e World is Flat
   e globalized world in the twenty-first century

Thomas L. Friedman

summarized by
Andi S. Boediman
Strat...
Globalization
1492-1800 Globalization 1.0
Shrank world from a size Large to Medium
Countries globalizing
1800-2000 Globalization 2.0
Shrank world from a size Medium to Small
Companies globalizing
2000+ Globalization 3.0
Shrank world from a size Small to Tiny
Individuals collaborating &
competing globally
Flattener
10 Flattening Factors
•   Berlin Wall Coming Down
•   Netscape IPO
•   Work Flow So ware
•   Uploading
•   Outsourcing
10 Flattening Factors
•   Offshoring
•   Supply-chaining
•   Insourcing
•   In-forming
•      e Steroids
11/9/89
•   Berlin Wall comes down
•   Tipping point for free market societies
•   Moved away from central planning
•   Em...
8/9/95
• Netscape IPO
• 4 years a er Berners-Lee invented the Web
• Universal usability, accessibility and
  interoperabil...
8/9/95
•   Spawned Internet bubble
•   Overabundance of fiber optic capacity
•   Communication costs plummeted
•   “Second ...
Workflow Software
Let’s Do Lunch: Have Your Application Talk to My Application

• Collaboration
• Rapid development
• Rapi...
Uploading
Self-Organizing Collaborative Communities

• Open source
   – For production
   – Apache blessed by IBM
   – Gee...
Outsourcing
• Y2K and India
• Talented competent programmers and
  engineers who will work for less
• Economic imperative
...
Offshoring
• Rather than outsource jobs,
• Send the whole factory to India or China
  or Indonesia or ……
• Not just manufa...
Walmart
Supply-chaining
Supply-chaining
•   Wal-Mart is the 800-pound gorilla
•   JIT to the nth degree
•   Totally integrated
•   IT infrastructu...
Insourcing
Point 1 - UPS is not only shipping parcels, but also
providing smart business solutions




    Example #1:
    UPS fixes ...
Example #2: Take orders from Nike.com, fill the order from a
warehouse staffed and operated by UPS and ship with UPS.
Insourcing
•   UPS
•   Intimate collaboration
•   3rd-party managed logistics
•   “ ey” act as part of “Your” company
    ...
In-forming
• Building and deploying your personal
  information supply-chain
• Google – now 1 billion searches per day
• S...
The Steroids
•   “Making collaboration digital, mobile, personal, virtual” –
    Carly Fiorina
    –   Computing capabilit...
Triple Convergence
It is this triple convergence - of new
players, on a new playing field,
developing new processes and habits
for horisontal...
The New Middlers
The New Middlers
•   e Great Collaborators and Orchestrators
•   e Great Synthesizer
•   e Great Explainers
•   e Great Le...
Education
The most important ability is
to learn how to learn
CQ + PQ >IQ
CQ: curiosity quotient
PQ: passion quotient
IQ: intelligent quotient
Now that foreigners can do left-
brain work cheaper, we in the
US must do right-brain work
better
e

coming

tsunami

in public

education
Challenges
•   Numbers gap
•   Ambition gap
•   Education gap (top & bottom)
•   Funding gap
•   Infrastructure gap
•   In...
Rules
Rule # 1


“When the world goes flat – and you are
 feeling flattened – reach for a shovel and dig
 inside yourself. Don’t t...
Rule #2


 “And the small shall act big . . . One way small
  companies flourish in the flat world is by learning
  to act r...
Rule #3


 “And the big shall act small . . . One way that
  big companies learn to flourish in the flat
  world is by learn...
Rule #4


 “      e best companies are the best collaborators. In
     the flat world, more and more business will be
     ...
Rule #5


“In a flat world, the best companies stay
 healthy by getting regular chest X-rays and
 then selling the results ...
Rule #6

“     e best companies outsource to win, not to
    shrink. ey outsource to innovate faster
    and more cheaply ...
notes
You can use this summary for non commercial purposes
and cite the credit.
If you can improve this presentation with ...
The World is Flat
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The World is Flat

  1. 1. 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
  2. 2. Globalization
  3. 3. 1492-1800 Globalization 1.0 Shrank world from a size Large to Medium Countries globalizing
  4. 4. 1800-2000 Globalization 2.0 Shrank world from a size Medium to Small Companies globalizing
  5. 5. 2000+ Globalization 3.0 Shrank world from a size Small to Tiny Individuals collaborating & competing globally
  6. 6. Flattener
  7. 7. 10 Flattening Factors • Berlin Wall Coming Down • Netscape IPO • Work Flow So ware • Uploading • Outsourcing
  8. 8. 10 Flattening Factors • Offshoring • Supply-chaining • Insourcing • In-forming • e Steroids
  9. 9. 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?
  10. 10. 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
  11. 11. 8/9/95 • Spawned Internet bubble • Overabundance of fiber optic capacity • Communication costs plummeted • “Second buyer” (India) made out like a bandit
  12. 12. 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
  13. 13. 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
  14. 14. Outsourcing • Y2K and India • Talented competent programmers and engineers who will work for less • Economic imperative • Outsource everything you possibly can
  15. 15. Offshoring • Rather than outsource jobs, • Send the whole factory to India or China or Indonesia or …… • Not just manufacturing – Management – Medical – Consulting – Accounting
  16. 16. Walmart
  17. 17. Supply-chaining
  18. 18. 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
  19. 19. Insourcing
  20. 20. 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
  21. 21. Example #2: Take orders from Nike.com, fill the order from a warehouse staffed and operated by UPS and ship with UPS.
  22. 22. 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
  23. 23. In-forming • Building and deploying your personal information supply-chain • Google – now 1 billion searches per day • Soon “everything” will be searchable
  24. 24. 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
  25. 25. Triple Convergence
  26. 26. 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.
  27. 27. The New Middlers
  28. 28. 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
  29. 29. Education
  30. 30. The most important ability is to learn how to learn
  31. 31. CQ + PQ >IQ CQ: curiosity quotient PQ: passion quotient IQ: intelligent quotient
  32. 32. Now that foreigners can do left- brain work cheaper, we in the US must do right-brain work better
  33. 33. e coming tsunami in public education
  34. 34. 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.
  35. 35. Rules
  36. 36. 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.”
  37. 37. 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.”
  38. 38. 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.”
  39. 39. 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.”
  40. 40. 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.”
  41. 41. 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.”
  42. 42. 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
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