Saturday, October 25, 2014

Module 9

Megan Flinders
Module 9

The building of a Dell laptop is quite impressive as was illustrated by Friedman in chapter 16 when he discussed the machine he used to write this book.  He wanted to know where the components came from, and contacted Dell to trace the location.  What is depicted next is an impressive supply chain which can readily pinpoint where each part came from, and a vision of how Dell operates. 
Dell takes orders for its computers via internet or phone, and on an average day tallies near 140,000 – 150,000 computers sold.  The suppliers that work with Dell are contacted as soon as the orders are placed, to expedite the shipping of all of the products. Because each order is customized to the customer, Dell does not pre-build most of its computers.  The exact product type, module, hardware are sent to the factory, scanned in by barcode and put in the bins for assembly.  Dell, like Walmart, has multiple suppliers which it can contact in the case of product shortages or defects.  This speeds up the time to market and ultimately, improves customer satisfaction.  In the end, the building of a Dell laptop is about collaboration, continuous process improvement, and efficiency.
    When speaking of al-Qaeda and supply chains, one can see that the flattened world has aided terrorist groups who use these same instruments for global collaboration.  Al-Qaeda’s usage of supply chains is dangerous because the supply chains it uses are for destruction and terror, not profit and a better standard of living.  Friedman points out the fact that the leaders and innovators of al-Qaeda understand supply chains and the flat world almost as well as the innovators from Wal-Mart, Dell, and Infosys.  It has allowed a revival of Muslim identity and an ability to train, recruit, and connect with members instantaneously in all parts of the world.
    Friedman defines the types of supply chains used by al-Qaeda as mutant supply chains or suicide supply chains.  In the end, these supply chains have worked in the flattened world to let the small act big.  This is seen in acts of physical and cyber terror which have been enabled by the flattened world.
    The curse of oil as stated by Friedman, is where the monarch and dictators who run countries, get rich by drilling oil and use wealth to stay in office forever.  They use this oil money to monopolize the power without empowering the people of the nations they rule.  This ultimately retards growth and causes a major rift between rulers and those being ruled.  When rulers hoard money and resources, there is no need or desire to understand or have empathy for those they rule.  They simply govern in a self-gratifying and benefiting way.  Many nations have been unable to progress in a democratic context due to the curse of oil and continue having weak or nonexistent institutions.
    Another factor in the curse of oil is the lack of innovation or creativity that takes places when all you have to do is dig for oil.  Building things creates trade.  Friedman stated that fact that while Muslim nations make up near 20 percent of the world’s population, they only account for 4 percent of world trade.  Trading opens the doors for innovation and ideas.  It fosters global connectivity and exposure.

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