Competing In Flat Worls: Operations Management Perspective
Introduction
Globalization has lead to diminishing the geographical boundaries between countries. The proliferation of information technology and telecommunications networks has integrated the world in ways that were unimaginable in the past -- and this has transformed how companies produce and distribute products and services. Along with the technological advancements causing flattening of the world, geographically, change in policies and liberalization of countries have ensured that every company in the world now shares a common platform from where they can operate. The fact that there are more than 70 companies from emerging countries in the 2008 Fortune Global 500 list of the world’s largest companies, proves this fact, especially on increasing from a mere 20 about 12 years ago. Reliance Retail now has equal opportunities as Wal-Mart to do business throughout the world!!
Indian Companies like Infosys and TCS, through various innovations, have caused ripples throughout the world. Through the advent of technology, the world now holds huge number of opportunities that need to be tapped.
Although, outsourcing was something that caused a revolution in the initial parts of the flattening world, it is just one dimension of innovation. To compete in this ever flattening and ever expanding world, every company needs to come up with innovations and think of new ways of doing business.
The flattening world calls for changes in the way the operations of a company are carried out. Procter and Gamble (referred to as P&G) would need to change its logistics, supply chain and operational strategies when it is trying to make its mark in India from those it deploys in the United States of America. When servicing two banking clients like American Express and Bank of America, companies like Infosys and TCS need to be extremely careful in the way their operations are carried out. So, if you are working for American Express, you...
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