Globalization and Internet for Cost

Control
Presented by:
Group 6
Ankit Sundriyal/27NMP04
Ankur Samaiyar/27NMP05
Amit Kumar/27NMP17
Surendra Kushwaha/27NMP29
Prithwish Sinha/14EM05
Aravind Joni/27NMP08

The Information Technology (IT)
Revolution

The widespread access to, sharing of, and use of
relevant information (knowledge) in economic
activities through technology.

It is greatly facilitated by the Internet

Cost control due to Internet
The communication, transmission and distribution of
information are no longer limited by space and time.

Information is accessed and transmitted in real time
and at low marginal cost.

Information flow can be targeted to specific
individuals and audiences.

Cost control due to Internet
Reducing Time and Location Constraint

Real time information transmission and retrieval
What used to take days and weeks of research is
now available with a few clicks of the mouse
Real time monitoring and communication
Capacity for real time response
Proximity and geographical location are no longer as
important
Globalization
Globalization is the process of international
integration arising from the interchange of world
views, products, ideas and other aspects of culture.

Four basic aspects of globalization:
(1) Trade and transactions,
(2) Capital and investment movements,
(3) Migration and movement of people,
(4) Dissemination of Knowledge
Cost control due to Globalization
Free flow of trade and transactions making industries more competitive
and thus cost effective.
Easy transfer of knowledge and technology making possible to achieve
cost benefits.
Easy outsourcing and sub contracting leading to cost saving.
globalization provides:
1. New processes like outsourcing,
2. New resources like low-cost labour and raw materials,
3. New technologies to reduce production cost
4. New facilities to reduce manufacturing and logistics costs
5. New management skills such as tax aligned supply chain management
to reduce total landed cost.
Easy access to capital investment increasing overall profitability.

THANK YOU