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Globalization is changing the way we do business - Along with new opportunities, it also has lots of challenges. The biggest challenge has been conducting cross cultural business. MNCs, including fortune-500 firms find it a great challenge to succeed outside their home country. Even Wal-Mart has found that success cannot be taken for granted when operating abroad - the core competencies which made it so successful at home has been the source of its competitive disadvantage abroad.

Globalization is affecting every aspect of high tech business from semiconductors, software, biotechnology, pharmaceuticals and even medical services. Today it is hard to imagine any high tech company that has all its operations concentrated in one country. Even the startups in Silicon Valley or in Bangalore or in Hong Kong or elsewhere are having offices in Asia, America and Europe.  This new breed of companies are called 'Born Global' firms is not a passing fad, this is the new business model for 21st century.

Traditionally, the core competencies of a high tech firm such as R&D and marketing were held closely in their home country. But by late 1990's, companies have learnt the benefits from globalization of R&D, global marketing and coordinated product development. As a result, we see R&D centers of companies such as Intel, Microsoft, Cisco, TSMC, IBM, Sony, Acer etc in all the three continents. American companies have taken a lead in establishing development centers in Asia and Europe, thereby maintaining their lead in technology and innovation.  The next breakthrough in technology will not come from any single country, it will come from coordinated efforts of several R&D labs located around the world. Globalization of R&D is not without challenges but for those who get it right, it means a lot in the high stake battle of high tech business. Integrating & coordinating global development centers to deliver the next generation technology is a big challenge. There are several cross-cultural issues to be handled, government rules & regulations, legal issues, and International financial issues to be actively managed. This changing environment needs a new kind of managers whom I call as Global Managers.

Here in this website, I have put together a series of interesting white papers and presentations  on globalization and its implication. PowerPoint presentations are the condensed, to the point documents which conveys the message for the busy professional. I welcome any constructive comments about my writings.

Thank you for visiting my web page.  

Arun Kottolli 

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This website was last updated on 08/15/06.


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