Unit 1

EMERGING
TECHNOLOGIES
IN GLOBAL
BUSINESS
ENVIRONMENT

Dr. Ruchika
Objectives

a. To give students an exposure to the VUCA environment of

International Business
b. To provide in-depth understanding of digital
transformation on business processes
c. To understand the impact of Industry 4.0 has on the context
of International Business
d. To understand in detail the shifts taking place in the Political,
Economic, Social and Technological environments that are shaping
business realities
e. To understand the changing role of International
Organizations and changing dynamics in Geo Politics.
Volatility

Volatility is the quality of being subject to frequent, rapid and significant change.
In a volatile market, for example, the economy can rise or fall considerably in a short
period of time, and the direction of a trend may reverse suddenly.

So what can managers do to relieve the tension in a volatile market?

•Become adaptive in decision-making
•Have clarity of vision, short and medium-term
•Communicate clearly to reduce confusion
•Determine your intent and resolve

Uncertainty

Uncertainty is a component of that situation, in which events and outcomes are

unpredictable.
Businesses hate uncertainty, and when it’s the driving force behind the decisions you
have to make, you need to find other ways to create certainty for your business.

What can managers do in an uncertain market?

•Flexibility to cope with doubt
•Build commitment and consensus of approach
•Develop new perspectives
Complexity
Complexity involves a multiplicity of issues and factors, some of which may be
intricately interconnected.
Anything that increases complexity in an already-complex situation can cause
confusion and fear among team members in your business.
The problems escalate when there is a complex environment business is working in.
What can managers do when complexity is the pattern that businesses face?
•Understand the links between cause and effect
•Simplify processes and procedures and recognize nothing is permanent
•Encourage development and generation of ideas

Ambiguity
Ambiguity is manifested in a lack of clarity and the difficulty of understanding exactly
what the situation is.
When there’s more than one possible answer to a business problem, it needs quality
leadership to drive the company forward, through conscious decision-making and
objective setting.
What is expected of a manager during an ambiguous time?
•Communicate directly and with clarity
•Seek out and uncover alternative viewpoints
•Listen to divergent ideas and concepts
•Learn lessons that can apply in various circumstances
 VUCA 2.0

 Given by Bill George

 V-> Vision
 U-> Understanding
 C-> Courage
 A-> Adaptability
Unit 1

Industry 4.0 and Digital Transformation (6 Hours) Meaning and Nature of Industry 4.0
and Latest Trends. Realignment in Political, Economic, Socio-Cultural, Technological
Factors that are driving change in International Business Management, the changing
nature of Globalization, The changing nature of regulatory environment, natural
environment, new age ethics. Overview of Digital Transformation.

Unit 2

Emerging Technologies as Drivers of Global Business (8 Hours) Artificial Intelligence-

Machine Learning, Deep Learning Singularity – Time Lines and Implication. Augmented
Reality, Virtual Reality and Mixed Reality and Applications. Block chain – Concepts and
Industrial Applications, Challenges in adopting Block chain. Additive Manufacturing:
Advantages and Disadvantages, new applications of additive manufacturing, impact of
additive manufacturing on supply chain management, mass customization and the
customer experience. Introduction of Neuroscience in Business. Internet of Things (IoT).
Unit 3

New Age Economies (8 Hours) Circular Economy- Concept of Circular Economy,

difference between Linear and Circular Economy, Role of Circular Economy in
Sustainable Business and Innovation. Behavioral Economics- Core Concepts of
Behavioral Economics, Nudging and Choice Architecture, Ethical Concerns of
Behavioral Economics. Economic Nationalism -Nature of Economic Nationalism,
Contemporary Cases in Economic Nationalism, Future of Economic Integration.
Sharing Economy – New Business Models , Characteristics , Difference Between
Platforms and Traditional Business Models, Different Types of Platforms ,
implications on future of work.

Unit 4

Changing Natures of Global Politics (6 Hours) Identity Politics – Issues & Challenges,
The Rise of Authoritarianism and what that means for geo politics, Reviving
Democratic Ideals, The Rise of China and its impact on global trade.
Unit 5

Social, Cultural and Global Challenges (8 Hours) Diversity of different generations in

the workplace, issue of inter-generational equity. Migration – Political, Economic and
Human Rights Perspective, the Migrant Crisis in the EU. Climate Change – Political
Dimensions of Climate Change, Plight and Issue of Climate Refugees, Sustainable
Development Goals. Rising Inequality: Historical Context of Inequality and Social
Unrest, Global Inequality, Social and Economic Reforms. Privacy in the Digital World –
Complexity of Privacy Issues, Basics of GDPR (General Data Protection Regulation) ,
Importance of Personal Data, Existential Threats – Five Types of Risks associated with
AI , Need for New Age Ethics .
 Unit 1

Industry 4.0 and Digital Transformation (6 Hours)

 INDUSTRY
Why it matters?
4.0
The better the question. The better the answer.
The better the world works.
 Agend
a
• Industrial Evolution
• 4th Industrial Revolution
• Building Blocks of Industry 4.0
• Potential Industrial Products Implications
• Potential Consumer Products Implications
• Impact of Industry 4.0
What is this?
What is this?
What is this?
What is this?
 Industrial Evolution

4. Industrial
revolution
Based on cyber-physical-
systems

3. Industrial revolution
Through the use of electronics
and IT further progression in
autonomous production

2. Industrial revolution
Introducing mass production

Level of complexity
lines powered by electric
energy

1. Industrial revolution
Introducing mechanical
production machines powered
by water and steam
Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0
Beginning of the Beginning of the Beginning of the Today
19th century. 20th century 21th Century
Source: DFKI/Bauer IAO
1760 to 1840 1870 to 1940 1960 to 2010
 Phases of earlier 3 Industrial
1.
Revolutions
1760 to 1840 - Ushered in Mechanical production; railways and steam
engine
2. 1870 to 1940 - Mass production; electricity and assembly line
3. 1960 to 2010 - Computers; semi conductors, main frame computing,
personal devices, internet
 Industry 4.0
A collective term for technologies and concepts of value chain organization.
Based on the technological concepts of cyber-physical systems, the Internet of Things and

the Internet of Services, it facilitates the vision of the Smart Factory.

Within the modular structured Smart Factories of Industry 4.0, cyber-physical systems
monitor physical processes, create a virtual copy of the physical world and make
decentralized decisions.
Over the Internet of Things, Cyber-physical systems communicate & cooperate with each
other & humans in real time via the Internet of Services, both internal & cross-
organizational services are offered & utilized by participants of the value chain.

Builds on the Digital revolution Ubiquitous internet

Smaller & powerful sensors Artificial Intelligence (AI)
Machine Learning
 Cyber Physical Systems

A cyber-physical system (CPS) or intelligent system is

a computer system in which a mechanism is controlled or
monitored by computer-based algorithms
 Did not exist in 2006

• iPhone
• iPad ► Oculus

• Kindle ► Instagram

► Snapchat
• 4G
► Whatsapp
• Uber
• Airbnb
• Android
 Time to reach 100 Million
customers
• Telephone 75 Years

• Web 7 Years

• Facebook 4 Years

• Instagram 2 Years

• Pokemon Go 1 Month
Today’s Factory
Tomorrow’s Factory
 Industry 4.0 Six Design Principles – Technological
factors
• Interoperability: the ability of cyber-physical systems (i.e. work piece
carriers, assembly stations and products), humans and Smart Factories
to connect and communicate with each other via the Internet of
Things and the Internet of Services
• Virtualization: a virtual copy of the Smart Factory which is created by
linking sensor data (from monitoring physical processes) with virtual
plant models and simulation models
• Decentralization: the ability of cyber-physical systems within Smart
Factories to make decisions on their own
• Real-Time Capability: the capability to collect and analyze data and
provide the insights immediately
• Service Orientation: offering of services (of cyber-physical systems,
humans and Smart Factories) via the Internet of Services
• Modularity: flexible adaptation of Smart Factories for changing
requirements of individual modules
Building blocks of Industry 4.0
Autonomous
Robots

Big data
Simulation
analytics

Horizontal and
Augmented
reality Industry 4.0 vertical system
integration

Industrial
Additive Mfg Internet of
Things

Cyber Security
Impacting all aspect of value
chain
 Digital Enterprise
Entire value chain is digitized and integrated
Political
Economic
Socio-Cultural
Technological Factors

Driving change in International Business

Management
Risks in International
Business
Current Ukraine
Crisis

COVID 19 Crisis
Political and Economic Factors

What are some political and financial risks faced by

companies in international business world?
Political Factors

Instruments of political control

Political Situations
Political Risk
Economic Factors
Ex. US, UK, JAPAN

Ex . - INDIA
Economic Situations
Impact of Industry 4.0 on Economy
(Macro)
Growth
Ageing

Productivity

Employment - Labour subsititution / The nature of Work

1. Facebook--------------------Data mining.
2. Cambridge Analytica----------------------Data mining.


 These two companies were considered as megadonors and funded

the trump campaign and also Brexit. They have the psychographic
profiles of millions of users.
 AI is a term used to describe machines performing human-like
cognitive processes such as learning, understanding, reasoning and
interacting
 International Business

Business transactions crossing national

borders at any stage of the transaction.
EPRG
Example Ethnocentric

 The example of such change is NISSAN which in the first years of its existence on
international arena was following ethnocentric approach by selling its cars abroad exactly
as they were sold in their domestic market in Japan, after several years of its international
trading the company realized that ethnocentric international marketing orientation is no
longer relevant for some industries including automobile industry in which they were
operating and changed its approach to polycentric (see 2:1:5:2). Vasudeva (2006)
concludes that in today’s international business world ethnocentric approach appears to
be one of the biggest threats for international organizations
Polycentric

 Examples of companies marketing their brands according to this approach are: Ford
Motors, Suzuki, Toyota, General Motors, Nissan, etc. – all these companies adapt their
brands to specific needs of each country’s consumer
Nature of International Business

 Includes Commercial Activity

 Prone to political risk
 Proactive and Reactive
 Different from Domestic Business
 Large scale operations
 Amalgamation of economies
 Excessive competition
 Regulations and Limitations
Reasons for entering in the
International Business

Pull Factors

Saturation of growth
Achieving economies of scale
Risk Spread
Push Factors

 Uniqueness of product
 Marketing opportunities due to life cycles
 Spreading R&D Cost
 Advantages

 Enhance standard of living

 Expands the market
 Helps in avoiding recession
 Risk reduction
 Helps in exploring new market(Whirlpool sells refrigerator at $833 and in
India it cost $ 500)in 2010
 Maximum Utilisation of resources(consumer goods from UK and personnel
supply from India)
 Disadvantages

 High Cost
 Alteration as per different legislative framework
 Complicated organisational framework
 Disparities in Cultures
 Extreme dependence of imported goods
 Dimensions of International Business
Environment
Physical environment

 Lakes
 Rivers
 Climate
 Natural resources
 Geographical location
 Territorial size
 Language
 Culture
 Transport
 Economic environment

 It refers to those economic factors which largely influence the functioning

of a global business organisation in any country.

 Interest rate
 Inflation
 Disposable income
 Savings
 Cultural environment

It is generally very complex to understand as it is hidden. It is

the general body of common values and beliefs that helps
in ascertaining what is right and wrong.
Others are

Political
Legal
Technological
 Realignment and changes in
International Business Environment
Realignment in political factors

 Charting the global economy: After the covid-19, the global economy will
be fragile as central banks will wind down the programs that have
stimulated economies in the past two years.

 International affairs: Relationship between US and China will cast a shadow

over international relations over the global economy. Their strong
relationship can set anew tone around the globe.
 …………………..Cont

 Ideological wars are more in countries:

 Changing climate changing policies:

 Realignment in Economic Factors

 Indian economy will grow at 6.5 per cent in 2023-24, according to the
survey. It said that in current year, the economy is projected to grow by 7
per cent. It will remain the fastest growing economy in the world.


 Realignment in Technological factors
 Artificial Intelligence

 Augmented Reality

 Blockchain

 Automation

 Internet Of Things
 Realignment in Socio-Cultural Factors

 Return to traditions

 Metaverse Jurisdiction

 Inequality: BIPOC(Black, Indigenous and people of color)

 Division in diversity
 Changing nature of the regulatory
environment (MCA, DPIIT)
1. Investment from Neighbouring countries
 Pursuant to amendment, any entity incorporated in a country, citizen or
beneficial owner of a country, which shares land border with India, needs to
obtain government approval for investing in the equity instrument of the
Indian Company. Thus, nationals/entities from Pakistan, Afghanistan, China,
Bhutan, Nepal, Myanmar and Bangladesh can invest in India only under
approval route.
2. Offshore Listing of Indian Companies

 SEBI has now permitting companies to list directly in

offshore market. The companies act 2013 has been
amended to enable the same. Indian companies can
now go global through listing in mature stock exchange
like Nasdaq , albeit without shifting base outside India.
 3. Distressed Debt

 The latest amendments to the IBC, 2016 allow the use of “pre-packs” to resolve
insolvency proceedings involving micro, small and medium-scale enterprises. A pre-pack is
a way of resolving the troubles of creditors and owners of a distressed business.
 4. Antitrust lens

 Single window clearance: A Single Window is a single-entry point for

data, and data should only be submitted once.

 Example: Single Window Clearance system at Maharashtra Industrial

Development Corporation (MIDC) is a facility provided to industries and
entrepreneurs with a commitment to promote Ease of Doing Business in
Maharashtra by streamlining different processes and approvals required to
establish and operate a business.
 The system acts as a single point of contact for requesting various services,
submitting supporting documents and make necessary payments through
online mode. It also provides the department, a system to process the
applications online.
Change in Global environment

 USA and China -------------Decrease methane emission, eliminate

deforestation and Reduce coal consumption

 Ford, GM and Volvo---------------------eliminate gas powered automobiles by

2040

 COP26: Conference of the parties: The climate summit being co-hosted in Glasgow by the
British and Italian governments this November has been held up as one of humanity’s last
chances to slow global warming
 Globalisation

 As per Charles Hill: Globalisation is the shift towards a

more integrated and interdependent world economy. It
has two components: Globalisation of markets to
Globalisation of production.
 Features

 Improved Technology

 Movement of people and capital

 Diffusion of knowledge

 Talents mobility

 Rise in competition
Stages of Globalisation

Domestic Company

International Company

Multinational Company

Global Company

Transnational Company
Challenges of Globalisation

 Reduced Jobs and Incomes

 Improper labour practices and environmental practices

 Cut-throat competition

 Inequality

 Loss of culture
 Case study
 Software consulting service software consulting service are in the Information
Technology Sector it is currently facing a shortage of skilled manpower and
its feeling a hike and employees salary which have been posting attend to
10 to 40% growth during the last couple of years

 While there is an abundance of trainable human resource, a dearth in skilled

manpower is being felt across the industry and this has resulted in a hike in
salaries

 Typically, salary jumps happen not only in the conventional manner of

being promoted but also become of professional changing jobs more
frequently. The increase in salaries varies from job to job and ranks highest in
the IT sector where employees get a hikh of over 40% when they join a new
establishment
 There is no Dearth in entry level human resources as there is a large
supply but a severe shortage is felt in the middle level positions

 According to Mr. Raj CEO of softcore, many new captive and third
party off shore facilities been set up in the country have led to a
competition for skills human resources that are already scarce.

 This is also leading to ever widening demand supply gap and rise in the
average salary level for all positions apart for pushing up attrition in
existing facilities he said
 There is new trend of employees moving to multinational
companies abroad for higher salaries and global
experience. The salary package and working
environment is far better than India in countries like USA
 Then returning to India with Global experience makes for
a higher salary pay and position this is also one reason
for the shortage of a skilled manpower and hike in
employees salaries in the IT sector
 Questions

Q1: What problems is soft core facing suggest

some remedies for its problem?
 Softcore is an IT company where Technology
upgradation entrance changes in the most frequent
manner this technology this industry needs highly
knowledgeable persons and it is difficult to retain the
employees for a longer period of time because of
changing environment and Technology upgradation
the basic problems that the software is facing are as
follows
 Problems and Remedies

Salary hike ,skills employees, Brain drain

and competition the remedies will be campus
placement, opening college and training
center, early hiring and attractive
facilities.
 Digital transformation

 It is the incorporation of computer based technology in

to an organisation's products, processes and strategies.

 Digital transformation is all about becoming a digital

enterprise –an organisation that uses technology to
continuously evolve all aspects of its business model.
 Digital ethics

 It integrates digital technology and human values in

such a way that digital technology advances human
values rather than doing damage to them.

 It must be pragmatic. It must exhibit phronesis (wisdom

and intelligence) and praxis (accepted practice) so that
industry and government will engage, accept and
embrace it.
 Examples

Job Function Digital transformation Real-world example

Sales Computerised Sophos (manage

spreadsheets presales and sales)

HR In-person training to Comiva Improves on-

online e learning board quality and
reduce cost of training
 Goals Of digital transformation

 Increase employee productivity

 Increase responsiveness to customer requests

 Gain more insight in to individual customers to better anticipate and personalize products
and services

 Improve customer services , especially in providing more intuitive and more engaging
customer experience
 Digital transformation technologies

 Cloud computing

 Mobile platforms

 Machine learning and AI

 Edge computing
 Edge computing

 Edge computing is an emerging computing paradigm which refers to a range

of networks and devices at or near the user. Edge is about processing data
closer to where it's being generated, enabling processing at greater speeds and
volumes, leading to greater action-led results in real time.
Building blocks of Digital Transformation

 Customer understanding

 Top line growth

 Customer touch points

 Process digitisation

 Performance management
 Digitally modified business

 New digital business

 Digital globalisation

 Analytical capabilities: Real time KPI

 Advantages of DT

 Increase productivity while reducing labor cost

 Improves the customer experience

 Improved efficiency

 Revenue growth

 Deliver with greater speed

 Tim Berners-Lee: who has invented
WWW
 He said that “ The web is an open platform would allow everyone ,
everywhere to share information, access opportunities, and collaborate
across geographical and cultural boundaries”

 Berner has expressed three issues and expressed concern:

Control of personal data

Fake information
 Problems occurred in digital
transformation
 Poor execution because of lack of dedicated IT skills

 Budget constraints

 Unpreparedness of decision making leaders

Application of digital transformation

Healthcare
Virtual visit and telemedicine
Patient portals
Data aggregation
AI screening
P&C insurance
Property and casualty insurance agents and brokers
sell policies that protect individuals and businesses
from financial loss as a result of risks such as
automobile accidents, fire or theft, and tornadoes
and storms.
 Improved customer experience for policy holders

 Increased scalability

 Reduced risk and fraud: Smart devices like wearables

helps in homes, cars in monitoring policy holder activity.
Retail
Omnichannel retailing
AI(Amazon has an entirely automated supermarket in seattle. Benefits
provided are: Voice activation
Virtual Reality
Augmented Reality
Face recognition
What is digital twin? What is the use of digital
twin in India?

 A digital twin is a virtual model of a physical object. Digital twin

technology enables organizations, services, and customers to have
seamless virtual interactions. For example, companies may utilize
digital twin technology to generate a virtual replica of their product
that can be used to analyze and enhance it.