The World Is FlatIsriya Paireepairit

markpeak@gmail.com

Attribution-NonCommercial 3.0 Unported

Thomas L. Friedman

Globalization

• Globalization 1.0

• Globalization 2.0

• Globalization 3.0

Globalization 1.0

• Start: 1492 (Columbus Discovered America)

• End:1800

• Player: Country

Globalization 2.0

• Start: 1800

• Interrupted by

• World War I (1914-1918)

• Great Depression (1929)

• World War II (1940-1945)

• End: 2000

Globalization 2.0

First Half

• Falling of Transportation Cost

• Steam Engine

• Rail Road

Globalization 2.0

Second Half

• Falling of Telecommunication Cost

• Telegraph

• Telephone

• PC

• Fiber Optics

• WWW

Globalization 2.0

Player: Multinational Company

Country vs Company

Thailand $47,679 M(government total revenue)

Microsoft $44,300 M(revenue)

1

2

1

2

FY 2007 (Estimate) Source: Bereau of the Budget

FY 2006 Source: Wikipedia

Globalization 3.0

• Start: 2000

• Player: Individual

Globalization

• 1.0 - Country

• 2.0 - Company

• 3.0 - Individual

10 Forces That Flattened The World

Flattener #1

Fall of Berlin Wall

Flattener #1

• 1989

• No more Communism

• Democracy

• Free Market

• Toward to Single, Global Market

Flattener #2

Netscape Navigator

Flattener #2

• 1995

• PC

• Internet

• WWW

• Communication

Flattener #3

Workflow Software

Flattener #3

• Working together

• Different Hardware

• Different Location

• Web technology

• Effect from Flattener #2 Netscape

Flattener #3

HTML

AJAXSOAP

XML

HTTP

TCP/IP

LotusCase Study

Flattener #3

Cause more 6 Flatteners

• #4 Uploading

• #5 Outsourcing

• #6 Offshoring

• #7 Supply-chaining

• #8 Insourcing

• #9 In-forming

Flattener #4

Uploading

Flattener #4

• Power of Community (Connected Individuals)

• Community-developed

• Softwares - Open Source

• Answers

• News & Commentary - Blogging

• Content - Wikipedia

Flattener #4

• Community-developed Answer

• Goldcorp Inc.

Case Study

Flattener #5

Y2K

Flattener #5

OutsourcingY2K

Outsourcing

• Split

• Service

• Manufacturing

• and perform elsewhere, where

• Most efficient

• Cost-effective

Y2K

• Outsource Accelerator

• India

Flattener #2 Netscape (Communication)Flattener #3 Workflow (Software)

Flattener #6

Offshoring

Flattener #6 Offshoring

• Split

• Service

• Manufacturing

• and perform elsewhere, where

• Most efficient

• Cost-effective

Flattener #6 Offshoring

• China

Flattener #7 Supply-Chaining (Transport)

Flattener #7

Supply-Chaining

#7 Supply-Chaining

#7 Supply-Chaining

Walmart

Manuf.

Manuf.

Manuf.

Customer

Customer

Customer

#7 Supply-Chaining

Flattener #2 Netscape (Communication)Flattener #3 Workflow (Software)Flattener #6 Offshoring (Manufacturer)

Sales Distribution Shipping

Flattener #8

Insourcing

#8 Insourcing

• Reverse of Outsourcing

• UPS & Toshiba

InsourcingCase Study

InsourcingCase Study

Flattener #9

In-forming

#9 Informing

• Information Finding

• Search Engine

Flattener #10

The Steroids

The Steroids

• Computing

• Instant Messaging, P2P

• VoIP

• Videoconference

• Computer Graphics

Processing

Storage

Data Transfer

Communication

Virtual Reality

The Steroids

• Computing

• Instant Messaging, P2P

• VoIP

• Videoconference

• Computer Graphics

Wireless

Triple Convergence

Convergence#1Converged Flatteners

Convergence #1

• Before 2000 - Semi-Independent

• After 2000 - Converged with another

• As Complementary Goods

• E.g. Paper/Pencil

Convergence#2New Business Platform

#1 Berlin Wall

#3 Workflow#2 Netscape

#4 Uploading #5 Outsourcing #6 Offshoring #8 Insourcing

#7 Supply Chaining#6 Informing

#10 Steroids

Accelerator

Business Process

Infrastructure

PoliticsGeographicEconomics

Convergence#3Emerging Regions

BRIC

BRIC

CountryPopulation(million)

GDP (trillion $)

Brazil 188 1.6

Russia 142 1.7

India 1126 4.0

China 1317 10.0

Total 2773 17.3

Developed Countries

CountryPopulation(million)

GDP (trillion $)

USA 301 13.04

EU 494 13.8

Japan 128 4.2

Total 923 31

Compare!

CountryPopulation(million)

GDP (trillion $)

GDP per capita($)

BRIC 2773 17.3 6,238

Developed 923 31 33,586

Thailand 62 0.58 9,100

Companies and the Flat World

Rule #1Core Competency

Greer & AssociatesCase Study

Greer CompetA

CompetitorB

Emerging

Emerging

Greer & AssociatesCase Study

Think Produce ExpertJobs

Think

Produce ExpertJobs

Produce

Old Way

New Way

Rule #2Small Act Big

AramexCase Study

FedEx DHL

Airborne

Aramex

Other

Middle East

1990

AramexCase Study

FedEx DHL

Airborne

Aramex

Other

Middle East

2003

AramexCase Study

FedEx DHL

Airborne Other

Middle EastAramex

Global Distribution Alliance

2004