Following are the insights from a session on Globalization held at Hyderabad Management Association in the month of March, 2019. The insights are derived from the inputs from industry veterans of organizations such as Kirloskar group, Cyient group, banking and financial services industry and education industry, etc.
Historically last 200 to 300 years, industrial revolution took place. Comfort for mankind improved with industrial revolution. Current day Indian managers have to adopt constantly to changing business environment when they are working in the global context. 20th century thought that there would be free trade across the globe. Globalization helped the economic development and increase in market capitalization in the world. The 20th century began with industrial revolution researching into areas such as finding new customers, looking for new machinery useful for manufacturing, and looking for new tools to improve the process. 21st century has seen the global consumption gone up by 50%. As on 2019, Financial services, Information technology services, and business consulting services in the world together are contributing nearly 45% of global GDP (Gross Domestic Product).
Millennial need their own globalization approach. The training period being dedicated by the organizations across the globe need to be made exactly the learning period for the workforce. Current day entrepreneurship requires thinking about alternatives for problem solving and generating new ideas.
What Helped Globalization?: Invention of Radio and Aircraft ignited the globalization in the world. Setting up of establishments such as The World Bank, IMF (International Monitory Fund), and United Nations (UN) further helped the globalization and global trade to the very large extent. 21st century is seeing the hyper globalization with increased immigrations, global workforce, talent sharing, technology transfers, free trade, and Brexit, etc. Digitization also helped the globalization. Offshoring and outsourcing in different industries encouraged west to do business with eastern counter parts. OECD (Organization for Economic Co-operation and Development) countries were contributing more than 60% to Global GDP (nominal). Globalization 3.0 is shifting power from countries to cities making cities more workable and livable with services such as Internet and WWW (World Wide Web). Globalization became irreversible phenomena in current days.
Global Data: When we are discussing about data at global level, data security and economic aspects of data play major role in the world. Governments across the world and organizations operating across the world need to learn securing their data. From technology point of view, Gordon Moore’s (co-founder, Intel) theory (1965), was after every 2 years processor speed doubles and memory/storage cost halves. Now this change phenomenon is happening for every 18 months in 21st century. Data needs to be taken care in world because more than 5 billion people were connected in the world as on 2019. The number of connected devices in the world is going to surpass 16 billion by 2020.
What is there for Manufacturing with Globalization?: Industy 4.0 with its components such as big data, predictive analytics, algorithms, social media, mobile and cloud technologies, Internet of things are being added to manufacturing.
Automation + Innovation => Replaced Labour Cost => With Value addition from Labour
Technology is reducing the cost of product development. Artificial intelligence is being embedded in 21st century products. Vendor selection should have different approach which includes, the reputation of the vendor, maintaining preferred vendor list, its financial health, distance, quality, reliability of deliverables, etc. All these aspects are helping manufacturing in the world.
Artificial Intelligence and Automation: As we know human beings can sense five things such as taste, smell, feel of touch, vision and hearing using 5 sense organs (panchendriyas). Now by 2019, with artificial intelligence (AI), natural language processing (NLP), machine learning and robotics, computers have mastered even up to 100% perfection in 2 out of 5 sense things such as vision and feel/touch.
Drones: The Industry 4.0’s invention of drones made resource usage effective in several industries. For example, drones can collect different data items in agriculture fields such moisture, dryness, soil strength, etc.; after data analysis and applying algorithms, the need and quantity of fertilizers and pesticides to be used can be decided effectively.
Industry 3.0 made phenomenal success in mobile phone industry. Industry 4.0 already introduced IoT (Internet of Things) and drones. Let’s us wait and see; what more is there in our plate…………
Best wishes,
Dr.Goparaju Purna Sudhakar