Business in the New Millennium:
Are you Prepared?

As we start the 21st century, much has been written about the Year 2000 computer bug. Governments and businesses continue to allocate significant resources to address this problem, and rightly so.

With the advent of the new millennium, it is my belief that the same energy, resources and press we have devoted to this particular problem should be focused not just on the technical challenges we face, but on the skills our workforce will need to succeed in an increasingly complex and ever-changing world. Just as we have prepared and are preparing for the Y2K computer challenge, we must prepare ourselves for working and thriving in a world that will be vastly different from the one we know today.

Technology has introduced a significant amount of change in society this century - the advent of radio, the automobile, film, television, the computer and space travel. That trend will accelerate in the 21st century. Today's challenge is to stay abreast of change and anticipate the next revolution in business. I believe this next revolution is electronic commerce.

Less than a decade after it opened for commercial activity in 1991, the Net has already made a dramatic impact on our daily lives. Commerce among businesses on the Internet, barely a trickle three years ago, is expected to exceed $300 billion by 2002, equal to about 2.3 percent of gross domestic product. Experts predict that net commerce could jump to as much as 6 percent of GDP by 2005. Many of us are already using the Internet for shopping and to obtain information.

But much of this anticipated revenue will come not from consumer purchasing, but from business-to-business transactions. General Electric, for example, plans to have all of its business units purchasing materials on the Internet, saving the company $500 million to $700 million over three years. Cisco Systems, a maker of routers for networks, has become a $4.2 billion company since 1996, based solely on business-to-business transactions. And Dell Computers conducts $6-7 million per day in these transactions alone.

Given the enormous potential of E-commerce, the future of business lies in the hands of those companies who understand its nature and potential, and know how to correctly apply it to meet company goals and objectives. Companies who have experienced success applying E-commerce understand that success with this new technology requires a revolution in the infrastructure of a company. I am happy to say that the United States and my home state of Georgia are leading the charge in this area.

In addition to changing the way we do business, technology is changing with whom we do business. Companies now conduct global transactions through extranets and intranets with suppliers and vendors, with the click of a button. Technology and the proliferation of democracies and free market systems is forging a new path for companies to compete around the world.

In Georgia, for example, cumulative foreign investment as of 1997 was $22.5 billion. In addition, there are approximately 1,600 foreign-owned facilities in the state. According to an inbound investment study conducted yearly by KPMG Peat Marwick, more than 350 companies from some 25 countries have located their US headquarters in Georgia. According to recent figures, this group of firms employed about 50,000 people in the state, and invested $704 million in new capital.

Likewise, the involvement by Georgia companies in international business has seen a dramatic rise in recent years. Exports from Georgia to the rest of the world have nearly doubled to more than 14 billion in a ten-year period from 1987 to 1997. This export business supports an estimated 277,000 to 292,000 jobs. What is happening in our state and many others is indicative of the rapidly changing playing field for companies. No longer are American companies operating in a vacuum. To compete in the 21st century, they must expand globally, and they are doing so in increasing numbers.

Furthermore, they are competing with an increasingly diverse workforce that utilizes the strengths of gender and people of various ethnic backgrounds. According to The International Association for Management Education, the percentage of female graduates at the bachelor's level for business and management students rose from 8.8 percent in 1968 to 48.6 percent in 1996. The percentage of women receiving master's degrees also rose from 3.4 percent to 37.6 percent for the same period. Business schools are seeing a steady increase in the enrollment of people of various ethnic backgrounds.

Consequently, many companies have begun 'diversity management' or 'diversity training' programs as a means of addressing this dramatic shift in the workforce. Tomorrow's workforce will see a myriad of races, creeds and cultures working together in teams.

What do all of these changes mean for students and employees? First, we must be prepared for continual change in technology and business models by being involved in lifelong learning. We can no longer obtain one degree and expect to be fully equipped with the knowledge and skills necessary to compete successfully in the next century. The learning process must be an ongoing commitment by companies and their employees.

Education, therefore, will become an even higher priority in the next century. In addition to traditional degree programs, education will be provided through executive education and continuing education programs, both by higher education and by companies. Corporations and higher education will partner together to ensure that students are graduating with the knowledge base and thinking skills necessary to succeed in the real world.

The approach adopted by educators and companies will be multi-disciplined, integrating areas such as information technology, management, marketing and accounting that affect the whole operation of a business. The approach will also be increasingly international, equipping students and employees with knowledge of other markets, cultures and governments.

What can you, as a prospective student and employee, do to prepare for this next wave of change? Arm yourself with skills to become effective in a global, rapidly changing world. The best way to do this is to obtain an education that offers a practical, real-world approach to solving current business problems, provides you with international business skills, and the learning and creative skills necessary to approach any problem you may confront. Above all, commit yourself to always learn, to always challenge and to always achieve new goals as your course changes along the way. The 21st century will be an exciting time for business if we are on the forefront of these revolutions.

Author
Dean Sidney E. Harris
J. Mack Robinson College of Business
Georgia State University