Module 7. Ch. 10-13 Friedman's The World Is Flat

Why are some countries or regions better at doing things than others?  Well there are a few reasons.  One reason is known as introspection.  We all know that introspection is a tough thing to do.  It is hard to look at ourselves and specifically point out the various ways that we could improve.  In chapter 10 of The World is Flat Friedman points out that this is an important step that separates the mediocre countries from the thriving countries.  He argues that progress is halted if a country is not continually performing introspection on itself.  I agree with him.  I know from personal experience that introspection is tough, and I feel that you need a specific kind of attitude to have it turn out to be a benefit rather than a hindrance.  If you look at successful teams, people, and business you will find that they each perform some kind of introspection and are constantly working to improve their weaknesses.  He lists a few other ways countries can stay ahead.  First, is to have the right infrastructure to connect more of your people with the flat-world platform-cheap internet and mobile phones.  Second is to have the right educational system to get more of your people innovating and collaborating on a flat-world platform.  Third, have the right governance –from fiscal policy to the rule of law to the quality of the bureaucracy-to manage the flow between your people and the flat-world platform in the most productive way possible. (The World Is Flat, Thomas L. Friedman. Pg. 408).

A phrase that many of us hear today is that the customer is king.  This phrase has been proved more correct as the world has become more flattened.  As the world has flattened more and more, the power that the consumer has, has grown immensely.  They are known as self-directed consumers.  Back in the “older days” There were not as many resources open to the consumer at an ease that there is today.  If the consumer was unhappy with their bank for example it was harder for them to switch and move on.  However, today it is a lot easier to switch banks, or to go shopping somewhere else for a product.  Business’ can lose consumers right and left if they are not careful.  Loyal consumers are very valuable, and it is tough to keep them in today’s world because of the many tools that they have to “take their business somewhere else” if they are not happy.  I am a self-directed consumer.  I do understand that mistakes are made and people have bad days, so I may not change as quickly as some, but if it continues, I will take my business somewhere else.  This flattening globalization is not and Americanization as Friedman says, it is open for everyone.  As discussed in previous chapters it is clear that anyone can contribute and share their ideas, their culture, their beliefs, and their stories.  It is clear that the whole world is getting affected by the flattening event.

 

Module 6

       Friedman now discusses free trade.  Free trade is in a sense merging two countries, trading between them jobs and opportunities.  Friedman gives a really illustrative example of this.  He compares it to two countries-America and China.  Imagine that the American economy has only 100 people.  Of those 100 people, 80 are well-educated knowledge workers and 20 are less-educated low-skilled workers.  Now imagine that the world goes flat and America enters into a free-trade agreement with China, which has 1,000 people but is a less developed country.  So today China too has only 80 well-educated knowledge workers out of that 1,000, and it has 920 low-skilled workers.  Before America entered into this free-trade agreement with China, there were only 80 knowledge workers in its world.  The American workers feel like they have more competition, and they do.  But if you look at the prize they are going after, it is now a much expanded and more complex market of 100 people to a market of 1,100 people, with many more needs and wants.  (Thomas L. Freidman, The World is Flat, pg. 266).  This really put it into perspective for me.  He further discusses how this market could be very beneficial for people with more of an idea type of business such as consulting, marketing, entrepreneurship, etc.  Having a bigger market means you can reach more people.  However for the individuals whose jobs are more labor driven, free trade would not benefit them, it would just bring more competition.  Labor jobs are easier to replace than idea based jobs.  I plan to become an entrepreneur, so I would like the thought of free trade to allow more of a market for my business.

       Friedman gives some counsel to those people who want to keep their jobs.  He says to become “untouchable”.  These are people whose jobs cannot be outsourced or automated.  One of the ways that you can stay untouchable and ahead of the curve is through personal customer service.  To add your “personal touch.”  He discusses three quotients; these are IQ, CQ, and PQ.   IQ, or intelligence quotient is more of a structured attribute.  An attribute taught in various schools.  Schools produce cookie cutter individuals to fit nicely into a corporate pyramid.  CQ, curiosity quotient is an attribute of becoming an untouchable.  It is an attitude of youth and the curiosity that they have, and seem to lose when we all get older.  The curiosity of wondering how things work, and how they would work if they were changed in various ways.  PQ, known as passion quotient is also very important.  When someone has a true passion for something it is hard to ignore, and even more contagious.  Have you ever been around someone who is passionate about a sport, project, hobby, or even work or school?  Have you noticed how their passion transfers to you?  I know I have, and it can be hard to ignore.  People with high CQ and high PQ are hard to replace.  They often earn that status of being an untouchable.  The best part about it is the fact that there isn’t a limit on obtaining these attributes.  Freidman lives by the equation CQ + PQ > IQ.  I completely agree with him once again.  I would also take an individual who is passionate about the work I give them, and has a sense of curiosity to help grow the business.  With this being said I would still hope that people and myself would focus on improving each of the quotients, benefits would surely follow.

Module 5

           During this reading Friedman discussed what he calls the triple convergence.  Convergence one describes how the world became an even playing field, as I already have mentioned in previous blog posts.  With convergence two, or horizontalization, He discusses how the command cycle went from the top down - vertical line - to more of a horizontal line in which allowed everyone to contribute in different ways.  We all know that it is easier to walk on flat ground for twenty feet than to climb a twenty foot wall.  I found this concept very interesting.  A new way of thinking had emerged.  People began to be successful from not only the top, but from where they were.  Why? Because everyone had access to all the resources they needed.  Convergence number three is comparable to the globalization phases previously discussed.  He discusses how it is an even playing field for people across cities, countries, and continents.

            On pg. 240 Freidman discusses an event between India and Indiana.  In 2003 Indiana put out to bid a contract to the state’s computer systems that process unemployment claims. Tata America International, which is the U.S.-based subsidiary of India’s Tata consultancy services Ltd. Tata’s bid of %15.2 million came in $8.1 million lower than that of its closest rivals, the New York-based companies Deloitte Consulting and Accenture Ltd.  No Indiana firms bid on the contract, because it was too big for them to handle.  In other words, an Indian consulting firm won the contract to upgrade the unemployment department of the state of Indiana! (Thomas L. Friedman: The World is Flat, pg. 240.)  From what I understand, I feel that this was a big mistake.  I feel that the exploiter was India and that the exploited was India.  Friedman lists various benefits that could have happened, but did not. 

                 The last topic talked about it intellectual property and how that has changed due to the events previously mentioned.  Intellectual property is a work or invention that is the result of creativity, such as a manuscript or a design, to which one has rights and for which one may apply for a patent, copyright, or trademark.  With so many ideas springing up in the minds of just about every person, there was a need for intellectual property to protect those ideas.  Without patents and copyrights someone from across the world could steal your idea very easily.  It is hard to tell who first ”imagined” an idea, but once your imagination becomes a reality, it is wise to protect it.

Module 4: The Interview

I am not a brilliant kid when it comes to computer science. Yes, I can get by with the day-to-day assignments and work on the computer.  However, when it comes to building your own computer or developing websites, I am not the one for the job.  For this post we are going to take a break from the book: The World Is Flat and focus on an interview with someone I know who has some expertise on the subject of computers.

When I received the requirements for this assignment I was brought back to a few months ago.  It was October, 2014.  I had begun the first stages of my business plan.  A big part of starting a business is realizing what you can do yourself, and what tasks you need to pass on to other people.  I knew I needed a website for my business, but I did not know any of the languages required to create one.  Languages such as C++, Java, HTML, CSS, etc.  I thought to myself that I would buy a book about one of those languages, learn it real fast, and be on my way.  Well, I bought it, but I did not have the patience or desire to read through it!  I decided the better option would be to find someone already experienced in this field.  I checked through my network on LinkedIn.com to find someone that I could talk to about what I wanted on my unique website.  I was fortunate to find someone I went to High School with a few years ago.  We weren’t best friends, but we occasionally talked.  I decided to set up a meeting with Jon to talk about the options that I had.

Jon had his degree in Computer Science as well as some experience building websites.  During the meeting we discussed costs, design, and other options.  It was nice to meet with someone I already knew in my network.  I felt that the information was honest and sincere.  I realize now that he could have charged me a lot of money, and since I was pretty ignorant to the subject, he could have easily gotten away with it.  I asked him what we would need to do in order to avoid problems regarding what I wanted, and what he would give me.  He told me that I should create some sketches of the website that he could work off of.  He told me of a time when he designed a website for a lady and they did not sign an official agreement.  So, when the product was finished by Jon it met her specifications.  However, she thought that he would continue to make updates and other needed work on the website as time progressed.  Jon thought that once the website was finished he was done.  I could tell that he learned a lot from this experience by the way he communicated with me.  After telling me that story we agreed that it would be important to sign an agreement if I ended up choosing Jon to complete my website.

Even though my experience with Jon was fantastic I chose to go with a host company.  I chose to use Shopify.com to use for my business.  This was cheaper, and since I am a college student I was interested in that path!  My interview with Jon was a great learning experience.  I learned various things about the options I have when it comes to creating a website.  I learned more about the languages you need to learn before you undertake the task of creating something from nothing.  I am sure it takes a lot of patience.  I am sure it takes a lot of creativity to be able to imagine an end result and start at the beginning in order to create a living, working, website.  I admire those who are web developers and designers!

       In this section of my reading I learned more about the difference between outsourcing and offshoring.  I learned what a supply chain is, and how it is important in today’s business.  Lastly, I learned more in depth of the importance of google, and how it is shaping todays businesses.

       Outsourcing is a different than offshoring. Outsourcing is when a company chooses specific tasks of their organization to export to different countries where those tasks can be performed, and then returned back to the company completed and ready to go.  Offshoring is where a company not only takes some of their tasks to different countries, but is when they move an entire factory or entity of their business to a different country and there they continue their business in a more productive way.  This then becomes part of their global supply chain.  I feel that outsourcing would be a better choice for smaller businesses.  This way they can test out what it is like to work with and communicate with different countries.  Kind of like testing the water depth before you go cliff-jumping.  Offshoring would be a better idea for bigger businesses that could not only benefit from the smaller tasks of their business being completed off shore but moving an entire part of their business to a different country allowing them to become a more globalized, well known, and efficient company.  If you have the resources to expand to the extent that offshoring demands, than it can be a very valuable decision.

       I love how much Friedman goes in depth about Walmart's supply chain.  It really puts it in perspective.  It is incredible how organized they have made their process.  Friedman found out that once a customer checks out a product then immediately their system updates the manufacturer and notifies them to make another one of those products and to ship it to the Walmart store where it is needed.  I feel like without this technology that Walmart is using then it would be nearly impossible to keep up with the demand that Walmart shoppers require.  Walmart has used this network of supply chain to create a connected empire.  Walmart has made growth in the various companies that they retail for.  When customers have demanded more products from the easily accessed Walmart shelves then that creates more demand for the manufacturers to send Walmart more of their products.  I would assume this would also create some sort of leverage for Walmart that they could use against their manufacturers to become more aligned with Walmart’s needs and wants, etc.

       Google has become almost second nature to locating information for me.  If I have a question about what a certain word mean, what an activity is, where something is located, all I have to do is get on google and type in what I want to learn about and in just a few seconds more than enough pages come up and I am able to learn.  The only boundary is my willingness to discipline myself and continue learning.  What an incredible tool!  We literally have the world at our fingertips.  Anyone can become an expert at just about any topic through the medium of Google.  Google has helped businesses become more well-known as well as made it very easy for anyone to research a business from anywhere.

Friedman's The World is Flat, essay 2

                Friedman is discussing a few of the major software breakthrough's that have helped the world and businesses become more connected.  In this essay I will discuss two types of software that he brings up: Workflow software and open source software.  I will also review and add a couple thoughts on another point Friedman brings up - outsourcing. 

                 Workflow software allows businesses to communicate on the same platform within various parts of their company.  In the past, companies had several different kinds of software within their company and when they needed something sent from one department to another they could not just send it, they had to print it off, walk it over, and share it.  I am sure they hoped it was done well the first time so they did not have to repeat the process several times.  Workflow software got rid of this inconvenience.  I work at FedEx Express.  There we have a great example of workflow software.  This software allows the individual shipping the package to get on the internet and print off what is called an Astra Label.  This label makes it easier to know where the package is going, and speeds up the time it takes to get them on the plane and shipped out.  The Astra label prints off a barcode with the airport, as well as the station code that it needs in order to get to its destination overnight.  FedEx Express ships millions of packages to thousands of various places throughout the world on a daily basis.  If we did not have that software which automatically figures out which airport it is supposed to fly into and then which station to go to, it would be nearly impossible and very overwhelming to look at each package individually, and figure out which airport and station it would go to.  This software allows the individual to simply put in their address and the computer does the rest of the work making it easy for every station and airport to become on the same page.

            Open source software or sometimes referred to as community developed software is, just as the name implies, software that is developed by a community or group of individuals.  This software can then be added upon by other tech savvy individuals.  Most communities that initially develop the software have simple copyrights that ask for the credit if you build on their base software.  An open source software example could be Wikipedia.  The definitions on Wikipedia can be updated by anyone who knows the definition more completely.  I feel that the main reason open source software is important is because it allows a more broad network of individuals who can contribute to the initial idea.  Whether you have a brilliant individual who wants to test their skills, or you have someone that simply wants you to know that they are a better coder than some of the major tech companies; both can contribute to the furtherance of technology in different, but important ways.

            Friedman discusses outsourcing as another flattening event.  He mentions Y2K as a major event that required outsourcing to India.  Outsourcing is an important part of business.  As a business owner you know that you cannot do everything by yourself, you just can’t.  Whether you outsource for specific products, or you outsource for help with the more mundane time consuming tasks, it is an important tool to know about.  When you first begin your adventure as a business owner there is a lot on your plate, to say the least.  You have various aspects of the business to focus on including, inventory, advertising, payroll, shipping, ordering, and many others.  In most cases business owners use outsourcing to India, China, or other International countries.  Why?  The labor is cheaper there.  They can work on your smaller tasks while you focus on the more important parts of your business.  Reasons that outsourcing is used is because the products that you are looking for are either only found in another country or the products or goods that you need are cheaper in India than in the United States. 

Friedman's the World is flat

     In His book “The World is flat” Friedman discusses three major phases that have essentially transformed the world from a sphere to a flattened, tiny, Earth.  These include globalization 1.0 from 1492 to the year 1800 which shrunk the world from large to medium. Globalization 2.0 which changed the size from medium to small in the years 1800 to 2000. The last phase being globalization 3.0 which began in the year 2000 and is currently happening. this phase is shrinking the world from small to not only tiny, but flat.  Let’s venture through each phase a little more deeply 
     In globalization 1.0 the world was essentially just becoming discovered.  He relates Columbus’ journey to the new world.  In this phase the world was not mapped, and there were still debates on the Earth being physically flat.
     In globalization 2.0 the birth of global economy emerged.  The driving force was new hardware.  By now the world was mapped and known as a sphere, the next new frontier was global economy.
     By globalization 3.0 global economies were taking off.  However, in this new phase it not only gave big companies the opportunity to engage internationally but now it gave individuals that same opportunity.  He refers to this phase as the world becoming tiny and flat as to say that now the entire world is becoming an even playing field.  Anyone can communicate, associate, and make an impact around the world.  
Friedman notes that one of the major events that caused the world to become a more even playing field was the fall of the Berlin Wall. 
     I agree with Friedman's points, and I admire his abstract way of looking at the world.  Of course, we are well aware that the world is not physically flat, however, one just needs to simply pick up their phone to realize what a connected world we really live in.  It is easy to see that anyone can play an important part in today's societies, no matter where they live.
     The fall of the Berlin wall happened on November 11, 1989.  This event is important to Friedman because he believes that the fall and even the wall itself mean so much more than just physical.  The Berlin wall represented a physical barricade as well as a barricade for an individual’s vision.  The wall kept the world from being seen as a global market.  During the war there was a plane of capitalism, and a plane of communism.  Once the wall fell there became one plane.  This plane allowed economies to be built from the ground up by the interests of people, rather than from the top by a select group.  Before, there were policies for the eastern side and the western side of the world.  After the fall it ushered in an opportunity for global policies.  I agree that there are global communities, global ecosystems, and global policies which allow a more interconnected web of individuals.
     Netscape was another entity that flattened the world.  Netscape gave birth to the browser. It allowed millions of people to share videos, photos, communicate and share their information.  Once Netscape began every single person was able to access the internet, not just geeks, or highly intelligent individuals.  The story of Netscape is important because it helps the reader see how it allowed everyone to access the internet.  
It seems that all of the events that have been mentioned as flattening the world have been events that have targeted not only certain groups or types of people.  But these events have been geared towards the entire globe of people, at all ages.  Now, the world has been swept over with a great wave that has allowed just about everyone, everywhere to become what they want.  Indeed the world is becoming smaller and flattened out.