The World is Flat

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

y ud St e s Ca 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

Ca s e Flattener #4 St ud y • 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

Ca s e Insourcing St ud y

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 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

Ca s e Greer & Associates St ud y Competitor Emerging B Compet Greer A Emerging

Ca s e Greer & Associates St ud y Expert Produce Think Jobs Old Way New Way Expert Produce Jobs Think Produce

Rule #2 Small Act Big

Ca s e Aramex St ud y 1990 Airborne Other FedEx DHL Aramex Middle East

Ca s e Aramex St ud y 2003 Other Airborne FedEx DHL Aramex Middle East

Ca s e Aramex St ud y 2004 Other Airborne FedEx DHL Middle East Aramex Global Distribution Alliance

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The World is Flat

by Isriya Paireepairit on Jul 24, 2007

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