The World is Flat

Ch. 5 - The America & Free Trade

Ch. 6 - The Untouchables

Ch. 7 - The Right StuffPresented by:Presented by:

Ann SinAnn Sin

Brian KwanBrian Kwan

Kelvin LukKelvin Luk

Kenneth LamKenneth Lam

Agenda

Is Free Trade/ Out-sourcing Good for US? Current Situation How to Be Untouchables Key to Success in the Flat World Examples

Outsourcing is good for US?Opponent: Mr. Robertsformer assistant Treasury secretary for economic policy in the Reagan administration

companies are now freer to move capital and technology around the globe in search of cheaper labor. E.g. India & China, harder for any industry to justify investing in or employing people in the U.S. and other high-wage countries.

unemployment results remaining capital is spread more thinly

E.g. shortage of nurses importing foreign nurses domestic nursing schools are unlikely to increase their enrollments. decline in labor productivity and real incomes domestic economy becomes a less efficient

Outsourcing is good for US?

Opponent: Mr. Roberts The higher the value added, the greater the incentive

to outsource the work. new industries and occupations will rise outsourced as well. First World wages and salaries can fall swiftly,

bring political instability

retraining is limited to domestic services, foreign labor is brought in!

Outsourcing is good for US?

Opponent: Mr. Roberts the U.S. has lost its lead in advanced-technology

products and now runs a deficit in advanced technology with China

losing its superiority in advanced-technology products

declining incomes Americans are heavily in debt

Outsourcing is good for US?Defender: Mr.Bhagwatiuniversity professor at Columbia University in New York

growing ability to import services radiologists in Bangalore read X-rays taken in

Boston.

facts for 1999-2002. The Bureau of Labor Statistics shows that, counting four IT-related sectors, the jobs expanded

outsourced jobs: over the next 15 years has been put at 225,000, which is less than 1.5% of the stock of available jobs in 2002.

more people employed

Outsourcing is good for US?

Defender: Mr.Bhagwati

prodigious technical change. Creates new skilled jobs, both by creating new products and

processes

Maintain the technology also requires skilled labor.

obesity epidemic

diabetes management, aging women

cosmetic surgery

Outsourcing is good for US?

Defender: Mr.Bhagwati Other companies continue to outsource

If you don’t

become seriously uncompetitive and could fold.

Current Situation

Threats Free Trade - Outsourcing Unemployment

Global Supply Chain - More Specialization Technology Advance - More Tradable Lost Comparative

Advantage Easily

Opportunities Efficiency

Lump of labor theory is Wrong

Unlimited Wants Growing Pie New Job opportunities

New Middle Jobs

Job Nature Collaborating with Others

- Doing Integrates Globally

Putting Disparate Things Together

More Personal Touch

Requirement Versatile - in Depth Skills & Broad

Scope - Learning & Growing

Adaptable - Ready to do anything

Like People

How to be untouchable?

“ Special or Specialized” E.g.: Michael Jordan, Madonna. Never be replaced by anyone else

“Localized” Their job must be done in specific location. It requires

face to face interaction or local knowledge

“ The New Middlers”

The New Middlers

Great Collaborators & Orchestrators Great Synthesizers Great Explainers Great Leveragers Great Adaptors Passionate Personalizers Great Localizers

Great Collaborators and Orchestrators

The key is the ability to be a good horizontal collaborator

E.g. able to run 24/7/7 supply chain Feel comfortable working with a global

company. Being able to operate in, mobilize and

manage a multidimensional and multicultural workforce

E.g. Sales, and management with the above ability

The Great Synthesizers

Creates value by putting together disparate things that you would not think of as going together

Dell’s value “ ability to synthesize much better than everyone else

E.g. Search engine optimizing brings together Mathematicians and marketing experts.

A Synthesizer:

Dell does little in design & manufacturing, but brings all parts together from others to put them in front of customers

Electronic Data Systems Corporation (EDS) futurist Jeff Wacker predicted:

Chief Information Officer(CIO)

Chief Integration Officer(CIO)

In the past:+ =

OS/2 IBM system

The Great Explainers

Person who can see complexity but explain It with simplicity

More important to be able to explain something to someone else than to doing technical work independently

Example: Howard Freeman case E.g. Managers, writers, teachers, producers

who are also good explainers

An Explainer: Howard Freeman

StartedSlideMaster

Photo-Imaging (1977)

Processing, duplicating

& enlarging slides

Explain how touse DC & compto process film

New career asexplainer

Rise of digitalphotography

The Great Adapters

Look for employee who are more adaptable and versatile

Gaining new competencies by constantly learning and growing

Able to see things from different perspectives rather than being pure technicians

An Adapter: Marcia Loughry

Marcia Loughry – EDS enterprise architect Studied accounting in college, dropped out to

work as a typist in EDS word-processing center in 1978

PCs were introduced → Mainframe & desktop publishing

Publishing software was introduced → Call center and help desk

An Adapter: Marcia Loughry

Later realized constant learning was essential Studied network operating systems, and the

became one of 1st Microsoft Windows NT server technicians in SMC

Be an expert on 3 topics:

Core bread & butter right now

Another topic closely associated

What is going to be done next

The Green People

People from BRICK ( Brazil, Russia, India, China, Korea) consume more and more.

Only way to survive: do more things with less energy and fewer emission

E.g. person who focus on “ bio- inspired solutions to looming energy and environmental problems.

A Leverager: EDS SMC

System Management Center (SMC) had 100 people without any expertise full-time monitoring data of other firms in the pastin the past

EDS leveraged more computing power to identify the root cause of any problem automatically

Specialized jobs: computer engineers who can design precise programs to work efficiently

Keys to Succeed in Flat World

Get Ready to be a NEW MIDDLER!!

Right Kind of Education System

4 Aspects:

1. “Learn How to Learn” You know today is OUT-OF-DATE soon! Be EXCITED about learning & LOVE learning

2. “CQ+PQ>IQ” Passion & Curiosity Self-motivators & Self-educators When you was a kids, you want to be a …….

Right Kind of Education System

Four Aspects:

3.“Like People” Managing & Interacting with others Involve Personalized & High-touch Interaction

4.“Nurture More RIGHT BRAIN” Right Brain: Context, Emotion & Synthesis Tackling NEW challenges instead ROUTINE Synthesize the BIG Pic. Instead a SINGLE one Way of nurturing: Intrinsic motivation

Right Kind of Education System

E.g. in Georgia Institute of Technology:

“Good Engineer” = “Good Musician, Singer….” Able to Communicate Tie Thing Together from Different Disciplines

“Facilities” Recital Room & Concert Area Music Building & Stage Exercise students TALENTS

Right Kind of Education System

E.g. in Georgia Institute of Technology:

“Threads” Creation of Students with Fixed Set of Skills Broad Collection Skills and Learning Experience

in Globally Competitive Conceptual Age Intuitive, Flexible & Mutually Strengthening

“The whole notion of separate dept is CRAZY!!” Run Through the Whole Curriculum

Right Education: Georgia Institute of Technology, Atlanta

Selected students on a sort of Darwinian weeding-out process, focused entirely on grades

Low graduation rates due to gray curriculum & atmosphere

To get more students applying & graduating, admission policies was changed to recruit & admit engineering students with musical background

Right Education: Georgia Institute of Technology, Atlanta

People having other interests tend to communicate more, tend to ask for help readily, help others more who need help, and think horizontally

Result: Large increase in music courses > 50% of students played musical instruments or

participated in musical groups Graduation rates jumped from 65% to 76%

Right Education: Georgia Institute of Technology, Atlanta

After dot-com bubble, computer science enrollment at Georgia Tech started to drop precipitously

DeMillo and Furst redesigned the CS major around 9 threads

Each thread is a combination of computing with another field → synthesis of knowledge

Right Education: Georgia Institute of Technology, Atlanta

Each student need 2 threads to get a CS degree 9 threads = Computing +

Intelligence Embodiment Internetworking Platforms Information People Media Modeling Computing Foundations

Right Education: Georgia Institute of Technology, Atlanta

Aim: Put things together that make sense Georgia Tech model: recognizes the world is

increasingly operate off the flat-world platform, with its tools for all kinds of horizontal collaboration → schools should embed these tools & concepts of collaboration into the education process

Right Country

“Free Market Economy” Competition btw States and Universities Tear Down & Build Up More Services Delivered Globally

”Protects Minority Interest” Intellectual Property Protection Enhances & Encourage New Ideas

Right Country

“Flexible Labor Laws” Fire & Hire

“Political Stability”

“High Level of Trust” Innovation, Currency & Justice

Questions & Answers