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美国留学生Organizational Informatics essay:dynamics of the organization 2

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1 Introduction

 

With the development of world economic and social progress, there are extraordinary facts that enterprises collaborate more closely with each other and the market environment changes become increasingly complex and fast. Enterprises are in such uncertain environment then have to face many deep and broad impacts and  increasing pressure from political, economic, resources. From the enterprises themselves, the management system is imperfect, low business efficiency, competitiveness is poor, uneven distribution of enterprise resources, such as personnel and development issues have become increasingly prominent, for such problems we are able to find some reasons in terms of organizational structure. Corporations should find new ways to change the operation mode, break its own, what’s more using a fresh perspective on the transformation of business is the core point to corporate’s survival and healthy development as well as a qualitative leap in the operating level. In such environment, the constant business is short of vitality, it inevitably faces shrink and die. 
This article argues organization dynamics that will continues 20 years later. In my view they are globalization and networked world. Not only introduce the two dynamics of organization structure but also explain why they are the most characteristics of the relationship of organizing to computing 20 years from now is necessary.  

 

2 Globalization 

 

As what I know, “Globalization, also can be called localization, globalization, and lobelization leads to lower powers of regulatory environment, less influence of older organizations ( unions, employer organizations).” (Hakken, D. 2013) It is a important economic issue in the new century. At present, world economy is having an experience of profound, overall and overwhelming innovation led by economic globalization, which transforms rapidly the development process of human economic society. Accompanied with the enhanced economic relations among countries all over the world, statement concerning with Economic Globalization in domestic and abroad academia is getting more and more. So, globalization refers to the factors of production flow at an unprecedented speed and scale in order to find the appropriate position for optimal configuration. It make economies highly integrated in the world by trade, technology innovation, financial flows, cultural exchanges and information networks. National economies form interdependence through extensive transporting all kinds of goods and services, the flow of international capital and the faster transport of technical. However, a defect is also should be pointed out that trade and investment liberalization would expand the economic market and activity scale definitely, and as a result more resources would lose inevitably and the environmental pollution would increase.(Grossman and Krueger, 1993)
 Economic globalization contains two sections: production globalization and market globalization. There are three key reasons to form the globalization of economic: 1. Deepened world wide labor distribution is the fundamental reason to form the globalization of economic. 2. The amazing development of science and technology is the essential reason for promoting the globalization of economic. 3. The globalization of economic is also the inevitable result of the maximization of profit. 
At present, economic globalization is the main tendency of world economy development and it will be the leading tendency of the organization in the next 20 years. 
As we know, there are two macroscopic factors playing potent roles in the forming process of globalization. One is the reduction of barrier of free flow of commodity, service and capital since the Second World War. The other is the technology transforming, especially the rapid development of communication, information processing and transportation technology in recent years. After detailed investigate, technology’s development will be more faster and smarter, and all of them is used to economic development, under this background the tendency of globalization is deepen and broaden. For example the development of the communication, the communication industry is a rapid development industry whose technology updates in a astonishing speed, people have more and more dependence on the communications industry. With the convenient communication, people from different countries own a free communication without any barrier, learning from each other, contacting closely with each other and all of them are powerful driving forces of the process of globalization .
What’s more, the maximization of profit is the prime aim of a corporation. An enterprise must improve its capability of profit making through enlarging its production and management in oversea markets and increase product value and reduce cost through choosing and implementing different strategies in international competition in order to make a profit. By transferring core capability, and realizing area economy and experience curve economy, international enterprises can realize global enlargement and reduce cost and area adjustable stress continuously to realize a profit. Four basic strategies are adopted in the international competition, they are international strategy, multinational strategy, global strategy and transnational strategy.Meanwhile, globalization of economic has not only brought extraordinary opportunities, but also massive challenges to the development of global economy.
Firms have to face challenges come from globalization, and with simultaneously extending the geographic reach of their operations the challenges become more streamlined and efficient. All the challenges company with overseas competitors beginning to enter the domestic markets, and at the same time domestic corporations trying to reduce their costs by globalization. In order to crack the nuts, firms should have pursuit in a new way such as rethinking of companies’ Operational strategy should be the first step on the way to respond these challenges and opportunities. Companies try to push their products into the larger market by using new technologies.
 In the background of globalization tendency, several unusual decision on entrance will be made while transnational corporations enlarges overseas markets, for example entrance mode, entrance time,market selection and etc. Nowadays, six different modes will be adopted by transnational corporations to enter overseas markets: technical licensing, export, joint venture, license business, turn-key project, and sole proprietorship. At the same time, more and more far-sighted enterprises are cooperating with transnational corporations and build strategic alliance. Strategic alliance means a cooperation agreement between actual or potential competitors. Now our economy is standing in a high speed developing period and enterprises should choose the senior strategic alliance which will improve core capability of an enterprise.

 

3 Networked world

 

With the development of information technology, Internet as a new business tool is not only changing people’s life style but also changing the organization mode. More and more enterprises enhance their competitiveness through networked world.The Internet has been likened, in its ability to change the nature and operations of markets, to such past epochal events as the advent of railroad and the introduction and growth of the telephone system.
The foregoing analysis shows that the changes of enterprise organization dynamics must consider coordinations between external environment and internal capacity. Therefore, the Internet typical business organization analysis requires consider Internet age environment, economic environment, competition patterns and user needs development, only in this way it is possible to clarify the development direction of the Internet era’s organization model. The significant changes of  economic in Internet era can be summarized as follow. Firstly, promote global integration. Interactive information network has brought globalization of production, trade globalization, financial globalization, the consumer division globalization, its essence is the migration cost of information, materials, and human resources rapidly decreased and then gradually achieve a flat earth. Secondly, knowledge revolution. Secondly, Internet promote the rapid dissemination of knowledge, accelerate the speed of updating the knowledge that directly connect the explosion of knowledge with economic development, and change the traditional competition and development model. Thirdly, dislocation competition. Business competition has not only occupied the traditional resource, due to the openness of information resources and knowledge revolution, small businesses, and even individuals have the ability in a way to compete with larger enterprises. Forth, network economy. In contrast with the traditional model of economic development, an extremely important feature of the network economy is marginal benefit increase, its single-product marketing costs do not change or reduce with the size of users rapid growth and the economic value shows the exponentially increased. 
The development of Internet promote the continuous development and growth of many enterprises, and push many companies become truly giant enterprises, so the development of the networked world has a huge influence in economy. Most of the successful companies in the Internet age are able to adapt to the economic characteristics of the network and understand the user needs; able to use the Internet to attract users and to meet the individual needs of users; able to use the Internet to enhance the level of customer value realization, while reducing cost in the  implement of user requirements. Secondly, the success of the enterprise must be difficult to imitate on the basis of the unique value realization. Meanwhile, in the age of the Internet, relying solely on technology leadership and resources to ensure that point has been unable come true, competition has grown from a simple form of new products, new technologies and their value chain to competitive in the value network, the value network is also the inevitable choice of flat trend; build a competitive value network, it is often difficult for competitors to copy, enabling longer maintain a competitive advantage. Therefore, we predicted that the networked world will be a major feature of organization in the next 20 years. It is a world people can apply high technology to business transaction such as the digital information processing and electronic communications, all of them are used to refine the relationships among organizations or individuals. 

 

4 Comparison and relationship between the two dynamics

 

Globalization and technological change have created a new global economy “powered by technology, fueled by "information" and driven by "knowledge". (Jalil Totonchi and Gholamreza Kakamanshadi, 2011) Globalization process relies on the establishment of global information network,globalization has been accompanied by the development of the world transport and communications, in other words the level of development of information technology determines the extent of globalization. Technology is both driven by and a driver of globalization, as both forces continually reinforces one another. (S. .P.Bradley, J. A. Hausman, and L. N Richard, 1993) From this perspective, the two dynamics of organization is closely connected. The rapid development of network technology has become the fundamental driving force which promotes economic globalization. A tight junctions large unified market is formed by connecting the world information networks then economy system increasingly becomes a global system. Boundaries between domestic economic activity and foreign become blurred, goods, services, capital labor and information are flowing on a global scale. With the Development of the network capital quickly and flexibly flow in the world, it can not only impact the way of trade but also own a significant impact on business organization, and completely change the way of employment. As global economic organizations grow, multinational corporations play an increasingly important role in the world economy, the company's reach has been extended to all countries and regions of the world, especially the opening of the Internet has shortened the distance between different places, so large corporations has become increasingly competitive by cross-border mergers and combination of some large multinational companies.
Briefly speaking, the popular of the networked world make it easier and cheaper to manage corporation operations and extend markets, and coordinate the value chains across different borders. Internet has provided significant impetus and reduced market frictions to the process of extending world markets by reducing the spends of transactions and information. It also adoption fosters globalization through lowering the spend of transaction and creating and coordination the expanded and new markets. All of them shows, Internet is enhancing the underlying economies’s scale in the process of globalization.

 

5 conclusion

 

This article focuses on the globalization and the networked world on the organization structure. And try to claim the two dynamics will be working in the later 20 years. Look at their actual dynamics in the progress of business establishments, globalization and networked world are expected to reform organization structure of nations by world’ economic. The future world would be filled with the new digital technologies, the use of them would informate for the companies and interpenetrate the management of organizations. (Hakken, D. 2013) Internet is not only to reduce communication costs in business, but also highlight its flexibility in locating activities. Research assumes that Internet makes a significant contribution to international trade. The expected superior organization structure is mainly featured by the above two dynamics.

 

6 reference

 

Hakken, D. (2013. November 11). I303: Organizational Informatics. Bloomington, Indina
Grossman G and Krueger A, 1993. Environment impacts of a North American free trade agreement. The US–Mexico Free Trade Agreement. Cambridge, MA: The MIT Press
Jalil Totonchi and Gholamreza Kakamanshadi.Globalization and E-Commerce. 2011 2nd International Conference on Networking and Information Technology. Singapore: IACSIT Press, 2011
S. .P.Bradley, J. A. Hausman, and L. N Richard, Globalization, Technology, and Competition. Boston: Harvard Business School Press, 1993.
Hakken, D. (2013. Cctober 30). I303: Organizational Informatics. Bloomington, Indina
 

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