As the title suggests this chapter is about two dates that have forever changed not only the United State but also the world. 11/9 was about tearing down walls and opening up the world “so every human being would realize his or her full potential.” During that time, we saw the world open up like never before and for the first time ever we had the opportunity to be truly global. The events of 9/11 served a different purpose. Hate and power forced us to put up walls once again and served to close up the world.
What Friedman focuses on here is both of these events took imagination. With the tools we have available to us today we really have the power to create almost anything. We are only limited by our imagination. This reinforces one of themes throughout the book, the power of the individual. Never before has an individual had so much power as we do today. In earlier posts and comments, I was concerned about how we are to compete in this flat world and this chapter made me realize something. We as individuals have as much access to the flat world as anyone in India or China. We as individuals need to focus on how we can utilize this to our advantage! I love the quote from the text, “We need to think more seriously than ever about how we encourage people to focus on productive outcomes that advance and unite civilization- peaceful imaginations that seek to minimize alienation and celebrate interdependence rather than self-efficiency, inclusion rather than exclusion. The phrase describes how we can ensure future world changing events are more in line with 11/9 and not 9/11. As Friedman put it, we have the options of brining everyone up to the same level or bringing everyone down to the same level.
Another key thing to pull from this chapter is the fact that we cannot live in fear of what could happen. We cannot let events like 9/11 change us into a fearful nation. When we do we all become small minded and essentially put ourselves in our own cave.
This chapter also answered a question for me. Why are things like Wikkipedia and open-source communities so popular? I honestly could not see what could motivate people outside of the financial gain. Well apparently, the sense of ownership is enough to motivate people to contribute. People also get a validation that is perhaps greater than any financial award.
Saturday, December 1, 2007
The Dell Theory of Conflict Prevention
It is interesting to see the influence that the flat world had had on traditional geopolitical conflicts. These issues that once could have devastated the world such as conflict between North and South Korea have simmered down due to flat world collaborations. The theory behind this is simple, as countries become more involved in global trade and economic development wars and conflict become less prevalent.
The Dell theory of Conflict Prevention grew from the Golden Arches Theory of Conflict Prevention. Freidman found that no two countries with a McDonalds had ever fought a war with each other, which proves that once countries become more economically developed wars are less rampant. This theory has grown in the flat world to state the no two countries that are part of the same global supply chain will ever fight a war against each other. This has happened because companies that invest in the countries require some degree of stability or assurance that there will be no disruptive events. The governments and people of these nations have realized the economic benefit of peace and they do what they can to maintain it. There is no better proof of this than the relation between Taiwan and China. Both countries, at one time diametrically opposed, are deeply immersed in global supply chains and highly invested in each other.
The Dell Theory of conflict prevention only goes so far. There are still several “hot spots” that are not part of a major global supply chain, such as Iraq. Just because they are not collaborating in a global supply chain does not mean they are not using the tools of the flat world to collaborate. One example of this is Al-Qaeda, which according to Friedman uses these same tools for “ mayhem and murder”. This theme has been present throughout this book. Of all the positive thing bought on by the flattening of the world just as many negatives have spawned. As it was discussed in the last chapter, many of the negative side effects will dissipate as people begin to fight them.
The Dell theory of Conflict Prevention grew from the Golden Arches Theory of Conflict Prevention. Freidman found that no two countries with a McDonalds had ever fought a war with each other, which proves that once countries become more economically developed wars are less rampant. This theory has grown in the flat world to state the no two countries that are part of the same global supply chain will ever fight a war against each other. This has happened because companies that invest in the countries require some degree of stability or assurance that there will be no disruptive events. The governments and people of these nations have realized the economic benefit of peace and they do what they can to maintain it. There is no better proof of this than the relation between Taiwan and China. Both countries, at one time diametrically opposed, are deeply immersed in global supply chains and highly invested in each other.
The Dell Theory of conflict prevention only goes so far. There are still several “hot spots” that are not part of a major global supply chain, such as Iraq. Just because they are not collaborating in a global supply chain does not mean they are not using the tools of the flat world to collaborate. One example of this is Al-Qaeda, which according to Friedman uses these same tools for “ mayhem and murder”. This theme has been present throughout this book. Of all the positive thing bought on by the flattening of the world just as many negatives have spawned. As it was discussed in the last chapter, many of the negative side effects will dissipate as people begin to fight them.
The Unflat World
This chapter addresses some of the barriers to the flattening of the world. Essentially Freidman discusses some of the forces impending the flattening of the world and what we can do to stop them.
One barrier Freidman describes is a lack of hope. The hope that allows us to be middle class and allows us to believe there is something better out there for us. We see places lacking this hope are also lacking the ability to connect to the flat world. The world cannot become completely flat until HIV/AIDS riddled Africa or impoverished rural India are bought into it. The key is not to connect the sick to the flat world as Freidman points that will only cause greater problems. The key here is to help them get well so they can connect and that is why ned more social programs like the Gates Foundation.
Another barrier Friedman discussed was the disempowered. These people are between the flat and unflat world. They know it exist but benefit from it minimally. These people in rural India only have to spend a day in Downtown Bangalore to realize the world is indeed flat. So how do we create a pathway for these people to get on board? According to Friedman we must, “ refocus energies of the global populist movement on how to improve local government, infrastructure, and education in places like rural China so the population there can acquire the tools to collaborate and participate in the flat world.”
The frustration of the violent Islamist fringe and there tendency to lash out are another barrier to the flat world. This is an issue because if their were another event on the scale of 9/11 wall s would go up everywhere and the flattening of the world would slow tremendously. Freidman believes it is a fear of change and humiliation that has upset many Muslim radicals and caused the anger we see today. The way to address this is to try and collaborate with the progressive forces in the Arab world in every way possible. Some ideas he suggests are free trade agreements, stabilizing Iraq, and solving the Arab- Israeli conflict. That’s all! It looks good on paper but is easier said than done. Ultimately, this is battle for them to fight and win but these collaboration efforts can tip the scale in their favor!
One barrier Freidman describes is a lack of hope. The hope that allows us to be middle class and allows us to believe there is something better out there for us. We see places lacking this hope are also lacking the ability to connect to the flat world. The world cannot become completely flat until HIV/AIDS riddled Africa or impoverished rural India are bought into it. The key is not to connect the sick to the flat world as Freidman points that will only cause greater problems. The key here is to help them get well so they can connect and that is why ned more social programs like the Gates Foundation.
Another barrier Friedman discussed was the disempowered. These people are between the flat and unflat world. They know it exist but benefit from it minimally. These people in rural India only have to spend a day in Downtown Bangalore to realize the world is indeed flat. So how do we create a pathway for these people to get on board? According to Friedman we must, “ refocus energies of the global populist movement on how to improve local government, infrastructure, and education in places like rural China so the population there can acquire the tools to collaborate and participate in the flat world.”
The frustration of the violent Islamist fringe and there tendency to lash out are another barrier to the flat world. This is an issue because if their were another event on the scale of 9/11 wall s would go up everywhere and the flattening of the world would slow tremendously. Freidman believes it is a fear of change and humiliation that has upset many Muslim radicals and caused the anger we see today. The way to address this is to try and collaborate with the progressive forces in the Arab world in every way possible. Some ideas he suggests are free trade agreements, stabilizing Iraq, and solving the Arab- Israeli conflict. That’s all! It looks good on paper but is easier said than done. Ultimately, this is battle for them to fight and win but these collaboration efforts can tip the scale in their favor!
What Happens When We All Have Dog’s Hearing
I was hoping Freidman had included a chapter on the social downsides of all this wonderful technology we have available to us. I think I first realized that technology was changing the way we socialize when my family began texting and IMing while we were all in the same house. I thought to myself, this is ridiculous! As Freidman puts it, “every new technology or toy that connects us more easily divides us more easily.”
The age of interruption has arrived and we are now all slaves to our Blackberry’s, Laptops, and PalmPilots. I often seek that place where I can get away, sit down, and really focus on my schoolwork. (I have checked my e-mail twice, checked a couple of random websites, and responded to several text messages just while writing this post.) Our time is no longer our own and common social graces are beginning to slip away. Many of us while connected to the web have become completely disconnected to the world around us.
Freidman also points out how IM speak is creeping into everyday language. I did not realize this was issue. There has always been slang but I guess when that is the way you communicate 95% of the time it becomes a preferred language.
The final social downside Freidman discussed is when all of these tools can be turned against us. Just like every celebrity has a blogger out their bashing or praising them so can every normal person. People always laugh at me because I refuse to take pictures today because I prefer not to be on a Facebook or MySpace page. That is where the world is today. There is no longer such a thing as a private life. Everyone, everywhere is a voyeur. All you need now is a camera phone and blog and you have the power to ruin someone’s reputation. The worse part is nothing can be done about it; there are no penalties or punishments.
So how do we protect ourselves:
1. Develop a thick skin.
2. Try not to waste too much time reading this stuff.
3. Keep it all in perspective.
4. Let your kids know what word they are living in!
The age of interruption has arrived and we are now all slaves to our Blackberry’s, Laptops, and PalmPilots. I often seek that place where I can get away, sit down, and really focus on my schoolwork. (I have checked my e-mail twice, checked a couple of random websites, and responded to several text messages just while writing this post.) Our time is no longer our own and common social graces are beginning to slip away. Many of us while connected to the web have become completely disconnected to the world around us.
Freidman also points out how IM speak is creeping into everyday language. I did not realize this was issue. There has always been slang but I guess when that is the way you communicate 95% of the time it becomes a preferred language.
The final social downside Freidman discussed is when all of these tools can be turned against us. Just like every celebrity has a blogger out their bashing or praising them so can every normal person. People always laugh at me because I refuse to take pictures today because I prefer not to be on a Facebook or MySpace page. That is where the world is today. There is no longer such a thing as a private life. Everyone, everywhere is a voyeur. All you need now is a camera phone and blog and you have the power to ruin someone’s reputation. The worse part is nothing can be done about it; there are no penalties or punishments.
So how do we protect ourselves:
1. Develop a thick skin.
2. Try not to waste too much time reading this stuff.
3. Keep it all in perspective.
4. Let your kids know what word they are living in!
If It’s Not Happening It’s Because You’re Not Doing It
This chapter once again reinforces the power of the individual. It also ties in a little bit with Rule # 9 from the how companies cope chapter. Environmentalists and activist now have more power than ever before to influence the behavior of companies. The interesting thing is companies are finally listening.
Thee flat world has given people the opportunity to make a real difference. In Latin America Endeavor is changing the language. Prior to their efforts their was no word for entrepreneur in the Portuguese language. Thanks to all of the work they have done helping small-businesses and start-ups the word emprendedor was born. Of course, that was not all due to Endeavor but also in large part to the spread of the global economy. I also love how people are using the flat world to help build better lives. I understand how and why companies are outsourcing and how it benefits them. However, it is nice to see that there are companies like Digital Divide Data, which are pushing outsourcing in countries like Cambodia to improve the quality of life there.
The most interesting thing I took from this chapter was the role the flat world would take in United States government. We no longer need to rely on elected officials to solve all our problems. We now have the ability to collaborate and solve our own problems. It will be interesting to see if this comes into play in the 2008 elections. As argued in the chapter I believe, “the party that stakes out this new frontier is the party that will be the majority party in the twenty-first century.”
Thee flat world has given people the opportunity to make a real difference. In Latin America Endeavor is changing the language. Prior to their efforts their was no word for entrepreneur in the Portuguese language. Thanks to all of the work they have done helping small-businesses and start-ups the word emprendedor was born. Of course, that was not all due to Endeavor but also in large part to the spread of the global economy. I also love how people are using the flat world to help build better lives. I understand how and why companies are outsourcing and how it benefits them. However, it is nice to see that there are companies like Digital Divide Data, which are pushing outsourcing in countries like Cambodia to improve the quality of life there.
The most interesting thing I took from this chapter was the role the flat world would take in United States government. We no longer need to rely on elected officials to solve all our problems. We now have the ability to collaborate and solve our own problems. It will be interesting to see if this comes into play in the 2008 elections. As argued in the chapter I believe, “the party that stakes out this new frontier is the party that will be the majority party in the twenty-first century.”
Friday, November 30, 2007
Globalization of the Local
Many people, myself included, felt that globalization was a nicer way of saying Americanization. Like I said in an earlier post, I felt that our culture was being pushed onto others. After Reading the book more I realize this is not the case. According to Friedman, globalization actually provides a “greater opportunity to nourish diversity.” He cleverly points out how uploading has actually given everyone the opportunity to spread their own culture. Now we can share our own opinions, photos, music, software, news etc. Another factor that helps maintain cultural identity is the fact the people can now innovate without emigrating. This is key because there is no better way to stay connected your culture than by being immersed in it.
I do not want to romanticize the idea, globalization is a huge force and does not always preserve culture. The fact is there is a middle ground, there is good and bad, we must understand this, accept it and move on.
I do not want to romanticize the idea, globalization is a huge force and does not always preserve culture. The fact is there is a middle ground, there is good and bad, we must understand this, accept it and move on.
How Companies Cope
So how do businesses survive in this ever-changing flat world? Primarily they must be ready for and able to change. This is not the end of if, Friedman has outlined nine rules companies should live by to cope in the flat world.
Rule #1: When the world id flat what can be done will be done. The question is will it be done by you or to you. This rule is simple if you have an idea you should pursue before someone else does. Freidman gives several examples of individuals that have turned great ideas into successful businesses. They key here is many of these things would not be possible if not for the opportunities available in the flat world.
Rule #2: Because we are in a world where whatever is can be done will be done, the most important competition today is between you and your own imagination. This is a theme that has been present throughout the book, the power of the individual. Here Friedman talks a little more about how we can use this power in our companies. Companies need to stretch their employees’ imaginations in order to thrive. This how companies will remain competitive by using their imaginations and tools to maintain constant innovation.
Rule #3: And the small shall act big… One way small companies flourish in the flat world is by learning to act really big. Imagination is necessary, but not sufficient. You have to be able to implement what you imagine. And the key to being small and acting big is being quick to take advantage of all new tools for collaboration to reach farther, faster, wider, and deeper. May be it is just me but things started to get a little repetitive here. It seems like here Friedman took the advice he gives the individual and applies it to the company. Obviously, imagination is not enough to be a success you have to take advantage of the tools available to you. The example Freidman used of Aramex split with Airborne exemplified this perfectly. I would say the reason this is not done more is people do not realize what tools are available to them.
Rule #4: 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. This is a great idea and companies are actually better for it. When companies let customers “serve themselves in their own way, at their own pace, in their own time according to their own taste.” They are actually making them employees. After all, who knows what the customers want and need better then the customers. I think many companies start to get so big they forget that they need their customers.
Rule #5: The best companies are the best collaborators . In the flat world, more and more business will be done through collaboration 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. I had a difficult time understanding this rule. The examples did not necessarily seem like great collaboration efforts. It just seemed like the natural evolution of these companies. Rolls Royce realized the U.K. market was not big enough so they expanded, and video games companies realized games sell better with music. To me that is natural growth. In a global economy, companies must evolve to be truly global to be successful.
Rule #6: In a flat world , the best companies stay healthy by getting regular chest x-rays and then selling the results to their clients. What? That was my first thought but this does actually make a lot of sense. You need to constantly analyze your company’s capabilities. If something does not add value why do it. When you otsource the non-essentials you can focus on your “hot spots” and develop them. That is how HP ended up providing backroom services to the Bank of India.
Rule #7: 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 more people. This falls in line with the last rule. If something does not create value, it would be best to outsource and improve your company by focusing on more value-added activities. I believe many companies jump on the outsource bandwagon because they think it is all about saving money when it is not. Ironically, like LRN, I think companies realize the need for outsourcing when they are ready to grow their business.
Rule #8: HOW you do things as a company matter more today than ever. Price differentiation and service quality are no longer enough to set your business apart in the market. Today it is about how you treat your customers, colleagues, suppliers, and investors. This is one of the few ways you can still differentiate yourself from your competition. As Friedman says, companies today are a lot more transparent so the “how” is really out there for everyone to see. Today’s customers have so much power and it is essential that companies realize this and use it to their advantage.
Rule #9: When the world goes, flat- and you are feeling flattened-reach for a shovel and dig inside yourself. Do not try to build walls. This rule was the most interesting to me. The struggle Greer & Associates faced was one probably faced by many midsized companies. The Flat world , was supposed to make things easier but they found things only becoming more difficult. Once companies realize the need for change they should act on it. Companies have to tie all these rules together to survive building a wall simply will not work!
Rule #1: When the world id flat what can be done will be done. The question is will it be done by you or to you. This rule is simple if you have an idea you should pursue before someone else does. Freidman gives several examples of individuals that have turned great ideas into successful businesses. They key here is many of these things would not be possible if not for the opportunities available in the flat world.
Rule #2: Because we are in a world where whatever is can be done will be done, the most important competition today is between you and your own imagination. This is a theme that has been present throughout the book, the power of the individual. Here Friedman talks a little more about how we can use this power in our companies. Companies need to stretch their employees’ imaginations in order to thrive. This how companies will remain competitive by using their imaginations and tools to maintain constant innovation.
Rule #3: And the small shall act big… One way small companies flourish in the flat world is by learning to act really big. Imagination is necessary, but not sufficient. You have to be able to implement what you imagine. And the key to being small and acting big is being quick to take advantage of all new tools for collaboration to reach farther, faster, wider, and deeper. May be it is just me but things started to get a little repetitive here. It seems like here Friedman took the advice he gives the individual and applies it to the company. Obviously, imagination is not enough to be a success you have to take advantage of the tools available to you. The example Freidman used of Aramex split with Airborne exemplified this perfectly. I would say the reason this is not done more is people do not realize what tools are available to them.
Rule #4: 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. This is a great idea and companies are actually better for it. When companies let customers “serve themselves in their own way, at their own pace, in their own time according to their own taste.” They are actually making them employees. After all, who knows what the customers want and need better then the customers. I think many companies start to get so big they forget that they need their customers.
Rule #5: The best companies are the best collaborators . In the flat world, more and more business will be done through collaboration 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. I had a difficult time understanding this rule. The examples did not necessarily seem like great collaboration efforts. It just seemed like the natural evolution of these companies. Rolls Royce realized the U.K. market was not big enough so they expanded, and video games companies realized games sell better with music. To me that is natural growth. In a global economy, companies must evolve to be truly global to be successful.
Rule #6: In a flat world , the best companies stay healthy by getting regular chest x-rays and then selling the results to their clients. What? That was my first thought but this does actually make a lot of sense. You need to constantly analyze your company’s capabilities. If something does not add value why do it. When you otsource the non-essentials you can focus on your “hot spots” and develop them. That is how HP ended up providing backroom services to the Bank of India.
Rule #7: 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 more people. This falls in line with the last rule. If something does not create value, it would be best to outsource and improve your company by focusing on more value-added activities. I believe many companies jump on the outsource bandwagon because they think it is all about saving money when it is not. Ironically, like LRN, I think companies realize the need for outsourcing when they are ready to grow their business.
Rule #8: HOW you do things as a company matter more today than ever. Price differentiation and service quality are no longer enough to set your business apart in the market. Today it is about how you treat your customers, colleagues, suppliers, and investors. This is one of the few ways you can still differentiate yourself from your competition. As Friedman says, companies today are a lot more transparent so the “how” is really out there for everyone to see. Today’s customers have so much power and it is essential that companies realize this and use it to their advantage.
Rule #9: When the world goes, flat- and you are feeling flattened-reach for a shovel and dig inside yourself. Do not try to build walls. This rule was the most interesting to me. The struggle Greer & Associates faced was one probably faced by many midsized companies. The Flat world , was supposed to make things easier but they found things only becoming more difficult. Once companies realize the need for change they should act on it. Companies have to tie all these rules together to survive building a wall simply will not work!
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