Globalization and Information Technologies - Essay Example

Globalization and IT The word globalization is used to refer to new market especially for those countries with good economic development. Information technology is among the technologies adopted in the new market in this world of competition. Globalization works in both the private and public sector. It has revolutionized the internal management of the private sector. Interaction between countries, continents and regions has also improved (McMahon, 2002, p. 33). In the private sector, the philosophy increased efforts to use Information Technology to ensure survival of companies. IT is seen as one of the technological; developments that facilitate and drive most globalization processes. IT has both a political and social role in globalization. This paper will seek to prove that IT has resulted in a dramatic increase in globalization. Information technology (IT) can be described as the application of computers and telecommunication equipment for the storage, retrieval, transmission and manipulation of data in business environments or for other enterprises. The term can refer to computers and their networks although it involves other technologies used for information distribution such as telephones and TV (Castells 1999, 89). Various industries can be seen to have an association with IT in one way or the other. They include computer hardware, computer software and e-commerce among others. Information technology is the socialized knowledge of production of goods and services. It has a big role to play in globalization and its role has made globalization possible. IT enables the production of goods and services. Goods may include TV sets, cars and clothes while services may be banking, teaching and security among others. Technology enhances the production capacity. IT is related to knowledge because it results from intellectual activities. IT causes drastic change in the world. Many of the innovation in IT have very crucial impacts on people’s lives all over the world (Schultz 2010, p. 119). In the global market of today, Information Technology occupies a bigger role as companies and businesses try to adapt to changes that occur constantly in the business world. Many businesses and companies get new opportunities for business in markets overseas. This happens through partnerships, outsourcing production and obtaining new customer bases. Business has become more complex and this is why IT comes in handy. Business activities and the running of companies cannot be successful without communication. Communication has been there before bust it was not successful in steering globalization. Today technology has been combined with communication and these two make up information technology which is a vital part of globalization. Globalization has to do with culture management, management of time zones, management of disparate people in various countries and management of costs (Odedra-Straub, et al 1995). Therefore, globalization has totally transformed what people think about business. Information Technology plays a very critical role globalization because companies are more than ever, relying on immediate connection and uninterrupted information flow between them and their business partners overseas. Because of this, IT experts have a greater role in business leadership (Narasiah 2005, p. 112). Information technology is therefore required for the management of cultures, time zones, costs and people’s activities in different countries. The fact that businesses depend more on IT means that people are changing their way of thinking on business leadership. In the merger of companies, IT has to be used because business leaders are continuously discovering its role. If IT is not working then the success of such a merger cannot be guaranteed. In business management, communication is important especially from the perspective of globalization. This is so because businesses cannot run without the exchange of communication. The business leader must be able to communicate the changing global strategy and vision (Narasiah 2005, p. 67). Information Technology has been found to be a driver of globalization from various fronts. The early 1990s witnessed improvement in computer software, hardware, and telecommunications. This has resulted in massive improvements in the economic potential and access to information. These advances have brought about efficiency in every sector of the economy. It is the provider of the communication network that creates product expansion as well as the growth of resources and ideas among different peoples and nations their geographic locations not withstanding. IT has catalyzed global integration by creating good, effective and efficient channels for the exchange of information between various entities (McMahon, 2002, p. 45). The social lives and economies of people and countries around the world are being reshaped by IT revolution which is the ability of people to process information and communicate using digital means. In the industrial societies of today, products made with the involvement of information technology for enhancement purposes are utilized in so many aspects of life. It and its application have been spreading so quickly (Farkas-Conn, 1999, p. 360. IT itself has advanced in order to increase globalization. For example, 20 years ago only a small number of people with technological advancement could afford desktop personal computers. Most of the people were using typewriters to produce their documents. Typewriters could not allow for the storage or manipulation of text. Only 15 years ago, just a few people in US cities owned large bulky mobile handsets. Today, half the population of America has mobile phones. Some developing countries have more people using mobile phones than those that use the fixed line telephone network. Ten years ago, apart from scientists, no other people had heard of or were using the internet (Castells, 1999, p. 35). There was no World Wide Web and no browsers had been invented. In the present day, the Web and the internet have brought a great transformation in commerce, and this has created totally new ways for transactions between retailers and customers. The internet has also made it possible to business people to market their products and manage the flow of inputs used for production. It also makes it possible for employers and job seekers to meet (Castells, 1999, p. 66). There has also been dramatic transformation in the news industry caused by the presence of many news gathering and dissemination outlets enabled by the internet (McMahon, 2002, p. 12). People sharing common interests find it easy to meet, exchange ideas and work together. This is facilitated through chat rooms, instant messaging services, websites, electronic bulletin boards and e-mail. All levels of education are going through transformation facilitated by educational software, communication software and other software designed for presentation as well as websites and other information sources and analyses posted on the internet (Schultz, 2010, p. 56). The Information Technology revolution is driven by the low reduction in the cost of digital technologies and the increase in their processing power. The microprocessor has been very important in the revolution of information technology. In the last 20 years, microprocessors have been doubling in processing power for about 6 months (Odedra-Straub, ‎Okot-Uma & ‎Cyranek, 1995, pp. 23-30). Conclusion In conclusion, this paper has argued that Information Technology has caused a dramatic increase in globalization. IT is known by many as the application of computers and telecommunication equipment for storage, retrieval, transmission and manipulation of data in business environments or for other enterprises. Advancement in IT has brought about efficiency in every sector of the economy. It is the provider of the communication network that creates product expansion as well as the growth of resources and ideas among different peoples and nations, their geographic locations not withstanding. IT has catalyzed global integration by creating good, effective and efficient channels for the exchange of information between various entities. It is clear that IT is at the center of information exchange which is very important in today’s business world. IT can be said to be the engine that drives globalization, given its important role in the global market. Therefore, the argument that IT has resulted in a dramatic increase in Globalization is justified. Bibliography Castells M., 1999. Information Technology, Globalization and Social Development. 1999 United Nations Research Institute for Social Development (UNRISD). Farkas-Conn, I. 1999. Globalization and Information Technologies: New Emerging Partnerships. Bulletin for the American Society for Information Science, Volume 25, no. 5. McMahon, P. 2002. Global Control: Information Technology and Globalization. E. Elgar. Narasaiah, M. 2005. Globalization and Information Technology. Discovery Publishing House. Odedra-Straub, M., ‎Okot-Uma, R. & ‎Cyranek, G. 1995. Information Technology and Globalisation. Implications for Developing Countries. Commonwealth Secretariat. Schultz, A. 2010 . Information Technology and the Ethics of Globalization: Transnational Issues and Implications. Robert Schultz. Read More