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World is not flat

  1. World is not Flat Mayank Tyagi, MDI, April 2012
  2. The World is Flat In Globalization 1.0, which began around 1492, the world went from size large to size medium. In Globalization 2.0, the era that introduced us to multinational We are taught that… companies, it went from size medium to size small. And then around 2000 came Globalization 3.0, in which the world went from being small to tiny. Thomas Friedman
  3. It’s a Flat World • World shrinking from small to flat • Economic playing field becomes level • Companies can/need to compete globally • Emergence of multinational companies • Movement of goods shifts to movement of information and services
  4. Accentuated by • The world has become flat…[creating] a global, Web-enabled playing field that allows for…real time collaboration in development and production of goods and services, without regard to geography, distance or, in the near future, even language. Thomas Friedmann
  5. Till a week ago…
  6. What are some of the major indicators of globalization Foreign/Global Media Do I need to name it? International Communication Open immigration policies Exports to GDP Ratio Management Education
  7. Levels of Internationalization Telephone calls Immigrants (to Population) Direct investment Equity investment Exports (to GDP) 20% 40% 60% 80% 100%
  8. Levels of Internationalization • Globalization seems to be truly at work in education, with international students a presence on many campuses. • Even in US, only 2% of university students are studying in countries where they are not citizens • At MDI which has one of the best foreign to Indian student ratio, its also 2%
  9. Some of us will still not agree, other indicators may or may not indicate globalization but social media is a proof that we live in a flat world Really???? How many Facebook friends do you have who are not from India? Globally this figure does not exceed 15- 20%...even in European countries
  10. Term used for this fallacy is
  11. Then why do we overlook this Data(1/2) Dearth of data While there is absolutely no denying the fact that world is becoming increasingly globalized yet there are very few real time indicators which are able to explain the extent of globalization. Its simple too complicated. Peer Pressure Its cool to talk about globalization. When the entire world, media and peers are talking about globalization, then it seems to be foolish to question this judgment. After all elites would have done some research to come to this conclusion
  12. Then why do we overlook this Data(2/2) Techno Trances(if we listen to Techno music for long; we tend to sway without music) The revolution in information technology all around us has led to eager speculation about the ways in which business practices may be fundamentally transformed. The promise of the “New Economy” has excited the imaginations both of young people seeking careers with a bright future and investors hoping for dazzling capital gains. It is widely believed that institutions of the “old economy” may soon be rendered obsolete. However, reality is that we are still old school in non-metro areas. Excellent Marketing Consultants/KOLs need to come up with a catchy yet compelling theme to create an atmosphere which not only sounds logical but also continues to create business for them. Globalization serves both the objectives. If repeated continuously, it starts feeling real
  13. We are only trying to emphasize that world is not really globalized NOW and for any organization there are huge inherent advantages in going global
  14. Ideal Globalization Approach • Why Go Global? – Economies of scale – Economies of scope – Cheaper production costs • Organization Structure – Global Product Structure(Eli-lily) – International Division(P&G) – Global Matrix(McKinsey) – Global Geographic(Euro Disney)
  15. Usual Actual Scenarios
  16. Implications of 10-20% globalization Highlights gains from additional integration Reduces/reverses fear about additional integration
  17. Case Study - TCS Latin America Local Solution Monterrey Center Querétaro DF Global Delivery Guadalaja Centers ra Medellí Bogot n Quit á o Lima Brasilia  7000+ Associates San Pablo  150+ Active Clients.  16 of Fortune 100 Santia Montevide go Buenos o 4 of 11 Latin firms in the Aires Global 500™
  18. “Arguing against globalization is like arguing against laws of gravity.” Kofi Annan
  19. All we are saying… …is that world is not flat yet and there is ample opportunities for organizations for increased integration and it should not fear increased globalization