attribution-noncommercial 3.0 unported the world is flat isriya paireepairit markpeak@gmail.com

Attribution-NonCommercial 3.0 Unported

The World Is FlatIsriya Paireepairit

markpeak@gmail.com

Thomas L. Friedman

Globalization

•Globalization 1.0

Globalization 2.0

Globalization 3.0••

Globalization1.0

•Start:1492 (Columbus Discovered America)

End:1800

Player: Country••

Globalization2.0

•Start:1800

Interrupted by•

•

•World WarI (1914-1918)

Great Depression (1929)

World War II (1940-1945)••End:2000

Globalization2.0

FirstHalf

•Falling of Transportation Cost

•Steam Engine

Rail Road•

Globalization2.0

Second Half

•Falling of Telecommunication Cost

•Telegraph

Telephone

PC

Fiber Optics

WWW

••••

Globalization2.0Player: Multinational Company

CountryvsCompany

Thailand

Microsoft

$47,679M(government total revenue)

$44,300M(revenue)

1

2

1

2

FY 2007 (Estimate) Source: Bereau of the Budget

FY 2006 Source:Wikipedia

Globalization3.0

•Start: 2000

Player: Individual•

Globalization

•1.0-Country

2.0-Company

3.0- Individual••

10Forces ThatFlattened The World

Flattener#1

Fall of Berlin Wall

Flattener#1

•1989

No more Communism

Democracy

FreeMarket

Toward to Single, Global Market

••••

Flattener#2

Netscape Navigator

Flattener#2

•

•

1995

• PC

Internet

WWW••Communication

Flattener#3

Workflow Software

Flattener#3

•Working together

•DifferentHardware

DifferentLocation•Webtechnology

Effectfrom Flattener #2 Netscape••

Flattener#3

HTML

AJAXSOAP

XML

HTTP

TCP/IP

LotusCaseStudy

Flattener#3

Cause more 6 Flatteners

•#4 Uploading

#5 Outsourcing

#6 Offshoring

#7 Supply-chaining

#8 Insourcing

#9 In-forming

•••••

Flattener#4

Uploading

Flattener#4

•Power of Community (Connected Individuals)

Community-developed••Softwares- Open Source

Answers

News&Commentary- Blogging

Content- Wikipedia

•••

Flattener #4

Community-developedAnswer

Goldcorp Inc.

•

•

CaseStudy

Flattener #5

Y2K

Flattener#5

OutsourcingY2K

Outsourcing

•

•

Split

•Service

Manufacturing•and perform elsewhere, where

•Most efficient

Cost-effective•

Y2K

•Outsource Accelerator

India•

Flattener #2 Netscape (Communication)Flattener #3 Workflow (Software)

Flattener#6

Offshoring

Flattener#6Offshoring

•

•

Split

•Service

Manufacturing•and perform elsewhere, where

•Most efficient

Cost-effective•

Flattener#6Offshoring

•China

Flattener #7 Supply-Chaining (Transport)

Flattener#7

Supply-Chaining

#7Supply-Chaining

#7Supply-Chaining

Walmart

Manuf.

Manuf.

Manuf.

Customer

Customer

Customer

#7 Supply-Chaining

Flattener #2 Netscape (Communication)Flattener #3 Workflow (Software)Flattener #6 Offshoring (Manufacturer)

Sales Distribution Shipping

Flattener#8

Insourcing

#8Insourcing

•Reverse of Outsourcing

UPS& Toshiba•

InsourcingCaseStudy

InsourcingCaseStudy

Flattener#9

In-forming

#9Informing

•Information Finding

Search Engine•

Flattener#10

TheSteroids

TheSteroids

•Computing

Instant Messaging, P2P

VoIP

Videoconference

Computer Graphics

••••

Processing

Storage

Data Transfer

Communication

VirtualReality

TheSteroids

•Computing

Instant Messaging, P2P

VoIP

Videoconference

Computer Graphics

••••

Wireless

TripleConvergence

Convergence#1Converged Flatteners

Convergence#1

•Before 2000- Semi-Independent

After 2000-Converged withanother••AsComplementaryGoods

E.g. Paper/Pencil•

Convergence#2NewBusinessPlatform

#1Berlin Wall

#3 Workflow#2 Netscape

#4 Uploading#5 Outsourcing#6 Offshoring#8 Insourcing

#7 SupplyChaining#6 Informing

#10 Steroids

Accelerator

Business Process

Infrastructure

PoliticsGeographicEconomics

Convergence#3Emerging Regions

BRIC

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

DevelopedCountries

CountryPopulation(million)

GDP(trillion $)

USA 301 13.04

EU 494 13.8

Japan 128 4.2

Total 923 31

Compare!

CountryPopulation(million)

GDP(trillion $)

GDPper capita($)

BRIC 2773 17.3 6,238

Developed 923 31 33,586

Thailand 62 0.58 9,100

Companies and the Flat World

Rule #1Core Competency

Greer&AssociatesCaseStudy

CompetA

CompetitorB

Emerging

Emerging

Greer

Greer&AssociatesCaseStudy

Think Produce ExpertJobs

Think

Produce

Produce

ExpertJobs

OldWay

New Way

Rule #2Small Act Big

AramexCaseStudy

FedEx DHL

Airborne

Aramex

Other

Middle East

1990

AramexCaseStudy

FedEx DHL

Airborne

Aramex

Other

Middle East

2003

AramexCaseStudy

FedEx DHL

Airborne Other

Middle EastAramex

Global Distribution Alliance

2004