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Frak
September 25th, 2007, 05:03 AM
I just bought "The World is Flat" by Thomas L. Friedman.

In this book he talks about Globalization (http://en.wikipedia.org/wiki/Globalization), and its effects on the world, and recognizes the 10 most disruptive forces of Globalization, or those who flatten out the playing field.

Friedman lists ten "flatteners" that have leveled the global playing field:


* #1: Collapse of Berlin Wall-11/9: The event not only symbolized the end of the Cold war, it allowed people from other side of the wall to join the economic mainstream. (11/09/1989)

* #2: Netscape: Netscape and the Web broadened the audience for the Internet from its roots as a communications medium used primarily by 'early adopters and geeks' to something that made the Internet accessible to everyone from five-year-olds to eighty-five-year olds. (8/9/1995)

* #3: Workflow software: The ability of machines to talk to other machines with no humans involved. Friedman believes these first three forces have become a “crude foundation of a whole new global platform for collaboration.”

* #4: Open sourcing: Communities uploading and collaborating on online projects. Examples include open source software, blogs, and Wikipedia. Friedman considers the phenomenon "the most disruptive force of all."

* #5: Outsourcing: Friedman argues that outsourcing has allowed companies to split service and manufacturing activities into components, with each component performed in most efficient, cost-effective way.

* #6: Offshoring: Manufacturing's version of outsourcing.

* #7: Supply chaining: Friedman compares the modern retail supply chain to a river, and points to Wal-Mart as the best example of a company using technology to streamline item sales, distribution, and shipping.

* #8: Insourcing: Friedman uses UPS as a prime example for insourcing, in which the company's employees perform services--beyond shipping--for another company. For example, UPS itself repairs Toshiba computers on behalf of Toshiba. The work is done at the UPS hub, by UPS employees.

* #9: In-forming: Google and other search engines are the prime example. "Never before in the history of the planet have so many people-on their own-had the ability to find so much information about so many things and about so many other people", writes Friedman.

* #10: "The Steroids": Personal digital devices like mobile phones, iPods, personal digital assistants, instant messaging, and voice over IP or VOIP.


http://en.wikipedia.org/wiki/The_World_is_Flat

Tux Aubrey
September 25th, 2007, 06:16 AM
I guess I'd be in the "Somewhat Agree" category here. I can relate to most of the points but choked on:


#5: Outsourcing: Friedman argues that outsourcing has allowed companies to split service and manufacturing activities into components, with each component performed in most efficient, cost-effective way.

Mr Friedman has clearly never tried to get the plug on a leased laptop's power cord replaced via an outsourced service chain involving the OEM, the retailer, the lease company, the lease company's insurer and a nominated repair agent. Someone in there ended up copping a $1200 fee for a "new motherboard" and muggins still didn't get a new $25powercord until his wife threw an all mighty tantrum on the repair shop floor (one of her special skills). If that's service being delivered in the most efficient, cost-effective way, I'll give up now.

Essentially outsourcing is about spreading risk and avoiding responsibility - not necessarily gaining efficiency in terms of consumer/citizen outcomes.

And methinks Mr Friedman is having a bet each way with some of the items on his list. Communications and open financial markets, coupled with reduced overall trade barriers are the fundamental drivers of globalisation. Cultural changes and new ways of doing things are sort of inevitable by-products rather than drivers.