The world today is at the intersection of two megatrends – Globalization and Digitalization – a business revolution unfolding in real time. Global Meets Digital captures the many nuances of this revolution succinctly, including its impact on our lives and business. An immediate implication of this revolution is that the economic principles that underpinned business and strategy for hundreds of years, such as diminishing returns to scale and resource scarcity, are no longer valid for a large and growing number of products and services. The book will challenge you to think differently not just about digital products, but also about physical products.
In the global-digital world, products are of three kinds—physical, digital, and smart machines (products that are both physical and digital, and connected to the internet)—a distinction missed by most books on strategy and global business. The economics of each kind of products is distinct from that of the others, which has strategic implications for all kinds of businesses –implications such as how to compete and how to create and capture value.
With several mini case studies and over 300 company examples, the book covers themes and cutting-edge issues like the paradox of globalization, digital disruption, disruptive business models, exponential technologies, Internet of Things, competition in digital markets, winner-take-all market dynamics, Industry 4.0, how to innovate, strategizing for the New Normal, and value creation and value capture in both B2C and B2B contexts. The book derives its underpinnings from the practice of global and digital business, while theory remains in the background.
Intended specifically for an executive/professional audience, Global Meets Digital should also be of value to business students and professors learning to dip their toes into a digital world.
Vinod Jain is an expert in global and digital strategy, award-winning professor, Fulbright Scholar, and author of an MBA textbook, Global Strategy. He taught at the Rutgers Business School, Newark and New Brunswick, and the Robert H. Smith School of Business, University of Maryland, College Park. At Maryland, he was also the Founding Director of the federally funded Center for International Business Education and Research and Academic Director of Smith School’s Executive MBA program in China. Since leaving Maryland, he has taught in China, Denmark, Finland, Poland, and India as a visiting or term professor. His opinion pieces have appeared in The Washington Post, The Baltimore Sun, Mensa Bulletin, and Economic Times and Mint (India's #1 and #2 business dailies), among other media. In the past, he worked as a middle- and senior-level executive with American and British multinationals. Vinod has a PhD in Strategy and International Business from the University of Maryland, College Park, MS in Management from UCLA, and MS and BS (Hons) in Statistics from the Indian Statistical Institute, Calcutta.
Author(s): Vinod K. Jain
Publisher: Routledge/Productivity Press
Year: 2023
Language: English
Pages: 206
City: New York
Cover
Half Title
Title Page
Copyright Page
Dedication
Table of Contents
Preface
Acknowledgments
Author
Section 1 The Context
1 Global Meets Digital
The Global–Digital Economy
Old Is New Again!
Globalization: From Divergence to Interdependence to Convergence to
Technology—On Steroids
What’s Behind the Growth of IT?
Competition—A Changing Paradigm
Notes
2 Paradox of Globalization
When Did Globalization Begin?
What Is Behind the Growth of Globalization in Recent Periods?
Multilateral Institutions
Governments
Multinational Enterprises
Information and Communication Technologies
Globalization Today
Reversal of Attitudes toward Globalization
Reverse Innovation
Reverse FDI
Reverse Outsourcing/Offshoring
Globalization Today Versus in Earlier Eras
The Paradox
Notes
3 Digital Business: Technology at Warp Speed
Economics of Digital Products
Technologies
Artificial Intelligence
Robotics
3D Printing
Cloud
Blockchain
5G
Exponential Characteristics of Information Technologies
Digital Disruption
Value Creation and Capture with Technology
Notes
Section 2 Strategy
4 Entering Foreign Markets
Foreign Market Selection
The PRISM Framework
P: Political Economy
Political Systems
Economic Systems
R: Resources
I: Institutions and Infrastructure
S: Society and Culture
M: Market Potential
Industry Structure
A Systematic Approach
Learning about Foreign Markets
Entering Foreign Markets
Exporting/Importing
Licensing
Franchising
Foreign Direct Investment
Strategic Alliances
Notes
5 Global Strategy for Digital Businesses
Spotify
How Spotify Creates Value
How Spotify Captures Value
Spotify’s Global Strategy
Peloton
How Peloton Creates Value
How Peloton Captures Value
Peloton’s Global Strategy
The Globalization–Localization Dilemma
Global Strategy for Digital Businesses
Network Effects
Technology and Innovation
First Movers, Fast Seconds, and Imitators
Localization
Licensing and Partnering
IP Protection
Notes
6 Digital Business Models
Direct Selling
Subscription
Freemium
Outcome Based
Razor and Blade
Data Monetization
Platform
Ecosystem
Business Models for Professional Services Firms
How Law Firms Bill Their Clients
Productization of Services
Notes
7 Digital Strategy for Global B2C Businesses
What Is a Global Business?
What Is Digital Strategy?
Economics of Digital Markets
Value Creation and Value Capture
How Value Is Created
How Value Is Captured
Competition and Competitive Advantage in Digital Markets
Establishing Competitive Advantage in Digital Markets
Digital Strategy for Global B2C Businesses
Nestlé
Digital Transformation at Nestlé
Nestlé’s Digital Strategy
Notes
8 Digital Strategy for Global B2B Businesses
The Four Industrial Revolutions
Industry 4.0
How IoT (IIoT) Changes Manufacturing
Some Specific Advantages of the IIoT
How XCMG Benefits from the IIoT
Value Creation-Value-Capture Framework for IoT (IIoT) Businesses
Value-Creation Layer 1: Physical Thing
Value-Creation Layer 2: Sensors and Actuators
Value-Creation Layer 3: Connectivity
Value-Creation Layer 4: Analytics
Value-Creation Layer 5: Digital Service
Bosch
Digital Transformation at Bosch
Bosch Group’s Digital Strategy
Notes
9 Reinventing Innovation
How Innovation Happens
Serendipity
Invisible Hand of Market
Visible Hand of Management
How to Innovate
The Build|Buy|Ally Framework
Build: Innovation through Internal Development
Buy: Acquiring Innovation through M&A
Ally: Acquiring Innovation through Alliances
Open Innovation
Notes
10 Reimagining Business
The Five Megatrends
Globalization
Digitalization
Competition
The Fourth Industrial Revolution
The New Normal
Strategizing for the New Normal
It’s a Global–Digital World
Reach and Richness
Improved Performance
Value Creation and Value Capture
1. Globality
How to Leverage Globality
2. Competition’s New Logic and Logistics
Some Features of Digital Markets
How to Establish and Sustain Competitive Advantage in Digital Markets
3. Innovation’s New Logistics
4. Disrupt/Cannibalize Yourself
5. The Fourth Industrial Revolution
6. Disruptive Business Models
7. Exponential
Notes
Index
