The world is changing at a pace that can be overwhelming to those who are not equipped. Globalization has broken down geographical barriers and brought people, businesses and cities closer than ever. The ease of transport and communications, the hallmark of the globalized world, presents economies with increased opportunities and wider options. However, the competitive pressures are also rising for businesses and governments alike.
With greater flexibility in the global supply chain, and a wealth of information easily accessible to anyone, today’s business powerhouse can come from any part of the world. New and emerging channels, such as social media and mobile devices, are also challenging established processes of market incumbents.
Cities are also losing their top talents and investors, who are lured to move to locations that can offer them seamless connectivity, modern infrastructure as well as better safety and security. It is important understand the impact of globalization on economies and what it demands of organizations today.
Urbanization
One of the most significant impacts of globalization is the rise of urbanization. By 2030, more than 60 per cent of the world’s population will reside in urban centres, putting exponential demands on urban infrastructures. Smarter cities are being built in response to rising expectations from the population. Today’s urban communities expect connectivity and mobility. They want easy access to places and information that will not hinder the progress of their daily lives and business. To attract the best talents from the global pool, modern cities must increase their competitiveness by offering the safety, security and connectivity that today’s population demands. In a globalized world, talents and investments are going to flow where modern infrastructures can support their needs.
Process automation
One of the key tenets of globalization is the ease at which businesses can be conducted. To align with the speed of business in the globalized world, organizations must relook their business processes to eliminate unnecessary or inefficient steps that will slow down turnaround times. This requires a tight integration of processes at every stage of the business cycle. Many successful organizations today rely on integrated automation solutions that cut down the number of processes in their operations, and the time taken for each process. For example, Siemens Totally Integrated Automation enables manufacturers to harmonize all production components, products and systems to enhance production operations while reducing lifecycle costs.
Shrinking innovation cycle
Globalization has significantly spurred the shrinking of the innovation cycle, making it a key competitive advantage that many businesses seek to enhance. Traditional production lifecycles are no longer able to keep up with the pace of the global market. Increasingly, businesses are turning to digital factories to realize faster time-to-market of products. The simulation of full production scenarios through solutions such as Siemens’ Product Lifecycle Management (PLM) helps businesses transform ideas into market-ready products, without the traditionally incurred costs of developing real- world prototypes. The eradication of the marketing and product testing phases reduce costs and time, equipping businesses with the ability to see their conception translate into calculated and sustainable products.
Energy efficiency
The world today is consuming energy faster than it can be produced or replenished. This is bringing about rising energy costs as well as a heightened awareness of the impact of globalization on climate change. Respected businesses in the globalized world must be sensitive to energy issues that can negatively impact their business. Solutions such as energy-efficient building technologies and energy- saving motors can help businesses realise cost and optimize resource utilization for organizations. Today’s smart energy solutions also incorporate climate protection technologies to help businesses become responsible citizens. For cities looking for a slice of the global progress, power failures must remain a thing of the past.
In a borderless world, where competition is no longer limited by geography, businesses must constantly identify emerging threats across their business landscape. As the demands for speed and innovation take their toll on global players, organizations today must continue to look into ways to increase productivity, lower production costs, improve agility and shorten the innovation cycle. All of these can be achieved with the right cutting-edge solutions.
