Module
3
Continuing reading into The World is Flat, Thomas
Friedman explains the term Offshoring, looks into supply chains, and finally
the Internet giant Google and how all of these have benefited from or relate to
the flattening of the world.
In 2001, China joined the World Trade Organization and
opened the door for businesses to start offshoring there. Offshoring is when a company takes one of
their entire factories and moves it offshore to a different country where they
can produce the same product at a much lower cost. China proved to be an attractive country for
this strategy because labor is cheaper, health-care cost less, and taxes are
lower. Offshoring differs from
Outsourcing, which is when a company or individual is shipping only a business
process, instead of an entire factory, overseas to be done for less. While I think offshoring has helped the
global economy as a whole, our economy here in the United States suffers a
little because of lost jobs resulting from offshoring.
Another benefit resulting from information technology is
how supply chains for businesses have improved.
Supply chains are a method of collaborating among suppliers, retailers,
and consumers to create value. The PC
and the World Wide Web made finding the best producers in the world at the
lowest prices to maximize profits for businesses an easier process. Wal-Mart, the biggest retail company in the
world, is a prime example of supply chains at its finest. Wal-Mart does not produce a single item they
sell on their own, yet they are widely successful. This is because Wal-Mart uses a
hyper-efficient supply chain and the key for their success is the distribution
of information. Everything that Wal-Mart
sells is tracked electronically. Because
of information technology, Wal-Mart can see what products consumers are buying
the most, and send that information down the supply chain to get them replaced
expediently.
Google, the World Wide Web’s search engine giant, has
also had a great effect on businesses throughout the world. Google has made it easier for businesses to
search for information on how they can collaborate with business partners for
outsourcing, insourcing, off shoring, and supply chains. Google also creates a targeted advertising
model. When you search for a certain
product, Google will link you to advertisements for exactly what you’re
searching for. Google makes it easy for
anyone with access to a computer to search for information, products, and
services much faster than traditional means.
This helps both the consumer and the business.
The benefits of information technology have undoubtedly
improved businesses worldwide. Companies
and individuals who take advantage of this technology have seen their business
flourish like never before. Businesses
that can’t or won’t use this technology are left in the past, and won’t be able
to compete with those who are. Google is
at the fore front of creating business opportunities. I use Google every day, to look up any piece
of information I want at a particular moment.
If I’m craving a certain food, I Google what restaurants are in the
area. If I’m looking to buy a new
product, I do my research and shopping through Google. People know that this is the value of Google,
and I think the businesses that take advantage of this resource are the
companies that will be moving forward.
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