Slide 1: The World Is Flat
Isriya Paireepairit markpeak@gmail.com
Attribution-NonCommercial 3.0 Unported
Slide 3: Thomas L. Friedman
Slide 4: Globalization
• Globalization 1.0 • Globalization 2.0 • Globalization 3.0
Slide 6: Globalization 1.0
• Start: 1492 (Columbus Discovered America) • End:1800 • Player: Country
Slide 7: Globalization 2.0
• Start: 1800 • Interrupted by • World War I (1914-1918) • Great Depression (1929) • World War II (1940-1945) • End: 2000
Slide 8: Globalization 2.0
First Half
• Falling of Transportation Cost • Steam Engine • Rail Road
Slide 9: Globalization 2.0
Second Half
• Falling of Telecommunication Cost • Telegraph • Telephone • PC • Fiber Optics • WWW
Slide 10: Globalization 2.0
Player: Multinational Company
Slide 11: Country vs Company
Thailand Microsoft $47,679 M
(government total revenue)
1
$44,300 M
(revenue)
2
1 2
FY 2007 (Estimate) Source: Bereau of the Budget FY 2006 Source: Wikipedia
Slide 12: Globalization 3.0
• Start: 2000 • Player: Individual
Slide 13: Globalization
• 1.0 - Country • 2.0 - Company • 3.0 - Individual
Slide 14: 10 Forces That Flattened The World
Slide 15: Flattener #1
Fall of Berlin Wall
Slide 16: Flattener #1
• 1989 • No more Communism • Democracy • Free Market • Toward to Single, Global Market
Slide 17: Flattener #2
Netscape Navigator
Slide 18: Flattener #2
• 1995 • PC • Internet • WWW • Communication
Slide 23: Flattener #3 Workflow Software
Slide 24: Flattener #3
• Working together • Different Hardware • Different Location • Web technology • Effect from Flattener #2 Netscape
Slide 25: Flattener #3
AJAX XML HTML HTTP
TCP/IP
SOAP
Slide 26: s Ca
e
St
ud
y
Lotus
Slide 27: Flattener #3
Cause more 6 Flatteners
• #4 Uploading • #5 Outsourcing • #6 Offshoring • #7 Supply-chaining • #8 Insourcing • #9 In-forming
Slide 28: Flattener #4 Uploading
Slide 29: Flattener #4
• Power of Community (Connected Individuals) • Community-developed • Softwares - Open Source • Answers • News & Commentary - Blogging • Content - Wikipedia
Slide 30: s Ca e
Flattener #4
• Community-developed
Answer
St ud
y
• Goldcorp Inc.
Slide 31: Flattener #5
Y2K
Slide 32: Flattener #5 Outsourcing Y2K
Slide 33: Outsourcing
• Split • Service • Manufacturing • and perform elsewhere, where • Most efficient • Cost-effective
Slide 34: Y2K
• Outsource Accelerator • India
Flattener #2 Netscape (Communication) Flattener #3 Workflow (Software)
Slide 35: Flattener #6 Offshoring
Slide 36: Flattener #6 Offshoring
• Split • Service • Manufacturing • and perform elsewhere, where • Most efficient • Cost-effective
Slide 37: Flattener #6 Offshoring
• China
Flattener #7 Supply-Chaining (Transport)
Slide 38: Flattener #7 Supply-Chaining
Slide 39: #7 Supply-Chaining
Slide 40: #7 Supply-Chaining
Manuf.
Customer
Manuf.
Walmart
Customer
Manuf.
Customer
Slide 41: #7 Supply-Chaining
Sales
Distribution
Shipping
Flattener #2 Netscape (Communication) Flattener #3 Workflow (Software) Flattener #6 Offshoring (Manufacturer)
Slide 42: Flattener #8 Insourcing
Slide 43: #8 Insourcing
• Reverse of Outsourcing • UPS & Toshiba
Slide 44: s Ca e
Insourcing
St ud
y
Slide 45: s Ca e
Insourcing
St ud
y
Slide 46: Flattener #9 In-forming
Slide 47: #9 Informing
• Information Finding • Search Engine
Slide 48: Flattener #10 The Steroids
Slide 49: The Steroids
Processing
• Computing Data Transfer Instant Messaging, P2P • • VoIP Communication • Videoconference Virtual Reality • Computer Graphics
Storage
Slide 50: The Steroids
• Computing • Instant Messaging, P2P • VoIP • Videoconference • Computer Graphics
Wireless
Slide 51: Triple Convergence
Slide 52: Convergence#1 Converged Flatteners
Slide 53: Convergence #1
• Before 2000 - Semi-Independent • After 2000 - Converged with another • As Complementary Goods • E.g. Paper/Pencil
Slide 54: Convergence#2 New Business Platform
Slide 55: #10 Steroids
Accelerator Business Process
#6 Informing
#7 Supply Chaining
#4 Uploading
#5 Outsourcing
#6 Offshoring
#8 Insourcing
Infrastructure
#2 Netscape #3 Workflow
#1 Berlin Wall
Politics Geographic Economics
Slide 56: Convergence#3 Emerging Regions
Slide 57: BRIC
Slide 58: BRIC
Country Population (million) GDP (trillion $)
Brazil Russia India China Total
188 142 1126 1317 2773
1.6 1.7 4.0 10.0 17.3
Slide 59: Developed Countries
Country Population (million) GDP (trillion $)
USA EU Japan Total
301 494 128 923
13.04 13.8 4.2 31
Slide 60: Compare!
Country Population (million) GDP (trillion $) GDP per capita ($)
BRIC
Developed
2773 923 62
17.3 31 0.58
6,238 33,586 9,100
Thailand
Slide 61: Companies and the Flat World
Slide 62: Rule #1 Core Competency
Slide 63: s Ca e St ud
Greer & Associates
Competitor B
y
Emerging
Greer
Compet A
Emerging
Slide 64: s Ca e St ud
Greer & Associates
Think Produce Expert Jobs
y
Old Way New Way
Produce
Expert Jobs
Think
Produce
Slide 65: Rule #2 Small Act Big
Slide 66: s Ca e
Aramex
1990
St ud
y
Airborne FedEx DHL Aramex
Other
Middle East
Slide 67: s Ca e
Aramex
2003
Airborne
Other
St ud
y
FedEx
DHL Aramex
Middle East
Slide 68: s Ca e
Aramex
2004
Airborne
Other
St ud
y
FedEx
DHL Aramex
Global Distribution Alliance
Middle East