1. The World is Flat (2nd half)
(Julian) Chenhui Guo
MIS 696A Readings in MIS
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2. Outlines Developing Countries and the Flat World
Companies and the Flat World
You and the Flat World
Geopolitics and the Flat World
Conclusion: Imagination
MIS 696A Readings in MIS
9/17/2018

3. Developing Countries and the Flat World
What can developing countries do in this flat world?
Why some developing countries (China, India) can develop fast in the flat world?
Why some developing countries (some in Latin America, some in Africa) cannot achieve economic boom?
MIS 696A Readings in MIS
9/17/2018

4. The patient case: Mexico
Some statuettes of Mexico’s patron saint, the Virgin of Guadalupe, were imported into Mexico from China, probably via ports in California.
China had advantages in large-scale manufacturing over Mexico. Mexico was losing its natural geographic advantages with the US market.
As a result, China replaced Mexico as the number two exporter to the US.
Economics of scale?
MIS 696A Readings in MIS
9/17/2018

5. The patient case: Egypt
Plastic Chinese-made Ramadan Lanterns (which is an Egyptian tradition), with better quality and safer battery-powered light, began popular in the Egypt’s market.
Egypt has masses of low-wage workers, like China. Egypt is near Europe, on the Suez Canal, but it imports cultural artifacts from China.
Endowment of resources?
MIS 696A Readings in MIS
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6. What “developing model”
introspection
What “developing model”
What policies?
What action plan?
MIS 696A Readings in MIS
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7. Remedy1: Develop through wholesale reforms
Right infrastructure
Right educational system
Right governance
Right environment
MIS 696A Readings in MIS
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8. Some practices---China
Reform and open-up policy!
MIS 696A Readings in MIS
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9. Remedy 2: Develop through retail reform
Retail reform offers a better environment for starting businesses, raising capital, and becoming entrepreneurs.
How to use resources well?
Dong business website:
MIS 696A Readings in MIS
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10. Culture matters: glocalization
Retail reform needs public and parliamentary participation. Culture matters in this process.
So, cost of social networking is reduced.
MIS 696A Readings in MIS
9/17/2018

11. Hofstede’s cultural dimensions:
Culture dimensions
Tom’s idea:
Outward: to what degree is it open to foreign influences and ideas?
Inward: a sense of national solidarity and a focus on development, trust within society, etc.
Hofstede’s cultural dimensions:
MIS 696A Readings in MIS
9/17/2018

12. Companies and the Flat World
How can the companies change their strategies to gain competitive advantages in the flat world?
MIS 696A Readings in MIS
9/17/2018

13. Rules in the flat world (1)
Rule #1: When the world is flat, whatever can be done will be done. The only question is whether it will be done by you or to you.
Profit driven new business models
MIS 696A Readings in MIS
9/17/2018

14. Rules in the flat world (2)
Rules #2: This is an outgrowth of rule #1. Because we are in a world where whatever can be done will be done, the most important competition today is between you and your own imagination.
Free, open, and competitive environment is needed.
MIS 696A Readings in MIS
9/17/2018

15. Rules in the flat world (3)
Rule #3: And the small shall act big… One way small companies flourish in the flat world is by learning to act really big. Imagination is necessary, but not sufficient. You have to be able to implement what you imagine. And the key to being small and acting big is being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider, and deeper.
Study in MIS!!!
MIS 696A Readings in MIS
9/17/2018

16. Rules in the flat world (4)
Rule #4: And the big shall act small… One way that big companies learn to flourish in the flat world is by learning how to act really small by enabling their customers to act really big.
Enhance Customer service quality
MIS 696A Readings in MIS
9/17/2018

17. Rules in the flat world (5)
Rule #5: The best companies are the best collaborators. In the flat world, more and more business will be done through collaborations within and between companies, for a very simple reason: The next layers of value creation---whether in technology, marketing, biomedicine, or manufacturing---are becoming so complex that no single firm or department is going to be able to master them alone.
MIS 696A Readings in MIS
9/17/2018

18. Rules in the flat world (6)
Rule #6: In the flat world, the best companies stay healthy by getting regular chest X-rays and then selling the results to their clients.
Identify hot and non-differentiated component
Business function diagnosis
Outsource non-differentiated component
MIS 696A Readings in MIS
9/17/2018

19. Rules in the flat world (7)
Rule #7: The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share, and hire more and different specialists---not to save money by firing more people.
MIS 696A Readings in MIS
9/17/2018

20. Rules in the flat world (8)
Rule #8: HOW you do things as a company matters more today than ever.
Be honest to your customer, otherwise they can make good use of Web 2.0 to make you known all over the world!
Before, you just needed to do the right things, while now you need to do them the right way.
MIS 696A Readings in MIS
9/17/2018

21. Rules in the flat world (9)
Rule #9: When the world goes flat---and you are feeling flattened---reach for a shovel and dig inside yourself. Don’t try to build walls.
MIS 696A Readings in MIS
9/17/2018

22. You and the flat world Globalization of the local---culture revolution
If it’s not happening, It’s because you are not doing it---just do it!
What happens when we all have dog’s hearing---the social downsides caused by flat world
MIS 696A Readings in MIS
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23. Can local culture be upload to the flat world? A comparison
More about China’s culture and customer revolution:
MIS 696A Readings in MIS
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24. Do what you want to do in this flat world!
To be a good social activist is easier in the flat world.
Having a little money and time, you can use internet to help the people all over the world.
MIS 696A Readings in MIS
9/17/2018

25. The social downsides caused by flat world
Coarsening of language
Indifference between people
Addiction to Internet
The negative affect of “IM-speak” (e.g. “b/s” instead of “because”)
more participation in the real world
MIS 696A Readings in MIS
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26. The un-flat world : too sick
People in some places of this world are too sick, or their local government are too broken to solve the disease problem.
MIS 696A Readings in MIS
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27. Disease can spread fast in the flat world
Epidemics spread faster in flat world
MIS 696A Readings in MIS
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28. The un-flat world : too disempowered
Many people live in the twilight zone between flat and un-flat world. They are not been encompassed by the flattening of the world.
MIS 696A Readings in MIS
9/17/2018

29. The un-flat world : too frustrated
Some people from the world think they are dissatisfied by the flat world.
Terrorists can also use internet to collect information and communicate with each other, and even collaborate.
How can we avoid e-terrorism?
MIS 696A Readings in MIS
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30. The un-flat world : too many Toyotas
Natural resources constraint---threat to the flattening of the world
MIS 696A Readings in MIS
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31. The Dell Theory of Conflict Prevention
Classic geopolitical threats might be moderated or influenced by the new forms of collaboration fostered and demanded by the flat world---particularly supply-chaining.
In The Lexus and the Olive Tree, Tom argued that to the extent that countries tied their economics and futures to global integration and trade, it would act as a restraint on going to war with their neighbors.
Dell theory stipulates: no two countries that are both part of a major global supply chain, like Dell’s, will never fight a war against each other. Because war can make them lose the position on the global supply chain.
MIS 696A Readings in MIS
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32. Dell theory--- two cases
MIS 696A Readings in MIS
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33. Infosys and al-Qaeda (write hat and black hat)
The flat world can help you do what you want to do, both positive and negative.
We must face new challenges in the flat world!!
MIS 696A Readings in MIS
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34. The world is flat conclusion: imagination---11/9
MIS 696A Readings in MIS
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35. The world is flat conclusion: imagination (cont’)---9/11
MIS 696A Readings in MIS
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36. The end
Thanks
MIS 696A Readings in MIS
9/17/2018