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Title: Maryville University EDL


1
Maryville UniversityEDL 763THE World is flat
  • Book Presentation
  • by
  • Chris Garland, Kim Tooley, Marcie
    Burkemper, and Todd Benben

2
DEFINING THE FLATTNERS
3
iNTRODUCTION While I Was Sleeping
  • Realization The field is being leveled and
    other countries are able to compete for global
    knowledge. In essence, the world is being
    flattened.
  • The flattening means that we are connecting all
    knowledge centers on the planet together into a
    single global market.
  • The use of computers, email, fiber-optic
    networks, teleconferencing, and new software are
    the tools that are allowing the world
    communicate.

4
Problem with the flattening
  • The playing field is being leveled in more ways
    than with just innovators is also drawing in and
    giving power to a group of angry and frustrated
    people Al Qaeda.

5
THE FlattenerS
6
Flattener 1- 11/9/89When the Walls Came Down
and the Windows Went Up
  • The fall of the Berlin Wall liberated many
    captive people of the Soviet Empire.
  • It tipped the balance of power across the world.
  • The power shifted to those in favor of
    democratic, consensual, free-market oriented
    governance.
  • Until the fall of the Wall, the Cold War had been
    a struggle of between 2 economic systems-
    capitalism and communism. After the fall,
    communism diminished.

7
The Fall of the Wall cont.
  • Finally, the fall of the wall paved the way for
    adopting common standards such as
  • how economies should be run
  • how banking should be conducted
  • how PCs should be made
  • how economics papers should be written
  • Enhanced the free movement of best practices

8
The Opening of Windows
  • 1st version hit markets in 1985.
  • Eliminated a barrier the limit on the amount of
    information that an individual could amass,
    author manipulate and diffuse.
  • The Windows-powered PC enabled millions of
    individuals, for the first time ever, to become
    authors of their own content in digital form,
    which meant that content could be shared far and
    wide
  • Craig J. Mundie- CTO Microsoft
  • This level of connectivity put the nail in the
    coffin of communism. Freidman

9
Flattener 2 8/9/95When the Web Went Around
and Netscape Went Public
  • Breakthrough in Connectivity World Wide Web and
    Netscape going public on 8/9/95
  • Netscape brought the internet alive and more
    accessible.
  • Netscape demanded more computers, software and
    telecommunication networks that could digitize
    words, music, data and photos.

10
Flattener 2 cont.
  • This flattener is responsible for the birth of
    AOL, newer versions of PC-Windows, Google, Yahoo
    and the dot-com boom.
  • It also allowed the telecommunications giants
    such as the Baby Bells and ATT to provide both
    phone service and infrastructure for internet.

11
Flattener 3 Work Flow Software
  • Work Flow Software created the seamless transfer
    of work from place to place and continent to
    continent. This innovation allowed people to
    shape things, design, create, sell things, buy
    things, keep track of inventories, taxes, etc.
  • The first big breakthrough was the combination of
    the PC and email - Windows enabled this.
  • SMTP simple mail transfer protocol enabled
    the exchange of email between different computer
    systems.

12
  • Examples
  • Higglytown Heroes by Disney
  • Pay Pal 1998 anyone with email can send money
    to anyone else with an email

13
Flattener 4 Uploading
  • Uploading is a term used for getting information
    and the ability for anyone to be a producer, not
    just a consumer
  • Is potentially the most disruptive of the
    flatteners how many people will be in the game?
  • Types of uploading
  • Community Developed Software Movement
  • Wikipedia
  • Blogging/Podcasting

14
CommunityDeveloped Software Movement
  • Also known as open-source communities
  • Derived from the notion that companies and ad hoc
    companies should make available online source
    codes - the instructions that make software work
  • Peer-reviewed science

15
Example
  • Apache Open Source Web server community
  • Virtual, online, bottom-up software factory
  • Single server that can host thousands of
    different virtual websites

16
Flattener 5 - Outsourcing
  • Outsourcing- to purchase good or services from
    and outside source
  • The US began purchasing serviced from India for
    one-fifth of the rate in the US Y2K
  • Example Health Scribe India

17
Flattener 6 Offshoring
  • Is when a company takes one of its factories that
    is operating in say Canton, Ohio and moves the
    whole factory offshore to Canton, China.
  • There it produces the very same product in the
    very same way, only with cheaper labor, lower
    taxes, subsidized energy and lower health-care
    costs.

18
  • This has created a process of competitive
    flattening, in which countries scramble to see
    who can give companies the best tax breaks,
    education incentives, and subsidies, on top of
    their cheap labor, to encourage offshoring the
    their shores.

19
China is a threat, China is a customer, and
China is an opportunity.-Kenichi Ohmae,
Japanese business consultant
The average wage of a high-skilled machinist in
America is 3,000 to 4,000 a month. The average
wage for a factory worker in China is about 150
a month. If Americans and Europeans want to
benefit from the flattening of the world and the
interconnecting of all the markets and knowledge
centers, they will all have to run at least as
fast as the fastest lion and I suspect that
lion will be China, and I suspect that will be
pretty darn fast. -Thomas Friedman
20
Flattener 7 Supply-Chaining
  • Is a method of collaborating horizontally among
    suppliers, retailers, and customers to create
    value.
  • The more these supply chains grow and proliferate
    they force the adoption of common standards
    between companies and the more they encourage
    global collaboration.

21
WALMART
  • No company has been more effective at improving
    and perfecting its supply chain than Walmart.
  • Theyre a phenomenal channel but a tough
    customer. They demand excellence.
  • -Joseph F. Eckroth Jr., CIO at Mattel Inc.

22
Flattener 8 Insourcing
  • Is a whole new form of collaboration and creating
    value horizontally, made possible by the flat
    world and flattening it even more.
  • It came about because once the world went flat,
    small companies could suddenly see around the
    world in a matter of seconds.

23
UPS
  • UPS now comes inside a lot of companies and takes
    over their branded vehicles to assure on-time
    delivery
  • Papa Johns
  • Nike
  • Jockey
  • HP,
  • eBay
  • Ford,
  • (to name a few)
  • UPS is the largest private user of wireless
    technology in the world

.
24
Flattener 9 In-forming
  • Is the ability to build and deploy your own
    personal supply chain a supply chain of
    information, knowledge, and entertainment.
  • Informing is searching for knowledge.

25
Characteristics of InforminG
  • There is no bigger flattener than the idea of
    making all the worlds knowledge, or even just a
    big chunk of it, available to anyone and
    everyone, anytime, anywhere.
  • The access to the worlds knowledge is in our
    pockets.
  • Google is now processing roughly one billion
    searches per day.

26
Flattener 10 The Steroids
  • These are certain new technologies that are
    amplifying all other flatteners.
  • They are
  • -Virtual transmit content at very high speeds
    and with total ease
  • -Mobile with wireless technology all can be
    done from anywhere, with anyone, through any
    device, and can be taken anywhere
  • -Personal can be done by you, just for you, on
    your own device

27
The Steroids
28
America and the Flat World
29
America and Free Trade
  • Who is Ricardo and why do we care what he thinks?
  • David Ricardo (1772-1823) English economist who
    developed the Free Trade theory If each nation
    specializes in production of goods and then sells
    it to another nation at a comparative cost
    advantage, each nation will benefit.
  • Americans fear free trade because they see
    outsourcing of jobs as a death toll to our
    economy.

30
Is Ricardo Right?
  • Friedman says Protectionism would be
    counterproductive, free trade will not work
    without a focused domestic strategy aimed at
    upgrading skills and the education of Americans.
  • It must be accompanied by foreign strategy of
    opening restricted markets bringing more
    countries into the global free-trade system,
    increasing demand for goods and services,
    encouraging innovation and reducing unemployment
    and job migration.

31
Free Trade The Lump Theory
  • People in India and China will work for less and
    will gobble up all the middle level jobs, leaving
    Americans with nothing.
  • This theory assumes that everything that is going
    to be invented has already been invented
    resulting in a zero gain.
  • Wages are low in other countries because they are
    trapped in a stifled economy. When borders open,
    salaries will rise.

Free Trade The Lump de-bunk
32
Look at Past History
33
Look at Past History
34
When one door closes, another opens
  • Example
  • Semiconductors could be manufactured cheaper in
    other countries. As more chips became available
    more computer applications were created. Google,
    Yahoo, Microsoft offered video searches which
    required new chips...
  • Companies were able to focus on other areas when
    one area disappeared.
  • The Pie grows, but no one saw it.

35
End Result
  • People fear change
  • Fear is good because it activates the fight or
    flight instinct
  • That instinct allows for creation of new ideas
    and jobs that connect to others
  • Upgrading skills, firing up imagination, seeing
    the bigger picture in a global society

36
Finding the New Middle
  • New jobs will go to the best, smartest, most
    productive or cheapest worker, wherever these
    people reside
  • Find ways to make yourself untouchable doing
    something no one else can do or cannot be
    outsourced
  • The flatter the world gets, the more digitized it
    becomes

37
The Untouchables?
  • Specialized or special
  • Michael Jordan, Elton John, JK Rowling, your
    brain surgeon
  • Localized or anchored
  • Repairmen, a dentist, an audience,
  • Formerly middle class jobs these are at risk
  • Assembly line workers, accounting, data analysis,
    radiology

38
What shape are we?
  • U.S. economy used to be a bell curve The bulge
    in the middle was the working class
  • We are quickly become a bar bell. Our middle
    class is dwindling
  • We have to embrace the ebb and flow of a moving
    economy

39
What does the new middle look like?
40
The Right Stuff
  • In the future, how we educate our children may
    prove to be more important than how much we
    educate them
  • Rich nations will have to transform the
    educational systems to produce a more flexible
    labor force

41
What class should I take?
  • Learn How To Learn
  • Navigation classes
  • CQPQgtIQ
  • Liberal Arts
  • Right Brain thinking skills

42
And now, a musical interlude
  • Tubas vs Test Tubes
  • The Georgia Tech affect

43
Is this a great country?
  • The key to getting through the crisis is to
  • Have resources
  • Have access to higher education
  • Have flexibility
  • Be open to new ideas
  • Have high trust

44
The Quiet Crisis
  • We still believe we are invincible based off of
    past history
  • The Olympic basketball team
  • World War II
  • We have a solid educational structure that cant
    be beat

45
Post WWII problems
  • First generation out nose to the grind stone
  • Second generation holds it together
  • Third generation feels entitled, becomes
    complacent
  • While we took things for granted, other countries
    were gaining on us.
  • Years later, we are on the edge of crisis

46
Things that make you go hmmm
  • a pronounced tendency in recent years to extol
    consumption over hard work, and investment,
    immediate gratification over long-term thinking
    and sacrifice. When we got hit with 9/11, it was
    a once in a lifetime generation opportunity to
    summon the nation to sacrifice, to address some
    of its pressing fiscal energy, science and
    education shortfalls all the things we had let
    slide

47
.hmmm
  • But our president did not summon us to
    sacrifice. He summoned us to go shopping.
  • Thomas Friedman

48
Dirty Little Secret 1
  • The Numbers Gap
  • In 2004, nearly 40 of the people at NASA are age
    50 or older
  • Only 4 of workers are under 30
  • NASA is having trouble finding competent,
    sufficient science, engineering, and
    informational technology specialist that are
    crucial to its operations.

49
Dirty Secret 1 cont.
  • By 2010, two-thirds of the nations mathematics
    and science teaching force will retire
  • We are educating fewer math/science students, but
    the need is growing
  • The number of American 18-24 year-olds who
    receive science degrees has fallen to 17th in the
    world We were ranked 3rd three decades ago

50
Dirty Secret 2
  • The education gap at the top in 2004 the Intel
    Fair attracted 64,000 American students. In
    China there were 6 million kids competing.
  • Our test scores are stagnant Asian countries
    are setting the pace
  • In 2005, The New York Times reported that college
    graduates were scoring lower in English literacy.
    There were steep declines in Hispanic and African
    American populations

51
Dirty Secret 3
  • The Ambition Gap Our kids are not working hard
    enough. They are distracted by other things
    (video games, professional athletics, the music
    business)

52
Dirty Secret 4
  • The Ambition Gap at the Bottom Find a way to
    educate every American it will look diffent
    than we now know

53
Dirty Secret 5
  • The funding gap - Stop cutting the science and
    math funding

54
Dirty Secret 6
  • The Infrastructure Gap We lack the digital
    capabilities of the rest of the world.

55
The Bottom Line
  • We have to focus on educating more people in
    science and math
  • We have to be more creative, innovative
  • We must open ourselves up to new ideas in
    business and education
  • Everyone must have an opportunity to be
    retrained/educated
  • We have to hire talent wherever it resides

56
The Flattening impact
  • What does flattening mean to countries,
    companies, communities, and individuals?

57
Overview
  • The how and why according to Thomas Friedman,
    globalization has shifted into warp overspeed due
    to technology and communications.
  • What does this mean to countries, companies,
    communities, and individuals?
  • How will governments and societies adapt?

58
Developing Countries and the flat world
  • Mexican journalist realized he was living in a
    flat world when he read on the internet that The
    Virgin of Guadalupe (Mexicos patron saint)
    statues were being imported into Mexico from
    China.
  • In 2003, China replaced Mexico as the number two
    exporter to the United States. Canada remains
    number one.
  • Chinese central bank official told a reporter in
    their relationship with the United States,
  • First we were afraid of the wolf, then we wanted
    to dance with the wolf, and now we want to be the
    wolf.

59
Introspection
  • The first thing any developing country needs to
    do is to engage in brutally honest introspection.
  • Like an AA meeting, developing countries need to
    say, I am underdeveloped, I am underachieving, I
    have not lived up to my full potential.
  • Each country needs to go through an x-ray
    examination and find out your limits. Take a
    brutally honest look at your strengths and
    weaknesses.

60
3 basic principals for developing countries in a
flat world
61
Examples
  • Egypt guarantees all college graduates a job each
    year. They have been mired in poverty with a
    slow-growing economy for 50 years.
  • It is not just jobs, but increasingly productive
    employment that allows living standards to rise.
  • It takes 2 days to start a business in Australia,
    but 203 days in Haiti and 215 in the Democratic
    Republic of Congo.

62
Suggestions for Economic growth
  • Make reform a continuous process
  • Regulation must make it
  • Easy to start a business
  • Easy to adjust a business
  • Easy to close a business.
  • Excessive regulation tends to hurt most of the
    very people it supposed to protect.

63
Ireland- from sick man to rich man in Europe in
less than a generation
  • In late 1960s Irelands government eliminated
    the fee for secondary education.
  • Joined European union.
  • Slashed corporate taxes by 12.5
  • In 1996, Ireland made public college education
    basically free, creating an even more educated
    work force.
  • Ireland is actively recruiting the best and
    brightest from all over the world to come and
    study and research in Ireland. They know
    industry will go to where major research is
    centered.

64
Culture
  • Key factors internalize the values of hard
    work, thrift, honesty, patience, and tenacity as
    well as being open to change, new technology and
    equality for women.
  • According to Jerry Rao, MphasiS CEO, Cultures
    that are open and willing to change have a huge
    advantage in this world.
  • Culture matters but culture is nested in contexts
    not genes and as those contexts and local leaders
    change and adapt so too can culture.

65
Will Rogers
  • Even if youre on the right track, youll get
    run over if you just sit there.

66
How companies cope in a flat world
  • Rule 1 When the world goes flat-and you are
    feeling flattened- reach for a shovel and dig
    inside yourself. Dont try to build walls.
  • Rule 2 And the small act bigOne 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
  • 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.
  • Rule 4 The 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 The next layers of value creation-whether
    in technology, marketing, biomedicine, or
    manufacturing-are becoming so complex that no
    single firm or department is going to be able to
    master them alone.

67
How companies cope in a flat world
  • 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.
  • Rule 6 The best companies outsource to win, not
    to shrink. They 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 people.
  • Rule 7 Outsourcing isnt just for Benedict
    Arnolds. Its also for idealists.

68
Summary
  • Imagination 11/9, vs 9/11
  • When the Berlin wall came down on 11/9 it spoke
    opportunity and creative imagination
  • 9/11 brought fear of terrorism and destructive
    imagination of the worst that could happen
  • We encourage creative imagination when authority
    comes from the bottom up, where people feel
    self-empowered to improve their lot
  • Without this empowerment, people look for who to
    blame
  • In this flat world, we need educational systems
    to inspire the creative imagination of the next
    generation by fostering this sense of
    self-empowerment
  • We need to prepare kids to meet the challenges of
    this future world
  • Reach their full potential
  • Get validation and respect from achievements in
    this world
  • Foster them with more dreams then memories
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