Module 3: Business Made Complex

Comparable to outsourcing, as in my last blog, is yet another term contributing to flattening the world. Offshoring. Initially as reading, it seem similar to outsourcing, how the company involved is basing service somewhere else. Except for offshoring, the whole factory is being based “somewhere else.” And particular, off our shores and onto China. Outsourcing was simple efficiency with clerical work or saving money without office buildings, when service calls could be channeled to stay-at-home employees. Offshoring is the option to plant the whole source of the company somewhere more suitable. To beat product costs with cheaper labor and maintained quality, companies don’t stand a chance unless China is somehow involved. At first, I doubted, with my skepticism on how shipping across seas would be considered more cost efficient. But then read that it is more than just a factory over there to then ship back to us. Most companies invested in a little of both. Some over here AND over there. The main purpose of this hassle, especially considering the weariness of leaving it up to others half of the time, is for global competition. A main goal in business is to expand. This involves more purchases, and getting the company name out to everyone, and increasingly to outside of our American bubble, hence the term “everyone.” Having establishments offshore invests in a bigger market which in turn provides more orders on products to lead to more increase in popularity.  

The idea of having your company in many places then leads to a similarly different term once again. Supply Chains. And Specifically Walmart. Walmart isn’t actually a company in itself that designs a product, creates it and then promotes orders of clothes with Walmart-custom-tags.  I knew this, but only in the back of my head, telling someone I had gotten something from Walmart, which actually has a brand and separate department located elsewhere. Walmart is just a supplier, but a very good and competitive one at that. Supply chains make it possible to have many brands and options at a convenience location at companies like Walmart who backstage, collaborate among esteemed suppliers, distributers, retailers and customers. Then someone like me wonders why bother and how they climbed to the top? Well, for companies like Walmart to compete in the world of business, they have to be the “source of competitive advantage and profit in a flat world.” And the way they do that, it by investing in every way to be efficient and reliable to perfectionist measures. Especially by way of shipping, as the root of their company lies, as they distribute from retailers to the many locations with particular orders of supply demand. This management in Walmart’s company is what creates value. My favorite quote, basically sums up the question as to what makes Walmart unique, “…as Yossi Sheffi, an expert on supply-chain management…likes to say, ‘Making stuff—that’s easy. Supply chain, now that is really hard.’” Managing their delivery system by balancing cheap with reliable was just one decision that keeps the organization stable. Adding to their efficiency was planning routes better in collecting supplies from nearby retailers on a way back from a delivery, solving the empty handed trip on the way back to the distribution center, satisfying the effort to “leave no link untouched.” Lastly, another trip up their sleeve, was the advanced information technology to give the company visibility on popular products. Basically, updates on what’s hot and what’s not. With this advantage, distribution centers can “forecast” how much of what goes where, to diminish the problem of over or under stocked items, and keep up with the demand of costumers, retaining popularity. 

This similar form of forecasting or what I call “product tracking”, leads to how Google is involved in the business world. Google has developed a targeted advertising model which basically presents viral users with ads relevant to their searches and interests.  Another way, great for business sake, is the fact that because Google has brought an age of self-informing availability, consumers are more efficient with shopping and seeking out their products. Google is where it stands now because it doesn't push products and services like the old school T.V. ads and commercials, but has a way with its collaboration system to give the impression of being reliable and quick. Just with Walmart’s terms at success. What I take personally from these stories to success is that the world wants to depend on the reliable and quick. 

Module 2: The Beginng of Collaboration

Last week, I basically summarized Thomas Friedman's reasoning behind how the world is becoming flatter, mainly in a social and cultural sense. In fact, as a world we are narrowing our once huge diversities that separated us, initially geography, which then evolved with Columbus, and now the work force is inclusive in the diversity of culture and technology.

So this encompassing collaboration began with the age of the Internet, and specifically, the modifications and eventually standardized protocol to then become ever more inclusive to everybody and their computer. Workflow software is the key to allowing everyone's different computer systems to accept each other and process the documents, spreadsheets, pictures and what not. Friedman has said that compared with the Berlin Wall and Netscape, this discovery was a “quiet” revolution. I can relate with that conclusion, in particularly how the new big-hit things are what makes news. Then the more contributing and intellectual breakthroughs tend to be the least recognized.  But this in fact had the biggest contribution in bringing together the corners of the earth, hence flattening. Work flow software started with SMTP (simple mail transfer protocol) which allowed email to be converted per system and make it universally accepted. I believe that just this alone is a breakthrough, as similarly the telephone had, so people, anybody, can communicate digitally, not having to worry whether someone runs with the same system as themselves. Even just unanimous email can bring collaboration, critics and ideas from all over the globe. More software continued to develop, making more features available everywhere. TCP/IP was next, making is possible for all applications to also be read from anywhere. Ultimately, the discovery with XML (SOAP), made possible for computer to talk to computer, making a widespread translator for data.

 I could grasp the concept perfectly with the analogy of the Tower of Babel that Friedman pointed out, as I am familiar with the bible story and could relate.  My own correlation I thought to relate with, was a theoretical instance of a type of universal translator described in most Sci-Fi movies, simulating a device that allows aliens of different races to communicate despite the language barrier. Compared to the “old school way”, of having a communications officer primitively help with language deciphering, certainly not as effective. Especially when recounting many Star Trek episodes, where from their exploration and successful first contact, collaboration was made possible. Treaties and technology are discussed, to bring to pass flow within species and differing planets. Just as the new standardized protocol brings a flow with companies and continents at a faster rate, working to reveal a new global platform for collaboration.

With such open doors from these modifications, increasing improvements will escalate the rate of advancement in technology. With the open door in communication, a new phase on with the Internet had substantial benefits. Uploading. Another revolutionary step. Major advances in this area include Wikipedia, Blogging/Pod-casting, and exclusively, community development software (open software.) Community development software is, as you can guess by the name, software developed by the community, in basic terms. Base codes for programs and new software are generated and made public by a motivated collaborative team purely volunteering for the good of the future. This software can be updated and reviewed, with many patches or in other words, contributions. These then can be the base, or as in Friedman’s analogy, vanilla in an ice-cream sundae, which then can be improved, personalized and patented as the toppings. This free-for-all seeming project, is a place where individuals can shine and bring forth potential. This event proves that we have a place to be empowered, to create, upload and enlighten on complex things. In an economical prospective though, I have to agree with Microsoft’s insight that free can’t be forever, for lack of incentive without the reimbursement to innovate. But I believe the roots of this open community phase is empowering and collective in gaining differing viewpoints and insight; also bringing together self-inspired and determined individuals to get a job done how they foresee, creating a sturdy foundation for all.

With the proof that digitally, things can get done with a diverse community, it can be taken to the next level. Not limited to creating base codes and software, but other daily jobs in the workforce. This my friends, is outsourcing. Sourcing people, man-hours, and intelligence outward, scattered from a standardized office building. As previously mentioned in my last post, which left off with the new links of outsourcing currently in the workforce, Friedman explored the extent of this support. Particularly with India, which continues education for outsourcing specialized jobs and English classes to “flatten” their accents. “Why is this a thing now?” some might ask. Well “work gets done where it can be done most effectively and efficiently.”

Module 1: The World Is Flat

1.) What is the difference between Globalization 1.0, 2.0 and 3.0? Well first off, I had to put together what Globalization exactly was, to then understand the three different levels Friedman categorized it. Globalization is how we as a people work together among different organizations, careers and even cultures. It is a process in growing more technologically advanced by our collaboration of knowledge and skill, along with international trade. The levels of globalization all circle back to Friedman's huge theme and discovery of how the world is flattening. Globalization 1.0 started out the most broad, beginning in the time frame 1492-1800. 1492 was the initial event of Columbus expanding Europe with his discovery of America. This was the first contribution of history bringing the world as a people from, in Friedman's view, a size large to a size medium. I was a bit confused at first why expanding land and bringing knowledge elsewhere would began the process of flattening the world, shrinking; but then mentally figured that the more we expand, push our knowledge on others and integrate what we know elsewhere, it helps bring together both areas of land and eventually connects two separate cultures by growing means. The summarizing phrase for Globalization 1.0 is countries globalizing. That’s where Globalization 2.0 comes in. Globalization 2.0 is the greater expanse in developing technology and the industrious age, still just really focusing on Europe and America, but flattening from “medium to small.” This carried through until the 2000’s with the theme, companies globalizing. Lastly, Globalization 3.0 is basically the new age of technology, guessing that it will continually grow from 2000 to the future. Globalization 3.0 is put on a national scale compared to the original connection between Europe and the U.S. Shrinking the scale of the world in Friedman’s eyes to a size XS. The theme for this new phase of interaction with each other is focused on how individuals collaborate and compete globally. We are taking a bigger role personally because of the wider expanse in technological communication and our relations globally with other nations. It took a minute for me to grasp the literal concept of “flattening the world”, but took it in a sense that, the barriers are being put down, and the continents are growing closer together, almost in a Pangea sense of looking at things with a "flattening" perspective. Through Friedman's experience and interviews, results show we are now outsourcing around the continents and even globally so “work gets done where it can be done most effectively and efficiently.” He found all sorts of proof where the world is flattening; in particular, Indians were “flattening their accents” to fit in to the rising work society.
2.) What does the fall of the Berlin Wall mean to Friedman? The fall of the Berlin Wall, 11/9/1989, “tipped the balance of power.” What used to be communistic society changed into a free market and influenced others. Particularly in India, who originally followed a similar society until they figured out the hard way it wasn't working out to well with the economy. Their Berlin Wall fell figuratively speaking for India, and the economy took a boost with new government. And so did things nationally after Germany's wall fell. Originally, the wall limited the global market and knowledge pool. Afterwards, common standards were established and constant protocols could be put in practice to make things a little more universal.

3.) Why is the story of Netscape important? “...though Netscape may have been only a shooting star in commercial terms, what a star it was, and what a trail it left.”  This in particular was my favorite quote to sum up the importance of Netscape, because although it didn't succeed in certain eyes with the modern competition of technology, it succeeded in broadening the use for the internet and taking the first stab at the initial confusion of it all. Netscape gave the Internet meaning by making it inter-operable and able for a standard of communication.  Netscape unlocked the ability and want for people to be connected with each other through data, e-mails and research by providing a universal browser, which made sense of much internet garble and data. Overall, it made the brand new Internet accessible and useful, to all user age ranges and all the different systems.

Personally, I feel a little sheltered in some of the major technological fronts and national relationships. This is all news to me and interesting at that. It puts a brand new perspective to take in and gives me a curiosity about current globalization and the growth in today’s technology; especially the not so long ago history of it too. I also feel a little guilty for not being in the loop with my rising generation, and now feel urged to catch up on things other than myself. I look forward to taking a grasp on the subject and hope to become more insightful on this expanse as well. The more and more I learn, I find how interconnected everything seems to be; from India, to Berlin, from Columbus and then to the birth of the internet.