According to experts, another effect of globalization is the strengthening power and influence of international institutions such as the World Trade Organization (WTO), International Monetary Fund (IMF), and World Bank (WB).5. Greater Mobility of Human Resources across Countries. Globalization allows countries to source their manpower in countries with cheap labor. For instance, the manpower shortages in Taiwan, South Korea, and Malaysia provide opportunities for labor exporting countries such as the Philippines to bring their human resources to those countries for employment.6. Greater Outsourcing of Business Processes to Other Countries. China, India, and the Philippines are tremendously benefiting from this trend of global business outsourcing. Global companies in the US and Europe take advantage of the cheaper labor and highly-skilled workers that countries like India and the Philippines can offer 7. Civil Society. An important trend in globalization is the increasing influence and broadening scope of the global civil society.Civil society often refers to NGOs (nongovernment organizations). There are institutions in a country that are established and run by citizens. The family, being an institution, is part of the society. In globalization, global civil society refers to organizations that advocate certain issue or cause.There are NGOs that support women's rights and there are those that promote environment preservation. These organizations don't work to counter government policies, but rather to establish policies that are beneficial to all. Both the government and NGOs have the same goal of serving the people.The spread of globalization led to greater influence of NGOs especially in areas of great concern like human rights, the environment, children, and workers. Together with the growing influence of NGOs is the increasing power of multinational corporations. If the trend continues, globalization will pave the way for the realization of the full potential of these two important global actors.
Low fertility, with couples now having, on average, fewer than 2.1 children, below the level needed for the population to replace itself. A key question is whether this trend will continue or whether fertility will rise and what, if anything, governments can or should do to influence this.
Ipv6 – world is running out of IP addresses (IP V4 running out of steam – 4 billion devices)Golf ball compared to the Sun (Trillion of addresses)14 addresses per person
The future of work – CIO implications Andy Wood Head of Communications & Collaboration email@example.com 07778335635
Overview Mega trends Future of work CIO agenda IT consumerisation CIO implications Conclusion
Mega trend - Globalisation Drivers Improvement of international trade Technological progress Increasing influence of multi national companies Power of WTO, IMF, WB Greater mobility of human resources across countries Greater outsourcing of business processes to other countries Civil Society Volatility & uncertainty Low cost competition Internet – connected economy
Mega trend - Economic GDP % change on prior year 2009
Mega trend - EconomicGDP % change on prior year 2010
Mega trend - Economic GDP % change on prior year 2011
BRIC economies In US dollar terms, China could overtake Germany in the next four years, Japan by 2015 and the US by 2039. India’s economy could be larger than all but the US and China in 30 years. Russia would overtake Germany, France, Italy and the UK. Of the current G6 (US, Japan, Germany, France, Italy, UK) only the US and Japan may be among the six largest economies in US dollar terms in 2050.
Mega trend – UK demographics Ageing population Median age 1984 = 35 years 2009 = 39 years 2034 = 42 years * projection Longer life expectancy Men @65 + 17.6 years / 12.9 years healthy Women @65 + 20.2 years / 14.9 years healthy Lower fertility Fewer births, marriages & deaths Extended retirement ages Large pool of skills & experience Electronically mediated life styles and relationships Blurring of work and home – rising job mobility 1 in 20 people in the UK work in IT and Telecoms Generation Y – Millennial’s Future strain on the NHS
Mega trend – Universal connectivity Data deluge / broadband explosion Rising transparency Declining privacy Business analytics Reputation economy Networked risks & failure Information security Location based services & habit trails Smart communities & connected cities 2 billion on line, 5 billion devices – 500m on Facebook 25% 200m access Facebook via a smart phone World is running out of IP addresses – IP V6 14 IP addresses per person 16m users in 1995 to 2 billion in 2010 and 5bn devices connected ! (Cisco report August “the evolving internet report”)
Mega trend – IT consumerisation Innovation, faster and more disruptive Mobile the primary device for web surfing IPhone Surpasses Blackberry In World Wide Market Share Average of 50 IPhone apps per user 400,000 IPhone apps available on iTunes 3 bn hours per week playing games 25m users on SKYPE Users on Facebook 500m, Twitter 110m, LinkedIn 70m 60 bn instant messages sent a day (40% business) 90% of all Internet traffic will be video by 2013 You Tube 2bn viewers per day, 24hrs of video is up loaded per minute Half the user base is under 20 years old/ 1000 years to watch it all 2015 125million will not have electricity but will have a mobile phone On planet earth 4 babies born every second / 40 mobiles sold per second Mobile internet ramping faster than desktop internet did Consumer market surpassed the size of the Enterprise market in 2004
The future of work “Throw away your brief case you are not going to the office.” “You can kiss your benefits good bye too.” “Your new boss won’t look much like your old one.” “There is no longer a ladder and you may never get to retire, but there is a world of opportunity if you figure out a new path.” Time – Magazine - May 2009
People strategy – the journey The Model The Structure VISION TO BE AS IS VISION TO BE AS IS
Information economy Value created by processing data Access to information Static business models Individuals and processes Specific points of value creation Command and control Innovation or operation excellence Work 2015
Information worker of the future - 2020 Mobile, distributed , globally available Gender diversity Powerful on line presence Physical & avatar Personal brand / agent Flexible contracts Project / program focussed Outcome incentivised Star rated – crowd recommended Collaborative Contextual awareness With on line passport BYOT - BYOC Time independent Location independent Network independent Device independent Crowd integrated & participative On line communities
HR as a Service Established in 2001 US based Cloud platform 8 million users Service Portfolio:-
Are we ready for this – total transparency ? http://www.successfactors.com
CIO agenda 2011 – Re imagine IT Coming out of recession in to recovery Flat budgets – drive innovation Focus on and enable growth Digitise the organisation Recast aspects of ops to the cloud Address value from the outside Address value from people inside Benefits realisation Raise the strategic relevance of IT Cloud / Virtualisation No.1 & 2 Mobile technologies No.3 IT will not be the same as 2008
New IT consumption models, apps & devices Apps store Cloud delivered or hybrid model Ad funded? As a service:- Infrastructure Virtual Desktop Security Communications Collaboration Telepresence Contact Composite apps Integration API’s Any device / any network Pay per use / per seat Self service / user rated Community/ vertically enabled Enterprise Social Software – Desktop of the future? Social CRM Collaboration tablets:- Avaya Flare, Cisco CIUS, Rim Playbook, IPAD2 Part of the Enterprise Architecture?
What information employees are sharing ? Financial information R & D Contracts M & A information Strategic plans Sales forecast information Customer information Employee information Supplier information Intellectual property You can limit what users can send via email / IM and transfer via USB
Consumerisation - policy is key Architectural approach required Social networking policy Company information usage policy Supported devices? Approved content categories Approved application categories Forbidden applications Service request process - BYOT Service support process - BYOT What company data is allowed on personal devices? Employee:- movers / leavers – data removal policy Back up processes / traceability Security / identity & access management Remote management Thinking needs to change from inside out to outside in!
Opportunities & risks Business value discovery? Benefit - Cost – Risk = Value Innovation v standardisation Increase appetite for risk Blend professional v personal Providing users with choice? Economics? Funding model? Difference maker for talent acquisition! Is this your future customer, supplier or employee?
Conclusion – The CIO Challenge! The future of work in 2020 will be about:- Productivity, Innovation & Value Creation Compete v BRIC economies Empowered organisations will be :- Smart, Hyper-Connected, Federated People, Homes, Cities , Planet Personalised Mobile, Social, Visual, Augmented, Contextual, Virtual & Secure Collaborative Search, Links, Authoring, Tagging, Embedding, Subscription Adaptive Flatter Structures, Career Grids, Transparency, Affiliate labour Open Viral, Crowds, Communities, 1: Many, Many : Many