Module 6

Megan Flinders

Module 6

 

Free trade is the notion that countries and economies as part of the global economy will thrive if each focuses on producing products that align with their core competencies.  It also enlists the concept that without barriers and tariffs, free trade would be able to flow without limit and end in a win-win for all parties involved.

The concept of free trade has encountered some opposition in recent years due to the explosion of offshoring and outsourcing.  Friedman himself mentions that even he, who still believes in the concept of free trade to the fullest, was a bit unnerved when he visited Bangalore and saw how many educated people were vying for the same jobs.  He couldn’t help but wonder how this increased competition in an ever increasingly flat world would affect himself, his children, and Americans as a whole.

I think the concept is important.  I also believe that more than just the back office or service level jobs will be continually outsourced if the pool of talent and skills sets are found similar in these regions at a fraction of the cost.  Americans will have to continue to focus on better education, continuous improvement, and innovation as to not lose the jobs and careers that allow for financial freedom in our capitalistic society.  Therefore, I too am not necessarily in favor of protectionism, or government enforced barriers, but in ever increasing personal value to stand out from the crowd. 

I also believe we have seen the anti-outsourcing movement to some degree with companies promoting the buy local, or buy American slogans.  I think this will continue to be a selling point and marketing strategy for some industries such as auto and manufacturing.  Some companies openly agree that there is a low cost alternative found abroad, but drive home the point that buying foreign may result in lesser quality, or hurting the national economy.  So while the government may not official come in enacting barriers or walls of some sort to globalization, companies themselves are doing so by new marketing techniques.

When discussing the idea of a “new middler” the illustration about homework resonated with me.  Friedman mentions that no longer must we do our homework, but we must do the right kind of homework.  This is due to the fact of the ever changing landscape where companies are changing whole workplace models.  So in order to take advantage and stay ahead of the competition, you have to study the right topics and focus on the right skill sets to gain or maintain a competitive advantage.  You have to be the “go to” employee and expert in your field.  Your value skyrockets due to your skill set, intellectual capital, and overall intangible value to your company which they cannot afford to outsource, automate, or digitize.

Friedman goes on to form three broad categories of “untouchables”.  These are people who are truly specialized, those who are localized or anchored, and those from the “old middle” jobs.  He then lists the skills and personality traits involved; namely great collaborators and orchestrators, great synthesizers, great explainers, great leveragers, great adapters, the green people, passionate personalizers, math lovers, and great localizers.  Each in their own way has a goal to decrease the change of losing their job to outsourcing or the negative effect of stagnated wages.

CQ + PQ > IQ is the formula Friedman uses to identify those who will stand out in the crowded masses of employment seekers.  CQ, the curiosity quotient, plus PQ, the passion quotient, are greater than IQ.  Simply put, those who have passion and curiosity are more likely to succeed in the flattened world because information is endless and now more available than ever.  If you have a passion to be creative and innovate, you can find the tools and know how to succeed.  Therefore, these skills are potentially more valuable than simply having a high IQ but no passion or curiosity.  As more and more of the global workforce becomes globalized, your passion to succeed and curiosity in ways to innovate and improve processes becomes ever more important.

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.

Module 4

Megan Flinders

Module 4

 

Can You Hear Me Now?

 

                For this assignment I researched cybersecurity jobs and interviewed my husband who works in the field (he is responsible for helping clients at his work who run into issues with all sorts of fraud and identity theft related incidents).  I also chose this specific topic due to the several recent stories in the news about big companies with cybersecurity incidents including Target and Home Depot.  What I found in reading several articles on the topic was a central theme of people being defrauded.  Sometimes companies had system vulnerabilities or weaknesses that went unnoticed for long periods of time, and many customer’s information was unintentionally shared.  Other times individuals did not know the party with which they were communicating was in fact the fraudster.  In the end, Verizon’s catchy theme of “Can you hear me now?” all of the sudden had a new meaning to me.  With whom are we really communicating, and are these the parties with which we want to share our confidential information?

                In my research I came across several types of cyber security jobs.  The jobs ranged from Security Analysts and Engineers who asses the vulnerabilities of software, hardware, and networks and engage in forensic analysis to detect security incidents (which is what my husband deals with), to those of Cryptanalysts and Cryptographers who analyze and break malicious code to determine the intent of the program or build programs which use complex algorithms to encrypt information.  There are also Chief Information Officers who are responsible for the entire Information Security operation all the way down to very specialized analysts who work directly with specific systems or issues.

I also came across all sorts of fraud that occurs due to the vast network of computers and information.  We have been reading and discussing in “The World is Flat” all of the different ways globalization has flattened information barriers and increased the connectivity of people.  Most of the discussion revolves around the positives of information sharing and popular technological enhancements such as online libraries for music, photo libraries, and mass storage.  However, with all of the positives come some negatives.  There are those people who not only want to share productive forms of information and entertainment, but those who wish to spread viruses, malware and other harmful, and mostly unwanted products.  This is where cybersecurity comes to the forefront.

                Most companies have an IT department that focuses on the security of their company’s network.  My husband described in my interview the fact that this goes above and beyond simply anti-virus software and computer firewalls.  He mentioned that his work often goes through testing scenarios to detect certain vulnerabilities in their systems and to also fortify the policies and procedures to protect their employees and clients from acts of fraud.  The difficult part, he said, not only keeping up with the new trends and hacking attempts, but trying to be one step ahead.  He mentioned that his work has dedicated teams that focus on all areas of cybersecurity prevention and remediation.

                Several resources are available for everyday people to educate themselves on the different forms of fraud and how to protect oneself from becoming a victim.  OnGuardeOnline.gov is a site my husband directed me to that aims to educate about cybersecurity.  It lists ways to avoid scams, protect your kids online, and securing your computer to name a few.  I think for most people my age and younger, most of this stuff is pretty inherent.  My parent’s generation may not be quite as savvy though, so these broad-based tips would help them greatly.  I did, however, find information and articles that were even helpful to me in explaining how to properly secure a network and computer.  After all, the last thing I want is to be giving my credit card number or other personal information to a fraudster through a phishing scheme or virus of some sort.

                In the end, cybersecurity is only going to continue to increase in importance as more people and their devices become interconnected through our ever flattening world.  It is vital to stay up to date on the latest prevention techniques and to be sure our information is secure with all those whom we are communicating.

Module 3

There are those words in the English language which create immediate reactions; one of those is outsourcing.  A somewhat related, yet I would argue less frequently used term, is offshoring.  Friedman describes outsourcing as, “taking some specific, but limited, function that your company was doing in-house – such as research, call centers, or accounts receivable – and having another company perform that exact same function for you and then reintegrating their work back into your overall operation.  Offshoring, by contrast, is when a company takes one of its factories that it is operating in Canton, Ohio, and moves the whole factory offshore to Canton, China.  There it produces the same product in the very same way, only with cheaper labor, lower taxes, subsidized energy, and lower health-care costs.” (Friedman, 2007, pp. 137-138) China joining the WTO took the world to a whole new level of offshoring just as Y2K boosted India’s prospects of outsourcing and made the country a relevant and dynamic player in the global workplace.

While reading the text, I gained a greater appreciation of the concept of offshoring when Friedman described China’s demographic of over 160 cities with a population over 1 million.  This concept alone allows companies to offshore factories and manufacturing as never before due to the sheer size of its workforce.  It is no wonder it seems that a large majority of products are “made in China”.

A great illustration from the book outlines the fact that companies must alter their vision and forget about competing with China and treating them as the enemy.  Instead, you should give a good internal look at your business model to determine which part of the business you would like to do in China, which part you would like to sell to China, and which part you want to buy from China. This just shows how flat the world has truly become since as China becomes a more important player due to offshoring, other similar countries emerge as potential offshoring destinations.

Another flattening topic introduced is that of logistical efficiencies.  A supply chain is the mechanism used to allow products to flow downstream from a manufacturer/supplier to customer.  Wal-Mart has used their supply chain to their advantage by driving a hard bargain with manufacturers, but also by creating a super-efficient process and technological web with the companies whose product they sale, and in turn with their own stores which are spread across the nation. In effect, Wal-Mart does not create any products.  However, they are such a dominant force in the retail world because of their expansive reach (in terms of store locations, products offered, and low costs) and overall efficiencies in technology (which allows them to quickly forecast and restock stores to ensure customer demand is fulfilled).  As noted in the text, the goal of an efficient supply chain is to be the overall lowest cost.  Not always, however, can you find a low cost leader that offers high quality products, delivery, and customer service in every facet.  So while price is important, the overall efficiency and low cost leader is what Wal-Mart has done to gain its competitive advantage.

One particular illustration in Wal-Mart’s case is its visibility into each store’s particular needs.  For example, if one particular store is overstocked, Wal-Mart can quickly have excess product orders redirected to stores that may be short on stock.  This ensures the company is not losing the product forecasting battle which often results in sales on excess products.  Wal-Mart in turn allows its suppliers to view how their products are selling through its central databases, all in an effort to have hyper-efficient, just-in-time, inventories and supply chains.

Google is another company that has revolutionized the playing field for businesses.  Google has flattened the information barrier by allowing anyone with an internet connection to search for and find the same overall research information on any given topic.  Google has affected business by allowing the process of “informing.”  Anyone can create the know-how to run a business, outsource, and have an efficient supply chain (through connectivity with globally established companies as Friedman describes in UPS’ case) by simply “googling” the information.  People want, and have, all the information they can digest at their fingertips.  No longer are people spending time searching for the material.  On the contrary, the information is readily available and business owners large and small can focus on ideas and innovation instead of utilizing resources on the information finding.

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.

Module 1

Megan Flinders

IST 1100 – Module 1: The World is Flat

 

In his book, The World is Flat, Thomas L. Friedman introduces readers to the phenomenon of outsourcing and increased efficiency and cost savings.  The early chapters begin by discussing the topics of globalization, worldwide events which spurred economic change, such as the fall of the Berlin Wall, and innovative products and companies which forever changed the global competitive landscape.

In the beginning, Friedman takes us through his viewpoint of a flattening global society as he describes three phases of globalization.  He begins by introducing Globalization 1.0 as the time between when Columbus set sail in 1492 until the opening of trade between the Old and New World around 1800.  This era of globalization was about shrinking the size of the world (from large to medium) and driving integration through the muscle and brawn of a country. Friedman mentions that the primary questions of Globalization 1.0 were, “Where does my country fit into global competition and opportunities?” and “How can I go global and collaborate with others through my country?” (Friedman, 2005, p. 9)

Globalization 2.0 was the next era which ran from the 1800s through the year 2000.  Once again the size of the world shrank; this time from medium to small.  The driving force of this phase was the idea of multinational companies.  Global labor and markets propelled by falling transportation costs (mainly due to the steam engine and the railroad) and reduced telecommunication costs (thanks to innovation and invention) were key to this phase.  The global economy was introduced in this phase, and increasing integration and globalization of companies was a central theme. The main questions were, “Where does my company fit into the global economy?”, “How does it take advantage of the opportunities?”, and “How can I go global and collaborate with others through my company?” (Friedman, 2005, p. 10)

The final phase of Globalization 3.0 was when the size of the world went from small to tiny.  This is also the phase were the playing field was flattened in terms of competition.  This phase is where individuals had their chance to compete and collaborate globally.  Now the questions that should be asked are, “Where do I as an individual fit into the global competition and opportunities of the day, and how can I, on my own, collaborate with others globally?” (Friedman, 2005, p. 12)

While all phases of globalization dealt with the flattening of society, the main difference was in what was being globalized.  Globalization 1.0 was about the global integration of countries, while 2.0 incorporated the idea of multinational corporations and modes of communication and trade.  3.0 was all about the individual’s ability to connect and communicate, and the leveling of the playing field among corporate superpowers and the everyday individual (i.e. the JetBlue’s of the world which employ stay at home mom’s, against the traditional airline companies with fully staffed offices and corporate agendas).

One of the major worldwide events which aided the flattening of the world was the fall of the Berlin Wall.  Friedman mentions, “It tipped the balance of power across the world toward those advocating democratic, consensual, free-market-oriented governance, and away from those advocating authoritarian rule with centrally planned economies.” (Friedman, 2005, p. 52)  Capitalism was the resultant economy and people were forced to learn how to handle this new system.  The people and the demands thereof would rule instead of the antiquity of a top-down governmental system.  The fall of the Berlin Wall was a sign of the times and those who were not on board were seen as on the wrong side of history.  It was a world flattening event, and somewhat of a get out of jail free card for many, as they were no longer confined to the meager living standards shared through a communist government.  While some of the older generation were uncomfortable with a new governmental system which allowed some to excel while others failed, most of the younger generation looked forward to the newfound freedom and limitless potential.

The fall allowed globalization to take flight as more countries were seen as a seamless whole.  No longer were nations fixated on individual policy and well-being, but looked to global efficiencies and potential.  Common standards and best practices were adopted and archaic norms were relegated as ideas of the past.  The political constrain on individual reach was greatly eliminated by the fall of the Berlin Wall.

Along with worldwide political events, other paradigm shifts in innovation truly enabled the flattening of the world. The company Netscape was a huge flattening force which made computers and the internet much more connected and dynamic.  Friedman mentions that in the process of wiring the whole world, “without anyone really planning it, made Bangalore a suburb of Boston.” (Friedman, 2005, p. 63)  One of Netscape’s main benefits was the way it presented website data (its browser system) and made it user friendly to all types and sophistications of people.  All the while, Netscape aimed to keep the system on an open protocol, meaning open to users for free (but those who could pay, i.e. businesses, could buy it on a disk).  Netscape did this to not allow larger companies, such as Microsoft, to shift the protocols to proprietary that only their servers could handle.  This allowed all computers to continue the globalization and open connectivity regardless of what system they were on.  People wanted a universal way to browse the internet, but also a universal way to access the information.  Ultimately, Netscape unlocked humanity’s innate desire to connect with each other as a wired society.

Friedman makes many compelling arguments in the opening pages of his book, and I have seen many of these events take place on a personal level.  For instance, my husband works for a global company and many of his work functions are those which have been transferred from the higher cost locations of New York and London.  He, however, interacts weekly with his global counterparts in Bangalore, New York, Europe and Asia as they complete projects as virtual working groups.  The flattening of society has continued through various forms of social media and it is evident in his workplace.

I also agree with the premise of Globalization 3.0 in that all people are able to instantaneously share their voice through social media platforms of Twitter, Facebook, Instagram and more.  Connectivity between individuals has never been easier.  For example, my family members who live out of state are readily available through phones, FaceTime and other technological services.  Therefore, Friedman’s views were correct in 2007 that our society would only continue to develop and innovate.