International Business: World Economic Forum and Davos 2010 - Coursework Example

Introduction Globalization, one of the most hotly debated issues means global capitalism to some while others consider it to be the continuation of modernism with the forces of wealth, progress, democracy and happiness at play (Kellner, 2002). Globalization is considered to be beneficial which promotes economic prosperity, cultural diversity and technological advancement. According to the critical social theory, technology and capital work together to create a new globalized and interconnected world. While each force of globalization is important, technological revolution has impacted the business models, value creation and differentiation (Spelman, 2010). The cloud computing technologies that have made the popular social networking applications possible are now being applied to development, healthcare and society. Today mobile telephones are more like powerful computers which take care of many of the societal challenges facing both developed and developing countries (Evans, 2010). In Chile, new software enables weather information to farmers who can now take informed decisions on when and how to sow or harvest the crops. However, the fear or ignorance of cloud computing technology could harm the chances of the SMEs becoming major players globally because it dos not even help in times of recession to cut costs (Strategic Direction, 2010). Innovation drives the world and devices are growing, smaller, smarter and more connected. Sensing technology are being developed that can sense power consumption and power quality. A modest sheet of paper, 50,000 thinner than human hair, when stacked, nets a material 500 times stronger than steel and is changing the way airplanes, automobiles and electronics are made (Alpern, 2009). International Technological collaborations are taking place in the form of strategic alliances, joint ventures and intimate supplier-producer relationships. Such collaborations include activities such as joint development agreements, technology sharing and R&D contracts amongst others (Rycroft, 2002). ICT has pervaded every aspect of business and today the value chain depends on the use of technology to link the customers and suppliers. In the current dynamic and global markets, technology enables the companies to be innovative and influence timely product deliveries (Kess, Law, Kanchana & Phusavat, 2010). In the face of globalization, the relationship between manufacturers and intermediate buyers is governed by hybrid structures known as strategic alliances (Lin & Lin, 2010). Both derive competitive advantage through such alliances and this too has been possible because technology is required to search for partners with complementary resources. The proliferation of internet has enabled people to address societal problems. The civil society groups and organizations (CSOs) in Indonesia are using internet strategically to strengthen social movement (Nugroho, 2008). Internet is also used for networking and mobilization in the political field in the developing countries. WEF and Davos 2010 Thus technology has pervaded every aspect of life and poses challenges along with the benefits. International organizations such as WEF have been attempting to address such issues and provide solutions. The World Economic Forum (WEF) is an independent international non-profit organization incorporated in 1971. Its sole purpose is to bring together the world’s intellectuals, journalists, and political and business leaders under one roof every year to discuss issues that could improve the state of the people across the globe. The issues include health and environment apart from business and technology. The Form also encourages research initiatives that could help improve the state of the world. The annual meeting is held at Davos, in Switzerland, and the attendance at this meeting is solely on invitation. Davos 2010 had several pressing challenges because of the economic downturn that has gripped the entire world. Thus the focus of the meet was how to combat the issues concerning the economy, the social welfare and how to mitigate the global risks. Davos 2010 made the most of technology and could extend its reach to public round the globe. Technology enabled people to follow the events live and they could participate through discussions on Facebook (Lüfkens, 2010). Twitter too had participants that were continually sharing their impressions through the blog. Davos 2010 Emerging technologies are expected to deliver breakthroughs in energy, food and medicine. At Davos 2010, however, emerging technologies like cloud computing was very unpopular among the senior decision makers, which stemmed from a fear of the unfamiliar (2020Science, 2010). The lack of interest in technology at Davos 2010 was also due to blind faith in tech innovation to solve the problems as they arise. There were suggestions on how to use technology like synthetic biology to create drought and flood-resistant rice plants but no solutions came through. Another suggestion was to use technology innovation to find workable solutions to developing more effective food supplies but, once again, no solutions were provided. In fact fear was expressed that the process of innovation is not driven by social need which implies that there is no problem. And when there is no problem, the question of any solutions does not arise. In nutshell none was interested in translating technology innovation into socially responsive action. Technology is being used by developing countries to address social problems. At Davos 2010 too, innovative solution to social problems were sought by social entrepreneurs. The social issues raised at Davos ranged from raising the literacy levels to finding new ways for waste management (Dees, 2010) and technological solution for the ageing population (Dutta, 2010). Other social problems like transfer of HIV from mother to child in southern Africa were discussed. A South-Africa based public sector venture, working with HIV positive mothers to halt the spread of HIV, faces certain challenges. With the increase in life expectancy (up to 100 in Japan and Switzerland), both the developed and developing countries face challenges with the ageing population (Dutta, 2010). There were suggestions at Davos that in the urban design transport and accessibility should be designed keeping in mind the ageing population. Gadgets like vacuum cleaners that use robots should be designed with the aged in mind. However, the challenge is to deal with the human mind that is not designed to live so long, which implies that biological and psychological issues have to be dealt with. Technology can give early warnings of osteoporosis but affordability is another factor. However, the elderly need to be integrated into the society. Mobile technologies are being employed in health care and this issue too was discussed at Davos. Apart from telemedicine, there were other suggestions that came up at the summit. Information technology should be used to provide health care based on the outcome and not on the procedures involved (Maeda, 2010). Technology can also be used to keep the public informed of what each hospital charges for every procedure which would enable patients to make intelligent choices. In the developing countries healthcare can lead to economic development. Such an initiative has been started in Senegal where the trust of the people have been gained and apart from health care, education and training on sustainable farming is being provided. Despite 4.5 billion users of mobile telephony, many still remain unconnected. Despite improved internet access, which is an important growth driver for the technology industry, the percentages of internet connectivity were found to be low at the Davos 2010 (Rosso, 2010). Besides, mobile banking can help to bring banking to the unbanked. Tech innovation has become important to bring out cheaper products as unemployment increases round the globe. Recommendations At a time when technology is accelerating, the legislative and regulatory decision-making institutions have become slower. This is all the more important as in the case of nanotechnology which is developing at an enormously rapid rate. Incidents such as the Three Mile Island nuclear accident and contamination of the food supply with genetically modified “Starlink” corn have revealed significant flaws in the regulatory system, which unless controlled could result in loss of public trust in nanotechnology (Marchant, Sylvester & Abbott, 2009). Thus, there are several oppurtunities both for the government and the companies using technology to enhance services. The first is to build public trust on technology and especially where genetically modified food products are concerned. The government must not only formulate but enforce measures that can regulate the use of nano technology. Public and private sector can collaborate to come with solutions such drought and flood resistant rice plants, which could ensure smooth production of food grains. The economically backward nations require more of technical collaboration. Private sector can enter these countries and start initiatives such as the one started in Senegal. Mobile technology has pervaded many societies but the scope is still immense. MNCs should think of ventures in such areas initially by just asking for a small fixed amount per month against mobile facility. Mobile telephony itself can ensure health, banking and other social benefits to the underserved areas. Another interesting area for the businesses is to cater to the needs of the ageing population. The retail sector, including the drug stores, could come with solutions to home-deliver products and services to the elderly. The elderly may not have access to the internet and mobile technology could be used to place orders and receive updates. The government should ensure a smooth transportation system to facilitate the travel of the elderly. Subsidies should be provided to the elderly while the public vehicles should be so designed that it is comfortable for them to access. Certain urban areas could be demarcated for the elderly where all facilities are available at hand thereby reducing the need to travel long distances for basic necessities. Companies can even devise gadgets for the elderly and market it globally. These can be produced in the emerging economies where cost of production is low and market it to the affluent in the developed nations. This then enables collaboration between the developed and the developing nations and would involve transfer of technology to the emerging economies. This provides an oppurtunity for the economic development of the developing nations. Societal problems are prevalent in every society – be it developed or developing. To handle these problems, especially in the rural and the undeveloped economies, the local or regional bodies should set up a regulatory body, which has members from the private sector and the government. Such alliances would ensure the best interest of both and could forge ahead to handling the civil society problems of different kinds. The farmers could be educated on the use of technology in the developing nations and the rural areas of the developed nations. The government should provide incentives to encourage the private sector to educate the farmers, which also ensures some entrepreneurial venture while benefiting the society as a whole. Such initiatives would truly make globalization a reality. References 2020 Science. (2010). Getting from A to B: Technology innovation, global challenges and the Davos process. Retrieved online 15 February 2010 from http://2020science.org/2010/01/29/technology-innovation-davos/ Alpern, P. B. (2009). The Leading Manufacturing. Industry Week/IW; Dec2009, 258 (12), 40-42 Dees, J. G. (2010). IdeasLab with Social Entrepreneurs. Retrieved online 15 February 2010 from http://www.weforum.org/en/knowledge/Events/2010/AnnualMeeting/KN_SESS_SUMM_30072?url=/en/knowledge/Events/2010/AnnualMeeting/KN_SESS_SUMM_30072 Dutta, S. (2010). IdeasLab with EPFL-ETH. Retrieved online 15 February 2010 from http://www.weforum.org/en/knowledge/Events/2010/AnnualMeeting/KN_SESS_SUMM_30322?url=/en/knowledge/Events/2010/AnnualMeeting/KN_SESS_SUMM_30322 Evans, R. (2010). Technology for Society. World Economic Forum. Retrieved online 15 February 2010 from http://www.weforum.org/en/knowledge/Events/2010/AnnualMeeting/KN_SESS_SUMM_30438?url=/en/knowledge/Events/2010/AnnualMeeting/KN_SESS_SUMM_30438 Kellner, D. (2002). Theorizing Globalization. Sociological Theory. 20 (3), 285-305 Kess, P., Law, K. M. Y., Kanchana, R., & Phusavat, K. (2010). Critical factors for an effective business value chain. Industrial Management & Data Systems. 110 (1), 63-77 Lin, C., & Lin, H. (2010). Maker-buyer strategic alliances: an integrated framework. Journal of Business & Industrial Marketing. 25 (1), 43-56 Lüfkens, M. (2010). Davos 2010 in numbers. ForumBlog. Retrieved online 15 February 2010 from http://www.forumblog.org/ Maeda, J. (2010). IdeasLab with Harvard University. Retrieved online 15 February 2010 from http://www.weforum.org/en/knowledge/Events/2010/KN_SESS_SUMM_30321?url=/en/knowledge/Events/2010/KN_SESS_SUMM_30321 Marchant, G. E., Sylvester, D. J., & Abbott, K. W. (2009). What Does the History of Technology Regulation Teach Us about Nano Oversight?. Journal of Law, Medicine & Ethics; 37 (4), 724-731 Nugroho, Y. (2008). Adopting Technology, Transforming Society: The Internet and the Reshaping of Civil Society Activism in Indonesia. International Journal of Emerging Technologies and Society. 6 (2), 77-105 Rosso, J. (2010). Global Industry Outlook: Health, Consumers, Tech and Travel. Retrieved online 15 February 2010 from http://www.weforum.org/en/knowledge/KN_SESS_SUMM_30462?url=/en/knowledge/KN_SESS_SUMM_30462 Rycroft, R. W. Technology-Based Globalization Indicators: The Centrality Of Innovation Network Data. Retrieved online 15 February 2010 from http://gstudynet.org/publications/OPS/papers/CSGOP-02-09.pdf Spelman, M. (2010). Looking Beyond the Recovery at Davos. Retrieved online 15 February 2010 from http://www.businessweek.com/careers/managementiq/archives/2010/01/looking_beyond.html?chan=globalbiz_special+report+--+wef+davos+2010_special+report+--+wef+davos+2010 Strategic Direction. (2010). Technology on trial. 26 (2), 20-23 Read More