Ten Forces that Flattened the World : Ten Forces that Flattened the World Nathaly Diaz
Grant MorrowNarrated by Grant Morrow MIS 2755 - University of Memphis Fogelman College of Business and Economics What is a Flat World? : What is a Flat World? The world being flat refers to a leveled playing field of business where all competitors have equal opportunities, and the flatteners are events and developments that have allowed this to happen. What are the 10 Flatteners? : What are the 10 Flatteners? “The World is Flat: A Brief History of the Twenty First Century.”By Thomas Friedman The Forces that Flattened the World : The Forces that Flattened the World #1 Walls Came Down and Windows Went Up- Communism dies/ Computers are Personal and Cheap
#2 Netscape goes Public - Rise of the Internet
#3 Work Flow Software- Standards on Top of Standards
#4 Uploading-User uploaded content creates gigantic changes
#5 Outsourcing-Allowing companies to separate parts of their business which could be done cheaper and possibly better by others The Forces that Flattened the World : #6 Offshoring-Sending jobs and tasks overseas to less developed countries
#7 Supply-Chaining - How Wal-Mart is leading the way
#8 In-sourcing- Having someone come into your business and have them help you by managing a part of it for you
#9 In-forming-Search Engines and the way they have changed how we get information
#10 The Steroids-Mobile Phones, iPods, PDAs, VoIP, and Instant Messaging The Forces that Flattened the World #1- Walls Came Down… 11/9/89 : #1- Walls Came Down… 11/9/89 Previously the world had been split into two main economic systems: communism and capitalism. #1- Walls Came Down… 11/9/89 : The Berlin Wall was a barrier of barbed wire and, later, of concrete and minefields built in 1961 between the eastern (communist controlled) sector of the city of Berlin and the western controlled sector. #1- Walls Came Down… 11/9/89 November 9, 1989Fall of the Berlin Wall : November 9, 1989Fall of the Berlin Wall Taking away this cover of communism distributed power in the world increasing connections, trade, and economic reliance between countries. People in previously communistic countries were freed from governmental controls and regulation. …And Windows Went Up : …And Windows Went Up Microsoft releases Windows 3.0, May 22nd, 1990.
First successful release of Windows- Allowed people everywhere to be running the same platform and start creating their own content in digital form. #2 - August 9, 1995Netscape goes public : #2 - August 9, 1995Netscape goes public Netscape introduced the first mainstream Web browser, facilitating everybody’s access to the internet.
The invention and innovation of the internet has eliminated physical barriers such as distance causing the world to shrunk and flatten to new levels. Now thanks to the internet, we don’t have to travel distances to meet face to face since we are interconnected with everyone everywhere. #3 - Work Flow Software : #3 - Work Flow Software Encompasses a wide range of software and software standards that allowed people to collaborate on projects beyond what they could do with just sharing messages, pictures and music. Collaboration Standards : Collaboration Standards First breakthrough was:
Which allowed the office to better perform their departmental tasks (shipping, sales, billing, accounting, etc.) and communicate with other departments to begin their own tasks. An order could be received by phone and e-mailed to shipping who could then ship the product and bill the customer, all without really anyone physically taking the order anywhere. And More Standards… : And More Standards… SMTP (Simple mail transfer protocol) allowed the exchange of e-mails among heterogeneous computer systems, allowing e-mail to be easily used by most all systems.
HTML the language used by browsers and the language of the Internet allowed people to create a wide verity of formatted documents that could be read by anyone else.
HTTP was the language that allowed you to post these documents on the Internet.
Finally TCP/IP (transmission control protocol/Internet protocol) standardized the transportation of those documents from computer to computer.
The development of XML (extensible markup language) and its transport protocol SOAP (simple object access protocol) allowed the sharing of data between any two computer programs without people being involved. One could write say an invoice program and a computer could transmit the program to any other computer that wanted it without anyone ever having to send it themselves. Built upon the others! : Built upon the others! The first 3 Flatteners provide a base platform that all the rest are built on.
So we now have the same economic system, computers, the web, and standards!
Time to Flatten More! #4 – Uploading : #4 – Uploading Open communities of peers dedicated to creating content.
News Blogs and Podcasts
Even Piracy! #4 – Uploading : #4 – Uploading This revolution of user created content has often been called “Web 2.0”
Since it is the source of the creation of many new applications and content around the world, Friedman considered this to be the most disruptive force. #5 - Outsourcing : #5 - Outsourcing Outsourcing is defined as a way of acquiring services from an outside supplier in a third party. Saving money for one’s own company.
According to Friedman outsourcing has allowed companies to keep service and manufacturing activities in separate components which can be subcontracted and performed in the most efficient, cost-effective way.
Companies that outsource part of their business are:
AT&T #6 - Offshoring : #6 - Offshoring Offshoring could be defined as having the outsourcer’s business functions done in another country to reduce labor expenses.
Unlike outsourcing, offshoring refers to the company’s processes, such as manufacturing their products in a foreign country in order to take advantage of less costly operations there.
Examples of major offshoring countries that are in the offshoring business:
Quick Fact: By the year 2015 it is estimated China will be the number one country for offshoring goods and services. #7 - Supply chaining : #7 - Supply chaining Consists of all the steps or in other words: organizations, people, technology, activities, information and resources that allow products and services to go all the way from the supplier to the consumer. #7 - Supply chaining : #7 - Supply chaining Friedman compared supply chaining to a river, and Wal-Mart as the perfect example of a company using technology to maximize efficiency in sales, distribution and shipping.
All over the World! #8 - In-Sourcing : #8 - In-Sourcing What can Brown do for you?
Companies such as UPS are doing more now than simply sending and receiving packages. They are creating logistical solutions for other company's supply chains.
UPS warehouses are actually storing and packaging and shipping a great number of products owned by other companies.
This is called “insourcing” “because UPS engineers come right inside your company; analyze its manufacturing, packaging, and delivery processes; and then design, redesign, and manage your whole global supply chain.” (Friedman p. 169) Many companies don't even touch their own products anymore. #8 - In-Sourcing : #8 - In-Sourcing An example of this is Toshiba laptops. Instead of taking a broken laptop to a UPS drop-off which is then shipped to the UPS hub and shipped back to Toshiba to be repaired and then shipped back to the customer by the same path it came; UPS is now repairing the laptops at the UPS Hub and sending them back without Toshiba ever actually touching the broken laptop saving time and money.
All of this is possible through the use of software that allows UPS type companies to monitor their packages to better determine how to make it faster and safer. It also allows drivers to know where the are, where they are going, where in the truck a package is located, and how to get where they are going. All these steps help the supply chain to moved much more efficiently. #8 - In-Sourcing : #8 - In-Sourcing This allows smaller companies to do with their supply chain management what big companies like Wal-Mart were only able to do. Allowing them to compete anywhere UPS (or other provider) is located worldwide even if the companies office is really in the CEO's mom's basement. #9 - In-forming : #9 - In-forming Search Engines!
(and Yahoo! and MSN Search)
Google is available in over 100 languages
In July 2008, Google registered
7.23 billion searches –
242 million a day
10 million searches in an hour or over
2772 searches per second. #9 - In-forming : #9 - In-forming "Never before in the history of the planet have so many people - on their own - had the ability to find so much information about so many things and about so many other people” - Friedman
Search engines have put immense power in the hands of… everyone! #10 – The Steroids : #10 – The Steroids The Steroids Turbocharge all the Flatteners
#1- The Evolving Nature of ComputingMore transistors all the time!
#2 - Instant Messaging and File SharingNapster, BitTorrent, AIM, MSN
#3 - Voice-Over-IP (VoIP)A business in Bali can have a Memphis phone number #10 – The Steroids : #10 – The Steroids #4 - Video Conferencing(this is built on VoIP)
#5 - Computer GraphicsYou can thank video games for this one!
#6 – THE UBERSTEROID!
Wireless Devices! #10 – The Steroids : #10 – The Steroids It’s not just Cell Phones anymore…
Text Messaging and Mobile E-mail
iPods and iPhones
Rolls Royce Engines that talk back to the factory while on Boeing 767s in flight!! The World is Flat! : The World is Flat! Because the playing field is leveled!
Your workplace, your business, YOU YOURSELF may have to compete against the whole… world.
As business majors, this impacts everything you plan on doing!
Always think of the big picture. The Global Picture!