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Pure weasel criticism, no citations. |
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The multinational model of the 20th century—in which companies created small versions of themselves in each country—was a response to the trade barriers that arose after the World Wars. For IBM (Palmisano's employer), this was a successful model because it enabled the company to grow in those markets, understand local customer requirements and cultivate local talent. But it also created redundancy because each country had its own back-office functions (e.g. supply, procurement, finance and human resources).
Now the globally integrated enterprise can locate functions anywhere in the world, based on the right cost, skills and environment, argues Palmisano. (IBM now has one supply chain, for example.) This new organisational form has emerged because everything is connected, and work can move to the place where it is done
Palmisano mentions the ''Law of Global Integration'', driven by three forces—economics, expertise and openness—without explicitly stating what it is or how it can be verified.
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