TRIPPLE CONVERGENCE 3 FACTORS CONVERGING

All Factors Converging Friedman explains that as each of the 10 factors came together, they had to spread and take root to create the environment rich for flattening. These are involved with globalization of countries( I.0), companies (globalization 2.0) and individuals (globalization 3.0) – to create a new flattener Convergence of companies, countries and individuals (each respectively are terribly empowered to do things)

Example Friedman – wanted to fly through South west airlines. He bought e- ticket from American express card. Boarding passes are marked as A, B and C He arrived 90 minutes earlier at the airport to get the boarding pass A. Instead he got boarding pass B. Others had booked the boarding pass A online and taken the printout. Touch screen has given way to online checkin.

Ticket agent – (G 1.0) E- ticket machine (G 2.0) Ticket print out at home (G 3.0) Example 2: Multipurpose device called Bizhub introduced by Konica. ( Black/ white/ colour printing + copy / fax / scan documents)

Convergence 1 Vertical system of creating value (hierarchy) changed to Horizontal system of creating value. Command+ control ----> Connect & Collaborate)

Convergence 2 As a consequence of connect, collaborate, new business practices emerged. Companies started working together eg : WPP a second largest advertising, marketing, communications, consortium in the world. The alliance was put together to capture more and more of big clients’, marketing needs such as advertising, direct mail, media buying and branding

CONVERGENCE 3 People of China, Russia, Eastern Europe, Latin America, Central Asia – were increasingly free to join the free market game. New players on a new playing field developing new processes and habits of horizontal collaboration. The global economy from here on will be shaped less by the finance ministers and more by the spontaneous explosion of energy from the ‘ZIPPIES’.

Zippies – hippies of America in 60’s and Yuppies of 80’s – tech savvy youth The word taken from the Outlook book by Friedman. The word combines hippies + Zip Hippies was a kind of rebelling group against government. Zip - speed at which the current generation is flowing Globalization 3 shows the individual side, the Asian countries coming up ( not only US and Europe)