The World is Flat: A Brief History of the Twenty-First Century A book by Thomas L. Friedman

Flat??? The playing field has been leveled by increased and widespread availability of technologies that have eliminated friction in the marketplace People can collaborate via cyberspace in real time, spurring prosperity and innovation  Computers, , networks, teleconferencing, videoconferencing, cell phones, dynamic new software (killer apps) Human resources do not need to relocate to participate in a supply chain

So what? Work will move to the source that can do it best  Digitize and decompose the supply chain Cheapest Most creative  Work will be fragmented  Services become commodities  Strategy is to be flexible, constantly improve your skills, and find a niche where you are THE expert Services done in person Complex strategies Value-added packages become part of the deal

Are you talking about MY job??!! Change is hardest on those caught by surprise Change is natural Change is not new Work flowing to where it can be done most efficiently and effectively is good  Frees up people to do more highly valued tasks  Frees up capital to invest in higher payoff opportunities  Cheaper prices for customers  More innovation  More profits for corporations and stockholders

Successes Call centers in India Chinese call centers supporting Japanese Homesourcing airline reservations in Utah Predator program McDonald’s call center  Twice the “turn” half the mistakes One man newspaper/Bloggers

History of Globalization  State centric  How much muscles you have and how can you deploy it  Multinational companies w/ global markets and labor  Transportation/telecommunication Now  Individuals/diversity  Software

11/9/89 This is the date the Berlin Wall fell Tipped the balance toward democratic, consensual, free-market oriented See the world as a seamless whole  Free movement of best practices  Move toward common standards Supports single interoperable systems  Decline in trade controls  Decline in information monopolies

8/9/95 This is the date Netscape went public  Mosaic was funded by the NSF Changed to a Internet based world  Web browsers enhance information sharing and usage  Windows 95 operating system has imbedded browser  Incentive to create content applications and tools  Open protocols (TCP/ICP; FTP; SMTP/POP; HTML; HTTP; SSL)  Compete over what you do on the Internet, not how you get on  People have an innate urge to connect with others and will change their habits quickly to do so Spurred increased demand for BANDWIDTH/ fiber optic networks How have you changed YOUR habits?

Open-sourcing Self organizing collaborative communities  Driven by peer review  Bottom up  Intellectual commons  Free software movement Apache/GNU/Linux Has spread beyond software development  Bloggers  Wikipedia

Outsourcing Y2K (find another source for the tedious work)  Gives Indian companies a global footprint  Dot-com boom results in cable to India  Dot-com bust makes it cheap to use it

Off Shoring China joins the WTO on 12/11/2001 Move the factory off shore  WTO protects companies through international law and standard business practices  Low-wage pool  Leverage from knowledge working with Western companies  Invest earnings in technology, plant, and equipment  Adapt learned practices West sees cheap labor, access to resources, and market potential One third of global trade is WITHIN multinationals

Supply-Chaining Walmart Make your suppliers part of your company  Common standards  Technology (info systems, scanners, GPS, RFID)  Access to data  Buy direct from the manufacturer  Eliminate all friction Too much fat removed?  LOW wages  LOW healthcare benefits  Transfers costs to state/local governments

Insourcing FedEx/UPS Small can act big, Big can act small What value added services can you do for the customer to enhance the package deal you offer them? Is one of your internal processes a core competency you can market to others?

In-forming Google, Yahoo, MSN Web Search Self directed and self-empowered researcher, editor, and selector of entertainment Search for knowledge Find like-minded communities Democratization of information means more efficient and informed consumers People become more transparent and available

The Steroids Digital, Mobile, Personal, and Virtual Info is digitized and can be shaped, manipulated, and transmitted over computers, the Internet, satellites, or fiber- optic cable  Shaped on the fly from anywhere, with anyone, through any device, and taken anywhere  Japanese Internet enable phones  PDAs

Oh, I see! How does this effect me? The creation of a global, Web-enable playing field that supports multiple forms of collaboration in real time without regard to geography, distance, or language The creation of horizontal collaboration and value-creation processes and habits that take advantage of the new, flatter playing field New players who are more diverse  Innovate without emigrating

How do I upgrade? Be special  Have a unique skill that is in high demand globally that no one else can do Be specialized  High demand and not fungible Be anchored  Must perform it face-to-face Be adaptable  Constantly acquire new skills, knowledge, and expertise that enable you to create value

What ’ s the downside? Nation-state traditional controls at risk  National boundaries  Legal barriers to the free flow of information, intellectual property and capital Copyrights, worker protections, minimum wage Other cushions for workers and communities Exploitation Where does a “company” start and stop You are always in and always on Conflicting identities  Threat to traditional political parties Sharing intellectual property vs. property rights Human bond vs. and streaming Internet

US Primacy at Risk Steady erosion of America’s scientific and engineering base  Average age is over 40 and rising Ambition gap Skills not taught from elementary school Immigrants are no longer a given Lack of parental focus on discipline

What should we do? National commitment and focus  Compassionate flatism  Leadership Politicians who can and will explain and inspire  Muscle building Portable Benefits (healthcare and pension) Opportunities for life long learning Wage insurance  Social activism A Flat yet more livable world  Parenting Put down the gameboy and study

Hopeful Ending The Dell Theory of Conflict Prevention As supply chains become more global and interlinked, war becomes less likely because it is bad for business This goes beyond the spread of western culture through McDonalds

What can I do? Use YOUR imagination to dream about how you can create value in a flat world.