2. e World is Flat
e globalized world in the twenty-first century
Thomas L. Friedman
summarized by
Andi S. Boediman
Strategic Innovation Consultant
andisboediman@gmail.com
www.ideonomics.com

3. Globalization

4. 1492-1800 Globalization 1.0
Shrank world from a size Large to Medium
Countries globalizing

5. 1800-2000 Globalization 2.0
Shrank world from a size Medium to Small
Companies globalizing

6. 2000+ Globalization 3.0
Shrank world from a size Small to Tiny
Individuals collaborating &
competing globally

7. Flattener

8. 10 Flattening Factors
• Berlin Wall Coming Down
• Netscape IPO
• Work Flow So ware
• Uploading
• Outsourcing

9. 10 Flattening Factors
• Offshoring
• Supply-chaining
• Insourcing
• In-forming
• e Steroids

10. 11/9/89
• Berlin Wall comes down
• Tipping point for free market societies
• Moved away from central planning
• Empowered individuals
• “Evil Empire” defeated by:
– Reagan?
– CNN?
– Gates, Jobs, McNealy,…?
– Bin-Laden?

11. 8/9/95
• Netscape IPO
• 4 years a er Berners-Lee invented the Web
• Universal usability, accessibility and
interoperability of the Web
• Win 95 shipped 15 days later
• Number of Internet users doubling every 53
days

12. 8/9/95
• Spawned Internet bubble
• Overabundance of fiber optic capacity
• Communication costs plummeted
• “Second buyer” (India) made out like a
bandit

13. Workflow Software
Let’s Do Lunch: Have Your Application Talk to My Application
• Collaboration
• Rapid development
• Rapid deployment
• Cheapest sources for coding, testing,
implementation
• Everyone can create and maintain digital
content

14. Uploading
Self-Organizing Collaborative Communities
• Open source
– For production
– Apache blessed by IBM
– Geeks making business decisions
• Blogs
• Wikipedia
• Not controlled by corporations or Government

15. Outsourcing
• Y2K and India
• Talented competent programmers and
engineers who will work for less
• Economic imperative
• Outsource everything you possibly can

16. Offshoring
• Rather than outsource jobs,
• Send the whole factory to India or China
or Indonesia or ……
• Not just manufacturing
– Management
– Medical
– Consulting
– Accounting

17. Walmart

18. Supply-chaining

19. Supply-chaining
• Wal-Mart is the 800-pound gorilla
• JIT to the nth degree
• Totally integrated
• IT infrastructure as a key competitive advantage
• Suppliers as partners
• RFID

20. Insourcing

21. Point 1 - UPS is not only shipping parcels, but also
providing smart business solutions
Example #1:
UPS fixes laptops for companies to speed up service.
3 day turn-around, instead of week (s) for product
repairs

22. Example #2: Take orders from Nike.com, fill the order from a
warehouse staffed and operated by UPS and ship with UPS.

23. Insourcing
• UPS
• Intimate collaboration
• 3rd-party managed logistics
• “ ey” act as part of “Your” company
– Fixing Toshiba laptops
– Managing delivery of Papa John’s Pizza supplies
– Packaging Segrest Farms live tropical fish for delivery
– Picking, inspecting, packing and delivering Nike shoes
– Same for Jockey shorts
– Working with Plow and Hearth furniture suppliers to improve
packaging and reduce breakage

24. In-forming
• Building and deploying your personal
information supply-chain
• Google – now 1 billion searches per day
• Soon “everything” will be searchable

25. The Steroids
• “Making collaboration digital, mobile, personal, virtual” –
Carly Fiorina
– Computing capabilities - including speed, I/O rate and storage
capacity
– IM and file sharing – BitTorrent, Kazaa
– VoIP – Skype
– Video Conferencing – HP & SKG
– Advanced graphics – from video games
– Wireless – communicate with anyone from anywhere

26. Triple Convergence

27. It is this triple convergence - of new
players, on a new playing field,
developing new processes and habits
for horisontal collaboration -
that I believe is the most important force
shaping global economics and politics in
the early twenty-first century.

28. The New Middlers

29. The New Middlers
• e Great Collaborators and Orchestrators
• e Great Synthesizer
• e Great Explainers
• e Great Leveragers
• e Great Adapters
• e Green People
• e Passionate Personalizers
• e Great Localizers

30. Education

31. The most important ability is
to learn how to learn

32. CQ + PQ >IQ
CQ: curiosity quotient
PQ: passion quotient
IQ: intelligent quotient

33. Now that foreigners can do left-
brain work cheaper, we in the
US must do right-brain work
better

34. e
coming
tsunami
in public
education

35. Challenges
• Numbers gap
• Ambition gap
• Education gap (top & bottom)
• Funding gap
• Infrastructure gap
• In the Age of Flatism, these gaps are what
most threaten our standard of living.

36. Rules

37. Rule # 1
“When the world goes flat – and you are
feeling flattened – reach for a shovel and dig
inside yourself. Don’t try to build walls.”

38. Rule #2
“And the small shall act big . . . One way small
companies flourish in the flat world is by learning
to act really big. And the key to being small and
acting big is being quick to take advantage of all
the new tools for collaboration to reach farther,
faster, wider, and deeper.”

39. Rule #3
“And the big shall act small . . . One way that
big companies learn to flourish in the flat
world is by learning how to act really small
by enabling their customers to act really
big.”

40. Rule #4
“ e best companies are the best collaborators. In
the flat world, more and more business will be
done through collaborations within and between
companies for a very simple reason? e next
layers of value creation are becoming so complex
that no single firm or department is going to be
able to master them alone.”

41. Rule #5
“In a flat world, the best companies stay
healthy by getting regular chest X-rays and
then selling the results to their clients.”

42. Rule #6
“ e best companies outsource to win, not to
shrink. ey outsource to innovate faster
and more cheaply in order to grow larger,
gain market share, and hire more and
different specialists – not to save money by
firing more people.”

43. notes
You can use this summary for non commercial purposes
and cite the credit.
If you can improve this presentation with better slide/
image/illustration, please send it to my email and I will put
them as part of future update.
summarized by
Andi S. Boediman
Strategic Innovation Consultant
andisboediman@gmail.com
www.ideonomics.com