World is not Flat
Mayank Tyagi, MDI, April 2012

The World is Flat
In Globalization 1.0, which began
around 1492, the world went from
size large to size medium. In
Globalization 2.0, the era that
introduced us to multinational
We are taught that…
companies, it went from size
medium to size small. And then
around 2000 came Globalization
3.0, in which the world went from
being small to tiny.
Thomas Friedman

It’s a Flat World
• World shrinking from small to flat
• Economic playing field becomes level
• Companies can/need to compete globally
• Emergence of multinational companies
• Movement of goods shifts to movement of information and
services

Accentuated by
• The world has become flat…[creating] a
global, Web-enabled playing field that allows
for…real time collaboration in development
and production of goods and services, without
regard to geography, distance or, in the near
future, even language.
Thomas Friedmann

Till a week ago…

What are some of the major
indicators of globalization
Foreign/Global Media Do I need to name it?
International Communication
Open immigration policies Exports to GDP Ratio Management Education

Levels of Internationalization
Telephone calls
Immigrants
(to Population)
Direct investment
Equity investment
Exports
(to GDP)
20% 40% 60% 80% 100%

Levels of Internationalization
• Globalization seems to be truly at work in
education, with international students a
presence on many campuses.
• Even in US, only 2% of university students
are studying in countries where they are not
citizens
• At MDI which has one of the best foreign to
Indian student ratio, its also 2%

Some of us will still not agree, other
indicators may or may not indicate
globalization but social media is a proof
that we live in a flat world
Really????
How many Facebook friends do you have
who are not from India?
Globally this figure does not exceed 15-
20%...even in European countries

Term used for this fallacy is

Then why do we overlook this
Data(1/2)
Dearth of data
While there is absolutely no denying the fact that world is becoming increasingly
globalized yet there are very few real time indicators which are able to explain the extent
of globalization. Its simple too complicated.
Peer Pressure
Its cool to talk about globalization. When the entire world, media and peers are
talking about globalization, then it seems to be foolish to question this
judgment. After all elites would have done some research to come to this
conclusion

Then why do we overlook this
Data(2/2)
Techno Trances(if we listen to Techno music for long; we tend to sway without music)
The revolution in information technology all around us has led to eager
speculation about the ways in which business practices may be fundamentally
transformed. The promise of the “New Economy” has excited the imaginations
both of young people seeking careers with a bright future and investors hoping
for dazzling capital gains. It is widely believed that institutions of the “old
economy” may soon be rendered obsolete. However, reality is that we are still
old school in non-metro areas.
Excellent Marketing
Consultants/KOLs need to come up with a catchy yet compelling theme to
create an atmosphere which not only sounds logical but also continues to
create business for them. Globalization serves both the objectives. If repeated
continuously, it starts feeling real

We are only trying to emphasize that world is
not really globalized NOW and for any
organization there are huge inherent
advantages in going global

Ideal Globalization Approach
• Why Go Global?
– Economies of scale
– Economies of scope
– Cheaper production costs
• Organization Structure
– Global Product Structure(Eli-lily)
– International Division(P&G)
– Global Matrix(McKinsey)
– Global Geographic(Euro Disney)

Usual Actual Scenarios

Implications of 10-20%
globalization
Highlights gains from additional integration
Reduces/reverses fear about additional integration

Case Study - TCS Latin America
Local Solution
Monterrey Center
Querétaro DF Global Delivery
Guadalaja Centers
ra
Medellí
Bogot
n
Quit
á
o
Lima Brasilia
 7000+ Associates
San Pablo
 150+ Active Clients.
 16 of Fortune 100 Santia Montevide
go Buenos
o
4 of 11 Latin firms in the Aires
Global 500™

“Arguing against globalization is like arguing against laws of gravity.” Kofi Annan

All we are saying…
…is that world is not flat yet and there is ample
opportunities for organizations for increased
integration and it should not fear increased
globalization