The World Is Flat

Isriya 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
Microsoft

$47,679 M

(government total revenue)

$44,300 M

(revenue)

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
AJAX

SOAP
XML

HTML
HTTP
TCP/IP

Ca

se

y
ud
St

Lotus

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

Ca

Answer

Goldcorp Inc.

y
ud
St

Community-developed

se

Flattener #4

Flattener #5

Y2K

Flattener #5
Outsourcing
Y2K

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
Manuf.

Manuf.

Manuf.

Customer

Walmart

Customer

Customer

#7 Supply-Chaining
Sales

Distribution

Shipping

Flattener #2 Netscape (Communication)

Flattener #3 Workflow (Software)
Flattener #6 Offshoring (Manufacturer)

Flattener #8
Insourcing

#8 Insourcing
Reverse of Outsourcing
UPS & Toshiba

Ca
se

y
ud
St

Insourcing

Ca
se

y
ud
St

Insourcing

Flattener #9
In-forming

#9 Informing
Information Finding
Search Engine

Flattener #10
The Steroids

The Steroids
Processing
Storage

Computing
Data Transfer
Instant
Messaging,
P2P

VoIP
Communication
Videoconference
Virtual Reality
Computer Graphics

The Steroids
Computing
Instant Messaging, P2P
VoIP
Videoconference
Computer Graphics

Wireless

Triple Convergence

Convergence#1
Converged Flatteners

Convergence #1
Before 2000 - Semi-Independent
After 2000 - Converged with another
As Complementary Goods
E.g. Paper/Pencil

Convergence#2
New Business Platform

#10 Steroids

Accelerator
Business Process
#7 Supply
Chaining

#6 Informing

#4 Uploading

#5 Outsourcing

#6 Offshoring

#8 Insourcing

Infrastructure
#2 Netscape

#3 Workflow

#1
Berlin Wall

Politics
Geographic
Economics

Convergence#3
Emerging Regions

BRIC

BRIC
Country

Population
(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
Country

Population
(million)

GDP
(trillion $)

USA

301

13.04

EU

494

13.8

Japan

128

4.2

Total

923

31

Compare!
Country

Population
(million)

GDP
(trillion $)

GDP per capita

($)

BRIC

2773

17.3

6,238

Developed

923

31

33,586

Thailand

62

0.58

9,100