Tag: Technology

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Latest read: The Elephant and the Dragon

Tectonic Economics?  Robyn Meredith has written a must read book, The Elephant and the Dragon: The Rise of India and China and What It Means for All of Us. Take a look at Wall Street lately? Then think about oil, the environment and the post cold war shift in the global economy.  Its time for business and education to take note…and fast.
Tectonic Economics is about the impact of the two fastest growing economies who have embraced capitalism AND globalization at the same time.

And by the way America and Europe have been left out of this economic growth spurt since 9/11.

Actually at the rate China and India are rising you just need to look at both countries since 9/11 to see their immediate impact.

Meredith has done a great job of helping understand these two transformations.  There is no more waiting for a new generation they have arrived and instituted global change in less than a decade.  For most Americans they still do not see changes occurring at this speed affecting the global economy.

Meredith makes the hard salary figures easy to understand why companies around the globe have jumped to China and India.  But this will not be easy for IT professionals in America.  India’s InfoSys hires computer science graduates (some also have an MBA) to be a VoIP specialist in Bangalore with an annual salary of $5,000.  Yes, five grand a year for a VoIP specialist.  This similar type job in California via InfoSys pays $120,000.

This should be really easy to understand why hundreds of tech companies including Cisco, Apple, IBM and HP have moved operations (some larger than others) to Bangalore.  Remember you have to please your stockholders.  The changes already underway (and under the radar) will continue to add stress to America’s middle class.

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Latest read: Bangalore Tiger

Y2K.  Remember the rush to fix computer software that was programmed to stop working on January 1 2000?  Many Americans probably did not realize their software fix was coming from Indian companies including WiPro located in Bangalore India.  Today American business is filled with examples of India’s outsourcing success.

Bangalore TigerBangalore Tiger is a must read for everyone working in Information Technology. Organizational leaders will learn how one of the larger tech companies in India is changing the rules of business competition in today’s globalized marketplace. If you read

The World Is Flat then you already know about all the success coming from India’s technology outsourcing giants in Bangalore.

If you want to learn how a company located in the heart of India’s globalization capital can thrive this book is really for you. The early chapters focus on how Wipro is taking on the West (and winning) as a new breed of tech company.

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Education

China’s “Dragon” CPU to challenge Intel

From MIT’s Technology Review comes a special report on China’s production of a new, third generation CPU family that could ultimately challenge Intel within a decade.  Since the Chinese do not have the ability to manufacture CPU chips themselves, and demonstrating a perfect example of Globalization, a French CPU company based in China is manufacturing the chip for China’s state-controlled technology program.

Their third generation chip Loongson (Dragon in English) includes for the first time full compatibility with Intel’s x86 architecture. Their two previous chips, the Godson-1 and Godson-2 were not Intel compatible.  Their goal is not to export this chip but to deploy computers within their country.  China will be arming their education, society and military (not in that order) with more and more cutting edge technology without worry about any potential conflicts of interest.

China’s well documented reputation of outright piracy of key industry technologies include stealing from America’s top auto and aircraft manufacturing industries. It should come as no surprise the Chinese have moved into stealing developing CPU technology.

Remember China is the best “pirate nation” on the planet, they will steal anything they can.  Its outright corporate espionage and will save the communist nation billions.

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Latest read: China Shakes the world

I found myself fascinated by China Shakes the World: A Titan’s Rise and Troubled Future – and the Challenge for America by James Kynge. Yet most of the time I was also infuriated over how America has fallen asleep regarding China’s threat to our economy.  Kynge has written an excellent book that should be read by every school teacher, mayor and businessman.

It was my goal to finish this book before the end of the summer Olympic games.  But I needed time to finish Randy Pauch‘s one of a king book The Last Lecture (review is here) so this week was plenty of time to complete this book.

Infuriating?  Yes Kynge shares a startling story about how the Chinese almost secured the assets to the American company that produces stealth coating to the B-2 bomber.  Yes THAT Stealth Bomber.  Now are you interested in what Hynge has to say?  It was Financial Time’s Book of the Year.

So how does America’s secret stealth technology (a skin made with highly specialized thermoplastics and composites which are radar-absorbent) come within arms reach of the communist Chinese?  Did they try to steal it?   No, they almost purchased the technology outright.

What about pirating and corporate espionage? China plays this game very well too.  And based upon the communist’s approach to banking, well lets just say their idea of business as usual includes very loose, corrupt accounting…kinda reminds me of Enron.

If you are frustrated with the RIAA’s music lawsuits against college kids encourage the RIAA to go to source in this matter: China.  The Chinese have truly become the world’s leading Pirate Nation. A word of note to the music and movie industry: Do you really believe your lawsuits against college kids is making a dent in your attempt to stop pirating?  Go to China.

The Chinese impact
It’s not on the gold medal stand in women’s gymnastics.  As the saying goes … if your not cheating, your not winning.  Regardless, it was the American gymnast Sacromone who fell of the beam and floor exercise that cost the team gold medal.  I know the Olympics bring out national pride. We all feel good about cheering for our athletes during the 16 days of competition.  But what about the other 349 days of 2008?

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Latest read: China, Inc.

Ted Fishman’s China, Inc.: How the Rise of the Next Superpower Challenges America and the World is a much needed read in the new era of globalization. In today’s world it seems everything is about China.
There are so many emerging topics of interest Americans need to understand about this giant economy and manufacturing base.

So powerful in fact that it’s now on my recommended list for business and education. Actually I’ll move it next to Tom Friedman’s bestseller The World Is Flat and John Kao’s Innovation Nation as noteworthy companions.

So what? The next time your holding an empty coffee cup or your child’s toys, flip them over and discover the country of origin. Yes, China is changing the rules of business and society.

If you do not believe this impacts America’s school children — well … your in trouble. Consider China graduates more honors students than the total number of students in American schools. Think about that statistic and what it means for your children or your grand-children’s future job market in the coming decades. I’m even concerned about my own son’s future career choices, yet confident it will require him to speak a non-roman language.

Rapid changes in the business landscape via globalization means the global market will continue to get more competitive.  Americans will continue to be challenged to find secure, solid employment.  It will be just as challenging to find a company who does not outsource elements to China’s fast growing economic empire in order to stay competitive. Fishman delivers this message loud and clear.

china cement productionTake into consideration the production of cement. Do you see construction sites on your daily commute? Well think about the construction in China based upon this cement chart listed in Gigatons. Look how little America consumes next to China. What does that say about their growth?

Fishman also shares how the Chinese copy products (and processes) of successful companies around the world. In many cases buying a product and taking it back to China where its taken apart, examined, copied and produced at a fraction of the original vendor’s costs…regardless of copyright.

The Wisconsin connection:
Some of the more compelling chapters in Fishman’s books even cover the impact of Chinese manufacturing impacting local SE Wisconsin businesses.  Regardless of your geographic location in America, the story is the same.

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