The World is Flat

By Thomas Friedman

Report by Loewen S. Kho

Globalization

leveling the playing field

Increases opportunities

Makes work more competitive

“Flatteners”

Barriers are broken through improved communication

More things are getting done through collaboration

Technology: PC, Faster Internet, and Better Software

Collapse of Berlin Wall

Ended the Cold War

Fall of communism in Europe: Germany

Capitalism: Free Market Capitalism

Rise of the PC

Microsoft Windows (1981)

Windows 3.0 – Better GUI – 1990

Improved productivity and communication

Netscape

Web Browser – used to browse content on the web

Mosaic to Netscape to internet explorer to mozilla to Chrome.

Made internet accessible to everyone

Paved the way to better communication

Internet became truly integrated.

Workflow Software

Software technologies that allowed work to flow.

XML + SOAP + DBMS

Middleware was developed to allow two different systems to be connected.

Advanced software and internet communications allowed work separated into sub groups.

Allowed companies, divisions, and departments to connect systems.

Automated processes: paved the way for automated payroll, e-commerce, supply chain integration.

Open Source

Apache Web Browser – a free software that powers more than 55% of the Internet’s Servers.

Apache gave rise to sophisticated Web Sites, Online Games, real time chat, e-commerce.

Opensource (Apache) – Innovate Internet

Gave rise (indirectly) to Web Standards, and Communication protocols

Outsourcing

Call Centers?

Allowed companies to split activities into components and subcontracted providing efficiency in both cost and performance.

Companies in other countries suddenly are sought out.

Year 2000: E-Commerce emerged

Offshoring

Outsourcing is taking an operation and having it done somewhere else. Offshoring is doing the Whole Manufacturing, or the Whole Business elsewhere. (China)

greater competition worldwide.

also allowed companies to seize markets in another country by increasing awareness.

China joined WTO on Dec 11, 2001.

Supply Chain

Streamlined processes

Better Information Systems

IT providing competitive advantage: Walmart

Insourcing

Gives companies, big and small, to compete worldwide.

UPS taking charge of logistics, repairs, replacement, etc (Streamlining the whole process)

Informing

Search Engine

Social Media

"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"

The Steroids

Amplifies the flattening of the other Flatteners

Wifi, VoIP, File Sharing, iPhone, Mobile Internet, Blackberry

Productivity Apps, Finance Apps, Portable Inventory Management Software.

Smart: Tap Share (NFC) - a technology which allows contactless data exchange between two devices in close proximity with each other. (Think Smart Money and the number of subscribers)

All can be done in quick, can be done anywhere, 24/7, 365

Convergence

Technologies began to converge complimenting and enhancing each other. Ex. Newsgroup+email+chat = Facebook. Facebook+e-commerce = Online Shop.

B2B converged – Banks can communicate with each other in real time. Inventory can be tracked realtime.

China, Russia, Germany, Turkey, India, etc opened their economies to the world making it even more competitive

What now, Philippines

We are no longer competing in the Philippines, we should prepare to be competitive worldwide.

The Government should take advantage of technology – just like MMDA.

The Philippines, specifically, the Cities, should expand with the goal of improving economic activity in the whole Philippines.

Universities should upgrade their curriculum, not just offer basic computer courses.

Businesses should be sure to be more efficient, they should think Global too. Know that they are in competition with companies from China, Vietnam, US, Europe, etc.

The End