the context for information technology since the late 20th century
DESCRIPTION
Review of the book by Manuel Castells. 2000(2nd edition)The Rise of the Network Society Volume I of The Information Age: Economy, Society and Culture. Blackwell. pp.77-215TRANSCRIPT
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Presentation by:Sumeet Raj
• Informational
• Global
• Networked
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What is productivity ?Research by Robert Solow.
Productivity is function of technological change.
Year 1870 – 1950 Moderate GrowthYear 1950 – 1973 High Growth RateYear 1973 – 1993 Low Growth Rate
Relation b/w productivity and technology is not simple and direct.
Reasons . . .??Sunday, April 9, 2023iiit-b 3
Why and How these technology had to wait to deliver their promise in enhancing productivity ?
What are the conditions for such enhancements ?
How different is the rate of diffusion of technology and thus its impact on productivity in different industries ?
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To increase profit:Reduce production costIncrease productivityBroaden the marketAccelerate capital turnover
Scan– Search – Open new markets.
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World economyGlobal economy
World economy goes Global . . .
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Global interdependence of financial market:
De-regulation of financial market and liberalization of cross-border transaction.
Development in technological infrastructure.ConnectednessSpeculative movements of financial flowsMarket valuation firms
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Emerged at a given time, 1990’s
In a given space, United States
Around specific industries,Information TechnologyFinanceBiotechnology
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Few facts
Internet related firms
Classification of Internet related industries
By the turn of the century, the internet economy and IT industries had become the core of US economy.
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Market capitalization of internet companies sky rocketed.
Financial world was transformed in 1990’s by institutional change and technological innovation. deregulation of industry and liberalization of cross
border transactions The process culminated in 1999, when president Clinton
abolished the institutional barriers to consolidation between different segments of the finance industry legislated in the 1930s and 1940s to prevent the kind of financial crisis that led to The Great Depression of 1929.
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US signaled the freedom for the private companies to manage money and securities in any way the market would bear.
Major merges between financial firms led to the consolidation of the industries in few mega groups, capable of global reach.
IT changed the way financial transaction were conducted.
Powerful computers, adv mathematical models, we are able to forecast diff things both in real time and future time.
Consequences:Large no. of individual investors.E-trading quickly spread from stocks to bonds.
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Why does technology of transaction matter? How does it affect finance industries ?
Reduces transaction costReduce cost of active tradingMore no. of individual investors
Consequences:Substantial increase in the amount of value traded.Financial volatility increases exponentially
Overall outcome: greater Complexity and Volatility
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Why is the judgment formed ? What are the criteria for market evaluation?
Stock valuation, 1995-1999:the Standard & Poor top growth stocks:
Dell Computers 9402 Cisco Systems 2356 Sun Microsystems 2304
Profits and Dividends are among the criteria to value a company stock value but they are not the over-riding factor. What is then….??
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Several organizational trends evolved from the process of capitalist restructuring and industrial transition:
From mass production to flexible production Crisis of large corporations, and the resilience of small and
medium firms as agents of innovation and sources of job creation.
Toyotism Management – worker cooperation Having multi functional labor Total quality control Reduction of uncertainty
Corporate Strategic Alliances
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Company based in San Jose, California
Few facts
The business model pioneered by the company was the key to its:
ProductivityProfitabilityCompetitiveness
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Presented by:Sumeet Raj