7/27/2019 Prasad a Global Bizen Vt

1/17

Global Business Environment

Prasada Reddy

Lund University, Sweden

7/27/2019 Prasad a Global Bizen Vt

2/17

Lecture - A definition

The art of transferring information from

the teachers notes to students notes

without it entering either ones mind.

7/27/2019 Prasad a Global Bizen Vt

3/17

Business Environment

1) Liberalization of economic policies

worldwide (import-substitution vs.

export-led strategies).

2) Changes in the technology

paradigms/regimes.

7/27/2019 Prasad a Global Bizen Vt

4/17

7/27/2019 Prasad a Global Bizen Vt

5/17

Economic Liberalization 2

International standards setting (e.g. ITU, UN)

facilitated flow of goods and services.

Global harmonization of consumerpreferences in some industries.

7/27/2019 Prasad a Global Bizen Vt

6/17

Technological changes 1

Changes in techno-economic paradigm

Emergence of new science-based

pervasive technologies

Even old products incorporate new

technologies

Multi-disciplinary inputs for innovations

7/27/2019 Prasad a Global Bizen Vt

7/17

Technological changes 2

ICT as a driver and facilitator ofglobalization

Companies that did incorporate newtechnologies faded away

Learning-by-doing approach to

Learning-by-training approach Vertical disintegration of value chains

Divisibility of innovation processes

7/27/2019 Prasad a Global Bizen Vt

8/17

Drug Discovery and Development Process_______________________________________________________________________

Pre-Clinical Research Clinical

_______________________________________________________________________

Molecular Validation Lead Lead Verification ClinicalTarget of Target Discovery Optimization in animal Candidate

Identification models________________________________________________________________________

Genomics Genetics UHTS SAR Pharma Genotyping

-honing in -posit ional (ultra high -speed to PET/PDMon genes & cloning/ throughput refine -efficacy and -polymorphisms

isolating identification screening) safety & biomarkets

new targets of disease -high volume,

relevant more targets,

genes lighteningfast identific-ation of

pot ential leads

_______________________________________________________________________

7/27/2019 Prasad a Global Bizen Vt

9/17

Chip Design Flow ChartMarket Analysis &

Product Planning DefineStandardsSystem/Application Level

Specification

(Upstream)

Market

Specification

Behavioral Level Design

RTL Level Design

Gate Level Design

Circuit Level Design

Physical Level Design

Post-Layout Verification

Foundry Manufacturing,

Packaging and Testing

Semiconductor Material,

Manufacturing Equipment

EDASoftware

SupportSpeed,

Quality,Flexibility,

CostIC DesignImplementation

Flow

(Downstream)

Process

TechnologyAdvantage of

Advanced

Countries

AsiasAdvantage

7/27/2019 Prasad a Global Bizen Vt

10/17

Global competition 1

Increased competition (more global

competition in domestic markets also)

Greater complexity in competition

Oligopolistic competition in major

industries

Emergence of innovative small firms in

niche areas

7/27/2019 Prasad a Global Bizen Vt

11/17

Global competition 2

Shorter product life cycles

Technology becomes the key factor of

competitiveness Increasing R&D costs

Shortage of S&T skills in advanced

countries. Access to global markets and resources

7/27/2019 Prasad a Global Bizen Vt

12/17

New Competitors

Entry of emerging economies as hugemarkets

Brazil, Russia, India and China (BRIC-group of countries) as arbitrators of theglobal economic developments

MNCs from the emerging economies

Local availability of S&T skills

Low costs of operations

7/27/2019 Prasad a Global Bizen Vt

13/17

Corporate responses

Rationalization of corporate structures:

World/regional product mandates

Global intra-organizational networks

Global inter-organizational networks

(including with universities)

7/27/2019 Prasad a Global Bizen Vt

14/17

Implications for innovation 1

Centre-for-global: innovations for global

markets centralized in headquarters Local-for local: innovations for local markets

Locally-linked: innovations in each locationfor global application

Globally-linked: collaboration betweendifferent local units for global innovations(Barlett and Ghoshal, 1991)

7/27/2019 Prasad a Global Bizen Vt

15/17

Implications for innovation 2

Modularity and divisibility of innovationprocess (specialization within the

innovation process) Globalization of R&D (including to

emerging economies)

R&D outsourcing Emergence of technology markets and

research firms

7/27/2019 Prasad a Global Bizen Vt

16/17

7/27/2019 Prasad a Global Bizen Vt

17/17

Implications for innovation 4

University spin-offs

Regional/national government policies

Cluster development/science parks

New sources of financing for innovation

Importance of intellectual property rights Regional agreements and trade barriers