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  Jón Erlendsson
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  Innovation Entrepreneurship and Design

Jón Erlendsson    2000-03-02
Globalization and Innovation

"Globalization

The process of globalization transforms individual national economies into one global, interdependent economy. Activities which were previously carried out within a national or a regulated international framework will from now on be carried out globally, according to the needs of the global market place.

"Internationalization"
and "globalization" are separate concepts but they are not so sharply different from each other.


Essentially, internationalization takes place between individual nations, between individual companies operating in different countries, and between individual citizens of different countries. Globalization, however, ignores national boundaries.

It is a complex process taking place between societies, companies, and also increasingly between individual people and it covers the whole world. It mostly occurs as a result of new
technology, and is linked by that technology.

Economic liberalization has spread throughout the world. For the first time in world history, there is now a chance to achieve a society that communicates globally."


Read more at:  http://boardofeducation.com/term/eco73.htm

 

See also:  Fast New Product Development  http://www.hi.is/~joner/eaps/cq_fastn.htm   

Globalization and Innovation  http://www.hi.is/~joner/eaps/cq_globi.htm 2001-03-13
Background
Articles
Interesting Web Sites
  • Strategic Planning (in nonprofit or for-profit organizations)
    http://www.mapnp.org/library/plan_dec/str_plan/str_plan.htm
  • Creating a powerful vision NogH:
    "What is Vision?

    Definition of vision

    Vision is helping people believe they can accomplish their goals—that they can move towards a better future through their own efforts. Vision is conveyed by inspiration.

    Examples are Franklin D. Roosevelt announcing in May 1940 that he had set a production goal of 50,000 planes a year and John F. Kennedy announcing that we would put a man on the moon within the decade. Both goals were breathtaking, and both were achieved. No one can doubt that in each case the goal was achieved by the dramatic announcement and the infectious inspiration it
    bred. "

    See much more at http://www.hi.is/~joner/eaps/cq_visio.htm   "

  • Developing/Updating a Vision Statement
    http://www.mapnp.org/library/plan_dec/str_plan/str_plan.htm#anchor323653
    http://www.mapnp.org/library/plan_dec/str_plan/stmnts.htm#anchor521412
    http://www.well.com/user/bbear/collins.html
    http://www.echoinggreen.org/resource/orgdev/shared.htm
    http://arts.endow.gov/pub/Lessons/Lessons/GROVE.HTML
    http://home.snafu.de/h.nauheimer/vision.htm

    See more at:
      http://www.hi.is/~joner/eaps/cq_globi.htm
  • Product Development Cycle Time and
    Commercial Success
      Marc H. Meyer & James Utterback
    http://www.cba.neu.edu/~mmeyer/research/5/article6/article.html
    "Time-based competition" is a currently popular concept for managing business. As applied to the development of new, technologically complex products, the reasoning states that a firm will be most successful if its development times are shorter and high quality products generated faster than its competitors.

    Our research shows that in certain types of new product situations -- those where technological and market familiarity are high -- that rapid development times are strongly
    correlated with commercial success.
    However and equally important is that when either technologies or customer applications are new to a firm, no such relationship
    exists and trying to force rapid development can produce unwanted results.
    Further, we have found that significant levels of technology integration, which occurs when multiple core product technologies must be combined, can be expected to have a major impact on the speed of developing new products. Similarly, in the marketing dimension, undertaking new channels of distribution will also extend the time required to develop and bring new products to market.

    These findings are important because for all the talk about time-based competition, there is very little in the way of field research that has focused on the topic. Gupta and Willemon reached a similar conclusion. Nonetheless, many arguments have been advanced in favor of moving new product concepts through development and into the market quickly. Stalk argues that reducing the time to develop an idea will extend the effective product selling period, allow a firm to increase its market share, increase profitability, and to set standards for technology in its chosen industry. Smith and Reinertsen gathered data from General Motors, IBM, and
    Hewlett-Packard that indicates a halving of their respective product development times. Stalk compares the Japanese approach of favoring smaller increments of improvement more often to the claimed Western approach of larger but less frequent changes. He goes on to stress greater use by the Japanese of cross-functional teams and local, decentralized responsibility for development.
    "

    http://www.lib.purdue.edu/ex21/resources/books/310.html
    "Many manufacturing executives recognize the significance of response time as a competitive weapon but are struggling to achieve world-class speed. This book explains how other US firms have dealt with the problems of time-compressing different segments of the value-delivery chain - new product development, manufacturing, and distribution. With the exception of fine wines and art, few industries seem to be immune from time competition. In every industry we have studied, at least one firm leads in terms of speed of response to the market, and, most significantly, these time -competitive firms are emerging as the market leaders. This book is not
    only for business mangers, but also for academic personnel who are continually searching for new research ideas in the management field of operations. Specific topics covered include: a strategic overview, new-product development, time compressing logistics &
    distribution, and the top managers role.
    "
    http://www.va.gov/fedsbest/handfield.htm
  • Lean Manufacturing Glossary
    http://www.cre8tivetraining.com/lean/lean-terms.htm
  • http://www.technologysource.net/mfg/quickrepmfg.htm
  • http://abraham.ucc.uconn.edu/internet2/Networded-Based%20Manufacturing.html

    "Network-Based Manufacturing Scheduling and Supply Chain Coordination

    Peter B. Luh and L. S. Thakur



    The competitive advantage of manufacturing has gradually shifted from "cost-based competition" and "quality-based competition" to today’s "time-based
    competition" with cost and quality considered given.


    The importance of time is well illustrated by a study that a 50% over expenditure in product development leads to only about 4% loss of total recoverable profit from that product.

    But if the product is late to market by 6 months in a life cycle of 5 years, it can lose one third of its profit [1]
    .

    In the proposed research, we shall address major internal factors causing long lead times – inadequate factory scheduling leading to long queue times, large number of setups, and poor utilization of resources. We shall also address major external factors causing long lead times –
    ineffective coordination with customers, suppliers, sister divisions, and partners, resulting in adverse supplier conditions and a lack of overall enterprise agility.

    The proposed research will be built on our recent work on optimization-based scheduling. Yielding a US patent and two best paper awards [2-4], the centerpiece of these methods is an iterative approach that synergistically combines a decomposition/coordination optimization technique (Lagrangian relaxation) and heuristics. The unique features include near-optimal solutions with quantifiable quality, fast computation time, and the successful deployment
    at diverse manufacturing settings. Building on this foundation, the proposed research is to develop an integrated scheduling and supply chain coordination method using Internet II as the communication infrastructure.
    "
    NL_Journal of Engineering Design
    http://www.asee.org/
    http://www.asee.org/success/  http://www.asee.org/publications/html/issue.htm
    http://www.asee.org/pubs/html/assessment.htm
Books                   ŢBH       B-KHI       BSTUD        AMAZON      
Searches I-FIND   NL  AZ   UH NEWS
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Innovation, R&R and Funding                      UH_AR99
About the Internet and the WWW
.












 

Globalization
The implications for innovation:

The drawbacks

- more numerous and more able competitors

  - alliances
   - home markets no longer "secure"


- greater demands on the NPD process

   - speed    http://www.hi.is/~joner/eaps/cq_fastn.htm

Rapid Prototyping
http://www.engr.mun.ca/~afisher/rp/index.htm  
http://intell-lab.engi.cf.ac.uk/department/rpdprot.htm  
http://www.manufacturingsystems.com/archives/1995/ms950501.htm  
" Barry Baum, vice president of technology for Chicago-based SB Power Tool Co., says rapid  prototyping is helping his company produce power tools 60 percent cheaper and 80 percent faster than it could with conventional methods. Baum says these products also are of higher quality than previous models because rapid prototyping "lets you optimize the design."
http://www.hi.is/~joner/eaps/cq_fastn.htm


- Concurrent Engineering http://www.pmforum.org/library/glossary/PMG_C04.htm  
- Collaborative Engineering http://noghri.bydg.pdi.net/~pawlak/BENEFIT/co-Web97-paper-WWW.htm  


  - quality

  - professionalism

- Competition of (skilled) labor from the Third World





The benefits
- global markets

   
- much larger markets

  - New niches become viable
       Many numerous niches can be opened up
       that make a large number of innovations viable - that would not stand a
       chance on more restricted markets (GTH?)





Demands on firms

Need to:


- Develop a global mindset
.

   => Develop new products with the global market from the very start!
   =>  Recruit people that are able to work in international environment
         (Language skills, knowledge og Business Culture, Cosmopolitan attitude etc)

-  Master Global Marketing Skills

-  Master speedy product development
     - Concurrent Engineering    http://www.pmforum.org/library/glossary/PMG_C04.htm
    - Rapid Prototyping
     -  Collaborative Engineering http://noghri.bydg.pdi.net/~pawlak/BENEFIT/co-Web97-paper-WWW.htm  

- Intensify Environmental Scanning
   Environmental Scanning: A Knowledge Industry of the 21st Century   http://www.hi.is/~joner/eaps/cq_escan.htm  
   

"Richard A. Slaughter, Director, Futures Study Centre, Australia

The global environment is constantly emitting an infinite number of 'signals' about many, many processes.

No individual, no organisation, can pay attention to more than a tiny fraction of them.

In addition, the early signals of potentially influential phenomena are usually small, indistinct and hard to
separate from the background 'noise'. Yet the earlier they can be detected, the longer is the lead-time available to respond."




Given the turbulence of the early 21st century environment, the dysfunctions embedded in social, economic and some technical systems, and the rapid pace of change, ES promises to be one of the most widespread industries of the near future."


http://www.hi.is/~joner/eaps/cq_escan.htm








Demands on individuals
- Greater skills needed in:
  - Languages
  - Business Culture
   - Cross Cultural Project management

        - Web Based PM

  - NPD Skills
 

NB:  People who whish to secure opportunities within firms that
operate on a global level need to strenghten their skills in a number
of areas which may be weak in traditional education.

As education is a slow process this has to be undertaken in good time !  -  It may be too late when one arrives on the job!


Other people that have the necessary skills will be preferred for international assignments if they are available.


Start preparing ASAP if you want to secure opportunities of this kind!




Foreign universities are scrambling to add the global dimension


Knowing the changed need of the global business environment many
universities have started strong programs that emphasize the global dimension.





Icelandic firms that are becoming increasingly global

  • Marel
  • Netverk
  • Landsteinar
  • Silfurtún
  • FBA

Others?


Related student assignments

Other assignments to discuss if time allows:

LTH: Boycottindex.com http://www.hi.is/~joner/eaps/cqv_lt05.htm  

LVV:  Leaving your current Employer  http://www.hi.is/~joner/eaps/cqv_lv07.htm
LTH: The other side (downside) of the Internet Buzz http://www.hi.is/~joner/eaps/cqv_lt07.htm  
LTH: Logistics - warehousing http://www.hi.is/~joner/eaps/cqv_lt08.htm  

 

TP
Progressive employers insist on employee initiative
http://www.hi.is/~joner/eaps/cq_barm1.htm  
Entrepreneurship vs. Management       http://www.hi.is/~joner/eaps/cq_entma.htm  


- :
http://www.pmforum.org/library/glossary/PMG_S03.htm
NL_Product Development Glossary
      
http://www.npd-solutions.com/glossary.html


Concurrent Engineering
A systematic approach to the integrated, concurrent design of products and their related processes,
including manufacture and support. This approach is intended to cause the developers, from the outset,
to consider all elements of the product life cycle from conception through disposal, including quality,
cost, schedule and user requirements.  http://www.npd-solutions.com/glossary.html



VE
Value Engineering - structured methodology for applying value analysis or function analysis to increase customer or
user value.