THE IMPACT OF GLOBALIZATION ON INDIVIDUALS, COMPANIES AND ON

BUSINESS INFORMATION SYSTEMS PERSPECTIVES OF THE ECONOMIC

CRISIS
Lect. uni. !". P#$e%cu Ve"#nic& A!"i&n&
Academia Comercial Satu Mare
Satu Mare /Romania
P"#'. uni. !". P#$e%cu N. G(e#")(e
Academia de Studii Economice
Bucharest /Romania
popescu_gh_cafr@yahoo.com
A*%t"&ct
The paper called Impact of Globalization on Individuals, Firms and Business
Information Systems the perspective of the Economic Crisis has the aim of presenting
New Economys nowadays problems as a result of the global economic crises.
The questions we are trying to find the answers for, in our analyses, are as fallows: !hich
is the impact of globali"ation on #ndi$iduals, %irms and &usiness #nformation 'ystems(),
#s the global economy going threw a period of crises() and #n what way globali"ation
and the global economic crises will affect humanity(). !e belie$e that, before e$erything,
the delimitation of the historical bac*ground is essential nowadays, and that is because of
the e+tent of the globali"ation phenomenon at the worlds le$el and afterwards we analy"ed
the theoretical aspects regarding the global economic crises and in what way it will affect
indi$iduals, firms and business information system and, at the end of our presentation, we
will put a diagnostic at the global economic le$el.
+e,-#"!%
Economic crises, globalization, business information systems
INTRODUCTION
!he "a"er #ith the sub$ect %T(e i.$&ct #' )/#*&/i0&ti#n #n in!ii!u&/%, companies and
on business information systems perspectives of the economic crisis& aims to a""roach
the current "roblems of the 'e# Economy as a result of the global economic crisis
!he (uestions #hich #e intend to find the ans#er in our material are as follo#s) %1(&t i%
t(e i.$&ct #' )/#*&/i0&ti#n #n in!ii!u&/%, c#.$&nie% &n! *u%ine%% in'#".&ti#n
%,%te.%2&, %I% t(e )/#*&/ ec#n#., in c"i%i%2& and %H#- !#e% )/#*&/i0&ti#n &n! t(e
)/#*&/ ec#n#.ic c"i%i% -i// &''ect t(e -#"/!2& Abo*e all, #e consider to be essential the
demarcation of the historical frame of #here #e are today, as a conse(uence of e+"anding
the globalization "henomenon in the #orld, and then to analyze theoretically #hat does the
global crisis re"resent and ho# #ill affect indi*iduals, firms and the business information
systems and, at the end, #e shall "ut a %diagnosis& on the global economy
3. THE GLOBAL ECONOMY GOES BEYOND THE LIMITS OF
TECHNOLOGY. THE GLOBAL ECONOMY INVOLVES THE
GLOBALIZATION OF INDIVIDUALS
,lobalization must be seen today as being beyond technology, meaning that it im"lies, at
the same time, something more "rofound and com"le+, namely the globalization of
indi*iduals -ue to ne# techni(ues and global technologies, it has come to a contraction of
time and s"ace, #hich allo#ed man.ind to conduct transactions any#here in the #orld in
real time At the same time, the globalization of indi*iduals must mean res"onsibility and
res"onsibility must be closely related to the de*elo"ment of indi*iduals, res"ecti*ely
indi*iduals/ res"onsibility to#ards their o#n de*elo"ment, a#areness of limits, #hich once
e+ceeded, must be follo#ed by ne# rules and *alues, firmer and more com"le+ than those
so far 0ere1s ho# !homas 2riedman e+"lains the "henomenon of globalization of
indi*iduals) %Globalization has !one from the !lobalization of companies to the
!lobalization of individuals. ,...- This sense of responsibility to"ards their o"n
development is going further today than e$er before. #n many global industries you are
forced to pro$e e$ery day that you deser$e your .ob by the $alue you create and the unique
s*ills that you can put in play. /nd if you do not succeed, your .ob can fly further and faster
than e$er& #%riedman, Thomas 0. ,1223-$
,lobalization has brought #ith it the idea that anything can be mar.eted, no#adays there
are no more things that can not be mar.eted) %%et&s not fool ourselves' "e live in a "orld in
"hich more and more thin!s are mar(etable. ,...- /t any time, the available technolo!y 4
especially transportation and communications 4 lar!ely determines "hich !oods and
services are easy to be mar(eted at international level and "hich are difficult or
impossible to mar(et. 'implifying this elementary fact, economy theorists are !enerally
transposin! the !oods and services worldwide as integrating into t"o broad cate!ories'
)mar(etable) and )unmar(etable).& #%riedman, Thomas 0. ,1223-$
!he only "roblem that #ill a""ear #ithin the ne# conte+t #ill be the ability to sell more
goods and ser*ices electronically, the distinction being made bet#een the electronic ser*ices
that can be mar.eted o*er long distances #ithout being affected in any #ay and those #hich
can not be mar.eted o*er long distances as their (uality #ill be affected to some e+tent)
,...- #n the future 4 and to some e+tent already in the present 4 the main distinction in
international trade "ill not be made bet"een thin!s that can be put in a bo* and the
others+ 5owe$er "e shall distin!uish, bet"een services that can be provided electronically
over lon! distances "ithout the loss of ,uality ,or with minimal loss- and the others+ The
fact that a wide range of ser$ices are becoming mar*etable is, as they say, all the rage. /nd
we can be pretty sure that the share of services that can be provided electronically "ill
increase.) #%riedman, Thomas 0. ,1223-$
,lobalization of indi*iduals also in*ol*es a better and broader understanding of human
beha*iour and the #ay "eo"le "ercei*e certain e*ents !he indi*iduals/ challenge to co"e
#ith the changes occurred #ithin the ne# global conte+t is inherent, but #hat really sho#
interest are the #ay in #hich the change #ill affect the thin.ing of indi*iduals, the conce"ts
so far, life and e*eryday acti*ities 3e are also interested in %45 the "ay "e nourish the
ri!ht hemisphere as properly as the left one, a fact that results from the follo#ing)
,reat s"ecialists from today, from the field of "sychology and "sychoanalysis,
belie*e that the current e*olution induced by the globalization "henomenon, #ill
largely affect in!ii!u&/%4 /ie% !hey ha*e demonstrated that at the same time #ith
the ne# changes generated by the conte+t of globalization, a series of "henomena
#ill ta.e "lace at t(e in!ii!u&/5% t(#u)(t /ee/ 0o#e*er, the so com"le+ structure
of t(e (u.&n *"&in #ill be able to hel" the indi*idual e+"lain the #ay in #hich time
and s"ace act on thin.ing and his life) -hose t"o hemispheres "or( in
collaboration and we use them simultaneously in almost e$erything we do. &ut the
structure of our brain can help us to better e+plain the patterns of the time were
li$ing.) #%riedman, Thomas 0. ,1223-$
S"ecialists ha*e demonstrated that the o*er#helming element in determining certain
stages in the life of the indi*idual is t(e (u.&n .#ti&ti#n Inne" .#ti&ti#n is the
one that is causing the indi*idual to act in a certain sense and ta.e the main decisions
of life, career, and the idea to attend certain studies ,lobalization of the economy
#ill be "rofoundly influenced by the e+tent to #hich the inner moti*ation #ill act on
globalization of indi*iduals as "art of the current com"le+ity generated by the 'e#
Economy) The types of s*ills that are becoming now most important are turning to
be the same acti$ities that people are de$oting to from inner moti$ation. 6elati$ely
few people become accountants from inner moti$ation. ,...- but e+actly the inner
moti$ation is the one that ma*es us become creati$e and empathic, designers and
good narrators, ad$isers and consultants.) #%riedman, Thomas 0. ,1223-$
!he s"ecific features of the indi*idual are related to (i% .&n, inte"e%t%, #hich
generates his need to communicate, to be more sociable, to de"end on someone from
outside to get hel" #hen needed, to study certain sub$ects, as his .no#ledge degree
leads him to certain areas of interest) The idea was that people who ha$e multiple
interests are more tal*ati$e, more sociable, they *now how to easily as* for help
when they need, they *now to help others who need support, they can thin*
hori"ontally, they *now how to lin* things from different disciplines and fields.)
#%riedman, Thomas 0. ,1223-$ ,lobalization of indi*iduals becomes closely lin.ed to
their inner feelings, the le*el of .no#ledge re(uired by society, the "assage of time
and the access to ne# techni(ues and technologies !he li*es of indi*iduals must be
seen and then analyzed in line #ith globalization, because each ne# interest of the
indi*idual is the conse(uence of #hat is ha""ening around him
,lobalization of indi*iduals must "rimarily ta.e into account, the access to ne#
technologies and techni(ues Science is the one #ho manages to o"en ne# horizons
for each indi*idual in "art and maybe that is #hy each indi*idual has decided to
s"ecialize solely on a "articular branch, ta.ing into account his o#n interests and
ha*ing a number of reasons) !e are surrounded by a true ocean of science ,...- and
this type of international di$ision of labour is $ery logical.) #%riedman, Thomas 0.
,1223-$ !he conclusion that one must dra# from here is that techni(ue and
technology in the current conte+t of globalizing the indi*iduals are those #hich ha*e
caused & !ii%i#n #' /&*#u" so ob*ious and *isible and #ith a so great im"act on the
le*el of society
,lobalization of indi*iduals #ill also mean their desire t# (&e &cce%% t# inc"e&%e!
inc#.e !his #ill be "ossible in the e+tent to #hich each indi*idual #ill tend to
im"ro*e his "osition trying to continue his education throughout life) &oth
technolo!y and trade increase the !eneral level of income they ma(e the !lobal
)ca(e) bi!!er 4 but they tend to fluctuate in fa$ouring the labour force with high
qualification, to the detriment of that with low qualification.) #%riedman, Thomas 0.
,1223-$ !he access to a better education #ill ob*iously fa*our certain categories of
indi*iduals, #ho #ill become increasingly better "aid and #ill occu"y "ositions
increasingly #ell seen and most fa*ourable #ithin society Meta"horically s"ea.ing,
the access to better education and a high (ualification #ill also generate
simultaneously the access to a bigger and better slice of the global ca*e.)
Another "ers"ecti*e that must be ta.en into account is that the inherent change
generated by the "henomenon of globalizing the indi*iduals #ill lead, ine*itably, t#
t(ei" .#*i/i0&ti#n in #"!e" t# c#$e -it( t(e c(&n)e, #ithout being e+cluded from
society and #ithout being left behind !his #as synthesized e+tremely #ell #ith the
hel" of the follo#ing (uote) !ill 6ogers said it long ago: )Even if you are on the
ri!ht trac(, someone "ill step on you if you&re .ust stayin! there+) The more the
world becomes, the faster this thing will happen.7 #%riedman, Thomas 0. ,1223-$
!he globalization of indi*iduals highlights the reluctance and fear of many of them
to change 6t .no#n the fact that the "ros"ect of change can generate "anic among
indi*iduals and this is based on many factors) the e+istence stages they ha*e gone,
the education they had access to #hen they #ere young, the genetic baggage they
ha*e, the family they are "art of, their age, the country or geogra"hical region #here
they are, the re(uirements that e+ist in the labour mar.et in the country in #hich they
#or., their o"ening to ne#, etc7 !herefore, one can say that) Everyone "ants
economic !ro"th, but nobody "ants chan!e+ #%riedman, Thomas 0. ,1223-$
Analyzing the induced "ers"ecti*e of the globalization of indi*iduals and ta.ing into
account its defining elements, res"ecti*ely their change in thin.ing, enhancing the human
moti*ation, determining and redefining their many interests, the access to a #ide range of
information and an increase of the global di*ision of labour, the desire to o#n an amount of
money as high as "ossible as a result of better educational training, the idea to co"e #ith
change and to be "er"etually in an ad*antageous "osition, the fear of ne# and of change, #e
can say that it is in our "o#er to create the ci*ilization #e #ant !he idea that one must
remember is that e*ery indi*idual has the "o#er to change the future, each indi*idual is "art
of this ne# uni*erse, and the desire to generate creati*e energy to lead a better life is a gi*en
course of nature, a natural feeling to be follo#ed and su""orted by "resent and future
generations
6. THE GLOBAL ECONOMY GOES BEYOND TECHNOLOGY.
THE GLOBAL ECONOMY INVOLVES THE GLOBALIZATION
OF THE COMPANIES
6t is essential that com"anies 4regardless of their si"e or area in which they are5, in turn, to
be "re"ared for change and to be o"en to ne#) If you "ant to flourish in a flatten "orld,
you&d better understand that anythin! that can be done "ill be done / and much faster
than you thin(+ -he only ,uestion is "hether you "ill do somethin! or you "ill .ust be the
ob.ect of this somethin!+ 0ou "ill be the one "ho "ill drive the innovation or one of your
competitors "ill use it as a vehicle to pass over you "ith+ #%riedman, Thomas 0. ,1223-$
!he .ey to success #ithin the "rocess of %flattening the #orld& is to understand the s"eed at
#hich things come to ha""en -ue to the ra"id de*elo"ment globally, s"eed is the main
distincti*e element) the s"eed #ith #hich an indi*idual can obtain access to a certain *ital
information for him, the s"eed #ith #hich a ne# "roduct can be launched and "romoted in a
mar.et, the s"eed #ith #hich an inno*ation can be born #ithin the research8de*elo"ment
de"artment, the s"eed #ith #hich an indi*idual may face com"etition, the s"eed #ith #hich
humanity can face no*elty and can absorb them to be able to generate "rogress and
di*ersity
!he com"anies are those #hich #ill face, in turn, the ne# inno*ati*e elements im"osed by
globalization and #ill ha*e to find a ne# "ace of de*elo"ment much more (uic.ly, to
maintain on the mar.et !he idea is that, for & c#.$&n, to be c#.$etitie, it must meet a
series of rules and strategies, being able to "rocess the no*elty in a fast "ace and to learn at
the same time from the neighbouring com"anies as #ell
3e shall em"hasize %#.e #' t(e "u/e% &n! %t"&te)ie% #' %ucce%%'u/ c#.$&nie% #%riedman,
Thomas 0. ,1223-$)
Ru/e n#. 37 1hen the "orld !oes flat / and you are feelin! flattened / reach for a
shovel and di! inside yourself+ 2on3t try to build "alls+ !he first rule is that no
com"any should o""ose the changes arising from the %flattening the world) !he
success of a com"any is gi*en by the e+tent in #hich it #ill "ercei*e and #ill ra"idly
absorb the no*elty, #ithout o""osing %!o be against the stream& #ould be the
largest and most serious mista.e that a com"any could ma.e in the "rocess of
globalization
Ru/e n#. 67 4nd the small shall act bi!+ 6n an era of globalization, the change #ill
affect both small and large com"anies and the .ey to success of the small com"anies
#ould be to learn to "ercei*e the things in the manner in #hich the large com"anies
do, in order to learn from those that are better than them and to be able to de*elo"
their business in time 0ere is #hy) 8ne way small companies flourish in the flat
world is by learning to act really big. /nd the *ey to being small and acting big is
being quic* to ta*e ad$antage of all the new tools for collaboration to reach farther,
faster, wider and deeper.) S"eed is *ital to the success of a com"any, regardless of
its size
Ru/e n#. 87 4nd the bi! shall act small+ Meta"horically s"ea.ing, com"anies #ill
learn in the era of globalization to act small), in other #ords to "ay attention to the
smallest detail, #hile their customers #ill learn to act big), meaning to ha*e
increasingly bigger "retensions and e+"ectations !his can be e+"lained best as
follo#s) 8ne way that big companies learn to flourish in the flat world is by
learning how to act really small by enabling their customers to act really big.)
%9erception& is the .ey to success in an era of globalization) if a com"any is
"ercei*ed by its customers as being successful, #ill ha*e a tremendous ad*antage
and #ill increase its "rofits further, if, ho#e*er, o""osed to the abo*e conce"t, a
com"any is "ercei*ed as being mediocre, #ill be lost and, in time, due to decreasing
"rofits, #ill ha*e to lea*e the mar.et or to reada"t its field of acti*ity
Ru/e n#. 97 -he best companies are the best collaborators+ -uring the era of
globalization, com"etition becomes so great that there is the idea according to #hich
the solution is to use collaborators Collaboration may be #ithin the com"any,
through the relations bet#een indi*iduals and their moti*ation, or by #or.ing #ith
business "artners outside the com"any) %#n the flat world, more and more business
will be done through collaborations within and between companies, for a $ery simple
reason: The ne+t layers of $alue creation 4 whether in technology, mar*eting,
biomedicine, or manufacturing 4 are becoming so comple+ that no single firm or
department is going to be able to master them alone.& -ue to the ra"id "ace of
de*elo"ment, no com"any #ill be able to maintain the same "arameters and res"ond
"rom"tly to consumer needs, #ithout benefiting of hel" from com"etitors Aid may
come, for e+am"le by increasing the collaboration bet#een com"anies, #hich #ill
determine com"anies to maintain on the mar.et instead of them to disa""ear
Ru/e n#. :7 In a flat "orld, the best companies stay healthy by !ettin! re!ular
chest */rays and then sellin! the results to their clients+ Rule no 9 contains, in
turn, a series of figurati*e elements !he idea #ould be that any successful com"any
should self e*aluate only as often as "ossible and to re"ort #ithin the mar.et
com"etition, first to itself and then to other com"anies !he ne# era of globalization
sustains the idea according to #hich the com"etition must be initiated and ta.en, first
of all, #ith yourself, and then, #ith others
Ru/e n#. ;7 -he best companies outsource to "in, not to shrin(+ !he
globalization of the business #orld brought along the outsourcing "rocess More and
more com"anies are forced to resort to this "rocess) They outsource to inno$ate
faster and more cheaply in order to grow larger, fain mar*et share and hire more
and different specialists 4 not to sa$e money by firing more people.) :utsourcing is
aimed at economic gro#th and holding a mar.et share as more ad*antageous
0o#e*er, this also re(uires access to a greater number of s"ecialists to "ro*ide a
com"any ne# ideas and to enable the creation of ne# inno*ations 2rom here, the
conce"t) 1hen there are thin!s for sale, you tend to buy more+ A techni(ue of the
great "roducers is to gi*e their customers the o""ortunity to ha*e access to "roducts
they ne*er thought they #ould need 6t is one of the most "o#erful strategy
techni(ues based on the conce"t that a com"any must "ro*ide its customers, to be
truly inno*ati*e, e*en "roducts #hose necessity #as not e*en felt at that time by
consumers
Ru/e n#. <7 5utsourcin! #+++$ is also for idealists+ %!he idealists& are those that
still dream that a com"any may be on the mar.et, e*en in the conditions in #hich it
refuses e+ternal su""ort from the collaborators, from neighboring com"anies, etc
!heir *ie# must be changed radically, and the "ro"osed solution is that of
outsourcing
CONCLUSIONS
3ithin our "a"er titled =T(e i.$&ct #' )/#*&/i0&ti#n #n in!ii!u&/%, c#.$&nie% &n! #n
*u%ine%% in'#".&ti#n %,%te.% $e"%$ectie% #' t(e ec#n#.ic c"i%i%> #e ha*e a""roached
the "roblems of today1s 'e# Economy as a result of the global economic crisis, ta.ing into
account the im"act of the "henomenon of globalization, a "henomenon #hich has .no#n
until no#, an un"recedented de*elo"ment 3hat is of note in our analysis, is that
globalization as a com"le+ "henomenon of the 'e# Economy, goes beyond the until
recently e+isting borders, assuming today1s globalization of indi*iduals 4primarily5, of
com"anies, of information systems and basic areas of society such as economic, financial 8
accounting, financial8economic analysis , statistics, management, mar.eting, "olitics and
human resources
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