Lecture 4

Front 1

When did each Globalization points occur and what were the agents of change?

Back 1

Globalization 1.0 (1492): Focused on countries globalizing - shrunk the world into a medium sized world
Globalization 2.0 (1800): Focused on companies globalizing - shrunk the world into a small sized world
Globalization 3.0 (2000): Focused on groups and individuals globalizing - shrunk the world into a tiny sized world

Front 2

What are the impacts of the flatteners?

Back 2

IT broadens the distribution of timely information

Increases speed of decision making

Empowers lower-level employees

Increases management span of control

Created more virtual firms, increasing flexibility

Front 3

How does IT influence flattening of hierarchies?

Back 3

Distributes information to empower low-level employees, increase management efficiency and in turn creating less middle managers

Front 4

How does flattening effect business?

Back 4

The Dot Com misconception: that hard work is not necessary

Strategies must be aligned and appropriate with tools

China/India take advantage of flat economy leading to steady erosion of US engineering, math and science

Must be more creative

Creates opportunities to alter how business processes are conducted (efficiency)

New opportunities for brands and developing customer relationships

Companies that are better with IS can deal with the 5 threats easier (ebay, dell, wal-mart, etc.)

Front 5

What are the 5 key impacts of flatteners on business?

Back 5

1. Substitute products or services: New substitutes emerge
Ex. Online music kills music store
2. Customers bargaining power: Easy access for customers on alternate products/pricing in order to bargain
3. Suppliers bargaining power: More options to sell products
4. Threat of new entrants: Internet reduces barrier of entry & changes business environment
Ex. Blockbuster versus Netflix
5. Rivalry among existing competitors: Internet widens geographic market allowing easy access for competitors, in turn creating pressure to lower prices

Front 6

What is Richard Friedman's iron rule of flatteners?

Back 6

"Whatever can be done it will be done"

Front 7

What are the Ten Flatteners and what did they do?

Back 7

1. Fall of the Berlin Wall: End of civil war which allowed people from one side of the wall to join the other
2. Netscape goes public: Allowed internet access for anyone
3. Development of workflow software: Made machines do the work for you
4. Uploading/open sourcing (WIKI): The most disruptive force of all - allowed uploading and collaboration of online projects. Created social media
5. Outsourcing: Services can be given to third parties but could have been done in house
6. Offshoring: Relocation to foreign land for less cost of operation
7. Supply chaining (wal-mart): Using technology to streamline item sales, distribution, and shipping
8. In-sourcing (UPS): A companies employees performing services-beyond shipping-for another company. 4 points: Deep collaboration, multi-function, develop and supply a great global supply chain, reduce costs/time increasing service and credit
9. In-forming: Search engines providing access to information (RSS) (news feed)
10. The steroids: Digital devices amplifying other flatteners. 3 specific examples: Computing speed/storage/profitability, peer-to-peer features (filesharing), voice over IP (skype)

Front 8

What is collective intelligence and ideation communities?

Back 8

People and computers connected and act collectively more intelligently than individuals, groups or computer have done before

Platforms where customers post news, stories, etc. and other people can rate/vote/comment and share ideas