Friday, December 7, 2007

Chapter 15: 11/9 Versus 9/11

Wow. I love the way Friedman writes sometimes. He is so eloquent and yet so direct. His mirror-image comparison of these two dates is startling, to say the least. It perfectly describes the eerie similarities but vast differences between the fall of the Berlin Wall, which opened up the door to start the collaboration that would become the flattening of the world, and the September 11 terrorist attacks that threatened to destroy all that we had worked for.

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

Wow, I really liked that chapter. Friedman's logic in his "theory" was a little funny, and he recognizes this, but it was still interesting. His theory is that any two countries that are both involved in strong global supply chains such as Dell's will never go to war with each other. Although this statement is a bit farfetched, the ideas behind the statement were sound. Basically, the importance of these supply chains to the well-being of the people of a country will deter, but not prohibit, that country's government from seeking conflict with another country. This theory is actually an update on a previous theory of Friedman's shared in his other book, The Lexus and the Olive Tree, called the McDonald's Theory of Conflict Prevention. This theory made me laugh when I read it, but it still made sense to me. I find it amazing that increases in technology, which help to build better supply chains such as Dell's, can actually deter war. It's nice to see some good once in a while.

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

What is globalization of the local? According to this chapter, it is another way of looking at globalization that contrasts the traditional view of Americanization. While Americanization is our culture taking over and slowly eroding the cultures of the world, globalization of the local is the people of the world taking advantage of globalization and the flat world platform to make thier cultures more accessible to all, including both foreigners and their own people in foreign lands. This enables those people who have left their homelands for various reasons to enjoy, to some degree, their native culture. This can serve only to strengthen those cultures. Freidman says it best: "[Globalization] is about the creation of a global platform for multiple forms of sharing work, knowledge, and entertainment."

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

Friedman is trying to confuse me! He's admitting (quite comically, in fact) that the world is not flat. However, he's not saying that he's been lying this whole time (in which case I would stop reading now). He's basically acknowleding the fact that the world is not flat, but flattening, but there are many regions of the world that he says are unflat, because of one circumstance or another. There are people who are too sick due to a lack of healthcare. There are people who are too disempowered (or half-flat) due to a lack of a government responsible enough to notice them and help them. And there are people who are too frustrated by pressures of the flattening world to enjoy it, and it is these people, according to Friedman, who spawn the likes of Osama bin Laden and al Quaeda.

Chapter 11: How Companies Cope

So, we've learned how America is behind, but still has the resources to cope in the flat world. Then we learned what developing countries can do to take advantage of the flat world platform and rise up. This chapter is exactly what it's title says: it describes what companies need to do in order to cope in the flat world. Friedman suggests they follow seven distinct rules, some of which he had touched on earlier in the book. These rules vary from a general introspection to find your true core competency, to taking advantage of new technologies to a.) make your big company act small, or b.) make your small company act big, to using outsourcing correctly and efficiently to not only cut costs, but to increase your market share and, perhaps, help out a poor country of people in the process.

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

This chapter wasn't nearly as...uh, titillating as the last one. While it still interested me to read about what developing countries needed to do to survive in the flat world, I found it harder to get interested in others' issues. Although it was very cool to learn just how hard it is to do business in some of these other countries. (Remind me never to try to start a business in Haiti, yikes!)

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

Agh! It just keeps going! When I picked up this book and looked at it's massive 571 page width(more for the paperback version, I hear), I really worried. I should have started reading this book earlier, though, because it really is good. This chapter and the last have really opened my eyes to the direction the world is going, and has actually helped me to understand a lot of what Molly has been teaching this semester. What was the point of this class? The point of this class was to help us grasp the concept that the world is changing, and changing FAST. It's all funny and haha now that we had no clue what SecondLife was, but what is going to happen when that "Really?!" moment hits us when we're managers of a company? How do we justify allowing ourselves to get left behind in the world when we're responsible for a little more than just ourselves?

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

This is going to be a LONG post.
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

To me, this chapter probably should have followed Chapter 5, because it would have served as the perfect answer to the burning question that I had in my mind as I finished that chapter: I know what we need to do to survive in the flat world, but can we do it?

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 chapter describes how us as individuals can survive the flattening, by developing our skills and obtaining jobs that Friedman calls "untouchables"--those jobs that cannot be outsourced, and cannot be digitized or automated. Because of the flattening, more and more white-collar, service jobs are becoming fungible, meaning that they can be easily transferred. We need to find these non-fungible "untouchable" jobs in order to eliminate the risk of losing that job to either another country or to advances in technology. Freidman recognizes 3 types of "untouchable" jobs: Those that are specialized, such as basketball stars; those that are localized, such as your local barber; and those that are a part of the "new middle." It worried me as I read this chapter, because the field that I've been studying the past 5 years was listed under the "old middle". Uh-oh. Have I been wasting my time?

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?

I believe that this chapter is best summarized by Friedman's last sentence in the chapter,
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

Now that all the convergences are out, and technologies are floating around, doing their thing and making the world flatter, Friedman decides that he'll flip things, and present a few of the issues that are being brought up in this flat world. Great. Just when I thought the flat world would be perfect. Should have known better than to expect a perfect world, flat or not.

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

Friedman never ceases to amaze in how he takes all of these concepts and events that have been happening right in front of us and presenting it in such a way that makes you think, "Why didn't I see it that way?" He calls this chapter the "Triple Convergence" because of the 3 huge events that flattened the world. The first event was the 10 flatteners coming together. These flatteners fed off of each other increasing each others' flattening power and flattening the world that much faster. Friedman relates them (quite cleverly) to the "simultaneous improvement of complementary goods", which makes a lot of sense, becase each flattener acts as a complementary good to the others. The combination of these flatteners created what Friedman calls the "flat world platform."

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.