Module 2

As we continue the discussion of globalization and find examples of a flattening world, we are introduced to the idea of workflow software. Once the playing field was leveled in terms of the accessibility of the internet and connectivity of computers and systems (through physical infrastructure such as fiber optic cables and standardized systems), workflow software standardized the software applications enabling all systems to speak to each other in an efficient manner.  The result was seamless workflows which allowed companies to not focus on the pipes per se, but on the innovation of new products that would make markets more efficient.  The standard of access became the same, but companies still had to produce and innovate to create a compelling product and competitive advantage, all the while aiming to entice customers to use their product over the competition.

An example of the use of workflow software would be the use of the mobile wallet; or more specifically, ISIS.  The electronic payment system in the standard bearer for retail companies, and credit/debit cards are a primary source of transactions.  The mobile wallet has enhanced the speed and potential security of the payment system by allowing consumers to retain their source of funds on the phone.  The workflow software includes the tap technology and card reader that is now in many restaurants and has even spilled over the vending machines.  Payments and quick and efficient for both parties.

Friedman goes on to explain that innovation and software can come to market from a variety of sources, but some may be more effective than others, even when they challenge the status quo.  Open source, or community developed software, is when communities of people collaborate and develop source code (software) that is then uploaded to the web and often made free for downloadable use.  This type of software is important because it continues the idea of flattening the competitive landscape and cuts out the middle man.  It changes the landscape by allowing more people to voice their opinions and share creative ideas and innovation through collaboration and “peer review”. 

Community developed software is basically a more efficient way to streamline software on a broader scale by bypassing the historical hierarchical processes and organizations.  Ultimately the brainpower of a community of thousands of geeks who simply want to create universally functional products is better than a large company’s IT group trying to create a product to sell.  We have seen a mass movement in the past decade of IT companies and their engineers actually joining these groups as they have seen the power of individuals who simply seek to create the best products.  The community forums are not so much about being compensated, but about sharing their ideas and seeing them take off.  Ultimately whoever has the best idea can submit source code which is reviewed by their peers for any bugs before being implemented.  Companies have taken the free code and established proprietary and innovative products based off what the community has built, but ultimately original credit is given to the forum and the idea sharing process continues.

The last major topic discussed is the concept of reaping the highest profits and efficiencies while paying the lowest cost.  The practice known as outsourcing is the cost saving practice of delegating certain functions to lower cost locations.  Outsourcing is important because it connects and flattens the world as never before.  No longer is it required to be physically present in one location to complete tasks.  For example, many back-office type functions that need not be present in high cost locations can be shipped to lower cost centers, such as India.  The key is to find a highly educated and competent work force which can perform these functions without error for a fraction of the cost.  An additional benefit is the time zone effect which allows most of this work to “follow the sun”, meaning it can be completed oversees during the day when the main centers (U.S.) are sleeping.

In summary, workflow software, open source software, and outsourcing are additional proofs of how the world has continued to be flattened. You no longer have to by an Ivy League grad employed by a large corporation to have your ideas input in the programs and products we use every day.  On the contrary, you can be a part-time “geek” who simply shares ideas to the global community from your home computer.  Indeed the world has been flattened and minority voices are now at the forefront of innovation.