The World Is Flat

“The Great Sorting Out” through “The Virgin of Guadalupe”


“The Great Sorting Out”

India vs. Indiana: Who is exploiting whom?
2003 State of Indiana computer upgrade
• India’s Tata Consultancy Services won the bid
• 8.1 million lower than number 2 competitor (Deloitte)
• No Indiana firms bid on the work due to the complexity
• Tata would hire local subcontractors to do some
• Tata would train state employees on the new computers

Frank O’Bannon (D)

Indianapolis Star broke the story on June 25, 2004
• Political backlash started immediately
• Governor Joe Kerman (D) ordered the contract cancelled
• Kerman also ordered the contract broken up into smaller sections
• Tata was paid for 8 weeks of work during which they trained 45 state employees
• Immediate campaign rally for Republicans

NOT EVEN AS BIG AS THE UNITED STATES”-The World is Flat . • Dell sources components from all over the world • Rolls-Royce conducts business all over Europe • Boeing’s 787 components are produced across the globe “CORPORATIONS CANNOT SURVIVE TODAY AS ENTITIES BOUNED BY A SINGLE NATION STATE.S. Where do companies start and stop? Companies operating in a flat world • Majority of HP employees are located outside the U.

From Command and Control to Collaborate and Connect Wireless technology & Google :  SOS Powell can contact any foreign official via text & instant messaging  Google allowed Powell to find documents quicker Key Takeaway  The flattening world will dissolve old hierarchies  The vertical command and connect world is flattening towards a horizontal connect and collaborate world  Your boss will be able to work day & night and connect with you .

Multiple Identity Disorder Wal-Mart vs. Costco  45% of Wal-Mart workforce has health insurance  96% of Costco workforce has health insurance  Wal-Mart has provided goods in the price range for many lower income shoppers FDA drug approval process  FDA improved their approval process to increase speed to market  FDA seen as to cozy with pharmaceutical industry .

Who owns what? Patent Laws:  US Patent Laws do not encourage open-source collaboration  World does not treat intellectual property the same Personal Accounts Online:  Who has access to your e-mail account if you are deceased .

all bids are performed by e-mail  Advertising firms just want to see the numbers  Audio answering machines do not human contact Chapter Message: Great sorting out-water analogy .Death of the Salesman The human touch is disappearing in a flat world:  Wholesale salesman are no longer need in person.


• This trade creates overall gain in trade David Ricardo and income levels should rise in each country involved in trade. • Considered a fallacy in 1891 by economist D. • For this to hold true America’s unemployment rate should be higher than 4. • States nations mutually benefit when each nation produces and trades good that they have a comparative cost advantage in. • When jobs are outsourced there is a decline in economic power and living standard within the nation. Lump of Labor Theory • Believes there is a fixed amount of work to be done in an economy which can be distributed to create more or fewer jobs within a nation.F. Schloss who stated that the amount of work is not fixed. Beliefs on Effects of Free Trade Free Trade Theory of Competitive Advantage • Free trade is mutually beneficial for all countries involved in trade.5% • As companies take advantage of lower manufacturing costs they increase market size for .

 There is no limit to idea generated jobs. which will provoke other nations to do the same and . Americans will benefit more by sticking to the general principles of free trade then by trying to erect walls. Developing Nations:  Nations like India and China are not racing us to the bottom. but to the top.  Will need to upgrade their education and knowledge skills so that they can occupy new jobs.  Non-skilled works will struggle due to competition with foreign nations that will drive down the cost of wages. Chapter Message: As the world continues to flatten.  Wages will start out low as the originally stifled economy begins to open up. What happens as nations open up to free trade? Developed Nations:  Knowledge workers may be initially effected by outsourcing but these effects will not be permanent.


. “Really Adaptable” – These people are the individuals who are constantly acquiring new skills. Who are the Untouchables? “Special or Specialized” – These people perform functions in ways that they can never be outsourced. knowledge and expertise that enable you constantly to be able to create value. “Localized or Anchored” – These people and their jobs need to be done at a specific place because of a local knowledge or because they require face-to- face personalized contact. automated or made tradable by electronic transfer.

technology and localize it to the basic and complex community. diverse workforces from around the world and explain it with simplicity.  Great Synthesizers  Great Leveragers  Find ways to bring things together that  Can maximize the benefits of a businesses seem completely opposite products. building relationships.  Small and medium businesses and  Math Lovers entrepreneurs that can use global  Individuals who love and understand math. . and assuming new  Passionate Personalizers roles  Can take a job and give it a personalized  Great Localizers touch making the individual memorable.  Green People  Great Adapters  Understand and implement “sustainable”  Apply their skills to widening scopes and and “renewable” products situations and gain new competencies. What types of skills will I need?  Great Collaborators  Great Explainers  These people will be able to orchestrate  Can bring complex disparate things together.


 Right Brain • Support Creativity .  Navigation • Be able to sort out truth from fiction • Learn to check and cross-check your sources before you use them  CQ+PQ>IQ • Individuals you are curious and passionate about something will usually be desired over an individual with a high IQ.  Stress Liberal Arts • Liberal Arts encourage are a horizontal form of education and allows individuals to learn and connect the dots. Great Synthesizers.5 Skillsets or Attitudes to learning  Learn how to learn • Constantly focus on absorbing and teaching yourself new ways of doing old things or new ways of doing new things. among many different fields of study. because curious individuals are going to work hard to learn.


What Crisis??? Erosion of America’s scientific and engineering base Why??? 6 “Dirty Little Secrets”  The Numbers Gap  The Education Gap at the Bottom  The Education Gap  The Funding Gap  The Ambition Gap  The Infrastructure Gap .

 The Education Gap  America’s ability to not interest enough young students in STEM programs  Factor of decline in work ethic. reading and writing skills.  Due to increase in young Americans watching TV and surfing the internet. .Dirty Little Secrets  The Numbers Gap  Number of American students with degrees in STEM programs are decreasing.  STEM careers are critical for America to compete globally and to remain the global innovation leader.  The Ambition Gap  Americans are no longer ambitious and excited to work  When companies send work abroad they may pay 75% less in salaries but more importantly they receive 100% more productivity .

 The Funding Gap  Decreasing amount of Government funds to STEM research programs  Funding has % of GDP has declined by 37% between 1970 & 2004  The Infrastructure Gap  America’s lagging broadband network infrastructure. .  Broadband and IT are critical to advancing productivity and innovation within all sectors of the economy.  Organizing at state or nation levels improves the areas abilities to place all schools on an equal and quality grounds.Dirty Little Secrets  The Education Gap at the Bottom  American school districts are still run by school boards at the local level instead of other nations that organize at the state or national level.


Compassionate Flatism  Five Action Areas  Leadership  Muscle Building  Cushioning (AKA Good Fat)  Social Activism  Parenting .

 Lou Gerstner – IBM Chairman (1993) – “Transformation of an enterprise begins with a sense of crisis or urgency. The Americans don’t.Leadership  Bill Gates – “You talk to the leadership in China.”  Replace “lifetime employment” with “lifetime employability”  “What government can and must guarantee people is the chance to make themselves more employable”  Make people passionate about beating the crisis. No institution will go through a fundamental change unless it believes it is in deep trouble and needs to do something to survive. . and they get what is going on immediately.Compassionate Flatism . because they are all lawyers”  National strategy for handling flatism requires an acceptance on the existence of flatism. and they are all the engineers.

and  economic security.Compassionate Flatism – Building Muscle Workers becoming “responsible for managing their career.”  Increased/mandatory/subsidized education above the secondary level  Increase skilled workers and reduce the pool of low-skilled job prospects  Capital One cross-training due to potential job losses from outsourcing . risks.”  Most important muscles – portable benefits and opportunities for lifelong learning  “Legal and institutional frameworks for universal portability of pensions and health care”  Freidman’s Universal Pension Plan  Increased ease of giving workers stock options  Portable health insurance (State/Federal Pools)  American economy thrives on “the flexibility and mobility of its labor force and labor laws”  Government must “upgrade the educational level of the entire American workforce.

Compassionate Flatism .Cushioning .

Parenting .Compassionate Flatism .

“The Virgin of Guadalupe” .

0  “I can only get it for you Retail”  Culture matters—Glocalization  The Intangible Things .The Virgin of Guadalupe  Introspections  Globalization 2.0  “I can get it for you Wholesale”  Globalization 3.

.Where’s the Virgin? Introspection. .

0 .“I can get it for you wholesale…”  Globalization 2.

“I can only get it for you retail…”  Globalization 3.0 .

Women Age. hard working  Open to other cultures and religions  Open to equal rights between: Races Men vs. socioeconomic status Country of origin .Culture Matters—Glocalization  Cultural aspects of success  Outgoing.

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