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Lecture 2

MGCR 331 Lecture Notes - Lecture 2: File Sharing, Thomas Friedman, Insourcing

Management Core
Course Code
MGCR 331
Imad Mansour

of 4
Lecture 2
Course Objectives
As a result of this course on business information technologies, you will be able to:
understand and talk about IT and how it relates to business;
Learn about and understand how IT tools improve collaboration and decision-
Course Learning Outcomes
To reach the course objectives, you will learn to:
Appreciate and explain the strategic role of IT in all types of organizations
Examine how an organization can create business value from IT
Understand the importance of managing data
Familiarize yourself with tools used to improve decision-making, access information
and facilitate collaboration
Identify and explain current and future types of organizational uses of IT
Be aware of the privacy issues and security concerns in using IT.
Clicker Q:
1. Facebook user base is not bigger than the population of:
China and India
2. The rise of Opensource has:
- changed the revenue model of the software industry
- Reduced the computing cost of start ups as well as blue chips companies
3. The following are reasons why Finance professionals have to understand
- have to be able to value tech companies
- have to understand the role of IT in an investment portfolio
Changing World - The World is Flat by Thomas Friedman (video)
- Objective:
o Appreciate the global business environment
o Realize how IT affects business and shapes our world
- There have been 3 years of globalization
o 1st year (Globalization 1.0) 1492 ~ early1800
Globalization through countries (ex. Size L M)
Exploring other countries
o 2nd year (Globalization 2.0) Early 1800 ~ 2000
Globalization through companies (ex. Size M S)
Multinational, marketing
o 3rd year (Globalization 3.0) Today
(ex. Size S tiny; flattening the global economic field)
It’s not globalization through countries or companies, but it’s new and
unique globalization that degree to which individuals and small
groups globalizing themselves
Unlike globalization 1.0, 2.0, globalization 3.0 will not be built
exclusively around the group of White Western individuals who
dominated first two years of globalizations.
Individuals and small groups of every color of the rainbow will be able
to plug and play
- 10 days of flatten the world (10 flatteners; refer to the handout)
Changing World
- Globalization through countries, firms, and individuals
- Era I (1492 to 1800) Spearheaded by countries: power to deploy
- Era II (1800 to 2000) Spearheaded by companies: decreased cost of transportation
and telecommunications
- Era III (2000 - till date) Spearheaded by groups and individuals: the world is flat
Today’s Economic Environment
- Globalization:
o Integration of regional economies, societies, and cultures through globe
spanning networks of exchange
Now exchanges take place at a global level. People are no longer
restricted to dealing with their local resources
o Heightens competition, offers new opportunities
The expansion of the exchange networks, new opportunities emerge
in relation to business processes, supply chains, consumer base etc
o Enhances the value of information to the firm
With the exchanges and the reduction of geographical constraints,
communication and information became of essence of businesses
o Requires powerful information system responses to conduct trade and
manage business on a global scale
Sophisticated information systems were necessary to ensure this
increasingly critical communication and information exchange
- Role of IT in impacting the change and the pace of change
- 10 forces (technologies & events) that created the leveled global economic playing
1. Fall of the Berlin Wall
- Wall came down and Windows came up
2. Netscape goes public
- Netscape and the Web broadened the audience for the Internet
- Everyday occurrences such as words, files, films, music and pictures could be
accessed and manipulated on a computer screen by all people across the
3. Work-flow
- Standards and technologies that allowed work to flow
- global platform for multiple forms of collaboration
6 forms of collaboration that resulted from #3:
4. Uploading Open sourcing
- Communities uploading and collaborating on online projects (wikipedia,
open source software, & more)
5. Outsourcing
- Companies can split service and manufacturing activities into components
which can be subcontracted and performed in the most efficient, cost-
effective way
6. Offshoring
Relocating entire operations or tasks to another country
7. Supply Chaining
- Networks of firms, their suppliers and their customers that support
collaboration and sharing of information for increased efficiency
8. Insourcing
- Delegating operations within an organization to another company that
specializes in those operations
9. Informing
- Google; ability to search for information
10. The Steroids
- File sharing, wireless, VoIP (Voice over Internet Protocol)
- Technologies that amplify the other flatteners
- Enable forms of computing and collaboration to be digital, mobile, and
1. Flat world