!e World is Flat
!e globalized world in the twenty-Þrst century
Thomas L. Friedman
summarized by
Andi S. Boediman
Strategic Innovation Consultant
andisboediman@gmail.com
www.ideonomics.comGlobalization1492-1800 Globalization 1.0
Shrank world from a size Large to Medium
Countries globalizing1800-2000 Globalization 2.0
Shrank world from a size Medium to Small
Companies globalizing2000+ Globalization 3.0
Shrank world from a size Small to Tiny
Individuals collaborating &
competing globallyFlattener10 Flattening Factors
¥ Berlin Wall Coming Down
¥ Netscape IPO
¥ Work Flow So"ware
¥ Uploading
¥ Outsourcing10 Flattening Factors
¥ O
¥ Supply-chaining
¥ Insourcing
¥ In-forming
¥ !e Steroids11/9/89
¥ Berlin Wall comes down
¥ Tipping point for free market societies
¥ Moved away from central planning
¥ Empowered individuals
¥ ÒEvil EmpireÓ defeated by:
Ð Reagan?
Ð CNN?
Ð Gates, Jobs, McNealy,É?
Ð Bin-Laden?8/9/95
¥ Netscape IPO
¥ 4 years a"er Berners-Lee invented the Web
¥ Universal usability, accessibility and
interoperability of the Web
¥ Win 95 shipped 15 days later
¥ Number of Internet users doubling every 53
days8/9/95
¥ Spawned Internet bubble
¥ Overabundance of Þber optic capacity
¥ Communication costs plummeted
¥ ÒSecond buyerÓ (India) made out like a
banditWorkflow Software
LetÕs Do Lunch: Have Your Application Talk to My Application
¥ Collaboration
¥ Rapid development
¥ Rapid deployment
¥ Cheapest sources for coding, testing,
implementation
¥ Everyone can create and maintain digital
contentUploading
Self-Organizing Collaborative Communities
¥ Open source
Ð For production
Ð Apache blessed by IBM
Ð Geeks making business decisions
¥ Blogs
¥ Wikipedia
¥ Not controlled by corporations or GovernmentOutsourcing
¥ Y2K and India
¥ Talented competent programmers and
engineers who will work for less
¥ Economic imperative
¥ Outsource everything you possibly canOffshoring
¥ Rather than outsource jobs,
¥ Send the whole factory to India or China
or Indonesia or ÉÉ
¥ Not just manufacturing
Ð Management
Ð Medical
Ð Consulting
Ð AccountingWalmartSupply-chainingSupply-chaining
¥ Wal-Mart is the 800-pound gorilla
¥ JIT to the nth degree
¥ Totally integrated
¥ IT infrastructure as a key competitive advantage
¥ Suppliers as partners
¥ RFIDInsourcingPoint 1 - UPS is not only shipping parcels, but also
providing smart business solutions
Example #1:
UPS fixes laptops for companies to speed up service.
3 day turn-around, instead of week (s) for product
repairsExample #2: Take orders from Nike.com, fill the order from a
warehouse staffed and operated by UPS and ship with UPS.Insourcing
¥ UPS
¥ Intimate collaboration
rd
¥ 3 -party managed logistics
¥ Ò!eyÓ act as part of ÒYourÓ company
Ð Fixing Toshiba laptops
Ð Managing delivery of Papa JohnÕs Pizza supplies
Ð Packaging Segrest Farms live tropical Þsh for delivery
Ð Picking, inspecting, packing and delivering Nike shoes
Ð Same for Jockey shorts
Ð Working with Plow and Hearth furniture suppliers to improve
packaging and reduce breakageIn-forming
¥ Building and deploying your personal
information supply-chain
¥ Google Ð now 1 billion searches per day
¥ Soon ÒeverythingÓ will be searchableThe Steroids
¥ ÒMaking collaboration digital, mobile, personal, virtualÓ Ð
Carly Fiorina
Ð Computing capabilities - including speed, I/O rate and storage
capacity
Ð IM and Þle sharing Ð BitTorrent, Kazaa
Ð VoIP Ð Skype
Ð Video Conferencing Ð HP & SKG
Ð Advanced graphics Ð from video games
Ð Wireless Ð communicate with anyone from anywhereTriple ConvergenceIt is this triple convergence - of new
players, on a new playing field,
developing new processes and habits
for horisontal collaboration -
that I believe is the most important force
shaping global economics and politics in
the early twenty-first century.The New MiddlersThe New Middlers
¥ !e Great Collaborators and Orchestrators
¥ !e Great Synthesizer
¥ !e Great Explainers
¥ !e Great Leveragers
¥ !e Great Adapters
¥ !e Green People
¥ !e Passionate Personalizers
¥ !e Great LocalizersEducationThe most important ability is
to learn how to learnCQ + PQ >IQ
CQ: curiosity quotient
PQ: passion quotient
IQ: intelligent quotientNow that foreigners can do left-
brain work cheaper, we in the
US must do right-brain work
better!e
coming
tsunami
in public
educationChallenges
¥ Numbers gap
¥ Ambition gap
¥ Education gap (top & bottom)
¥ Funding gap
¥ Infrastructure gap
¥ In the Age of Flatism, these gaps are what
most threaten our standard of living.RulesRule # 1
ÒWhen the world goes ßat Ð and you are
feeling ßattened Ð reach for a shovel and dig
inside yourself. DonÕt try to build walls.ÓRule #2
ÒAnd the small shall act big . . . One way small
companies ßourish in the ßat world is by learning
to act really big. And the key to being small and
acting big is being quick to take advantage of all
the new tools for collaboration to reach farther,
faster, wider, and deeper.ÓRule #3
ÒAnd the big shall act small . . . One way that
big companies learn to ßourish in the ßat
world is by learning how to act really small
by enabling their customers to act really
big.ÓRule #4
Ò!e best companies are the best collaborators. In
the ßat world, more and more business will be
done through collaborations within and between
companies for a very simple reason? !e next
layers of value creation are becoming so complex
that no single Þrm or department is going to be
able to master them alone.ÓRule #5
ÒIn a ßat world, the best companies stay
healthy by getting regular chest X-rays and
then selling the results to their clients.ÓRule #6
Ò!e best companies outsource to win, not to
shrink. !ey outsource to innovate faster
and more cheaply in order to grow larger,
gain market share, and hire more and
di
Þring more people.Ónotes
You can use this summary for non commercial purposes
and cite the credit.
If you can improve this presentation with better slide/
image/illustration, please send it to my email and I will put
them as part of future update.
summarized by
Andi S. Boediman
Strategic Innovation Consultant
andisboediman@gmail.com
www.ideonomics.com