Define globalization 1.0, 2.0, and 3.0 and provide a sample of the type of business data managers collected during each era.
Thomas Friedman contends that globalization 1.0 shrunk the world from large to medium and countries and governments were the main protagonists. The governments of countries would finance explorers like Christopher Columbus to discover new parts of the world to enhance trade and commerce. The governments financed the explorers through the exports of manufactured goods and by taxing nobles and their manors. Globalization 1.0 lasted from 1492 until the early 1800’s. This era was the beginning of a global arbitrage. Countries were the dynamic change agents during this phase of globalization. For example, Spain explored South America, Britain colonized India, and Portugal colonized East Asia. The data that was gathered by business managers during this period included maps, trade routes, the languages of the indigenous people, and new kinds of trade goods that could be procured from the new world such as gold, silver, corn, and potatoes.
During globalization 2.0, Friedman explains, the world shrunk from medium to small. Companies such as U.S. Steel, Ford Motor Company, Boeing, and I.B.M. spearheaded this era. Being first time movers, these businesses capitalized on new technologies and innovative processes which enabled them to become powerful and influential. They created new markets and reshaped the business landscape. U.S. Steel made it possible to efficiently mass produce high quality steel, Henry Ford invented the assembly line, Boeing developed and produced airplanes, and I.B.M. successfully mass produced computers. This period lasted from the early 1820’s until the year 2000. During globalization 2.0, managers searched for information concerning new industrial processes, mechanisms, manufacturing techniques, computer technologies, markets, and labor.
According to Friedman, the world is currently experiencing globalization 3.0, which started in the year 2000. It has shrunk the world from small to tiny, and flattened the global economic playing field. During this phase of globalization new technologies such as satellite communications, the personal computer, the internet, the web browser, and cell phones have enabled people to communicate and share information with other people anywhere in the world instantaneously. This era has been characterized by individuals globalizing. People like Mark Zuckerburg, a computer programmer, internet entrepreneur, and co-founder of Facebook, have utilized the power of social media to enable others to interact globally and to achieve financial success. Current managers are operating in the information age and they are looking for data concerning collaborators, competitors, and customers. Subsequently, companies that can amass large amounts of relevant information can become discerning, knowing how to utilize emerging markets to maximize the return on their investment capital.