First, economic nationalism abated — trade and investment barriers receded and capital controls were liberalized. GIEs are likely to be the dominant operating model for successful organizations in the 21st century.
The alternative to global integration is not appealing. For IBM Palmisano's employerthis was a successful model because it enabled the company to grow in those markets, understand local customer requirements and cultivate local talent. The intensely competitive global marketplace required that companies pay more attention to costs, quality and opportunities for innovation and differentiation than ever before.
A common pitfall is for management to see the future the way it would like it to be, rather than how it is unfolding or will likely be. Now the globally integrated enterprise can locate functions anywhere in the world, based on the right cost, skills and environment, argues Palmisano.
CFOs have always traded in financial data and quantification, so for them, the transformation is propelled by having a more advanced set of analytics capabilities and using them to extend the positive effect they have on the business. When answering the first question, we explained the principles underlying our vision for the globally integrated enterprise.
This approach is made possible due to the rise of globalizationand coming down of many of the barriers that haltered cross-border commerce.
Global versus local sales and marketing. The globally integrated enterprise also will mean new ways of thinking and new skills. Worse, they might gravitate toward more extreme forms of nationalism, xenophobia, and antimodernism. Second, starting in the early s, the revolution in information technology dramatically improved the quality and reduced the cost of global communications and business operations.
Palmisano shares with CD how the globally integrated enterprise is the way forward and how organisations can handle this transition.
Global Collaboration The spread of shared technologies and business standards is creating an unprecedented opportunity for further global integration, not just within each sector of society, but across them all. What I came to understand as CEO, following a series of wake-up calls, was the reality of global integration and that it had changed the corporate model and the nature of work itself.
Global competition forced companies to become more agile and efficient by unbundling functions and re-engineering processes. The pain was, in effect, balanced. These three elements combined to fundamentally transform the opportunities for globalization and help give rise to the globally integrated enterprise GIE.Sam coined the phrase “Globally Integrated Enterprise” (GIE) to describe what he had in mind.
He foresaw that IBM’s clients would increasingly be moving toward a GIE and that IBM needed to. The globally integrated enterprise is a dynamic institution, constantly evolving and making changes when needed to seize the greatest advantage.
CFOs must recognize that it takes a new kind of leadership to manage a successful transformation in a 21st century global enterprise and continually assess new areas of business model innovation.
The Economist referenced The Globally Integrated Enterprise, a Foreign Affairs article by IBM’s then CEO Sam Palmisano.
Palmisano’s article started out by looking at the evolution in the way companies have conducted business around the world. The globally integrated enterprise is a promising new actor on the world stage.
Now leaders in business, government, education, and all of civil society must learn about its emerging dynamics and help it mature in ways that will contribute to social, economic, and human progress around the planet.
The globally integrated enterprise refers to companies that are truly global, as opposed to multinational, in their management and their operations. In this model, work is.
A new corporate entity based on collaborative innovation, integrated production, and outsourcing to specialists is emerging in response to globalization and new technology.
Such "globally integrated enterprises" will end up reshaping geopolitics, trade, and education.Download