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Effect of Globalization
Effect of Globalization
In the last 40 to 50 Years, information technology has grown with the tremendous pace, In
today’s time we cannot think of implementation of any project without the use of technology. In
the same manner, information technology or e-technology has impacted the organization and
their operations, and that is not limited to the use of desktop or laptop computers with in
organization. Even the small machines are using the technology are getting connected to the
network so that they can be accessed or checked remotely. This has eased out lot of things in the
When we talk about technology, then it’s particularly information technology which has changed
the complete environment and business culture of the organization, if we compare it with the
scene 30 years ago. The way information technology is developing in the business prospect, it
has gathered the attention of many researchers in last few years (Chatfield and Yetton, 2000,
Leek et al., 2003, Vlosky and Smith, 1993, Wilson and Vlosky, 1998). As per the research,
almost quarter of the workers in most of the developed countries used to work from home for a
Effect of Globalization
Globalization has also affected the use of information technology in the organizations, as most of
the organizations have their offices around the world, and they needed to be interconnected with
each other irrespective of the time frame and information should transmit from one location to
another instantly, in order to be competitive. If an organization is not using the information
technology then somewhere they are lagging behind in the competition and it becomes tough for
them to sustain in the market for the longer period of time. Now the global economy is
dependent largely on the information technology, like the share market trends, the performance
of the share market in United States, directly affect the market in Asian Countries, which is just
because of the use on information technology. Douglas (2002, 285-305) has explained that the
use of Computerized networks, satellite communication systems and software & hardware that
Affecting Organization
The role of information technology within organization has mixed views, some feel that,
information technology is better to increase the efficiency within the organization; on the other
hand some count the negative aspect of the information technology in business. The use of
Information technology in the business somehow increases the social interaction, on a broader
level, and brings the people closer than they were before.
With this essay we will also try to understand what are the threats and risks associated with the
use of these technologies and how the service providers of these technologies are working in the
direction to overcome the issues and risks associated with the use of information technology
With the affect or globalization, and ever shrinking market, the use of technology has become
the need of the organizations, and it has become the case of their survival, by the start of this
decade people has started talking about the use of Machine to Machine, where human interaction
in the heavy industries has become very minimal, even in the case of any issue, the machine
itself start sending the messages on mobile phone of the machine owner, t alert about the
possible issues. Things like this have made the day to day operations of workers a bit simpler as
they don’t always need to keep an eye on the performance of the machine. This has increased the
The effect of globalization is very big, as it is also related to the social interaction between the
organization, as the exchange of the business activities between the organizations with the help
of information technology, the organization get to know each other and how they function (Ford
et al., 1986; Turnbull et al., 1996). Also it works as the tool for increasing and enhancing their
competitive advantage in the market when there is the situation of uncertainty (King, Grove &
In terms of the business operation and operation Management, the information technology is of
great help, like if we talk about the manufacturing industry, the information technology supports
greatly, because of their ability in finding the supplier of goods and services, prospective buyers,
finding the target market of the product, and with product placement strategy (BSCK SME
things simple and in the way as they needed to perform, if the use of information technology in
business operation is followed as per the standard procedures than it helps in;
The following advantages of information technology helps in better customer satisfaction, and
reduce the cost of business and also enhance the organization’s competitive ability. However
there are researchers who argue that to enhance the organizational efficiency, and enhance the
business operation process, the organization needed to streamline their all business process; it
cannot be done just by the implementation of the information technology within the business.
Like Turban et al. (2002) suggested that, an Organization, in order to maintain its competitive
When we talk about the use of Information technology in the business operations or within the
organization, the effect on the performance of the system based on the use of E-technology also
depends on the business model of the organization. Though the marketing segment of the
organization are all has to be well netted with the information technology, to have all the latest
update about the global market. Finance sector and health care business domain is the one which
is highly impacted by the use of technology in the recent years, because of the growing demand
of the health care services, in comparison to the other sectors like manufacturing and services,
In the Manufacturing sector the use of information technology is largely seen in the, Computer
aided manufacturing, which helps in integrating all aspects of the production system with one
centralized computer, the removes the complexity of the production department and eases out the
Now to ease out the complete business process of the organization in the manufacturing
companies, ERP models are also there which run on both internet and intranet, and helps to
connect the different department within the organizations, and every department can access the
data they want whenever they require and from any preferred location as everything is stored on
the cloud based system. ERP systems are very useful software for the business operations of the
organization as they tend to simplify the things and remove the manual interference in the
With the expansion of information technology, and internet, although the business opportunities
has increased and the business operations has also improved, but it also has some risks and
threats in terms of Business and Business operations. The risk involved in the business process as
technology, they are prone to phishing attacks where attacks can came through the email
and other means and can harm the complete organizational system
2) Denial of Service: This form is threat is very prone to system associated with
Organization working on the E-technology backed system. Where the internet network in
filled with some random information and data transmission and it happens until the data
transmission of the organization is blocked. Because of this mostly the organization has
to suffer as they are not able to communicate with each other and even their processes
Other risks involves as the rational risks which can be explained as;
operations
3) The effect of uncertainty involved with the introduction of information technology within
the system.
4) Not using the high quality business procedures related to the information technology.
Though ERP is considered as one of the most organizational friendly e-technology system in
terms of business operation, but there are some risks and threats are also involved with the ERP
solution as well;
1) Cost associated: Often ERP solution are considered as the most cost effective solutions,
and organizations prefer them because of the help they provide in day to day business
operations but, there are some hidden costs are also associated with the system, which
organizations needed to be careful about; like O’Brien(2006) suggested that the biggest
expenses are generated from processes’ reconfiguration, after that are coming the
expenses for data conversion from the old application to the new one, software costs,
employee find it difficult to adapt to the new environment if they are working in the same
The e-technology service providers of the organization are working constantly in the direction to
make the system free from risks and threat and avoid any possible scenario when the services
1) Training: Organizations are provided the proper training and operational learning to the
stake holders of the technology and to the people who will be using it, that helps in
avoiding or mitigating the scenario where the organizational operations system can be
2) Security measures: Most of the e-technology based system these days are coming up with
the security patches to avoid any phishing or virus threats that can affect the internet or
computer network of the organization, which might result in the halt of the business
operations.
3) After sale support and review: Often these systems are reviewed time to time and if
required they are provided with the required patches as per the new threat detections and
4) Cost Measures: Organization are provided with the detail understanding of the cost to do
the ethical business practices and maintain the long term association between the service
We have understood that E—technology are the need of the day and are the requirement of the
Globalized market, for the business organizations to stay competitive in the market. However e-
technology is not the condition, this is also the requirement of the day, as most of the business
operations tasks these days are dependent on the use of technology irrespective of the nature of
the organization and tasks. Solutions like ERP are accepted worldwide in the organization which
has eased out their business processes and help them to connect different processes of the
organization from Finance to Supply chain Management system. Though there are some risks
associated with these systems and they are there from the very beginning, but service providers
are working efficiently to make these system errors free and remove these threats and risks
associated with the technology, be it related to the cost or the issues related to the technological
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