Showing posts with label economic policy. Show all posts
Showing posts with label economic policy. Show all posts

Digital Formations: IT and New Architectures in the Global Realm Review

Digital Formations: IT and New Architectures in the Global Realm
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Digital Formations: IT and New Architectures in the Global Realm ReviewThis is an interesting collection of essays about what the editors call "digital formations." A social formation is something in society that is emerging without a single founding event, in its early stages of development, and tending toward a variable structure and nature (p. 9). Despite this, "you should be able to identify a coherent configuration of organization, space, and interaction" (p. 10).
Several of the social formations studied by the authors in this volume are only partly digital: that is, they combine digital and non-digital elements. There are all, however, subject to "digitization" which involves the "rendering of facets of social and political life in a digital form" (p. 16). One important reason for studying digital formations is that some are potentially "destabilizing of existing hierarchies of scale and nested hierarchies" (p. 19) while others reinforce them. An example of the former is the open source software movement (as chronicled here by Steve Weber); an example of the latter is what Dieter Ernst in his chapter calls the "global flagship networks" created by large multinational corporations. The introductory chapter of this volume does an excellent job of providing a theoretical underpinning for the rest of the volume.
The second chapter, by Jonathan Bach and David Stark, focuses on the growing presence of non-governmental organizations (NGOs) in the international system as an example of a networking style of organization in contrast with and sometimes in opposition to the territorially based system of nation-states. The third and related chapter by Saskia Sassen compares global capital markets with global electronic activists networks, arguing that global capital markets reproduce pre-existing power structures while activists generally work to undermine them. The explanation for the difference is mainly how results are obtained in the two systems: in capital markets, deep financial knowledge is often concentrated in a limited number of urban locations, whereas in activist networks, global political goals are achieved by means of the "knowing multiplication of local practices" (p. 83). The latter lends itself to distributed and parallel social processes, while the former does not.
Dieter Ernst's essay on global flagship networks in Chapter 4 argues that economic globalization has led to a type of international competition in which multinationals create and maintain alliances of suppliers internationally through digital information systems. The latter are used by global corporations to diffuse certain types of knowledge "to gain quick access to skills and capabilities at lower-cost overseas locations that complement the flagships' core competencies" (p. 91).
This is a useful insight consistent with a growing number of empirical studies of international collaborations in high-technology industries. My only complaint is that it overly emphasizes the continued dominance of global firms like IBM, Microsoft, and Intel at the expense of analysis of new corporate challengers like Samsung in Korea or Acer in Taiwan or Lenovo and Haier in China. The long-term consequences of short-term strategies of knowledge diffusion need also to be considered.
In Chapter 5, Linda Garcia does a good job of summarizing the implications of digital networks for the rural-urban divide. She calls for a "deliberate rural strategy... to assure that rural communities [have] equal access to critical infrastructure..." (p. 141).
Robert Latham provides a brief historical summary of the rise of the Internet in Chapter 6. He correctly reminds readers that there was nothing inevitable about the triumph of the TCP/IP protocols that resulted in the creation of the Internet. Many firms and national governments supported more closed networking architectures such as Open Systems Interconnection (OSI). He argues that the key to the success of TCP/IP was the ease with which it allowed users to interconnect with others who had informational resources that were highly valued. Lower costs, efficiency, and faster interconnectivity were not sufficient; there had to be also an information payoff.
Steven Weber's chapter (Chapter 7) on open source software does an excellent job of summarizing the arguments presented earlier in his book The Success of Open Source (Harvard 2004) and extending them for the purposes of this volume. Toward the end of the chapter, he speculates about whether it is possible for firms and governments based on hierarchical organizational principles to compete effectively with groups of engineers and terrorists organized on networking principles.
In Chapters 8 and 9 respectively, Hayward Alker and Warren Sack describe their efforts to provide software tools for the representation of complex verbal data. Alker's chapter is focused on early warning systems for transboundary conflicts while Sack's is directed at analysis of very large-scale conversations on the Internet. Both approaches are interesting, but these chapters seem to be a bit peripheral to the central point of the volume.
The last two chapters deal with the implications of the Internet for democracies (Chapter 10) and for authoritarian regimes (Chapter 11), and China specifically in the case of the latter. Lars-Erik Cederman and Peter A. Kraus assert that "information technology plays a prominent role in the debate about how to promote a closer union of Europe's peoples" (p. 283). They argue for a logic of bounded institutionalism, in contrast with national substantialism and civic volunteerism, in conceptualizing democracy in the European Union, in order to put the role of the Internet in its proper perspective. They posit that cyberdemocracy alone will not help "the demos and democracy...to develop in tandem" (p. 305), especially since most Europeans still get most of their information about Europe from television and not from the Internet. Apparently their target is a thesis put forward by some Europeans that technology alone may be sufficient to build a sounder foundation for democracy in Europe.
Similarly, in his chapter on China (Chapter 11), Doug Guthrie argues that "information technology holds at once promise and peril for the Chinese government" (p. 313). The government needs information technology to continue to pursue its economic development goals, but it wants to limit the use of that technology by its citizens for the purpose of organizing opposition to the one-party system. Guthrie, like Cederman and Kraus, is skeptical about claims that the diffusion of information technologies will upset existing political arrangements in the short term. Nevertheless, he states that "on the micro level, IT does appear to play a role in the evolution of new types of social networks and in creating opportunities for newly emerging sectors of society" (p. 314).
Thus, with the possible exceptions of Chapters 8 and 9, all the chapters in this edited volume have a common theme consistent with the theoretical framework provided by the editors in Chapter 1. It is disappointing that the editors do not provide a conclusion: still, the first chapter does a good job of summarizing the content of the rest of the volume. The writing is generally clear and the arguments are well presented. I would recommend the volume for use in advanced undergraduate and graduate courses on the politics of information technology.
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Convergence Marketing: Strategies for Reaching the New Hybrid Consumer Review

Convergence Marketing: Strategies for Reaching the New Hybrid Consumer
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Convergence Marketing: Strategies for Reaching the New Hybrid Consumer ReviewAn "After The Dust Has Settled" realistic and compelling read on exactly how we all use the web, and several terrific examples of how real businesses - pure play web and brick & mortar - connect. The research, examples, and questions as to how to apply this methodology to every business' day-to-day operations is invaluable for anybody seeking to reach the Centaur in all of us.Convergence Marketing: Strategies for Reaching the New Hybrid Consumer Overview

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The 86 Percent Solution: How to Succeed in the Biggest Market Opportunity of the Next 50 Years (paperback) Review

The 86 Percent Solution: How to Succeed in the Biggest Market Opportunity of the Next 50 Years (paperback)
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The 86 Percent Solution: How to Succeed in the Biggest Market Opportunity of the Next 50 Years (paperback) ReviewWith regard to the meaning and significance of the title, Mahajan and Banga explain that 86% of the world has a per capita gross national product (GNP) of less than $10,000 per year. So what? Not only do those markets represent the future of global commerce; "they also present rich opportunities for companies that have the imagination and creativity to envision [consumers within those markets]. But you won't recognize these opportunities through the lens of the developed world. You won't reach these consumers through the market strategies that work in the 14 percent markets. Developing markets have no smooth superhighways, no established consumer markets, no distribution networks, and, in many cases, no electricity. Developing markets are younger, behind in technology (but rapidly catching up), and inexperienced as consumers. These markets are very different. Yet with creative solutions tailored to their distinctive characteristics, ...you can realize the rich opportunities of these 86 percent markets."
Mahajan and Banga have carefully organized their material within eleven chapters which range from a rigorous analysis of "the lands of opportunity" to a "Conclusion" in which they explain why the markets in underdeveloping countries "not to be missed." More specifically, they discuss what they describe as a "complex tapestry" of convergent civilizations in which there really do seem to be almost unlimited opportunities to increase both the standard of living and quality of life for hundreds of millions of consumers. The challenge for those companies which attempt to market various goods and services in those markets is to understand their unique characteristics. To me, it seems at east as important to understand what they are not as it is to understand what they are...or can (and will) become.
Here are two brief excerpts and then a checklist which, I hope, indicate the scope and depth of Mahajan and Banga's analysis.
"There is no Chinese market. There is a market in Shanghai, or in a neighborhood in Shanghai. There is no Indian market. There is a market in Mumbai or Chennai, or in their local neighborhoods. Developing countries are a collection of fragmented local markets in a country that is gathered loosely under a single flag." (Page 77)
"Think English is the language to know for business? Maybe not for long. Consider that Mandarin Chinese has the largest number of speakers in the world -- a billion, including second-language speakers. This is followed by English, with about half as many speakers, and then Spanish, Hindi, Arabic, Bengali, and Russian. If you want to work with 86 percent of the world, you need to speak the languages of the 86 percent." (page 83)
Which strategies will be most effective when "taking the market to the people"? Mahajan and Banga suggest seven:
1. Position for the paanwalla (i.e. small shop)
2. Create multiple levels of distribution (e.g. Hindustan Lever's "Project Shakti" based a direct-to-home model involving self-help groups, each comprised of 10-15 underprivileged women)
3. Use distribution bubbles (i.e. carnivals, market days, and vans which come and go) to find customers where they are
4. Take the bank out of the branch (e.g. Citibank's use of vans and a network of 9,000 direct-selling agents, called "Citi Friends," who visit homes)
5. Develop on-the-ground insights (i.e. understand and adapt to local aND even neighborhood regulations and conditions)
6. Create distribution systems from scratch (e.g. a new distribution system, based on grassroots networks, which built a supply chain for a camel's milk dairy in Mauritania)
7. Use existing networks creatively (e.g. the "dabbawala system" in Mumbai, India, probably the world's most efficient lunch delivery system which collects 175,000 home-cooked meals from workers' homes and delivers them to their offices)
Thoughtfully, Mahajan and Banga provide a section at the end of each of the first ten chapters, "The 86 Percent Solution," which summarizes key points and facilitates subsequent review of them. Before concluding their brilliant book, Mahajan and Banga share these thoughts when explaining why numbers are on the side of the developing world: Population Equals Profits. "The transformation is just beginning. There will be hiccups along the way and further surprises over the next two decades as the next `Chinas' and `Indias' emerge. The only certainty is the the 86 percent markets are here to stay. These markets are young and growing. Even though they won't become developed tomorrow,,, they are the future. And the companies that can develop the right solutions to meet their needs will find a rich source of growth."
Who will derive the greatest benefit from Mahajan and Banga's book? In my opinion, they are decision makers in two different categories of companies: Those which now market or are about to market in underdeveloping countries, and, other companies which now do business with -- or plan to do business with -- those in the first category. I also think this book will be of substantial interest and value to public officials who are now actively involved with helping to support global commerce.
Congratulations to Mahajan and Banga on a brilliant achievement!The 86 Percent Solution: How to Succeed in the Biggest Market Opportunity of the Next 50 Years (paperback) Overview

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