Globally integrated enterprise: Difference between revisions

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==The Argument==
Palmisano argues that in the [[international]] model of the 19th century, most operations were centred in their home country, with only elements of sales and distribution happening overseas.
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 [[wikt:redundancy|redundancy]] or [[duplication]] becauseas each country had its own [[Back office|back-office]] functions, such as— [[Supply chain|supply]], [[Procurement|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. For example, IBM now has one supply chain; and this new organisational structure has [[emergence|emerged]] because [[Complex adaptive system#General properties|everything is connected]], and work can move to the place where it is performed cheapest.