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In The World Is Flat, Thomas L. Friedman discusses events and technologies that are flattening the world and increasing globalization. Friedman feels the world is highly interconnected without regard to hierarchy, distance, organizational size, individual status, culture, or language. He describes ten "flatteners" that are reshaping the world.
Flattener 4 - Uploading
Uploading is Friedman's word for people creating content and contributing to the Internet. This document is an example. Perhaps the most significant is the development of open source software. Hierarchy and organization are not required; quality content and work product can come from anywhere.
Flattener 5 Outsourcing
Friedman recounts the story of Jack Welch at GE forcing his IT people to contract out some of their work to Indian vendors, starting a tidal wave of change.
Flattener 6 - Offshoring
With instant and virtually cost free global transmission of data and communication, companies can place each business department responsible for one part of the value chain in the most productive geographic location.
Flattener 7 - Supply-Chaining
The rapid, accurate global movement of components and finished goods is now possible on an unimaginable scale. Freidman describes a Wal-Mart distribution center as an example.
Flattener 8 - Insourcing
If a company has an extraordinary skill, it may market that skill as a service even though the company appears to be getting into something totally unrelated to their basic business. Freidman used UPS as an example. UPS, the package delivery company, has a major hub at Louisville Airport. Toshibas turn around time on the repair of laptop computers was too long and affecting customer satisfaction. They turned to UPS to operate the repair shop in Louisville. Computers are returned to the customer in 3 days. UPS is also managing Papa John's pizza delivery as well as their supply logistics. UPS is good at scheduling, delivering and keeping track of items. UPS sells that skill as a service.
Flattener 9 - In-Forming
Friedman describes this as "the individual's personal analog to uploading, outsourcing, insourcing, supply-chaining and offshoring... the ability to build and deploy your own personal supply chain - a supply chain of information, knowledge and entertainment."
Flattener 10 - Steroids
All sorts of things are happening to magnify the previous nine flatteners. Examples are the continued effects of Moore's Law, wi-fi, instant messaging, file sharing, P2P, VoIP, videoconferencing... Next he talks about "the triple convergence" which brings home how these ten flatteners are changing and will change the world. His first point is the sum is more than the parts. Each development has value in itself but it is much more valuable when combined with the others. A PC is great, but coupled with the internet the possibilities expand tremendously. The ten flatteners taken together constitute a quantum leap and "created a whole new platform. It is a global Web-enabled platform for multiple forms of collaboration". The second convergence addresses the fact that the world today looks much the same as the world yesterday. With any major technological advance there is a lag between invention and major impact because organizations, processes, and facilities have to be redesigned around the new capability. Friedman gives various examples starting with light bulbs and electric motors. Each changed society but there was a lag. The third convergence is globalization. He speaks of "new players, on a new playing field, developing new processes and habits for horizontal collaboration - that I believe is the most potent force... The scale of the global community that is soon going to be able to participate in all sorts of discovery and innovation is something the world has simply never seen before." He sites many examples of international developments.