Maryville University EDL – 763 THE World is flat

1. Book Presentation by Chris Garland, Kim Tooley, Marcie Burkemper, and Todd Benben Maryville UniversityEDL – 763THE World is flat

2. DEFINING THE FLATTNERS

3. iNTRODUCTION – While I Was Sleeping • Realization: The field is being leveled and other countries are able to compete for global knowledge. In essence, the world is being flattened. • The flattening means that we are connecting all knowledge centers on the planet together into a single global market. • The use of computers, email, fiber-optic networks, teleconferencing, and new software are the tools that are allowing the world communicate.

4. The playing field is being leveled in more ways than with just innovators; is also drawing in and giving power to a group of angry and frustrated people – Al Qaeda. Problem with the flattening:

5. THE FlattenerS

6. Flattener #1- 11/9/89When the Walls Came Down and the Windows Went Up • The fall of the Berlin Wall liberated many captive people of the Soviet Empire. • It tipped the balance of power across the world. • The power shifted to those in favor of democratic, consensual, free-market oriented governance. • Until the fall of the Wall, the Cold War had been a struggle of between 2 economic systems- capitalism and communism. After the fall, communism diminished.

7. The Fall of the Wall cont. • Finally, the fall of the wall paved the way for adopting common standards such as: * how economies should be run * how banking should be conducted * how PC’s should be made * how economics papers should be written • Enhanced the free movement of best practices

8. The Opening of Windows • 1st version hit markets in 1985. • Eliminated a barrier: the limit on the amount of information that an individual could amass, author manipulate and diffuse. “The Windows-powered PC enabled millions of individuals, for the first time ever, to become authors of their own content in digital form, which meant that content could be shared far and wide” Craig J. Mundie- CTO Microsoft • This level of connectivity “put the nail in the coffin of communism.” Freidman

9. Flattener #2 : 8/9/95When the Web Went Around and Netscape Went Public • Breakthrough in Connectivity: World Wide Web and Netscape going public on 8/9/95 • Netscape brought the internet alive and more accessible. • Netscape demanded more computers, software and telecommunication networks that could digitize words, music, data and photos.

10. This flattener is responsible for the birth of AOL, newer versions of PC-Windows, Google, Yahoo and the dot-com boom. • It also allowed the telecommunications giants such as the Baby Bells and AT&T to provide both phone service and infrastructure for internet. Flattener # 2 cont.

11. Flattener #3 : Work Flow Software • Work Flow Software created the seamless transfer of work from place to place and continent to continent. This innovation allowed people to shape things, design, create, sell things, buy things, keep track of inventories, taxes, etc. • The first big breakthrough was the combination of the PC and email - Windows enabled this. • SMTP – simple mail transfer protocol – enabled the exchange of email between different computer systems.

12. Examples: • “Higglytown Heroes” by Disney • Pay Pal – 1998 – anyone with email can send money to anyone else with an email

13. Uploading is a term used for getting information and the ability for anyone to be a producer, not just a consumer • Is potentially the most disruptive of the flatteners – how many people will be in the game? Types of uploading: • Community Developed Software Movement • Wikipedia • Blogging/Podcasting Flattener #4 – Uploading

14. Also known as open-source communities Derived from the notion that companies and ad hoc companies should make available online source codes - the instructions that make software work Peer-reviewed science Community–Developed Software Movement

15. Apache – Open Source Web server community Virtual, online, bottom-up software factory Single server that can host thousands of different virtual websites Example:

16. Outsourcing- to purchase good or services from and outside source The US began purchasing serviced from India for one-fifth of the rate in the US – Y2K Example: Health Scribe India Flattener #5 - Outsourcing

17. Flattener #6 : Offshoring • Is when a company takes one of its factories that is operating in say Canton, Ohio and moves the whole factory offshore to Canton, China. • There it produces the very same product in the very same way, only with cheaper labor, lower taxes, subsidized energy and lower health-care costs.

18. This has created a process of competitive flattening, in which countries scramble to see who can give companies the best tax breaks, education incentives, and subsidies, on top of their cheap labor, to encourage offshoring the their shores.

19. “China is a threat, China is a customer, and China is an opportunity.”-Kenichi Ohmae, Japanese business consultant The average wage of a high-skilled machinist in America is $3,000 to $4,000 a month. The average wage for a factory worker in China is about $150 a month. “If Americans and Europeans want to benefit from the flattening of the world and the interconnecting of all the markets and knowledge centers, they will all have to run at least as fast as the fastest lion – and I suspect that lion will be China, and I suspect that will be pretty darn fast.” -Thomas Friedman

20. Flattener #7 : Supply-Chaining • Is a method of collaborating horizontally – among suppliers, retailers, and customers – to create value. • The more these supply chains grow and proliferate they force the adoption of common standards between companies and the more they encourage global collaboration.

21. WALMART • No company has been more effective at improving and perfecting its supply chain than Walmart. • “They’re a phenomenal channel but a tough customer. They demand excellence.” -Joseph F. Eckroth Jr., CIO at Mattel Inc.

22. Flattener #8 : Insourcing • Is a whole new form of collaboration and creating value horizontally, made possible by the flat world and flattening it even more. • It came about because once the world went flat, small companies could suddenly see around the world in a matter of seconds.

23. UPS now comes inside a lot of companies and takes over their branded vehicles to assure on-time delivery • Papa Johns • Nike • Jockey • HP, • eBay • Ford, • (to name a few) • UPS is the largest private user of wireless technology in the world UPS .

24. Flattener #9 : In-forming • Is the ability to build and deploy your own personal supply chain – a supply chain of information, knowledge, and entertainment. • Informing is searching for knowledge.

25. There is no bigger flattener than the idea of making all the world’s knowledge, or even just a big chunk of it, available to anyone and everyone, anytime, anywhere. • The access to the world’s knowledge is in our pockets. • Google is now processing roughly one billion searches per day. Characteristics of InforminG

26. Flattener #10 : The Steroids • These are certain new technologies that are amplifying all other flatteners. • They are: -Virtual – transmit content at very high speeds and with total ease -Mobile – with wireless technology all can be done from anywhere, with anyone, through any device, and can be taken anywhere -Personal – can be done by you, just for you, on your own device

27. The Steroids

28. America and the Flat World

29. Who is Ricardo and why do we care what he thinks? • David Ricardo (1772-1823) – English economist who developed the Free Trade theory: If each nation specializes in production of goods and then sells it to another nation at a comparative cost advantage, each nation will benefit. • Americans fear free trade because they see outsourcing of jobs as a death toll to our economy. America and Free Trade

30. Friedman says: Protectionism would be counterproductive, free trade will not work without a focused domestic strategy aimed at upgrading skills and the education of Americans. • It must be accompanied by foreign strategy of opening restricted markets bringing more countries into the global free-trade system, increasing demand for goods and services, encouraging innovation and reducing unemployment and job migration. Is Ricardo Right?

31. People in India and China will work for less and will gobble up all the middle level jobs, leaving Americans with nothing. This theory assumes that everything that is going to be invented has already been invented resulting in a zero gain. Wages are low in other countries because they are trapped in a stifled economy. When borders open, salaries will rise. Free Trade – The Lump Theory Free Trade – The Lump de-bunk

32. Look at Past History

33. Look at Past History

34. Example – • Semiconductors could be manufactured cheaper in other countries. As more chips became available more computer applications were created. Google, Yahoo, Microsoft offered video searches which required new chips... • Companies were able to focus on other areas when one area disappeared. • The Pie grows, but no one saw it. When one door closes, another opens

35. People fear change Fear is good because it activates the fight or flight instinct That instinct allows for creation of new ideas and jobs that connect to others Upgrading skills, firing up imagination, seeing the bigger picture in a global society End Result

36. New jobs will go to the best, smartest, most productive or cheapest worker, wherever these people reside Find ways to make yourself untouchable – doing something no one else can do or cannot be outsourced The flatter the world gets, the more digitized it becomes Finding the New Middle

37. Specialized or special • Michael Jordan, Elton John, JK Rowling, your brain surgeon • Localized or anchored • Repairmen, a dentist, an audience, • Formerly middle class jobs – these are at risk • Assembly line workers, accounting, data analysis, radiology The Untouchables?

38. U.S. economy used to be a bell curve – The bulge in the middle was the working class We are quickly become a bar bell. Our middle class is dwindling We have to embrace the ebb and flow of a moving economy What shape are we?

39. What does the new middle look like? Passionate Personalizers Green People Math Lovers Localizers

40. In the future, how we educate our children may prove to be more important than how much we educate them Rich nations will have to transform the educational systems to produce a more flexible labor force The Right Stuff

41. “Learn How To Learn” Navigation classes CQ+PQ>IQ Liberal Arts Right Brain thinking skills What class should I take?

42. Tubas vs Test Tubes • The Georgia Tech affect And now, a musical interlude…

43. The key to getting through the crisis is to: • Have resources • Have access to higher education • Have flexibility • Be open to new ideas • Have high trust Is this a great country?

44. We still believe we are invincible based off of past history • The Olympic basketball team • World War II • We have a solid educational structure that can’t be beat The Quiet Crisis

45. First generation out – nose to the grind stone Second generation holds it together Third generation feels entitled, becomes complacent While we took things for granted, other countries were gaining on us. Years later, we are on the edge of crisis Post WWII problems

46. “…a pronounced tendency in recent years to extol consumption over hard work, and investment, immediate gratification over long-term thinking and sacrifice. When we got hit with 9/11, it was a once in a lifetime generation opportunity to summon the nation to sacrifice, to address some of its pressing fiscal energy, science and education shortfalls – all the things we had let slide… Things that make you go hmmm…

47. … But our president did not summon us to sacrifice. He summoned us to go shopping.” • Thomas Friedman ….hmmm

48. The Numbers Gap • In 2004, nearly 40% of the people at NASA are age 50 or older • Only 4% of workers are under 30 • NASA is having trouble finding competent, sufficient science, engineering, and informational technology specialist that are crucial to its operations. Dirty Little Secret #1

49. By 2010, two-thirds of the nations mathematics and science teaching force will retire • We are educating fewer math/science students, but the need is growing • The number of American 18-24 year-olds who receive science degrees has fallen to 17th in the world – We were ranked 3rd three decades ago Dirty Secret #1 cont.

50. The education gap at the top – in 2004 the Intel Fair attracted 64,000 American students. In China there were 6 million kids competing. Our test scores are stagnant – Asian countries are setting the pace In 2005, The New York Times reported that college graduates were scoring lower in English literacy. There were steep declines in Hispanic and African American populations Dirty Secret #2