Friday, December 7, 2007
Chapter 15: 11/9 Versus 9/11
Friedman starts out with the comparison story between David Neeleman, cofounder of JetBlue, and Osama bin Laden, co-founder of the greatest American tragedy. They each had big ideas brought on by strong imaginations, they both took advantage of the current technologies to implement their plans. One created airlines, another created mass panic.
Friedman stresses in this chapter that America is the country of imagination, the "dream machine" that the rest of the world, whether they want to or not, relies on. This country must try not to dwell on the negative events like 9/11. They must try to take advantage of events like 11/9, do good with the technology that we have been given, and make the new, flat world a better place to live.
WHOO, that was a good book.
Chapter 14: The Dell Theory of Conflict Prevention--Old Time Versus Just-in-Time
But then there is the dark side of such increases in collaboration, as Friedman describes in the second part of this chapter, subtitled "Infosys Versus al-Qaeda." In this part, Friedman explains that as companies can use the technology of the flat world platform to collaborate with one another, set up supply chains and improve thier business, terrorists such as al-Qaeda can use the flat world platform to collaborate with one another and other terrorist groups, set up supply chains of weapons and bombs, and make life horrifying for the countries and groups that they attack. And due to the fact that we cannot control their use of the internet to spread their terrorist message, this kind of activity will likely continue.
Chapter 13: Globalization of the Local--The Cultural Revolution Is About to Begin
The purpose of this chapter is not to say that globalization is without it's faults, and Friedman takes time to point this out. Americanization does exist, and globalization can be abused in ways that are questionable at best, but it's not all bad. It does have it's good side, and Friedman points out that "our job is not to trash this platform but to get the best out of it and to prevent the worst." Amen, brother.
Chapter 12: The Unflat World-- No Guns or Cell Phones Allowed
Chapter 11: How Companies Cope
It was a pretty good chapter, but I once again found it hard to get through. I don't really have much to comment on this chapter, either. It was pretty clear-cut and straightforward, saying the same thing Friedman has been saying all throughout this book: "The world is taking advantage of new technologies to collaborate more and it is making the world flatter. Learn what you can to hop on this trend before you get left behind."
Chapter 10: The Virgin of Guadalupe
Friedman attributes some of these countries struggles in the new flat world to the need for 2 main things, what he calls the "reform wholesale" and the "reform retail." The reform wholesale is the basic underlying need of "broad macroeconomic reform." Opening up trade barriers is a big part of this type of reform. Reform retail is the next level up from that, and it entails upgrading the country's governance, infrastructure, and education systems. You can't do this without reform wholesale, however. Friedman also attributes the apparent inablility of some countries to take care of these reforms to culture and "intangibles", the former of which seems to be a very touchy subject. I don't care how touchy it is, it's the truth. There are just some people in this world (and some countries full of people) whose cultures simply clash with progressive thinking. Friedman talks about the difference between those cultures who are tolerant of others, and those who are not--what he calls the ability to "glocalize." If Muslim culture in the Middle East teaches their children to be intolerant of other cultures, then that kind of thinking will continue to hinder thier people's progress. It's sad, but it's true. Friedman does recognize that cultures, "a product of the context", can change. Hopefully, these developing countries can get on track, realize where they are in the context of the world, and say, "Wow, we're behind." It will take a LONG time, but I think they can do it.
Thursday, December 6, 2007
Chapter 9: This Is Not a Test
Friedman notes 5 "action areas" that he says America needs to embrace to avoid falling behind. These action areas will help us embrace the "compassionate flatism" that will allow us to survive in the flat world. The first area , Leadership, was a very good read. It suggested that we need someone, anyone, in a powerful enough position (GOVERNMENT, MAYBE) to help the country see the flat world. I completely agree, because before I read this book, I was one of the ignorant. Yea, I knew that it was happening, I use Google, I use the Internet. But what I didn't know was that I was taking all of it for granted, and not seeing what these technologies were really doing behind my back. Unfortunately, all of America cannot buy and read this book (although they should). And the people that have read it, believe it, and are passionate enough to speak out for change, while noble, will not be heard. It will be like trying to move a fat, old, lazy dog, unless you have the right incentive, all the pushing and calling in the world won't move it. We need that bone, that incentive, a president like JFK, that will get us off our lazy asses and get us into gear. A change this big is going to need to start with our government. Let's just pray that the right people get elected.
The second and third areas are muscle building and cushioning, respectively. Muscle building does not mean that we have to go work out. It means that we need to increase our country's muscle by increasing our strengths--our skills and ourr knowledge. Cushioning is keeping a small distance from the coldness of a frictionless, flat world through programs such as wage insurance. Friedman calls for programs like this to be implemented to help the many people who will be displaced by the new flat world.
The fourth area, social activism, is basically a call for companies and consumers to support good corporate behavior. It gives examples of large companies that have used thier power as customers to force the members of thier supply chains to make socially responsible decisions. Wow, more companies should do that... And finally, the fifth area, parenting, I've pretty much already talked about in previous posts. Do your kids right. Teach them well, and don't be overprotective. Discipline them. Make them learn. Do your part as a parent and make sure that they will have the skill set to make it in the flat world. Even if that means you can't always be the "nice parent." It all starts with the parents. I didn't go to the best high school. But I still made it to where I am today, and it's because of my parents. They pushed me from a young age to read and instilled in me a love of learning. That and my mom puts subliminal thoughts in my head, I swear...
Mom: "You'll probably end up getting your master's, I can see that happening."
Me (in middle school): "Ha! No way, four years of college and I'm done. Why would I stay any longer?"
Crap. I hate it when she's right.
Tuesday, December 4, 2007
Chapter 8: The Quiet Crisis
I literally had to stop reading this chapter multiple times because I was so furious. Even now, as I write this post, I'm having a hard time thinking of what to say, because it makes me so angry to think that this country has placed itself on a downward spiral, and refuses to get off. So many examples in this chapter that made me wish that it were the end of 2008 instead of 2007. My friends and colleagues, the upcoming presidential election is now, without a doubt in my mind, the most important election in our lifetimes. We must do our research on the candidates, we must ask questions, we must make the right decision. I'm not saying I know who that person is, or even what party he or she may come from. But I do know that I am going to find out.
Friedman stated 6, count--SIX, issues that will prevent our country from being the best in the flat world. Probably the most disheartening to me (and believe me, they all made me want to slap someone...maybe a certain someone) was the ambition gap, because the ambition of our people cannot be instilled by a single person, or even by the most powerful of governments. It starts in the homes, with the parents, and this means that it is our own faults as citizens. Colleagues ( I won't call on you again throughout this rant, er, post, I promise), I urge you to instill in your children the drive that got you to pursue an MBA. Instill in them the desire to learn, even if that means that the tv must be turned off for a little while! Sure, let them be kids, they will be so anyway, but don't allow them to spend thier entire childhood slacking. We are the future of this great nation, but they are our future, and I don't want my children to be on the lower end of the global curve. Do you?
Another issue that really upset me was the education gap at the bottom. How we can continue on with the education system that we have now is beyond all logical thought. When my professors start complaining about how little he's paid and saying that he would leave if it were not for a certain radio show benefit, how is that supposed to make me feel? Empowered? Like I obviously go to one of the best schools in the country? Of course, not! And it's even worse at the grade school level. The teachers in this country are overworked and underpaid no matter where you are, but at the same time, you can see the crystal clear disparity between what you get in the city, versus what you get the farther from the city you go. I went to Seminole High School in Sanford, FL. We were a good school, with a magnet Health Academy program and a well-renowned IB program for that area. But we were in Sanford, which was, well, for lack of a better word, "ghetto." When I was there, we weren't getting any funding. The teachers there complained of the "lake effect", which was essentially this: all the high schools in predominantly white districts got the state's funding first. Lake Mary, Lake Brantley, Lake Howell. Then came Winter Springs, Lyman, and (well after I had graduated) Seminole. I loved my high school, but honestly, the place was a dump. We constantly ran out of outdated textbooks and the classrooms were well below sub-par. The newest building housed the Health Academy and IB programs, and I had 1 class in that building my entire time there. Whoo.
This also pushes me into the last issue that really affected me: The funding gap. How our government can claim to be looking out for our future economic well-being but at the same time CUT education funding is absolutely absurd. Just recently, FSU Alumni and Florida governor Charlie Crist CUT education funding to all Florida public institutions of higher education. Meanwhile, he denied the pleas of the universities to allow them to raise tuition rates. SO, remember Mr. Cranky Professor? He's not going to be getting paid any more anytime soon. There's no money to do so. There's barely enough money for paper around here. We need better buildings. We need more teachers. We need so much, but the government won't give. And it's happening at the national level. Congress has the power, yet they sit idle. They waste our money on other things. Someone tell me: What are we, as a country, going to do about it?
That's it...I'm done. There are many other things in this chapter I could rant about (HOW ARE WE 16TH IN BROADBAND PENETRATION?!) but I'm too tired. People, wake up. The world's changing, and we have to get with it.
Chapter 7: The Right Stuff--Tubas and Test Tubes
This chapter basically says that, yes, America can survive. We have the institutions, we have the capital systems, we have the right attitudes about trust and openness, and we can make it. I loved reading about Georgia Tech and thier president's insisting on admitting more students with musical backgrounds. Being A: from Atlanta; B: a musician for 11 years; and C: a member of a fellow ACC band, it really hit home for me. It's been said that musicians are generally smarter than the average student, are better at math, and get into less trouble (all the more for us to support the arts in our public schools!) so to see a university president take notice of the academic and professional benefits of a musical background and request more of those types of students in his school really made me proud. (Oh, and he says, "Very few schools have twenty-four tubas." Your Marching Chiefs marched 23 this season. That doesn't include those who didn't march but played in the stands. And we use different tubas in the stands than we do on the field, so we've got about...50ish? God, I love Florida State.)
And there it is, we have the right institutions, we have the right economy. So why are we not taking advantage of it?
Chapter 6: The Untouchables--Finding the New Middle
This new middle consists of many different jobs, and Friedman goes over many different categories. My favorite category is probably the Great Collaborators and Orchestrators. It's these people that will manage the supply chains, coordinate the collaborations between companies and keep the companies of the flat world alive. My next favorite would have to be the explainers. They are the ones that, well, explain things. In this age of increasing technology, these people will be able to make a living explaining how things work to others. And as the flattening world brings together so many more and allows for so much to be going on, it is the explainers who will be able to "see the complexity and explain it with simplicity."
Monday, December 3, 2007
Chapter 5: America and Free Trade-- Is Ricardo Still Right?
The way to succeed is not by stopping the railroad line from connecting you, but by upgrading your skills and making the investment in those practices that will enable you and your society to claim your slice of the bigger but more complex pie.
This is what we, as a country, need to be focusing on. It never ceases to amaze me how stupid and selfish a lot of the people that are running this country are, and it kills me to watch as other nations look on in disgrace as they pass us on the most important issues for a people. I'm talking specifically about our education system. We are quickly losing our grip on the top spots for higher education, and we have fallen well below acceptable standards for public education. We see these things happening, yet we do nothing to improve the quality of education for our people? We're the richest nation in the WORLD, how can we not provide top-notch educational programs for those who are supposed to be our future? Friedman hits the nail on the head when he says that in order for us not to be caught in the downside of free trade in the flat world, that we will have to move vertically, and prepare ourselves to take on higher level jobs that will not be outsourced, will not be offshored, and will not be permanently lost to the American people. But the only way to move vertically is by learning the new skills and adequately preparing our youth for this new enviornment. Friedman writes, "as long as the pie keeps growing and getting more complex, each country should find things in which to specialize--provided it keeps educating and growing the skills of its workforce."
Oh, and I agree with Friedman; Ricardo is still right. It's a matter of simple economics. Although the supply of Indian labor is large, as the demand for thier labor increases, so too will their wages. It's only a matter of time before wages between Indian workers and American workers are about equal, and then outsourcing will move on to the next cheapest area with skilled workers comparable to India. Where will that place be? Who knows. But with the world becoming flatter everyday, try not to be too alarmed when you find out.
Chapter 4: The Great Sorting Out
Friedman basically follows the argument of Karl Marx and Freidrich Engels in the Communist Manifesto. Basically, the argument is this: as the world becomes flatter, and boundaries are erased, and barriers are broken, what will be left? Will there even be order? Marx's answer is that without these "frictions" as they're called, the world's workers will rise up and revolt, thier eyes opened to the oppression that they are enduring. It's what Friedman calls a "proletarian revolution."
Friedman cites 6 isues that arise because of flattening. The first issue (India Versus Indiana: Who Is Exploiting Whom?) is that political agendas will be confused by the increased global collaboration, due to the fact that they are used to lobbying for jobs for thier local constituents. Conflicts of interest occur as outsourcing and offshoring are protested, saving jobs for locals but meanwhile costing local businesses and taxpayers. The second issue (Where Do Companies Stop and Start?) is that with so many companies outsourcing, offshoring, and simply operating in so many countries around the world, companies may start to lose thier national identity. A country may be based in America, but if the majority of thier business is done outside of the country, or if its officers are of foriegn origin, how can you truly classify this as an American company? The third issue (From Command and Control to Collaborate and Connect) is simply that with so much information available so readily, one person can do the job of 2. Friedman says it well, "Your boss can do his job and your job." You'll have to work harder now to stay ahead. Get to it. The fourth issue (Multiple Identity Disorder) is that with people expecting more for less, we are being put through a cognitive dissonance in that our "customer" side wants lower prices, better service, and better products, while our "employee" side wants better wages and better benefits. Unfortunately, companies cannot provide both. Friedman describes a nice story about the difference between Wal-Mart's operation and that of Costco. Although, Costco products cost more than Wal-Mart products, Costco provides it's employees better benefits sooner, even at a cost to its profits. It just shows the difference between where those companies priorities lie. The fifth issue (Who Owns What?) is all about intellectual property. The flat world will encourage the sharing of information, but the traditional world will resist, determined that it needs to know who made it and who owns it. Finally, the sixth issue (Death of the Salesmen) is about the difficulties that are created for those who feel they need a more intimate human bond. The virtual networks that are beaing created by the Internet and programs such as Skype are eliminating the once informal parts of business. All the "fat" is gone. So what's left? And do we really want to partake in that type of feast?
Chapter 3: The Triple Convergence
The second event was the combination of this platform with the realization that this platform existed and the subsequent reworking of the way one does business to take advantage of the platform. I see it like the Sony PlayStation 3. It's an amazing innovation, able to change the way a gamer views gaming. I, however, cannot experience this innovation because, for one reason or another, I have not bought the system. If you don't like my example, I enjoyed Friedman's quoted example of the IT revolution:
"When people asked, 'Why didn't the IT revolution lead to more productivity right away?' it was because you needed more than just new computers," said Romer. "You needed new business processes and new types of skills to go with them."
The third event was the entrance of billions of people that had never had the chance to collaborate before, getting the chance to play on the same field as the Americans and Western Europens. These are the Chinese, the Indians, the Russians. By joining the game, these people have flattened the world even further, by increasing the potential for collaboration. They also, however, increased the potential for countries such as India and China, who have MASSIVE pools of intellegent, well educated people with strong work ethic and unmeasurable drive, to surpass the leading countries in the game.
Thursday, November 22, 2007
Chapter 2: The 10 Forces That Flattened the World
Flattener 1: 11/9/89--The New Age of Creativity: When the Walls Came Down and the Windows Went Up
When I first read the title of this section, I wasn't quite sure what this had to do with the flattening of the world. But as I read on, I found it interesting the extent to which the fall of the Berlin Wall affected the rest of the world. It allowed people to "see the world as a whole" and sparked the creation of many more freedoms in different countries. Different peoples had their own respective Walls fall, opening up new possibilities for them. Friedman suggests that one of the causes of the Wall's fall was the leaking of information behind the Iron Curtain due to the increased use of technology such as "fax machines, telephones, and...the personal computer."
Flattener 2: 8/9/95--The New Age of Connectivity: When the Web Went Around and Netscape Went Public
World's first website: http://info.cern.ch/ (Check it out! It's still around!!)
The fall of the Berlin Wall signified a flattening of the world in that it connected two peoples that before had no way of communicating and sharing thier ideas, information, and knowledge. The invention of the World Wide Web (and it's widespread access through Netscape) signified a flattening of the world in that it connected anyone, anywhere, that before had no way of effectively communicating through the Internet. Before, some people had no way of sending data stored on ther computer to others who were running different programs. Through Netscape, everyone could share their information no matter what kind of program they were running.
Flattener 3: Work Flow Software
I think that the best example of a flattening world came in the story given about the guy who, using Yahoo! and Salesforce.com, has been able to compete with major drugstore chains selling organic vitamins out of his own home. This is an amazing example of how increasing technology is enabling people to compete on the same level as the "big boys", no matter who they are or what they are doing. This example's technology is improved workflow software, made possible by the many languages and protocols that were designed to "standardize" such work flows. As they become standardized, more people and machines will be able to coordinate to make them easier and more efficient to accomplish. *side note*: Here's another example of why you should double-check your work. Incomplete sentence: "Because it is going to give small and medium-size businesses access to some of the powerful work flow tools that a few years ago only big companies could afford." Sorry, I notice these things...
Flattener 4: Uploading-- Harnessing the Power of Communities
Really? 36 pages on uploading? Really?! Well, i guess it was worth it. I absolutely love the fact that some of the biggest threats to software giants like Microsoft and IBM are nothing but collaborations between hundreds of geeks across the country writing and upgrading code! It really does show how "flat" the world has become. Now that people are adding to the internet more than they are taking, it is incredibly easy to find whatever you might be looking for on the Web.
Flattener 5: Outsourcing-- Y2K
So I never knew that there was an upside to that stupid Y2K panic attack. I remember everyone freaking out, running out to the stores to get doomsday supplies. Little did I know that that mass panic would set up the "relationship" (in Friedman's terms) that would allow us to transfer so much of our work to India. Some people have thier arguments for or against outsourcing and offshoring (next segment), but I think that it's okay to take advantage of the vast stores of excellent and cheap knowledge that is in India and improve your business.
Flattener 6: Offshoring-- Running with Gazelles, Eating with Lions
Luckily, because of our classes over the summer, I already knew a little about offshoring and China. Friedman generally summed up the three main points of this issue: That China's membership in the WTO will open up many new doors for others to trade with and operate in that country, that membership will help China's economy through freer trade, and that even with the regulation that governs members of the WTO now being placed on China, the country still has a LONG way to go with the mentality of its people before it will be able to be considered a true superpower nation. It is getting close, though...
Flattener 7: Supply-Chaining-- Eating Sushi in Arkansas
Oh, Wal-Mart, how I loathe thee. I have a love-hate relationship with Wal-Mart. I just recently found out that when they say "low prices" they mean low prices, it's not just a commercial slogan. Unfortunately for all of us, those low prices usually also come with ugly stores, rude employees, and an overall dismal shopping experience. But you saved money! This section made me feel a little bit better about Wal-Mart in that I now know that their low prices come not only from cutting a whole bunch of corners, but from actual, smart business decisions. Supply chaining actually encourages global collaboration? Who would've guessed that supply chain could be so interesting? (No offense, supply chain trackers, but finance is the way for me.) And I loved the incorporation of RFID in this section as well. It really is the wave of the future, and Wal-Mart will most likely be riding it in to shore!
Flattener 8: Insourcing-- What the Guys in Funny Brown Shorts are Really Doing
I think UPS is going to take over the world. This book is teaching me so much more about companies that I never knew before, and some of it is downright freaky. UPS in my mind has always been just that company that delivers the packages. Never would I have thought that it was contributing to the flattening of the world by reaching their grubby hands into so many companies, and taking over their operations! It's not as bad as I just made it sound, however. UPS is helping companies to do things that they never would have been able to do on thier own. Friedman says that not every company can come up with the magnificent supply chain that Wal-Mart has created. Most companies don't even want to deal with supply chains, it's not thier core competency. This is where UPS comes in: it designs supply chains for these companies and helps run them, even offering financing. Oh, and they deliver your packages in really ugly trucks.
Flattener 9: In-forming-- Google, Yahoo! and MSN Web Search
Well, it should have been pretty obvious that search engines would contribute to a flatter world. If you are more and more able to search for whatever you want anywhere, anytime--it's like standing on one point and looking out over the flat land and being able to see EVERYTHING. That's how I see it. I love Google. It's probably the best thing on the internet.
Flattener 10: The Steroids-- Digital, Mobile, Personal, and Virtual
I find it interesting that Friedman refers to these technologies as "steroids." He compares the two in the fact that they are both accellerating the growth of something. In our case, it's the flattening of the world. I enjoyed reading about Skype and the magic of VoIP, because I just downloaded Skype and plan on using it to hold video calls with my mom back home (it's a christmas present, I bought her a webcam. Shhh!!!) I love it, already I'm able to call my classmates for FREE and hold videoconferences on whatever project we might be working on. Instead of getting in my car, driving to the college and meeting my classmates, I can simply hold a videoconference and get the same work done from home. Ahh, technology!
Wednesday, November 21, 2007
Chapter 1: While I Was Sleeping
I knew that the outsourcing of calls to India was going to become a big deal when I read that they actively and scrutinously recruit young Indians to work at these call centers. With the way they're hiring people for these jobs and with what the people go through to get them (I mean, accent neutralization training? Really?), you know that they've got to be important. And even though they're not really getting paid all that much in our eyes, it's still more than what they could get anywhere else. It simply blows my mind to think about stuff like that.
As Friedman moved closer and closer to home, he (and I) were surprised to find how technology and "Globalizaton 3.0" has truly affected the way we live and work. Not only can technology help those in India and China better compete on a global scale, but it can help those in Washington, DC, and Salt Lake City (I really liked the JetBlue example) improve thier ways of life by making things simpler.
Oh, and if outsourcing drive-thru orders becomes commonplace, the world has officially gone insane.