MGMT 1005H Lecture Notes - Lecture 10: Insourcing, Workflow, Purchasing Power Parity
Document Summary
Thomas friedman: technology flattens and de-personalizes transactions: globalization 1. 0, countries globalize 1492-1800, high cost, high risk, moral hazard , globalization 2. 0, companies globalize, 1800-2000 i. ii. Steam, railroads, telephone, trains, trucks: globalization 3. 0, individuals globalize, 2000 , cheap, little risk, world becomes so tiny, that it"s flat. 11/9/1989: berlin wall came down, microsoft shipped 6 months later. 9/9/1995:netscape went public, first internet browser dot com boom. Offshoring: operations can be moved to new countries. Open-sourcing: some software can be developed by making source code available to everyone. In-sourcing: bringing in specialists to take over functions. Supply chain: connection between sales, shipping, and manufacturing. Steroids: wireless computer access and voice over protocol. 4 billion new customers (number is growing) Group with purchasing power at top of pyramid is shrinking. Awareness: teach people how to use product. Innovation sandbox : immerse customers into your ecosystem, willing to pay for. Purchasing power parity: very little income per person, billions of people.
