The World Is FlatA Brief History of the Twenty-First Century
A Book by Thomas L. FriedmanPresented by Carrie Gaxiola
What is a flat world?Global Community: A level playing field for all countries.
• 10 flatteners
• Knowledge & Brainpower: Source of wealth today
Quick History: The Three Eras of Globalization
Globalization 1.01492-1800 Open trade between Old World and New World
Globalization 2.01800-2000 Industrial Revolution, Emergence of Multinational Companies, etc. Few Setbacks: WWI, WWII, Depression
Globalization 3.02000- The Flat World Platform
Flattener #1Fall of the Berlin Wall 11/9/89
* This Tipped the Balance: Toward free-market orientated government
Flattener #2New Connectivity
• Commercial Web Browser: Ability to browse• Web, Telephone modem• HTML, URL•HTTP
Effect:
Brought the internet to the masses-Web debut in 1991, within the next five years, users on the internet went from 600,000 to 40 million, the number of users doubled every 53 days
New DemandsNew atmosphere with computers, software, telecommunications
Flattener #3Workflow Software
•Quiet Revolution
•Enabled business to be done quicker, better, virtually seamlessly [design, display, management, and collaboration]
• Standards [JPEG, XML]
•Even in practice [PayPal & eBay], ecommerce, payroll
Flattener #4Uploading
•Send Data
•Community Developed• Blogs, Wikis, Podcasts
•Anyone can have dominance• Producers and consumers
•Potential to be the most disruptive of all the flatteners
Flattener #5Outsourcing
• Started in late 80s with Texas Instruments, General Electric
•Fiber optics: Allowed connection between U.S. and India
•Y2K bug: Tedious work- India emerged as the solution with the techies
Relationship between U.S. and India is a flattening force"Fortune favors the
prepared mind."
--Louis Pasteur
Flattener #6Off-shoring
• Relocation of a company to foreign land•Significant event: China joined the WTO
China: A good example
•Factories moved to China- produced same product•Cheaper taxes, labor, energy, and health care costs
*Authors warns this may be a short strategy and businesses should take caution
Flattener #7Supply Chaining
•Living Organism: Like a River•Use of technology to streamline items, sales, distribution, shipping, etc.
Horizontal Collaboration
Flattener #8In-sourcing
One company performs duties for another company. This is a way to fill in the gaps within the horizontal global supply chain
Example:
UPS performs repairs for Toshiba
Flattener #9In-Forming
The ability to access vast amounts of information.
The enablers: And, OF COURSE…..
“If I can operate Google, I can find anything. Google is like God. God is wireless, God is everywhere, and God sees everything.
Any questions in the world, you ask Google.”-Alan Cohen, VP Airespace
Flattener #10Steroids
•File sharing, Napster, IM
•Phone calls over internet: Skype, Magicjack
•Videoconferencing
•Mobile wireless technologies• Cell phones w/internet access
Computational compatibility: input/output
The Triple Convergence Convergence I•Combination of all flatteners creates a new platform which allows:• Innovation, production, education, research
Convergence II•After all flatteners adapted by business- form a more efficient base •Shift from vertical organization to horizontal organization
Convergence III•DemographicCountries entering the playing field that were previously locked out
China, India, Russia, Eastern Europe, Latin America, and Central Asia
•Entering as very eager & very competitive
Tip of the iceberg….
In the future, we will see a major shift in the social, cultural, political, and economic models and values
“The Untouchables”
“Natural talent trumps geography…”-Bill Gates
Synthesizers, Explainers, Leveragers, Versatilists
The SpecialistsBrain surgeonsMadonna
Local AnchorsDentistsWaitressPlumbers
Middle JobsHorizontal Collaborators: management, sales, marketing
*Those who feel comfortable working for a global company* The “people person” is in
demand* Passion for what you do* “The personal touch”
Competition… Preparation
The Fear… The Crisis…
We need to emphasize:•Self Learning•Right brain skills [music]•Teach curiousity and passion- can be more important than skill
Elements are quietly joining to create a storm: political, demographic, and social
•Disinterest in math and science•Lack of funding for education•U.S. is falling behind
We need to change….
United States China & India
Imagine…..
PEACE
Thoughts…….When done right, globalization can lift large numbers of people out of poverty.
The best companies will collaborate and use outsourcing not to shrink their workforce, but for growth, and allow the company to become more
efficient and provide a better service.
Outsourcing done right: offer workers a good wage and opportunity that would not otherwise be available in their country.
In the middle of difficulty lies opportunity.
Development is a voluntary process.
Failed states are breeding grounds for opposition to progression.
Works CitedFriedman, Thomas. The World is Flat: A Brief History of the Twenty-first Century. Picador/Varrar, 2005.
Images:http://thoughtsonelementaryscience.blogspot.com/2008/05/world-is-flat.htmlindianglory.wordpress.com [AOL office Bangalore] thehindimusic.com [Microsoft office]jdmc.smugmug.com [Google office]www.biocomp.net [Lucent phone]www.currierandives.info [Columbus landing]upload.wikimedia.org [Granada]gdl.cdlr.strath.ac.uk [Industrial revolution] www.shropshire.gov.uk [library computer]europa.eu [Berlin Wall]www.freedomagenda.com [Fall of Berlin Wall]www.opendemocracy.net [Fall Berlin Wall]http://en.wikipedia.org/wiki/Image:A_company%27s_supply_chain_(en).png Supply chainingwsvanderlugt.wordpress.com [iceberg]www.landryandassociates.com [project development]mynameisyumikondo.blogspot.com [world peace]www.getusb.info [magicjack]googleinternetmoney.net [woman computer]www.blogohblog.com, prestige.wordpress.com [bloggers]