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Enterprise 2.0 World View- Think Global, Act Global

August 6, 2009
The effects of globalization, and the opportunities it presents, appear in three areas: supply chains, innovation, and emerging markets. Add to these the opportunity for green field manufacturing.
Supply chain
Globalization accelerates the trend for firms to buy rather than build. While the motive may initially be economic the secondary benefits reduced fixed costs, inherent flexibility quickly become apparent. In addition, a virtuous spiral sets in.  For example, that low cost, offshore suppliers compete, the more capable they become of supplying a service at an even lower cost and higher quality, simply because of competitive pressures.
Globalization does not just lead to rationalized supply chains. It also affects innovation. The world provides a diverse set of environments for innovation, depending on factors like technology infrastructure, country-specific skills, income levels and competitive dynamics. Innovative multinational firms have long tapped these diverse environments for new ideas. Two things have changed. The first is that the spectrum of technology maturity is very broad, with the U.S. often somewhere in the middle rather than the leading edge.
Emerging markets
While developed countries worry about growing dependency ratios as their population¬タルs age, the bigger demographic story is the accelerating integration of hundreds of millions of people producers and as consumers into the global economy.
Greenfield manufacturing
Because of global networking, supply chains, improvements in transportation and compliant, knowledgeable workers, firms can now establish entirely new manufacturing facilities in low cost geographies.
Acting Global
The globalization mantra is ¬タワThink Global; Act Local¬タ? meaning have a global perspective but behave according to the requirements of local markets. However, the spread of global networks, globalization and the Asian engine now require something new firms should think andactglobally.
1. Reconfigure your enterprise to take advantage
2. Wake up to global competitors.
3. If you cannot harness or exploit the profound cost differentials in new global markets.
4. Lever you¬タルre IP, using the thinking developed in the IT&CA program.
5. Act global, not local when it comes to business ethics and integrity.
6. Develop a global brand strategy.
7. Exploit IT standards.
8. Build global enterprise architecture.
9. Implement global collaborative environments.
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