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Slide 2: e World is Flat e globalized world in the twenty-first century Thomas L. Friedman summarized by Andi S. Boediman Strategic Innovation Consultant andisboediman@gmail.com www.ideonomics.com

Slide 3: Globalization

Slide 4: 1492-1800 Globalization 1.0 Shrank world from a size Large to Medium Countries globalizing

Slide 5: 1800-2000 Globalization 2.0 Shrank world from a size Medium to Small Companies globalizing

Slide 6: 2000+ Globalization 3.0 Shrank world from a size Small to Tiny Individuals collaborating & competing globally

Slide 7: Flattener

Slide 8: 10 Flattening Factors • Berlin Wall Coming Down • Netscape IPO • Work Flow So ware • Uploading • Outsourcing

Slide 9: 10 Flattening Factors • Offshoring • Supply-chaining • Insourcing • In-forming • e Steroids

Slide 10: 11/9/89 • Berlin Wall comes down • Tipping point for free market societies • Moved away from central planning • Empowered individuals • “Evil Empire” defeated by: – Reagan? – CNN? – Gates, Jobs, McNealy,…? – Bin-Laden?

Slide 11: 8/9/95 • Netscape IPO • 4 years a er Berners-Lee invented the Web • Universal usability, accessibility and interoperability of the Web • Win 95 shipped 15 days later • Number of Internet users doubling every 53 days

Slide 12: 8/9/95 • Spawned Internet bubble • Overabundance of fiber optic capacity • Communication costs plummeted • “Second buyer” (India) made out like a bandit

Slide 13: Workflow Software Let’s Do Lunch: Have Your Application Talk to My Application • Collaboration • Rapid development • Rapid deployment • Cheapest sources for coding, testing, implementation • Everyone can create and maintain digital content

Slide 14: Uploading Self-Organizing Collaborative Communities • Open source – For production – Apache blessed by IBM – Geeks making business decisions • Blogs • Wikipedia • Not controlled by corporations or Government

Slide 15: Outsourcing • Y2K and India • Talented competent programmers and engineers who will work for less • Economic imperative • Outsource everything you possibly can

Slide 16: Offshoring • Rather than outsource jobs, • Send the whole factory to India or China or Indonesia or …… • Not just manufacturing – Management – Medical – Consulting – Accounting

Slide 17: Walmart

Slide 18: Supply-chaining

Slide 19: Supply-chaining • Wal-Mart is the 800-pound gorilla • JIT to the nth degree • Totally integrated • IT infrastructure as a key competitive advantage • Suppliers as partners • RFID

Slide 20: Insourcing

Slide 21: Point 1 - UPS is not only shipping parcels, but also providing smart business solutions Example #1: UPS fixes laptops for companies to speed up service. 3 day turn-around, instead of week (s) for product repairs

Slide 22: Example #2: Take orders from Nike.com, fill the order from a warehouse staffed and operated by UPS and ship with UPS.

Slide 23: Insourcing • UPS • Intimate collaboration • 3rd-party managed logistics • “ ey” act as part of “Your” company – Fixing Toshiba laptops – Managing delivery of Papa John’s Pizza supplies – Packaging Segrest Farms live tropical fish for delivery – Picking, inspecting, packing and delivering Nike shoes – Same for Jockey shorts – Working with Plow and Hearth furniture suppliers to improve packaging and reduce breakage

Slide 24: In-forming • Building and deploying your personal information supply-chain • Google – now 1 billion searches per day • Soon “everything” will be searchable

Slide 25: The Steroids • “Making collaboration digital, mobile, personal, virtual” – Carly Fiorina – Computing capabilities - including speed, I/O rate and storage capacity – IM and file sharing – BitTorrent, Kazaa – VoIP – Skype – Video Conferencing – HP & SKG – Advanced graphics – from video games – Wireless – communicate with anyone from anywhere

Slide 26: Triple Convergence

Slide 27: It is this triple convergence - of new players, on a new playing field, developing new processes and habits for horisontal collaboration - that I believe is the most important force shaping global economics and politics in the early twenty-first century.

Slide 28: The New Middlers

Slide 29: The New Middlers • e Great Collaborators and Orchestrators • e Great Synthesizer • e Great Explainers • e Great Leveragers • e Great Adapters • e Green People • e Passionate Personalizers • e Great Localizers

Slide 30: Education

Slide 31: The most important ability is to learn how to learn

Slide 32: CQ + PQ >IQ CQ: curiosity quotient PQ: passion quotient IQ: intelligent quotient

Slide 33: Now that foreigners can do left- brain work cheaper, we in the US must do right-brain work better

Slide 34: e coming tsunami in public education

Slide 35: Challenges • Numbers gap • Ambition gap • Education gap (top & bottom) • Funding gap • Infrastructure gap • In the Age of Flatism, these gaps are what most threaten our standard of living.

Slide 36: Rules

Slide 37: Rule # 1 “When the world goes flat – and you are feeling flattened – reach for a shovel and dig inside yourself. Don’t try to build walls.”

Slide 38: Rule #2 “And the small shall act big . . . One way small companies flourish in the flat world is by learning to act really big. And the key to being small and acting big is being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider, and deeper.”

Slide 39: Rule #3 “And the big shall act small . . . One way that big companies learn to flourish in the flat world is by learning how to act really small by enabling their customers to act really big.”

Slide 40: Rule #4 “ e best companies are the best collaborators. In the flat world, more and more business will be done through collaborations within and between companies for a very simple reason? e next layers of value creation are becoming so complex that no single firm or department is going to be able to master them alone.”

Slide 41: Rule #5 “In a flat world, the best companies stay healthy by getting regular chest X-rays and then selling the results to their clients.”

Slide 42: Rule #6 “ e best companies outsource to win, not to shrink. ey outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists – not to save money by firing more people.”

Slide 43: notes You can use this summary for non commercial purposes and cite the credit. If you can improve this presentation with better slide/ image/illustration, please send it to my email and I will put them as part of future update. summarized by Andi S. Boediman Strategic Innovation Consultant andisboediman@gmail.com www.ideonomics.com