EMERGING TECHNOLOGIES IN GLOBAL BUSINESS ENVIRONMENT

Course Objectives
a. To give students an exposure to the VUCA(volatility, uncertainty, complexity,
ambiguity.) environment of International Business
b. To provide in-depth understanding of digital transformation on business processes
c. To understand the impact of Industry 4.0 has on the context of International Business
d. To understand in detail the shifts taking place in the Political, Economic, Social and
Technological environments that are shaping business realities
e. To understand the changing role of International Organizations and changing
dynamics in Geo Politics.
Introduction to Industry 4.0

· Definition: Industry 4.0 refers to the fourth industrial

revolution, integrating advanced digital technologies into
manufacturing processes.
· Context: Industry 4.0 combines cyber-physical
systems, IoT (Internet of Things), AI (Artificial
Intelligence), big data, and automation to revolutionize
industries.
History of Industrial Revolutions

First Revolution: Mechanization via steam and

water power.
Second Revolution: Mass production using
electricity and assembly lines.
Third Revolution: Automation with computers
and electronics.
Fourth Revolution: Cyber-physical systems,
IoT, AI, big data.
Key Technologies in Industry 4.0

· IoT (Internet of Things): Connecting machines, devices, and

sensors for real-time data exchange.
· Big Data and Analytics: Analyzing vast amounts of data for
predictive maintenance and optimization.
· Artificial Intelligence (AI): Machine learning algorithms and
automation to improve decision-making and production.
· 3D Printing: Additive manufacturing for custom parts and
reduced material waste.
· Robotics: Autonomous robots for material handling, assembly,
and precision tasks.
Nature of Industry 4.0

· Smart Manufacturing: Self-optimizing systems, predictive

maintenance, and adaptive production processes.
· Customization: High degree of product personalization using
advanced technologies.
· Real-Time Connectivity: Continuous data flow for improved
efficiency and decision-making.
· Decentralized Control: Distributed networks and cloud
computing enable localized decision-making.
• Increased Automation: Reducing human intervention while
maintaining flexibility and adaptability in production.
Benefits of Industry 4.0

· Improved Efficiency: Automation and data analytics streamline

production processes.
· Cost Savings: Reduced operational costs through predictive
maintenance and energy optimization.
· Customization & Flexibility: Quick adaptation to market changes
and consumer demands.
· Enhanced Safety: Reduced risk of human error with robotic
systems and monitoring technologies.
· Sustainability: Reduced waste and energy consumption through
optimization and smart manufacturing.
Challenges of Industry 4.0

· High Initial Investment: Implementing advanced

technologies requires significant capital.
· Data Security: Increased data exchange raises cybersecurity
concerns.
· Skill Gap: Need for skilled workers proficient in new
technologies.
· Integration Complexity: Integrating legacy systems with
new technologies can be challenging.
Latest Trends in Industry 4.0
1. AI and Machine Learning: Continual advancements in AI
for predictive analytics, autonomous decision-making, and
quality control.
2. 5G Networks: Enabling faster and more reliable data
transfer for real-time communication between devices.
3. Edge Computing: Processing data closer to the source (i.e.,
factory floor) for faster decision-making.
4. Digital Twins: Virtual replicas of physical systems for
simulation and optimization.
5. Blockchain: Enhanced supply chain transparency and
security through decentralized records.
Industry 4.0 Applications
· Smart Factories: Fully connected and automated production lines.
· Predictive Maintenance: Using IoT sensors and AI to predict
machine failures and schedule maintenance.
• Supply Chain Optimization: Real-time data analysis for better
inventory management and logistics.
• Customer-Centric Production: Manufacturing tailored
products based on customer preferences.
Case Studies
· Case Study 1: Siemens’ Smart Factory: Use of digital twins and
advanced robotics for flexible production.
· Case Study 2: General Electric’s Predictive Maintenance:
Leveraging IoT and AI to reduce downtime and improve
efficiency.
· Case Study 3: Tesla’s Automation: Integration of AI, robotics,
and data analytics to streamline vehicle production.
Future of Industry 4.0

· Ongoing Evolution: Industry 4.0 is constantly evolving with new

technologies, pushing the boundaries of automation and data
analytics.
· Integration with Industry 5.0: A future trend where human
workers and AI collaborate in a more personalized and sustainable
manufacturing environment.
· Global Adoption: More industries worldwide will adopt Industry
4.0 technologies to remain competitive.
Conclusion
· Summary: Industry 4.0 is transforming manufacturing by
integrating advanced technologies for smarter, more efficient,
and personalized production processes.
· Looking Ahead: As new trends like AI, 5G, and digital
twins evolve, Industry 4.0 will continue to shape the future of
industries globally.
Introduction to the Changing Landscape of
International Business

o The global business landscape is continuously evolving due to

multiple factors.
o These changes impact business management strategies,
international trade, and globalization.
o Key areas: political, economic, socio-cultural, technological
factors.
Political Factors Driving Change

o Government Policies: Trade regulations, tax laws, tariffs,

sanctions, and international relations.
o Geopolitical Instability: Conflict zones, political unrest affecting
global supply chains.
o Political Ideology: The rise of nationalism, populism, and its
impact on international business.
o Changing Global Governance: The role of international
organizations like the UN, WTO, and trade agreements.
Economic Factors Driving Change

o Global Economic Shifts: The rise of emerging markets, China,

India, and other regions.
o Economic Crises: The impact of the 2008 financial crisis,
Covid-19 pandemic, and other recessions.
o Global Supply Chains: Shifting patterns due to cost structures,
labor availability, and trade tariffs.
o Currency Fluctuations and Inflation: How they affect pricing,
competitiveness, and profitability.
Socio-Cultural Factors Driving Change

o Demographic Changes: Aging populations, migration trends,

and changing consumer preferences.
o Cultural Sensitivity: Impact of diverse cultural values, social
responsibility, and consumer behavior.
o Workplace Diversity: The shift towards inclusivity, gender
equality, and global talent sourcing.
o Social Media Influence: How digital platforms change
customer expectations and brand interactions.
Technological Factors Driving Change

o Digital Transformation: The integration of new technologies in

operations, marketing, and customer engagement.
o Automation and AI: Disruption in manufacturing, services, and
supply chains.
o Blockchain and Cryptocurrencies: Changing financial
transactions, trust models, and transparency.
o Cybersecurity: Growing importance in protecting businesses
and consumers in a connected world.
The Changing Nature of Globalization

o Shifting Trade Dynamics: The rise of protectionism and its

impact on free trade.
o Global vs. Local: How businesses are balancing global
expansion with local market adaptation.
o Global Supply Chain Reconfiguration: Nearshoring,
onshoring, and decoupling due to risks like pandemics and
tariffs.
o Global Workforce: Remote work, digital nomads, and the
end of traditional office spaces.
Natural Environment and Sustainability

o Climate Change: How changing weather patterns affect

global supply chains and industry standards.
o Sustainable Practices: The importance of reducing carbon
footprints, renewable energy, and eco-friendly products.
o Corporate Responsibility: The shift towards corporate social
responsibility (CSR) and green investments.
o Natural Resource Scarcity: How businesses are adapting to
resource limitations.
New Age Ethics in Business

o Corporate Ethics: Navigating transparency, fairness, and

social responsibility.
o Consumer Ethics: Conscious consumerism and demand for
ethical business practices.
o Corporate Governance: Role of ethical leadership and the
drive for long-term value over short-term profits.
o Ethical Marketing: Ensuring authenticity in brand messages
and avoiding manipulation.
Overview of Digital Transformation
o Digital Tools: The adoption of AI, cloud computing, IoT, big data,
and digital platforms in business operations.
o Customer Experience: Enhancing engagement through
personalized digital experiences.
o Business Models: The shift from traditional to digital-first
models, e-commerce, and service automation.
o Data-Driven Decision Making: Leveraging analytics and
business intelligence for strategic decision-making.
o Cybersecurity: Protecting digital assets in a global, connected
business environment.
Conclusion

o The alignment of political, economic, socio-cultural, and

technological factors is reshaping international business
management.
o Globalization is changing, with new challenges and
opportunities emerging, especially around regulation,
sustainability, and digital transformation.
o Businesses need to be agile, forward-thinking, and ethically
responsible to succeed in the evolving global market.