Module 5

Megan Flinders
Module 5

Triple Convergence is the culmination of the flattened, global playing field which allowed many more individuals to pitch in on process improvement and efficiencies, the subsequent result of horizontal value creation instead of vertical means, and the previously untapped resources of individuals from China, India and the former Soviet Union.  In the book, Friedman divides Triple Convergence up into three categories to fully define his mode of thinking.
The first convergence was the availability of resources (hardware, software, individual empowerment) that simply allowed more people to voice their opinions to improve processes.  Friedman gives the example of Southwest and their online booking and check-in process which is meant to illustrate how customers are no longer dependent on people and systems for each step of the process.  Once who has access to a PC which is connected to the web can now technically do a lot of work, in this case for the airline, in booking, checking-in and printing boarding passes (or now having the pass on their phone).  This ultimately saves consumers time and reduces overhead.  The end results, improved efficiencies and happier parties on both sides!
The second convergence can be summed up on one word, “horizontalization”.  Simply put, many of the flatteners have been around for some time.  But when you are introducing revolutionary ideas, it takes time to bring all aspects of the movement into play.  The production piece is only a part.  Often consumers also have to change habits and mindsets.  As more and more people and business become involved, however, these new trends become the new norms.
The last, or third convergence, was basically the broadening of the playing field which allowed billions of more people to join in on the globalization of process change and improvement.  The goal is to have the best and brightest making systems and products which everyone can use.  With the proper tools for communication and collaboration in place, we continue to see massive improvements across all sectors.
Friedman fully admits that in the story of India and Indiana, it is hard to determine who the exploiter is really and who is being exploited.  He mentions that it could be the Indian Engineers who are exploiting the people of Indiana by revamping their governmental unemployment system for cheap.  Or it could be the Indian engineers themselves who are being exploited for being paid less for the specific contract.  It could also be the Indian’s in general are being exploited by the big firms for which they are paid relatively well in terms of the standard of living in India
I believe that the latter is true.  The companies that outsource for the sole purpose of lowering wages are the true exploiters.  It is one thing to build factories in low cost areas or have people working remotely as part of the broader, global footprint with an aim to reduce overhead costs.  It is another to hire and train those individuals, and then transplant them to the new location on a lower pay scale.  Companies are focused on the bottom line, and will often pay their employees what they “need” to pay them to stay.
Intellectual property is the sum of resources, ideas, and know-how related to a product or process.  The idea is very important for companies because they want to keep all of the financial benefits of innovation.  Once these “top secret” ideas become common knowledge, products can easily be duplicated for cheap and the intellectual property is far less valuable.  On the flip side, however, intellectual property is also the catalyst behind faster and more efficient innovation.  Barriers of entry, of walls to information need to be set at a proper level to allow for global innovation, but also allow companies to gain profits and reap the rewards of their efforts.