Chapter 5: Technology in Trade Flashcards
Technology: The transformation of Trade
What has technology done to international business?
• National economies are closer linked
–Supply chain become more decentralized and more globalized as small companies have access to new markets and cost-effective sources of supply to boost competitiveness.
Created:
- -New mindset: Internet is key
- -Acceptance of digital commerce
- -Altering the way the world works
What has technology done to international business?: New Mindset: Internet is key
• If a product or service cannot be found online then it must not exist
–Although this isn’t true, it has altered how consumers, whether industry or consumer, research analyze value and purchases goods and services worldwide
What has technology done to international business?: Acceptance of digital commerce
Increasing levels of trust in digital new worlds has set stage for a new platform to commercial activity and new tools for conducting almost every aspect of global trade
What has technology done to international business?:
Altering the way the world works on business scale
• Communication
○ Increase efficiency of response- expected to respond in 24 hours 7 days a week
○ More cost effective (don’t have to fly to wherever to have a meeting face to face)
• Collaboration
○ Aggressive global competition makes collaboration more essential- among customers and partners
○ Changed markets, customer relationship management, trade finance and logistics as well as distribution of internal business processes–> productsion and sales for strategic or cost advantage
• Business development
○ Communication and collaboration are building blocks to networking , networking is effective emeans of opportunity development
• Business transparency and competitive intelligence
○ Companies now have websites that make their practices for the most part public.
Businesses can also use this to gain intelligence about potential customer,s suppliers a don competitors.
Electronic Data Interchange (EDI)
What is it? What does it do?
○ Company to company electronic exchange of business transactions in a machine -readable , standardized format. Improves supply chain by:
§ Quicker communications
§ Improved customer service
§ Reduced paperwork
-Faster processing of supplier quotes and sales
- electronic automation of supply and value chains
The Value Added Network (VAN
○ Evolution to EDI to
§ Ease the cost of hardware and software, data security and multiple propriety formats was the emergence of VAN within the EDI model.
§ This may be better for smaller businesses who can’t afford to join EDI system.
–Reduces cost and need for skilled work by translating the transactions moving between systems that employee different hardware, software and electronic transport standard so
Value Added Services (VAS)
Complement VAN systems by easing the skills challenges for the business.
The Internet and the services boom
Internet and development of devices is most important factor of expansion of the service economy–>almost any service can be offered globally.
Offshore Business Process Outsourcing (BPO)
○ Not a new thing, but with the Internet it has expanded especially in there services and is also creating new economies within the developing world .
○ Now more processes are beginning to emerge as BPO services
=Payroll, employee benefits and recruiting, customer services
RFID tags
Allows the customer to track their product.
E-procurement
The process of searching for goods and services suppliers, inviting bids and placing orders using Internet technologies —> one of the most important aspects of digital supply chain .
Online tender systems
many corporations, small business and governments now have tender systems in place online for suppliers to bid on.
Marketplace Security
What are the different types of security threats ?
Security risks have increase because of increase connective
- Internal and unintentional
- Internal and intentional
- External and Network based
- Internal and unintentional
§ Worked can make mistake, destroy informations and expose confidential data and access to malicious websites
==Uninformed contract workers, if not fully briefed can compromise security
- Internal and intentional
§ Disgruntled employees might leave bugs and other malicious programming behind in the company network
§ Technical contract workers may try to exaggerate work to increase the employment value
==Teaching all contract workers may require network access to do their jobs despite knowingly exposing the company network to security risks
