The World Is Flat
Isriya Paireepairit
markpeak@gmail.com
Attribution-NonCommercial 3.0 Unported

Thomas L. Friedman

Globalization
• Globalization 1.0
• Globalization 2.0
• Globalization 3.0

Globalization 1.0
• Start: 1492 (Columbus Discovered America)
• End:1800
• Player: Country

Globalization 2.0
• Start: 1800
• Interrupted by
• World War I (1914-1918)
• Great Depression (1929)
• World War II (1940-1945)
• End: 2000

Globalization 2.0
First Half
• Falling of Transportation Cost
• Steam Engine
• Rail Road

Globalization 2.0
Second Half
• Falling of Telecommunication Cost
• Telegraph
• Telephone
• PC
• Fiber Optics
• WWW

Globalization 2.0
Player: Multinational Company

Country vs Company
1
$47,679 M
Thailand (government total revenue)
2
$44,300 M
Microsoft (revenue)
FY 2007 (Estimate) Source: Bereau of the Budget
1
FY 2006 Source: Wikipedia
2

Globalization 3.0
• Start: 2000
• Player: Individual

Globalization
• 1.0 - Country
• 2.0 - Company
• 3.0 - Individual

10 Forces That
Flattened The World

Flattener #1
Fall of Berlin Wall

Flattener #1
• 1989
• No more Communism
• Democracy
• Free Market
• Toward to Single, Global Market

Flattener #2
Netscape Navigator

Flattener #2
• 1995
• PC
• Internet
• WWW
• Communication

Flattener #3
Workflow Software

Flattener #3
• Working together
• Different Hardware
• Different Location
• Web technology
• Effect from Flattener #2 Netscape

Flattener #3
AJAX
SOAP
XML
HTML
HTTP
TCP/IP

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Lotus

Flattener #3
Cause more 6 Flatteners
• #4 Uploading
• #5 Outsourcing
• #6 Offshoring
• #7 Supply-chaining
• #8 Insourcing
• #9 In-forming

Flattener #4
Uploading

Flattener #4
• Power of Community (Connected Individuals)
• Community-developed
• Softwares - Open Source
• Answers
• News & Commentary - Blogging
• Content - Wikipedia

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Flattener #4
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• Community-developed
Answer
• Goldcorp Inc.

Flattener #5
Y2K

Flattener #5
Outsourcing
Y2K

Outsourcing
• Split
• Service
• Manufacturing
• and perform elsewhere, where
• Most efficient
• Cost-effective

Y2K
• Outsource Accelerator
• India
Flattener #2 Netscape (Communication)
Flattener #3 Workflow (Software)

Flattener #6
Offshoring

Flattener #6 Offshoring
• Split
• Service
• Manufacturing
• and perform elsewhere, where
• Most efficient
• Cost-effective

Flattener #6 Offshoring
• China
Flattener #7 Supply-Chaining (Transport)

Flattener #7
Supply-Chaining

#7 Supply-Chaining

#7 Supply-Chaining
Manuf. Customer
Manuf. Walmart Customer
Manuf. Customer

#7 Supply-Chaining
Sales Shipping
Distribution
Flattener #2 Netscape (Communication)
Flattener #3 Workflow (Software)
Flattener #6 Offshoring (Manufacturer)

Flattener #8
Insourcing

#8 Insourcing
• Reverse of Outsourcing
• UPS & Toshiba

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Insourcing
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Insourcing
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Flattener #9
In-forming

#9 Informing
• Information Finding
• Search Engine

Flattener #10
The Steroids

The Steroids
Processing
Storage
• Computing
• Instant Messaging, P2P Data Transfer
• VoIP Communication
• Videoconference
• Computer Graphics Virtual Reality

The Steroids
• Computing
• Instant Messaging, P2P
Wireless
• VoIP
• Videoconference
• Computer Graphics

Triple Convergence

Convergence#1
Converged Flatteners

Convergence #1
• Before 2000 - Semi-Independent
• After 2000 - Converged with another
• As Complementary Goods
• E.g. Paper/Pencil

Convergence#2
New Business Platform

#10 Steroids
Accelerator
Business Process
#7 Supply
#6 Informing Chaining
#4 Uploading #6 Offshoring #8 Insourcing
#5 Outsourcing
Infrastructure
#2 Netscape #3 Workflow
Politics
#1
Geographic
Berlin Wall
Economics

Convergence#3
Emerging Regions

BRIC

BRIC
Population GDP
Country
(million) (trillion $)
Brazil 188 1.6
Russia 142 1.7
India 1126 4.0
China 1317 10.0
Total 2773 17.3

Developed Countries
Population GDP
Country
(million) (trillion $)
USA 301 13.04
EU 494 13.8
Japan 128 4.2
Total 923 31

Compare!
Population GDP GDP per capita
Country
(million) (trillion $) ($)
BRIC 2773 17.3 6,238
923 31 33,586
Developed
Thailand 62 0.58 9,100

Companies and the Flat World

Rule #1
Core Competency

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Greer & Associates
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Competitor Emerging
B
Compet
Greer
A
Emerging

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Greer & Associates
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Expert
Produce
Think
Jobs
Old Way
New Way
Expert
Produce
Jobs
Think
Produce

Rule #2
Small Act Big

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Aramex
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1990
Airborne Other
FedEx DHL
Aramex Middle East

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Aramex
St
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2003
Other
Airborne
FedEx DHL
Aramex Middle East

Ca
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Aramex
St
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2004
Other
Airborne
FedEx DHL
Middle East
Aramex
Global Distribution Alliance