TEC 401 Session Four

1. TEC 401 Session Four Human Factors In Technology Joseph Lewis Aguirre

2. WS4 OBEJCTIVES • Globalization of technology • Business Management for The Multinational Customer • Personal Challenges in Knowledge Management

3. Globalization of Technology

4. Globalization of Technology "New information technologies are integrating the world in global networks of  instrumentality. … The first historical steps of informational societies seem to characterize them by the preeminence of  identity as their organizing principle." Manuel Castells, The Rise of the Network Society (The Information Age: Economy, Society and Culture, I) (Cambridge, MA; Oxford, UK: Blackwell, 1996)

5. Globalization of Technology • Global cities as points for flows of labor, capital, information, and technology. • Aren't we talking about networks of cities when we talk about "globalization"? Where are non-urban regions without an infrastructure in the idea of the "global"? • Saskia Sassen, Globalization and its Discontents (New York: The New Press, 1998)

6. Globalization of Technology Parallel view with Wriston's Law: "capital goes where it's wanted and stays where it's well treated". All types of capital follow this law: financial, intellectual, cultural. Globalization is really the networked matrix of capital concentrations in cities.

7. Globalization of Technology • The new economy in the United States. • Use of the Internet in China. • The expanding markets in Latin America. • Internet-fostered rivalry between the United States and Europe

8. Globalization of Technology • Globalization and  positioning of arguments: • globalization discussed from what socially grounded perspective? • from where about whom? • Example: Chinese model of education with direct parental involvement; students now left alone to use computers and the Internet without parental control. • - An effect of globalization?

9. Globalization of Technology • The use of the Net to communicate local, ethnic, religious, and national cultures to a worldwide and international audience: optimistic multiculturalism, where anyone with access can participate. • The worldwide diffusion of dominant cultures through the global marketplace .. as another case of  hegemony, cultural imperialism.

10. Globalization of Technology (cont) • The goals of global access and ubiquity of the Net require dealing with two forces, one toward technology development and diffusion, the other toward governmental and institutional controls over international interconnectivity. • International business and worldwide Internet ecommerce, promoted by transnational corporations, for access to friction-free worldwide markets.

11. Globalization of Technology (cont) • The general homogenization or "internationalization" of culture, favoring Western developed nations and their languages and values. • In the political economy of communications, the movement toward worldwide access to communications technology and connectivity across territorial boundaries.

12. Globalization of Technology Paradox Paradox of global localization: making local identity politics a global issue through the Internet. Local identity groups using the technologies of globalization to promote political interests. For example, the Taliban in Afghanistan. (See www.taliban.com ) with a Netscape pop-up advertising window!).

13. Globalization of Technology Headlines • In Globalization Era, Multinationals Flee for More Flexible Areas - Western Europe’s Labor Woes: • IBM: of 14, 500+ planned layoffs, 70% would fall on Europe: • Electrolux AB of Sweden evaluating 27 factories for possible closure • GM: 12,000 layoffs in Europe • “The basic message is that globalization has a lot further to run, and in that reshaping, Europe is increasingly being bypassed” • --Julian Callow, chief economist at Barclays Capital in London • Source: WSJ 08-01-05

14. Globalization of Technology - CAFTA CAFTA: The Central America Free Trade Area is now close to reality: Approved by the Senate in June, and the House last week. “If we do not do this, China and the EU will step into the breach and we will lose business and influence on our doorstep” -- Tony Vaillamil, former under secretary of commerce “That is utter nonsense. In 2003 China’s share of the Cafta market was just 3%, the EU 9% and Japan 3%. America’s share has risen to 40%” -- Bernard K. Gordon, professor emeritus in economics at the University of New Hampshire. Nancy Pelosi, House Minority Leader, is contemplating revenge against the 15 Democrats who voted for Cafta Source: WSJ 08-01-05

15. Knowledge Explosion The need for intelligent information management is clear.

16. Global Technological Revolution • Bits • Boxes • Bandwidth

17. Global Technological Revolution - Origin • Major advances in “information and communications technologies” (“ICT”) • Digital storage and processing of information (information) • Satellite and optical fiber transmission of information (communications)

18. Cyberization: interface to all bits and process information • Coupling to all information and information processors • Pure bits e.g. printed matter • Bit tokens e.g. money • State: places, things, and people • State: physical networks

19. Library Volume Growth 10X in 150 years

20. Transformation of Business and Markets In 1999 in Costa Rica, Malaysia and Singapore, high-tech exports exceeded 40% of the total

21. Transformation of Business and Markets

22. Revolution in Learning and Knowledge Sharing From 1995–97: Scientists in the United States co-authored articles with scientists from 173 other countries: Scientists in Brazil with 114, in Kenya with 81, in Algeria 59.

23. Revolution in Learning and Knowledge Sharing The six largest internet-based distance-learning universities in the world are located in developing countries -- Turkey, Indonesia, China, India, Thailand and Korea

24. Global Information Flow

25. Global Information Flow

26. Communities Empowered in New Ways • Governance redefined • Globalization of civil society • The Philippines: electronic advocacy network set up in response to impeachment trial

27. Wealth and Economic Growth Creation “E-commerce,” business conducted over the Internet, totaled $45 billion as recently as 1998 and an estimate in January 2000 projected it could explode to over $7 trillion as early as 2004.

28. Digital Divide • Betweencountries– the global digital divide • Between groups of people within countries - the domestic digital divide

29. Phones and Electricity • 2 billion people lack access to reliable electricity • As much as 80% of the world's population has never made a phone call

30. Phones and Electricity • More telephones in New York City than in all of rural Asia • In the entire continent of Africa, there are a mere 14 million phone lines -- fewer than in either Manhattan or Tokyo.

31. Internet Accounts and Hosts • More Internet accounts in London than all of Africa • One in two Americans is online, compared with only one in 250 Africans.

32. Internet Accounts and Hosts http://www.riverdeep.net/current/2002/01/011402t_divide.jhtml ,

33. Internet Accounts and Hosts • Of all the Internet users worldwide, 60 per cent reside in North America, where a mere five per cent of the world's population reside • Wealthy nations comprise some 16 per cent of the world's population, but command 90 per cent of Internet host computers.

34. Digital Divide: PCs • Developed states: 311.2 per 1,000 • Globally: 70.6 PCs per 1,000 • South Asia: 2.9 per 1,000 • Sub-Saharan Africa: 0.75 per 1,000

35. Digital Divide: BW • The vast capacity of the Internet is distributed highly unevenly throughout the world. • By late 2000 the bulk of Internet connectivity linked the US with Europe (56 Gbps) and, to a lesser extent, the US with the Asia-Pacific region (18 Gbps). • Africa had extremely little bandwidth reaching Europe (0.2 Gbps) and the USA (0.5 Gbps)

36. Digital Divide: Costs • Internet access costs (as a percentage of average monthly income) • US: 1 to 2 percent • Uganda: over 100 percent • Bangladesh: 191 percent

37. Digital Divide: Costs • Access costs (ISP, and telephone call costs) are almost four times as expensive in the Czech Republic and Hungary as in the United States • In Bangladesh a computer costs the equivalent of eight years average pay

38. Digital Divide: Technical Training • McConnell International "E-Business report” • Europe (including Eastern Europe) and Latin America rated well • Middle East and Africa needed to significantly develop their human capital • Asia had a mixed scorecard

39. Fact Sheet • Global Perspective • There are an estimated 429 million people online globally • 429 million represents only 6% of the world’s entire population. • 41% of the global online population is in the United States & Canada • 27% of the online population lives in Europe, the Middle East and Africa(25% of European Homes are online) • 20% of the online population logs on from Asia Pacific(33% of all Asian Homes are online) • Only 4% of the world’s online population are in South America • The United States has more computers than the rest of the world combined (Source: First Quarter 2001 Global Internet Trends, Neilsen/Netratings)

40. Fact Sheet (Cont) Among highly developed nations: • 61% of Internet connections are in Sweden • Spain trails the list with only 20% of its homes connected. • The Pew Internet and American Life Project published in Who’s Not Online that 57% of those not online have no intention of going online. 33% of those people have chosen to not go online. Among the biggest reasons were lack of need (40%); no computer (33%); no interest (25%); lack of knowledge for use (25%); and general cost involved (16%). • U.S. Perspective • In fall of 2000, the U.S. Department of Commerce found that • 51% of all U.S. homes had a computer; 41.5% of all U.S. homes had Internet access • White (46.1%) and Asian American & Pacific Islander (56.8%) households continued to have Internet access at levels more than double those of Black (23.5%) and Hispanic (23.6%) households. • 86.3% of households earning $75,000 and above per year had Internet access compared to 12.7% of households earning less than $15,000 per year. • Nearly 65% of college graduates have home Internet access; only 11.7% of households headed by persons with less than a high school education have Internet access. • Rural areas, though still lagging behind urban areas, had surpassed inner-cities in Internet availability and use:

41. International Institutional Responses • infoDeV - Global program managed by the World Bank. Seeks to help developing economies fully benefit from modern information systems • SDNP - assist developing countries in acquiring the capacity to access and to contribute to solutions for sustainable development via the medium of information and communication technologies • DOI – Digital Opportunity Initiative, a public/private partnership of Accenture • DOT Force - Digital Opportunity Task” Force drafted at the G-8s’ Okinawa Summit. Published “Digital Opportunities for All” in May, 2001.

42. Personal Challenges in Knowledge Management • Application of technology to business functions requires critical personal development and adaptation. • Key concepts in this process are as follows: • Structure influences behavior. • Structure in human systems is subtle. • Leverage often comes from new ways of thinking.

43. Digital Divide

44. Digital Divide • Betweencountries– the global digital divide • Between groups of people within countries - the domestic digital divide

45. Phones and Electricity • 2 billion people lack access to reliable electricity • As much as 80% of the world's population has never made a phone call

46. Phones and Electricity • More telephones in New York City than in all of rural Asia • In the entire continent of Africa, there are a mere 14 million phone lines -- fewer than in either Manhattan or Tokyo.

47. Internet Accounts and Hosts • More Internet accounts in London than all of Africa • One in two Americans is online, compared with only one in 250 Africans.

48. Internet Accounts and Hosts • Of all the Internet users worldwide, 60 per cent reside in North America, where a mere five per cent of the world's population reside • Wealthy nations comprise some 16 per cent of the world's population, but command 90 per cent of Internet host computers.

49. Digital Divide: PCs • Developed states: 311.2 per 1,000 • Globally: 70.6 PCs per 1,000 • South Asia: 2.9 per 1,000 • Sub-Saharan Africa: 0.75 per 1,000

50. Digital Divide: BW • The vast capacity of the Internet is distributed highly unevenly throughout the world. • By late 2000 the bulk of Internet connectivity linked the US with Europe (56 Gbps) and, to a lesser extent, the US with the Asia-Pacific region (18 Gbps). • Africa had extremely little bandwidth reaching Europe (0.2 Gbps) and the USA (0.5 Gbps)