Leadership Book Club

The World is Flat

by Thomas L Friedman

1.0 -1492 to1800 Countries globalize Large to Medium

2.0 - 1800-2000 Companies globalize Medium to Small

Steam engines, Railroad, WW1&2, phone, radio, TV

3.0 2000-Present Individuals collaborate/compete globalize Small to Tiny

Globalization to GlocalizationCountries -> Companies -> Individuals

1. Collapse Berlin Wall

2. Netscape IPO

3. Workflow Software

4. Uploading

5. Outsourcing

Ten Flatteners6. Off shoring

7. Supply Chains

8. In Sourcing

9. Informing

10. Steroids

Communism ends

Collapse of the Berlin Wall

Other markets begin to open trade freely

#1: Berlin Wall Collapse Nov1989

4 years after invention of internet

Away from PC toward internet society

# Internet users doubles every 53 days

Windows 95

Excessive supply fiber optics

Communication prices drop

#2: Netscape IPO – August 1995

For the first time people could work together from different locations

New program coding and hardware

#3: Workflow Software

People begin uploading information to the internet

Created a global market for collaboration all over the world

Communities collaborating online

Blogging

Wikipedia

#4: Uploading

Y2k – India

Programmers & Engineers work for less money

Not about saving money but innovation

#5: Outsourcing

#6: Off Shoring

Wal Mart – repeatable systems become science

Just in time delivery

Suppliers become alliances

IT Streamlined

#7: Supply Chains

UPS now using innovative solutions beyond shipping acting as part of “your” company

UPS facilitates Toshiba laptop repairs for 3 day turn-around

Nike – filling orders from warehouses that are staffed and operated by UPS

UPS now manages pizza supply delivery for Papa John’s

#8: Insourcing

Google is "now processing roughly one billion searches per day, up from 150 million just three years ago". -Thomas L Friedman

#9: Informing

Video Conferencing

#10: Steroids

Wireless

Instant Messaging

VoIP

#Hashtags

Triple Convergence Made The World Even Flatter

1. Pre 2000, all flatteners were independent of one another. Around that time all ten of these flatteners started to work with each other and reinforce one another.

2. This reinforcement created a new business model that involved horizontal interaction of value and collaboration. We are learning how to work effectively around this.

3. The fall of the Berlin Wall led to Russia, India, China, Eastern Europe, Latin America and Central Asia opening up their economies to the world. They added their intellectual property to the marketplace and will influence politics and economics.

THE FUTURE •Pay based on merit, not geography or degrees

•Traditional work places become virtual

•Staying employed means you must stand out

•Employers have larger workforce than ever

•The USA is not ready

•More communication then ever

Proposed Solutions

1. Education – Mathematics, Engineering and Science

2. Parents – Tell your kids

3. Flexibility -Keep learning new skilIs

4. Government insurance & benefits replace employer

5. If you have a great business idea don’t wait because it will either be done to you, or for you

6. How? Character still matters – we have to be better than ever at building relationships – trust is the key