the world is flat
DESCRIPTION
Summary for The World Is Flat book.TRANSCRIPT
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Thomas L. Friedman
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Globalization
• Globalization 1.0
• Globalization 2.0
• Globalization 3.0
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Globalization 1.0
• Start: 1492 (Columbus Discovered America)
• End:1800
• Player: Country
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Globalization 2.0
• Start: 1800
• Interrupted by
• World War I (1914-1918)
• Great Depression (1929)
• World War II (1940-1945)
• End: 2000
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Globalization 2.0
First Half
• Falling of Transportation Cost
• Steam Engine
• Rail Road
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Globalization 2.0
Second Half
• Falling of Telecommunication Cost
• Telegraph
• Telephone
• PC
• Fiber Optics
• WWW
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Globalization 2.0
Player: Multinational Company
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Country vs Company
Thailand $47,679 M(government total revenue)
Microsoft $44,300 M(revenue)
1
2
1
2
FY 2007 (Estimate) Source: Bereau of the Budget
FY 2006 Source: Wikipedia
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Globalization 3.0
• Start: 2000
• Player: Individual
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Globalization
• 1.0 - Country
• 2.0 - Company
• 3.0 - Individual
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10 Forces That Flattened The World
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Flattener #1
Fall of Berlin Wall
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Flattener #1
• 1989
• No more Communism
• Democracy
• Free Market
• Toward to Single, Global Market
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Flattener #2
Netscape Navigator
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Flattener #2
• 1995
• PC
• Internet
• WWW
• Communication
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Flattener #3
Workflow Software
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Flattener #3
• Working together
• Different Hardware
• Different Location
• Web technology
• Effect from Flattener #2 Netscape
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Flattener #3
HTML
AJAXSOAP
XML
HTTP
TCP/IP
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LotusCase Study
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Flattener #3
Cause more 6 Flatteners
• #4 Uploading
• #5 Outsourcing
• #6 Offshoring
• #7 Supply-chaining
• #8 Insourcing
• #9 In-forming
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Flattener #4
Uploading
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Flattener #4
• Power of Community (Connected Individuals)
• Community-developed
• Softwares - Open Source
• Answers
• News & Commentary - Blogging
• Content - Wikipedia
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Flattener #4
• Community-developed Answer
• Goldcorp Inc.
Case Study
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Flattener #5
Y2K
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Flattener #5
OutsourcingY2K
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Outsourcing
• Split
• Service
• Manufacturing
• and perform elsewhere, where
• Most efficient
• Cost-effective
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Y2K
• Outsource Accelerator
• India
Flattener #2 Netscape (Communication)Flattener #3 Workflow (Software)
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Flattener #6
Offshoring
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Flattener #6 Offshoring
• Split
• Service
• Manufacturing
• and perform elsewhere, where
• Most efficient
• Cost-effective
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Flattener #6 Offshoring
• China
Flattener #7 Supply-Chaining (Transport)
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Flattener #7
Supply-Chaining
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#7 Supply-Chaining
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#7 Supply-Chaining
Walmart
Manuf.
Manuf.
Manuf.
Customer
Customer
Customer
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#7 Supply-Chaining
Flattener #2 Netscape (Communication)Flattener #3 Workflow (Software)Flattener #6 Offshoring (Manufacturer)
Sales Distribution Shipping
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Flattener #8
Insourcing
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#8 Insourcing
• Reverse of Outsourcing
• UPS & Toshiba
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InsourcingCase Study
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InsourcingCase Study
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Flattener #9
In-forming
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#9 Informing
• Information Finding
• Search Engine
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Flattener #10
The Steroids
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The Steroids
• Computing
• Instant Messaging, P2P
• VoIP
• Videoconference
• Computer Graphics
Processing
Storage
Data Transfer
Communication
Virtual Reality
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The Steroids
• Computing
• Instant Messaging, P2P
• VoIP
• Videoconference
• Computer Graphics
Wireless
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Triple Convergence
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Convergence#1Converged Flatteners
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Convergence #1
• Before 2000 - Semi-Independent
• After 2000 - Converged with another
• As Complementary Goods
• E.g. Paper/Pencil
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Convergence#2New Business Platform
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#1 Berlin Wall
#3 Workflow#2 Netscape
#4 Uploading #5 Outsourcing #6 Offshoring #8 Insourcing
#7 Supply Chaining#6 Informing
#10 Steroids
Accelerator
Business Process
Infrastructure
PoliticsGeographicEconomics
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Convergence#3Emerging Regions
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BRIC
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BRIC
CountryPopulation(million)
GDP (trillion $)
Brazil 188 1.6
Russia 142 1.7
India 1126 4.0
China 1317 10.0
Total 2773 17.3
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Developed Countries
CountryPopulation(million)
GDP (trillion $)
USA 301 13.04
EU 494 13.8
Japan 128 4.2
Total 923 31
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Compare!
CountryPopulation(million)
GDP (trillion $)
GDP per capita($)
BRIC 2773 17.3 6,238
Developed 923 31 33,586
Thailand 62 0.58 9,100
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Companies and the Flat World
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Rule #1Core Competency
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Greer & AssociatesCase Study
Greer CompetA
CompetitorB
Emerging
Emerging
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Greer & AssociatesCase Study
Think Produce ExpertJobs
Think
Produce ExpertJobs
Produce
Old Way
New Way
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Rule #2Small Act Big
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AramexCase Study
FedEx DHL
Airborne
Aramex
Other
Middle East
1990
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AramexCase Study
FedEx DHL
Airborne
Aramex
Other
Middle East
2003
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AramexCase Study
FedEx DHL
Airborne Other
Middle EastAramex
Global Distribution Alliance
2004