The World is Flat

A brief history of the 21st century

Thomas Friedman

How it will affect Computer Science

Dr. Ranette Halverson1

Chapter 1 – While I Was SleepingAuthor’s Trip to India• Bangalore – India’s Silicon

Valley– Goldman Sachs -- IBM– Hewlett Packard -- Microsoft– Texas Instruments -- Cisco– GE

• Infosys outside Bangalore– Landscaping, putting green, pool,

health club, restaurants 2

The World is Flat i.e. The Playing Field is Leveled

How? Why? What Happened?• Outsourcing• Investments in technology• Broadband connectivity• Explosion of HW & SW

(cheap)

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Globalization 1.0

• 1492 – 1800• World: Large to Medium• Driving Force: Muscle

(Countries)– Power & how it could be deployed– By moving out, dew the world

together– Global integration: trade,

collaboration4

Globalization 2.0• 1800 – 2000• World: Medium to Small• Driving Force: Multinational

Co.– Markets & Labor– Drop in transportation costs (RR),

then drop in communication costs (telegraph to PC & WWW)

– Global economy5

Globalization 3.0

• 2000 – Present• World: Small to Tiny (& Flat)• Driving Force: Empowering

Individuals – Collaboration & Competition– Flat-World Platform = PC +

Fiber + Workflow SW– Non-western inclusion

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Accounting – Tax Preparation

• MphasiS • 2005 – 400,000

returns outsourced to India

• Security• Creativity

– Face-to-Face 7

Radiology - MD

• Reading of CAT & MRI– Nighthawks

• Work from home–WF doctor works for San Antonio hospital

• Australia, India–Day there when night here

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Journalism • Reuters

– Leader in world news

• Bangalore, India– Flash Headlines from news

releases

• US reporters– Analysis– Cut staff by 1/4

• 1/5 Cost 9

Call Centers• 24/7 Customer

– 2500 in Bangalore– Dell, IBM, MS, Airlines

• 245,000 in India • Prestige, Training & Education• Jobs lost or Jobs not wanted?• Use U.S. Products

– Computers, SW, Air conditioning– Bottled water, soft drinks, etc.– More disposable income in India

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Remote Personal Assistant• Brickwork (div. of B2K Co.)

– $1500 to $2000 month– Typically work during our night

• What do they do?– Research --Presentations– Reports

• Clients: Health Care Consultants, Investment Banks, Financial Services 11

Dalian, Bangalore of China• Outsourced from Japan &

other Asian operations• Data entry of handwritten

Japanese• CAD – architects• GE, MS, Dell, SAP, HP, Sony,

Accenture

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Jet Blue Airlines

• Home Sourcing• 100% of phone reservations • 400 women (mostly) in Salt Lake

City• 30 hour weeks at home• 1 day a month in office for training• 30% more productive than similar

on-site reservation facilities

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U.S. Army

• Predator drones – Unmanned spy planes– Flying over Iraq– Flown by soldier in Las Vegas,

Nevada

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McDonalds(yes, the hamburger place)

• Missouri, Minnesota, Massachusetts• Call center in Colorado Springs, Co.• Pay operators more but costs down

10%• Cut errors by 1/2• Service time down by 30 seconds• Next step: “phones” at tables which

go to the call center• Headquarters doing a trial

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E-Tutoring

• From India• $15 to $20 per hour• Use cameras, microphones,

digital pencils, scanners

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What does this mean?•10

Flatteners•Level

Playing Field•All have to

do with the computer

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Ten Forces that Flattened the World

1. 11/9/892. 8/9/95*3. Work Flow

Software*4. Uploading*5. Outsourcing*6. Offshoring*

7. Supply-chaining*

8. Insourcing9. In-

forming*10.The

Steroids

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How has the computer changed the world as you know it???•Cell Phones•Music Downloads•Online Courses•YouTube•Face Book – My Space•Online Shopping

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Still changing……

• eHarmony.com• Wikipedia• Ebay• Travelocity.com• Email• Instant messenger• Text Messaging

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What are YOUR Plans???• Where will you work?• What will you do?• Who will you work with?

ALL of this is changing as we speak! Much of the change is due to the computer and the related technology!

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How is the world economy and job market changing?

• Today we will discuss WHAT is happening. Actually what has already happened!

• Not why it happened!• Not is it good or bad!• That is for you to

decide!!

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Outsourcing

• 1800’s – Conestoga Wagon Covers

• Today – Manufacturing

• Cars, Clothes,

– Help desks & Call Centers– Programming

• Outsourcing will not be the end of civilization as we know it!!

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Are all the jobs leaving the US?

• This is a serious question.

• But the answer might be no!

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True Change is Occurring!!!• How do we manage it?• Who regulates it?• Who taxes it?

• A significant change is occurring in ALL aspects of our world and at SUPER speed!

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What’s Next??

• What will be the next BIG change??

• I don’t know!• I know you better be

comfortable with computers and technology!!

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Questions or Comments?

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