Globalization Has a Profound Impact on the Supply Chain and Supporting Information Technology
Michael Bittner - February 9, 2006

Background

In recent years, the World Trade Organization (WTO) often has pointed out the staggering acceleration of global trade since 1995, and the prospect of continued and dramatic increases in global trade throughout this decade. It is estimated that 55 percent of all raw material for American manufacturing now is sourced outside the US. This is in comparison to only 10 percent to 12 percent just a few decades ago. Statistics like this highlight the growing importance of globalization. At a macro-economic level, the World Trade Bank defines globalization as the growing integration of economies and societies around the world. It is interesting that the key action word in this definition is integration. Integration at a systems level has been the nemesis of information technology (IT) professionals for decades. If we look at globalization at a micro-economic level, or business level, then globalization represents the extension of enterprise business operations around the world. Whether viewed at the macro- or micro-level, however, globalization is causing quite the buzz nowadays, and it is not likely to end any time soon...