“We know that countries with strong connectivity see societal improvements
in business, education, health care and culture,” says Tim Danks, vice-
president of risk management and partner relations at Huawei Technologies
USA. Stanford’s Professor Lee points to countries such as China, India
and Vietnam that have made the leap from the supply/production side of
the equation to being active partners in the entire innovation life cycle.
Businesses in these countries are developing new materials, components
and process designs.To support expanded digital inclusion, Huawei often focuses on rural areas of
the globe, including parts of America like Pennsylvania and Oregon, where
it helps bring connectivity. “Huawei’s work in its rst 15 years of operation
was primarily in rural China, where in 1987 there were only two telephone
lines per 1,000 people,” says Danks. Huawei’s efforts resulted in major
connectivity improvements over the following decades. Belize is a more
recent ICT success story: four years ago, the incumbent telecoms operator
oversaw an inef cient mish-mash of technologies spanning both landline
and wireless services. Huawei overhauled the disjointed infrastructure, and
today, the country’s networks rank among the top in the Caribbean.While progress is being made, obstacles remain: high costs, incompatible
technical standards and lack of market incentive to bring technologies to
rural areas prevent providers from having suf cient motivation to help build
the much-needed infrastructure. Yet for many, the potential for innovation
and societal bene ts makes any hurdles worth the struggle.Such is the case with Stahlstown, a rural community in Pennsylvania where
Laurel Highland Total Communications (LHTC) partnered with Huawei to
bring connectivity to customers. “We have a variety of people,” says Jim Kail,
President and CEO of LHTC Broadband. “We have farmers and there are some
small mom and pop type businesses. Most of our customers are residential.
Nowadays, broadband is critical, for school work or working from home. You
look at everything from a business standpoint. What you want is somebody
who is going to hear you and take action. They’re going to address the issues
that you have.” That’s what we have with the Huawei solution, he says.Similarly, Lee sees the importance of expanding these networks on a
worldwide scale. “I am a rm believer that we must work
on improving and co-ordinating the ows of the global
supply chain,” says Lee. “Connectivity is crucial,
allowing partners to have more real-time
information that enables them to make better
decisions and co-ordinate their actions.”Around the world, in places like China, Ethiopia and remote parts of America,
advanced networking technologies such as broadband are forging a sort
of global “neural network” for commerce. In the process, they are putting
previously isolated areas on the global supply chain map.The bene ts of expanded inclusion are manifesting in many ways. By
connecting once-obscure corners of the globe, businesses can reduce costs,
expand R&D and access untapped depths of the talent pool. This creates
greater opportunity for innovation rooted in inclusive global perspectives
and competition. And it is not just large corporations that bene t from
connected globalisation; today’s small businesses can easily become “micro-
multinationals” and experiment with different tech-infused business models.This enhanced connectivity is proving valuable to once-forgotten locations,
but also to established players. “The key to an ef cient global supply chain
is information ow,” explains Hau Lee, a professor of information and
technology at Stanford Graduate School of Business. “Access to information
has been crucial for ef ciency, and at the same time, has brought forth
positive impacts.”The numbers showcase just how impactful information and communications
technology (ICT) can be. Five years ago, the free ow of data contributed
$2.8trn to the global economy. The Global Economy and Development
programme at the Brookings Institution projects that this gure will reach
$11trn by 2025. This cash infusion reaches consumers in the form of jobs, as
well as infrastructure improvements within factories, hospitals and schools.
Ef cient global supply chains also promote wider access to goods previously
available only to the wealthy.Not all the effects of a tech-driven global economy are anticipated or
welcome. For example, various industries’, companies’ or countries’ differing
paces of technology adoption may lead to instances of multiple or disparate
supply chains, which could result in economic bottlenecks. And there are
some who balk at the idea of introducing technology to isolated communities
for fear of diluting local cultures. Still, many economists—and the
World Economic Forum—agree that connectivity stands to
improve rural citizens’ quality of life.THE SOCIETAL
BENEFITS OF
GLOBAL SUPPLY
CHAINS
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“Enhanced connectivity is proving valuable to once-
forgotten locations, but also to established players.”
“Ef cient global supply chains also promote wider
access to goods previously available only to
the wealthy.”