The World is Flat A brief History of the 20th Century

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