The World is Flat Dr. Cegielski Lecture 3

The Stages of Globalization (From Thomas Friedman in The World is Flat) Globalization 1.0 (from 1492 to 1800) Globalization 2.0 (from 1800 to 2000) Globalization 3.0 (from 2000 to the present) Globalization 1.0 * 1492 to 1800 * World went from large to medium-size * All about countries and muscles * Key agents of change: brawn and horsepower Globalization 2.0 * 1800 to 2000 * World has shrunk from medium to small-size * Key agent of change: multinational companies * First half: global integration powered by falling transportation costs (steam engine and railroad) * Second half: global integration powered by falling telecommunications costs (telephone, PC, satellites, fiber-optic cable) Globalization 3.0 * 2000 – now * World is now tiny (everyone is everyone else’s close neighbor) * Competitive playing field is being leveled * Key agent of change: software, in conjunction with the global fiber-optic network * Enabling people to collaborate and compete globally

Globalization 1.0 Christopher Columbus Christopher Columbus “discovering” the New World in 1492.

Globalization 2.0 (first half) Railroads Global integration during the first half of Globalization 2.0 was driven by falling transportation costs (for example, steam engine and the railroads). Steam engine

Globalization 2.0 (second half) Satellites Fiber optics Global integration during the second half of Globalization 2.0 was driven by falling communications costs (e.g., satellites, fiber optics, the personal computer, and wireless smart phones). Apple Mac Pro OpenMoko open source smart phone

Globalization 3.0 Key agent of change: software, in conjunction with the global fiber-optic network enabling people to collaborate and compete globally 3.0 2.0 1.0

Globalization 3.0 (continued) Schematic Map of the Internet

Thomas Freidman’s Ten Flatteners Fall of the Berlin Wall Netscape goes public Development of work-flow software Uploading Outsourcing Offshoring Supply Chaining Insourcing Informing The Steriods We look at each flattener in the following slides.

Fall of the Berlin Wall

Rise of the European Union (a consequence of the Fall of the Berlin Wall)

Netscape Goes Public Marc Andreessen (wrote Mosaic browser and Netscape browser)

Workflow Software This image is an interesting juxtaposition of the old assembly line (on the right) and the integrated circuits of work-flow software (on the left).

Uploading Clicking on the Blogger, Wikipedia, or YouTube logos on this slide will take you to their respective home pages.

The Open Source Movement (essential ingredient of uploading) Apache Web server Clicking on the Linux logo takes you to the “Linux Headquarters” home page. Linux

The Open Source Movement (continued) Firefox Thunderbird The Mozilla Foundation has shifted its focus to its Firefox Web browser and Thunderbird e-mail package. Mozilla

The SeaMonkey Project Formerly the Mozilla Application Suite The SeaMonkey Project is a community effort to deliver production-quality releases of code derived from the application formerly known as "Mozilla Application Suite". The SeaMonkey Project has released its “all-in-one” Internet application suite, which contains a Web browser, e-mail and newsgroup client, IRC chat client, and HTML editing.

Outsourcing Outsourcing gained momentum and “took off” with Year 2000 (Y2K) problem

Offshoring Call center in India

Supply Chaining

Insourcing

Informing It’s not just There are MANY other interesting search engines as we see in Chapter 5

The Steroids Digital Mobile Virtual Personal Digital: all analog content and processes are being digitized Mobile: thanks to wireless technologies, computing, connecting, collaborating can be done anywhere Virtual: the process of shaping, manipulating, and transmitting digitized content can be done at very high speeds, so that users do not have to think about these processes Personal: Individuals can perform all these processes on their own computing devices

First Steroid: Computing (processing) TO Ultramobile personal computer Charles Babbage’s Difference Engine (1822)

Computing (continued – storage) Sony Micro Vault Thumb Drive Capacity: 2 gigabytes First disk storage unit by IBM (1956) Capacity: 5 megabytes Size: Refrigerator

Second Steroid: Instant Messaging and File Sharing Instant messaging (example) File sharing (example)

Third Steroid: Voice over Internet Protocol

Fourth Steroid: Videoconferencing This slide shows a telepresence system. A telepresence system is a sophisticated, high-bandwidth videoconferencing system with very large, high-definition screens and directional microphones. The objective is to make participants feel that they are in the same room. A telepresence system in a conference room

Videoconferencing (continued) An individual telepresence system

Videoconferencing and Medicine New Zealand used Polycom, a leading vendor of telepresence systems, to provide a telemedicine application for children. The telemedicine link will show a video of the New Zealand application. Clicking on the Polycom logo will take you to its homepage.

Fifth Steroid: Computer Graphics

Sixth Steroid: Wireless Technologies Using cell phone in motion Geostationary satellite Bluetooth phone sunglasses

The Great Convergence We are in a convergence of three powerful, technological forces: (1) Cheap and ubiquitous computing devices (2) Low-cost, high bandwidth (3) Open standards

The Great Convergence (continued) In essence, we have computing everywhere and anywhere, anytime and all the time, with access to limitless amounts of information, services, and entertainment.

The Great Convergence (continued) We have the creation of a global, Web-enabled playing field that allows for multiple forms of collaboration – the sharing of knowledge and work – in real time, without regard to geography, distance, or, in the near future, even language. The field now includes some 3 billion new people, formerly digitally disenfranchised.

The Global, Web-Based Platform The cloud in this figure represents the Internet. Various companies’ data centers are connected to the Internet. When you make a query to Google, Yahoo, or Amazon (for example), your request travels over the Internet to one of their data centers. As many servers as are needed are brought to bear answering your query. The response is then sent back to you.