Opportunities and risks in the era of globalisation Essay


The footings globalisation, chances and hazards have different significances to different people. Globalization can be seen as a world-wide motion towards economic, fiscal, trade and communicating integrating. 0But harmonizing to MSDN ( 2009 ) globalisation is, the procedure of planing and developing applications that map for multiple civilization.

Harmonizing to Monsod, “globalization may be defined in several ways, and from different position. One can speak approximately globalisation as the broadening and deepening of international flows of trade, finance and information in a individual, incorporate planetary market. An option would be to depict it as the increasing linkages between the universe ‘s people ( including… ) as natural and unreal barriers fall. Or, one can mention to it as the transmutation ( shriveling ) of the universe into a planetary small town, as boundary lines disappear, distances shrink, and clip shortens.” ( 2000 )

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Harmonizing to Giddens ( 2009 ) , globalisation is about intensification of global societal relationships which link distant vicinities in such a manner that local go oning are shaped by distant events and, in bend, distant events are shaped by local occurrences. ( cited in Georgiadou 2009 pp 25 )

Globalization has resulted in a assortment of organisational designs that have created both concern and information direction challenges therefore the demand for a planetary information systems direction scheme.

Opportunities in the epoch of globalisation

Opportunity can be slackly defined as a favourable or advantageous cirumsatance ( s ) ; a opportunity or chance. Globalization has led to the addition of many chances in the universe today. For one investing in information engineering and information systems makes endeavors be able to synchronise and command its activities. It besides makes an endeavor have increased competitory advantage in the universe market. For illustration, a computing machine seller in US can utilize its worldwide web to do certain that the merchandises it produces are suited and desirable for clients non merely in the United states but through the universe. ( Ives 1999 )

When information engineering and information systems are used global it increases the chances for endeavors and enables the sharing of resources which an endeavor may non hold in plentifulness. If an endeavor has planetary information engineering and systems it is able to derive advantage in the size of market its merchandises will command seeing as the resources are being shared and the endeavor is able to fulfill both its national and international clients ” demands and wants. Further globalisation has led to resource mobility. This is the ability to draw together planetary resources to carry through specific undertakings. This merely means that an endeavor can now set all its resources into a individual project/product without jeopordising the public presentation of its other projects/products.

Globalization has led to catholicity of an endeavor ‘s processs, systems and communicating. Universality fundamentally means being or prevalence everyplace. Thankss to globalisation, an endeavor can now “exist” everyplace without holding to physically travel its operations from its place state. This helps to cut down the clash of information systems ‘ mutual exclusivenesss and the clash of physical differences.

Another chance brought approximately because of globalisation is that computing machine webs allow transnational companies to supply worldwide, real-time services all the clip. This is because the company ‘s profile, activities, and list of merchandises and /or services are now easy accessible to any one any where in the universe ; this is because the company has planetary information systems that can assist it publicize itself and sell its merchandises. But still this does non vouch success for a company seeing as non everyone has entree to the planetary information systems, and this can discourage the company ‘s development.

Furthermore, globalisation of information systems has brought about information and cognition sharing. This is due to the fact that people can now easy pass on with each other no affair where they are in the universe ; and this has been enabled by the planetary information systems.

Globalization has led to IT/IS enabled invention in a peculiar industry

Globalization has made it easier for endeavors to function a wider client base and to associate up with them. Holland et Al. provinces that in the banking industry, the hazard takers with the ability to supply machine-controlled links to their clients can function a [ larger ] planetary client base of fiscal establishments in a timely manner without confronting capacity restraints. ( 1997 ) The Aberdeen Group besides hold the same position seeing as they province that ability to pull and better client, spouses and supplier trueness increases the success of a planetary company. ( 2009 ) . This means that any endeavor willing to venture into the mechanization of its services, will surely increase its client base and non strive it meager resources constructing up new premises in many locations. However this is non ever true visual perception as

Globalization has besides led to unison of an endeavor ‘s activities. That is simultaneousness of an endeavor ‘s activities. This can besides be termed as information and procedural consistence in that the processs and policies of a transnational endeavor are now made consistent through out the assorted states. This means that an endeavor can hold its operations everyplace and these operations can be done at the same clip.

Globalization besides makes the universe an endeavor ‘s market place in that planetary information systems can, ” blur the boundaries of clip and space” . This is because holding planetary information systems is tantamount to constructing shops everyplace in the universe without physically holding to be at that place. This therefore means that for an endeavor to venture into an international market it does non needfully hold to construct a physical premiss at that place. All it can make is organize a practical company

Globalization of information systems has besides led to a significant decrease of the cost of geting information and entree to planetary communications.

Hazards in the epoch of globalisation

Hazard has been defined by Wiegers ( 1998 ) as a job that has [ non ] happened yet but could do some loss or endanger the success of [ a ] undertaking if it did [ go on ] . ( Sumner, )

Though globalisation has brought approximately many chances that are of benefit to the many industries and endeavors, it besides has assorted hazards that can be associated with it. These hazards can be farther grouped into three classs: that is political hazards, cultural hazards and technological hazard.

Political hazards

The first and major hazard in the epoch of globalisation is transborder informations flow ordinances. Transborder information flow has been defined by Guynes et al 1990 as, “the motion of informations across national boundaries” ( cited in Walczuch, Singh and Palmer,1995 ) . Hence transborder informations flow ordinance can be defined as the ordinance of the motion of informations across national boundaries. Many states control/regulate the information that can be transmitted from an endeavor in one state to another endeavor in another state. This is chiefly to protect the state itself and its citizens. Ajami ( 1990 ) states that states have transborder informations flow regulation/legislation to protect their information engineering industry by mandating foreign corporations [ to ] utilize local sellers for information processing demands ( cited in Walczuch et Al, 1995 ) ; and Roche ( 1992 ) states that many states have informations protection statute law… to go on free trading with states that have enforced the construct of tantamount protection. ( cited in Walczuch et Al, 1995 )

Bigelow provinces that, [ because of ] the ability of computing machines interconnected by dependable and cheap telecommunication systems, [ the exchange ] of informations at a high rate in a non-visible signifier has heightened… ( 1979 ) To cover with this different states have enacted assorted Torahs that govern the transportation of information between endeavors in their place state to another state. For illustration, the Gallic jurisprudence requires that an endeavor, desiring to procedure and transmit information that identifies a physical individual outside French district, gets mandate from the National Commission on Data Processing and Liberties ( Bigelow, 1979 ) .

This therefore means that an endeavor has to aware of the Torahs in its state and the state it is linking its planetary information systems with so as to avoid any jobs of informations transmittal.

Another hazard in the epoch of globalisation is security breaches. This is because when an endeavor has planetary information systems it becomes easier for other people to entree their secret information. Data protection becomes a challenge to the endeavor.

A farther political hazard in the epoch of globalisation is authorities limitations on internet entree. This may be in signifier of: –

  • high cyberspace entree fees. This is the sum of money the authorities charges foreign endeavors to utilize its state ‘s information systems and engineerings eg. cyberspace. This is because when an endeavor is traveling planetary it can non perchance hold all the information systems/technologies it will necessitate to run. Generally speech production, every state has its ain ordinances on how much to bear down a foreign endeavor to entree its information systems and engineerings.
  • Government monitored and filtered entree to the cyberspace. This is when the authorities supports and oculus on what the foreign endeavor is accessing in footings of its cyberspace usage. Deidert, Palfrey and Rohoznski ( 2008 ) province that many states, for illustration Syria, Ethiopia and Pakistan seek to barricade… the tools and applications of the cyberspace that assist users in accessing sensitive stuff on the cyberspace. For illustration blogging services, interlingual rendition sites etc. ( Deibert et al,2008 ) There are assorted techniques used by authoritiess to barricade entree to internet content. For illustration, in Pakistan, the authorities blocks at both the international gateway and at the ISP degree ; other states like China filter by keywords that appear in the host heading. ( Deibert et al 2008 )

Therefore, a foreign endeavor has to be cognizant of these limitations in instance their globalisation will hold to include the usage of such tools and applications, for illustration blogging services.

Cultural Hazard

Cultural differences is yet another hazard posed by globalisation. This is because every state has its ain civilizations and this may present a hazard to an endeavor wanting to travel planetary with its information systems into these states. For illustration, in a survey carried out by Leinfuss ( 2001 ) , Chief Technology Office of Flashline.com Inc. , Gary Baney, recognized that package constituents had no national or linguistic communication boundaries so they decided to travel into the international market and he visited Hong Kong, where he realized that the Chinese are by and large talking non clip witting when it comes to selling and acquiring [ the ] merchandise out the door [ unlike American who are so clip witting ] … This can do a breach in communicating. ( 2001 )

In add-on, harmonizing to Baney, communicating across states and clip zones is hazard of globalisation. He farther says that the communicating rhythm is a changeless challenge, from seasonableness, quality and position of reading and that turn toing the cultural, regional, … people direction issues is all for naught if your endeavor lacks the engineering substructure to unite the whole endeavor. ( Leinfuss, 2001 ) The solution to this hazard may be for an endeavor desiring to globalise to guarantee that it has technological substructure as this is the major anchor for any endeavor that want to hold a successful globalisation run. With this in topographic point, all the communicating barriers can be a thing of the yesteryear.

Technological Hazards

Another hazard of globalisation is that if it is done excessively fast, it can be damaging to the endeavor. During a survey carried out by Leinfuss ( 2001 ) , Lawrence Kinder, the executive frailty president and CIO of Cendant Corp. , said that the key to constructing a solid and stable IT foundation is to take clip to understand the day-to-day-workings of the local IT group… [ and non to be in a haste to come in the new market ] . ( 2001 ) This is hence a possible hazard of globalisation seeing as most endeavors feel that they must spread out into planetary markets fast so as to crush their competition.


I believe that globalisation has more benefit to enterprises seeing as the universe is rapidly going a planetary small town and for any endeavor to last in the immensely altering times, it has to believe globally and even travel planetary as this is where the whole universe is traveling towards. Every endeavor should endeavor to go planetary visual perception as in future, this is where all the competitory advantage will lie and those endeavors that are non globalized may finally shut down.


Globalization creates many new chances that must be taken advantage of and important hazards that can non be ignored. The chances and hazards identified in this survey are:

  1. Opportunities

A· synchronizes and controls the activities of an endeavor

A· sharing of resources between a transnational endeavor and its other subdivisions

A· catholicity of an endeavor ‘s processs, systems and communicating

A· worldwide, real-time services all the clip

A· information and cognition sharing

A· function a wider client base and to associate up with them ( clients )

A· unison of an endeavor ‘s activities

A· decrease of the cost of geting information and entree to planetary communications


A· Political

-transborder informations flow ordinances

-security breaches

-government limitations on internet entree

A· Cultural

-Cultural differences

-communication across states and clip zones

A· Technological

-detrimental to the endeavor, if done excessively fast

After the survey, we can see that globalisation can supply an first-class interruption for many endeavors as it has more chances than hazards. Besides the few hazards that are there can be overcome provided the endeavor has the accomplishment and know-how on how to turn the hazards into chances for the benefit of the endeavor.

All in all, the globalisation of information systems and information engineering and of package will go on to turn and increase because the universe is altering to be a more technology-based universe. This will take to more planetary competition.


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