Tuesday, October 9, 2007

CH13: Berlin Wall vs. Bin Laden

9/11. Do you know where you were when you heard about the attacks? I remember it was junior year in high school and I was in my government class. The teacher got a call on her phone to turn on the TV. After she turned it on we saw a video of the World Trade Center with a fire on one of the top levels. Me and my classmates didn’t know what was going on. It was a very scary.

In the final chapter of the book, Friedman reminded us that the new flat world is being used for good (to help improve quality of life and grow the economy), but also sometimes for evil (terrorism). It's important for us to fight the people that are using "the flatteners" for evil.
The Berlin Wall crumbled on 11/9/89 which signaled the start of a new revolution of freedom and when technology began to go into hyperdrive. However, when Bin Laden orchestrated the attack on 9/11/01 it was almost a setback for the "flattening" of the world. Everyone was afraid and realized that maybe we were "flatenning" too much and technology was now available to everyone.
I feel that with anything, some people are going to be use it for good and some for evil. However, I don't think that should make us want to slow down on innovation or technology. Maybe just be cautious.

CH12: Dude! You’re Getting A Dell

Dell Computers are the best! I have both a Dell Desktop (from 2003) and laptop (Summer 2007) and have not had any MAJOR problems with them ever. Whenever I do have a problem, I simply call their 1-800 number and talk to a technician (probably at India’s Call Center) and they help me solve my problem. I can see why they are the #1 computer manufacturer in the world. Good quality and quality customer service.
I was surprised to see numbers of suppliers involved in building one laptop: over 400. Wow! That’s a lot suppliers! I’m currently taking a Supply Chain elective and understand all the procedures and steps involved in working with 1 supplier, let alone 400. It was interesting to see all of the parts to my computer are from all parts of the world: China, Japan, Philippines, Mexico, Thailand, and lots more. Dell is good example on how to successful manage your supply chain. They recently entered a joint venture with Wal-Mart to allow them to sell pre-customized computers from Dell to their customers. This is a great strategic move as people already associate “Low Prices” with both Wal-Mart and Dell.
This chapter was about supply chains and how they are important in preventing conflicts (wars) between two countries. The theory is if 2 countries depend on each other enough (like US and China) than the probability they will get in a war is highly unlikely. This is true and very important for countries to remember. For example, China produces so many goods for us it would be almost suicide if the US ever got in a war with them as our imports would reduce drastically.

Friedman decided to name this the “Dell Theory of Conflict Prevention”. It is a very catchy and interesting theory for the Globalization 3.o0 age.

CH11: The Unflat World

Finally, in this Chapter, Friedman admits that the world isn’t flat…yet. The book should actually be called “The World Is Flattening”. There are still dozens of countries around the world who are undeveloped and behind us in every single way. So with these places and people still existing, the world is still round. Just like Christopher Columbus thought! :P

The section touched on various different groups who are a part of the unflat world: sick, disempowered, frustrated, and depletion of the world’s natural resources. The group that I’ll focus on this is the “too sick”.

The too sick included the people who have HIV-AIDS, malaria, TB, polio, and who do not have electricity or clean water. It was sad to read that some of these never seen a toilet before or a shower. Also, instead of drinking clear, clean water they have to gulp down muddy, dirty gutter water.

In some of the countries in Africa, AIDS is so prevalent that 1/3 of all pregnant women are HIV positive. With HIV/AIDS affecting the continent of Africa, it will probably be harder for them to become into a flat world as many of the children may not even grow up and live past 18. It was good to see that Mr. Bill Gates has donated lots, and I mean lots, of money to fight diseases and poor living conditions. Over the years, he has donated over $27 billion to these causes.

Friedman reminds us that people who too sick will not be able to compete in the flat world as they might not be around to compete. While this is sad, it is true.

CH10: Can I just order "A Simple Coffee" at Starbucks

This chapter seemed to talk about how successful companies in today’s world are the ones that best understand triple convergence. With this understanding, they have developed their own strategies for coping with it. He gives 7 rules to businesses on how to do this. I will just touch on my 2 favorites.

Rule #1: When the world goes flat-and you are feeling flattened-reach for a shovel and dig inside you. Don’t try to build walls.

This was my favorite rule as it’s self explanatory and makes sense. If you see competitors in your industry globalizing and using technology to their advantage, just don’t sit there. Be proactive and do a SWOT Analysis on your company and look at what strengths you have to offer, and what opportunities are available. This is the first step in creating your competitive advantages.

For this rule, Friedman used Greer & Associates as example. The CEO said, “Our competition is not only those firms we always used to compete with. Now we have to deal with giant firms, who have capabilities to handle small, medium, and large jobs.” In this day of age, we have to not only look at our competitors in America, but also across the world.

Rule #3: To flourish in the world, companies must act mall, while acting companies act big.

This was another important rule. Remember back in the day when companies decided every aspect of how make the product. Well now in this flat world, customers are making these decisions. Starbucks is a good example of this. When the popular coffee shop first opened, they only had a handful of flavors and mixes. However, now after customer input they are including coffee mixes that include soy milk. Also, customers can make their own unique blend of a latte or cappuccino or whatever they want. Customers are BIG, while companies are SMALL.

I’m not a big coffee fan at all. I’m actually scared to go to Starbucks because its too confusing and wouldn’t know what to order.

CH 9: Don't Do Business in Africa

This chapter discusses developing countries and how they factor into the flat world. I liked the creative example Friedman made about “What if regions of the world were like a neighborhood?” Even though I think it was a sort of stereotypical, especially as he placed a label on countries that had populations of hundreds of millions or billions of people. The most interesting descriptions were:

The U.S. – Gated community with a metal detector at the front gate and a lot of people complaining on how lazy everyone else was. However, there is a small hole in the fence for Mexican labor

Latin America – The fun part; the club district; workday doesn’t begin until 10pm and everyone sleeps to mid-morning

And last but not least: Arab Street – Curtains closed, shutters drawn, signs on their front lawn that say “No Trespassing. Beware of Dog.”

Also found it interesting that each country has VASTLY different rules and regulations on new businesses in their company. A new biz in Australia takes 2 days to open, while Haiti makes a new biz wait around 200 days to open. Over half a year! Ridiculous!

The study the IFC did called “Doing Business” was a good study as it showed which countries were the best to do business with. Singapore, New Zealand and China are countries that you SHOULD do business with. However, many countries in Africa you SHOULD NOT do business with. I agree that developing countries need to analyze themselves and decide what all do they need to eventually become a developed country so they may be able to better survive in this flattening world.

CH8: This Is Not A Test (Good because I didn't study!)

Friedman is warning us that THIS IS NOT A TEST. This quiet crisis we are going through is the real thing. If we don't begin to shape up and make changes, we will fail the test. Meaning we will lose our place as the #1 country in the world in terms of power, innovation, and economy. As a fellow American, I would like to see us stay at #1. Friedman has came up with 5 factors on how we can PASS THE TEST. I'll briefly comment on the 5.

Leadership - I agree that our leaders, especially The President, should be smart and knowledgeable in how the world is working. George W. has gotten slack his entire presidency for not being the brightest crayon in the box and lying the public (ie. weapons of mass destruction)

Muscles - Some of the reasons that Friedman gives to what he says has more to do what HE BELIEVES then what is BEST FOR AMERICA. However, his wanting college to be free to allow everyone to get a higher education is fully supported by me.

Cushioning - This is where I saw through his "Helping make the world flat" speil. He wants America to keep Social Security, but get rid of welfare because it discourages people to work. While I do agree that welfare is sometimes misused, many people really NEED welfare to help support them and more importantly their KIDS. Don't try to push your political agenda on us Friedman!!!

Also he made up a stupid "wage insurance" plan that is so complicated I'm embarassed the editors kept it in the book. If a person ends up making less than what they did at their previous job, he wants the government to give them the difference. However, there are certain rules your must follow.

1) Must have worked at job for at least 2 years.
2) Must have lost job to downsizing, outsourcing, or offshoring
3) Not paid until worker had found new job
4) Cap of $10,000 year

Man that is way TOO complicated and is just another form of unemployment or welfare. Focus on the facts and stop trying to be a senator and pass bills, please!!!
Social Activism - This was just boring and pointless. This is just another form of social responsibility that most companies are already doing. It looks like he was trying to stretch his list to a nice, round five number.

Parenting - The most interesting factor as he mentions the infamous Bill Cosby rant to black people to be "better parents". His speech caused lots of controversy and an uproar in the black community back in 2004, but many agreed what he was trying to say. Friedman said that Cosby's speech should be applied to all people (black, white, red, brown, green...) and remind parents that they should try to get their kids to do less playing games and studying and learning as they are the future of our world.

CH7: Leave Britney Alone!!! (Oh yeah, and The Quiet Crisis)

No, you are not at Chris Crocker page on YouTube. But I just wanted to tell the author to LEAVE BRITNEY ALONE. Why is it everywhere I go, I hear and see Britney Spears news. Even when I'm reading a book about globalization, Friedman has to go and insult and mention Britney. I admit I'm a fan ("Gimme More" and "Slave 4 U" are THE joints!). I just don't see why he had to say...

In China today, Bill Gates is Britney Spears. In America today, Britney Spears is Britney Spears - and that is our problem.

Stay on topic Mr. Friedman. The World Is Flat. We Are In Globalization 3.0. Yada yada yada. Just leave Britney alone.

Enough with my rant, back to the Chapter...

The 3 Dirty Little Secrets that the author mentions aren't really secrets. Well at least not to me. The secrets are:

#1: The Numbers Gap – The fact that the number of people going in to math & science is decreasing is NOT surprising. I went to a magnet school for math & science and while I’m good at both subjects, doing a career in them isn’t the desirable.

#2: The Ambition Gap - People over in China and India are more ambitious and harder-working should be no surprise to us either.

#3: The Education Gap - Americans have becoming lazier as technology gets faster and better. Hopefully, soon we can try to fix this problem as if we don't, the quiet crisis is going to be a very loud crisis with our next generation.

CH6: Hammer Time "U Can't Touch This"

Remember that MC Hammer song back in the early 1990s called "U Can't Touch This". After reading Chapter 6, this was the first thing that popped into my head. Talking about how as Americans, or even the world population, all need to become untouchables.

In the beginning, Friedman says instead of telling his kids "Finish your dinner, people in China are starving," he tells them "Finish your homework, people in China and India are starving for your jobs." This is funny but very true. With as many universities we have in the country (over 4,000) and scholarships and grants (over $1 billion each year) that are available, we should all try to learn as much as we can. That is the main reason I decided to pursue a MBA. It will help me one step further in gaining that "Untouchable" status.

I need to begin to think of ways on how to make myself into an Untouchable. If I can specialize in a certain area or have a specific skill, this will give me a big advantage and big sigh of relief. I will not have to worry about my work/job being outsourced to someone on the other side of the world. I'm very creative, so that's definitely a plus. But I do need to specialize in something.

The word the author describes is to have skills that are "unfungible"- work that can NOT be digitized or easily substitued. I plan on going to the movie business (ultimately be a producer) and this is not exactly a job that can be outsourced or given to a computer. Well, at least not yet. :)

So go to YouTube (http://www.youtube.com/watch?v=EMzoBkaFxh4) and watch MC Hammer "U Can't Touch This". Hopefully it'll give you motivation to become an untouchable.

CH 5: Free Trade Is A Good Thing

Free trade is a controversial subject. Many people in this day of age believe that free trade can't survive in the current world as it is now "flat". The average citizen is worried that American companies will begin to outsource and offshore so much, that eventually there will be no more jobs for us Americans. However, this "theory" is silly and false.
Friedman showed us fairly simple calculations on how no matter how many unskilled or skilled workers there are, there will always be jobs available. People do not need to worry about Indians or the Chinese taking our jobs. There will always be jobs in America. I agree with him 100%.

QUOTE #1
There were two really good quotes I liked from this chapter. The first one was, "If you believe human wants and needs are indefinite, then there are infinite industries to be crated, infinite businesses to be started, and infinite jobs to be done, and the only limiting factor is human imagination. The world is flattenning and rising at the same time." This quote is from the cofounder of Netscape, Marc Andreessen. The company started in 1994 under his guidance.

I like this quote because it shows that free trade promotes creativity and innovation, which is exactly what the world needs now. New inventions and ideas create new industries which in return: create new jobs! This is why FREE TRADE IS A GOOD THING.

QUOTE #2
"The Indians and Chinese are not racing us to the bottom. They are racing us to the top-and that is a good thing."

This was interesting as I had to put the book down to think about this: How is this a good thing? Then I realized, this will diversify the product markets that are available and niches for specialization will be created as well. Friendly competition will onlly push us be even more innovate so we will be able to compete.

CH 4: Colin Powell likes "Google" & I'm Not Bi-Polar

Chapter Four "The Great Sorting Out" explains just that: sorting out various issues that globalization has caused for businesses and people.

Colin Powell
I thought it was funny that when asked when was the time the world was flattened, Statesmen Colin Powell answered "Google." Who knew he used Google to help him write his speeches for Resolutions for the UN?!? I didn't. More power to him. I would have to agree with. Google, YouTube, and MySpace are some of the most important and culture-changing websites EVER.

One thing that is getting annoying is every time Friedman meets someone is he asks them “Where were you and when did you realize the world was flat?” Maybe it’s just me, but that’s a hard question to answer on the spot. The world has gradually over the past decades become flat due to advancements of technology and processes. I would to hear some of the responses from average citizens when they answered his question. Some would probably be:

“Where was I found out the world was flat? Excuse me sir, where have you been? The world is round.”
“I don’t understand the question. Can you repeat it.”
“(laughs) Is this a trick question?”

Most people probably won’t understand the metaphor (or is it analogy, not sure) of “The World Is Flat”. However, once explained what Friedman means by the quote will probably be able to tell him instances on when they realized we have reached Globalization 3.0. (After a couple of minutes of thinking of a good answer, of course.) Mine was probably be when I realized I could pay all my bills online and check by bank statements whenever I wanted. This is very easy and convenient.

MID
Also, I think I'm coming down with a case of Multiple Identity Disorder (MID). I can't decide what I am. Am I a consumer, student, employee, citizen, taxpayer, or shareholder? I'm going crazy. However, Friedman tells us that all of us are beginning to get this disorder which is only going to cause more confusion for us in the future. AAAAAH!!!! When I told my mom today that I think I had MID, she told me it’s called bi-polar. I told her, “No, I don’t have multiple personalities. I have multiple identities.”

CH 3: How To Get A Visa and Into Harvard

Chapter Three touched on Triple Convergence, on how the 10 flatteners he discussed in the previous chapter have came together over time and spread rapidly across the world. One of my favorite sections was the one about Chinese Zuppies and some of the arguments they use to try to get a VISA to come to America to go to Yale or Harvard and get a good paying job.I thought it was funny that many Chinese students are using chat rooms to trade on what they think are the best arguments to use when applying for a VISA. Unfortunately, once they find a good line to use: all of them use it the next day when applying which probably gets old and boring after a while with US Embassy Officials.

One of the most popular lines is: "I want to go to America to be a good professor." While this is a good reason in wanting to go to America, I think the best way for foreigners to apply for a VISA is just be honest and tell the officials a creative and unique reason on why they want to move to America. Yes, being a professor and teaching students is a good thing. But you have to think of something that will set you apart from the 1000s of others who are trying to get the same thing. Kinda how you have to set yourself apart in a job interview.

In China, sending your kids to Yale or Harvard is a very big deal. A book written called Harvard Girl Yiting Liu offers scientifically proven methods to get their children into Harvard. I checked on Amazon.com and it looks like the book is out of print. It costs almost $200 on ebay. That’s weird. While Harvard is still prestigious in America, most parents don’t really care where they send their kids. Actually, the cheaper the better.

CH 2: Last 5 Flatteners (Part 2)

6: Offshoring
I learned that "offshoring" is not only just a hidden bank account in the Cayman Islands, BUT when a company physically moves or sets up a plant to another country to manufacturer. Good to know! I liked the African Proverb the Chinese manufactur erposted once China joined the WTO: "When the sun comes up, you better start running."

7: Supply-Chaining
Wal-Mart is definitely the top dog when it comes to how to successfully manage a supply chain. Unfortunately, it seems they are beginning to abuse their power. On another note, it was interesting people in Florida during hurricane season like to buy Pop Tarts (my fave is Brown Cinnamon), Beer (Budweiser), and hand-held games (PSP).

8: Insourcing
Who knew UPS was that involved in company operations and logisitics. I'm seriously thinking of buying a Toshiba computer next time around, as I know that UPS will actually fix it and I can get it back in 3 days. I liked the term UPS coined for themselves "synchronized commerce solutions" as it sounds slick and is true on what they do.

9: In-forming
Google is my homepage. As it should be yours. It's the best site ever. Whatever you want, whatever you need, is only one click away. Mark Twain's quote "Always tell the truth, so you don't have to remember what you say." is GREAT advice. Especially in this Google age. Whatever you do is going to be on the Internet (well, not everything). So just be careful.

10: The Steroids
Mobile phones are the coolest thing ever and are only going to get more fancy and important to our everyday lives. I like the SKYPE shoutout Friedman had in the middle of this section. I may try SKYPE in the future, but for now I'll stick with T-Mobile.

CH 2: First 5 "Flats" & Friedman Is A Hypocrite (Part 1)

Wow! Chapter 2 was long. Over 100 pages crammed with lots of information. In this chapter, Friedman discusses the 10 events and technologies that have "flattenned" the world over the past several decades. The first five include:

1: 11/9/89 - Berlin Wall Crumbles
My fave quote from this section was "Walls had fallen, Windows had opened". This can be seen as literal because the time the Berlin Wall came down, it was the same time the birth of PCs arrived. Very creative.

2: 8/9/95 Launch of Netscape
Bringing back Netscape was fun as it brought me down memory lane. I used to go on Netscape ALL the time. That was my browser. Than Microsoft pretty much forced IE down our throat and I've been using IE ever sense.

3: Work Flow Software
The example of how the animation studio "Wild Brian" is using the supply chain in the movie industry was cool. Especially since this is the industry I plan in going into next year. Having writers in NY, animators in LA, and have actors do voices over the internet is amazing on how far we have came in the past century.

4: Open Sourcing
I liked how Friendman mentioned Wikipedia as the new open-source Encyclopedia. Everyone uses it. This is my favorite site. Another good quote describing the mission statement for Wikipedia is "giving every single person free access to the sum of all human knowledge".

5: Outsourcing
I remember back in the late 1999 everybody was freaking about the Y2K bug. Everyone thought the world was going to end and all computers would die. Little did we know, on the other side of the world Indians were working with fiber optic cables and technologies to prevent the world going into a chaos.

Main Point: Why Friedman Is A Hypocrite
I don't understand how someone can write an entire book on how "The World Is Flat" and then can't accept some of the new features the Internet is offering to the help "flatten" the world. I'm talking about him whining about how Amazon.com is showing free sample chapters to users and also selling his used books.

You can't "praise" the Internet for being revolutionizing the world and then be upset that people are using it to make smart purchases. He mentions how "cool" it would be to be able to scan a Madonna poster to sample songs from her CD, but is mad that people are sampling a chapter from his book. HYPOCRITE!

Friday, October 5, 2007

CH 1: Colombus, Call Centers, and Desperate Housewives

Wow! I thought this book was going to be long and boring. Clocking in at 476 pages it's still long, but it NO WHERE near boring. Very interesting and dare I say, exciting. While the author Thomas L. Friedman touched on various subjects in "The World Is Flat" first chapter, here are some of my favorite ones:

Christopher Colombus Intro - The book opens with a passage from one of the great explorer's journals. Having this open the book was genius and explains why the book was called "The World Is Flat". I have to agree that the world is becoming more and more flat everyday with the continuing growth of globalization in more and more countries. I'm very excited to be apart in living in the Globalization 3.0 age.

411 on Call Centers - Getting the inside scoop on call centers in India was by far the most interesting part of this Chapter. Lots of funny things. First, I did NOT know that the employees made up their names to sound more American like Susan or Bob. However, I should have figured that out by now. Also, I did not know they had to take accent-reducing classes to help them sound American. After Friedman read the passage in front of the class, they gave him a standing ovation. LOL! Also, the part where the confused employee talking to the customer about the burning computer monitor was hilarious. I did not know most American companies all had stations in the same call center building. It makes sense, as this would FURTHER reduce costs.

Jet Blue's Desperate Housewives - I've never heard of JetBlue until today. Kinda like I never heard of Second Life or Skype until a couple of weeks ago. But it was interesting they hired mostly housewives to serve as their customer service operators. I think it was a good idea as it tied the COMPANY CULTURE and REDUCING COSTS/IMPROVING EFFICIENCY into one. The president of the company believes that moms should stay at home with kids, but also have a way to earn wages. Allowing them to answer airline passengers phone calls from their home was a simple and efficient decision.

So far the book is good and I do agree with the author's opinion in the end on how the world is only going to get flatter and flatter as time goes by. Top-down hiearchies are going to dissapear to make room for more horizontal and collaborative teams.

Tuesday, October 2, 2007

Begin Today...

Hello everyone! Today I will begin to read the book "World Is Flat". I'm very excited to get started on this book.