The World is Flat
A brief history of the 21st century
Thomas Friedman
How it will affect Computer Science
Dr. Ranette Halverson1
Chapter 1 – While I Was SleepingAuthor’s Trip to India• Bangalore – India’s Silicon
Valley– Goldman Sachs -- IBM– Hewlett Packard -- Microsoft– Texas Instruments -- Cisco– GE
• Infosys outside Bangalore– Landscaping, putting green, pool,
health club, restaurants 2
The World is Flat i.e. The Playing Field is Leveled
How? Why? What Happened?• Outsourcing• Investments in technology• Broadband connectivity• Explosion of HW & SW
(cheap)
3
Globalization 1.0
• 1492 – 1800• World: Large to Medium• Driving Force: Muscle
(Countries)– Power & how it could be deployed– By moving out, dew the world
together– Global integration: trade,
collaboration4
Globalization 2.0• 1800 – 2000• World: Medium to Small• Driving Force: Multinational
Co.– Markets & Labor– Drop in transportation costs (RR),
then drop in communication costs (telegraph to PC & WWW)
– Global economy5
Globalization 3.0
• 2000 – Present• World: Small to Tiny (& Flat)• Driving Force: Empowering
Individuals – Collaboration & Competition– Flat-World Platform = PC +
Fiber + Workflow SW– Non-western inclusion
6
Accounting – Tax Preparation
• MphasiS • 2005 – 400,000
returns outsourced to India
• Security• Creativity
– Face-to-Face 7
Radiology - MD
• Reading of CAT & MRI– Nighthawks
• Work from home–WF doctor works for San Antonio hospital
• Australia, India–Day there when night here
8
Journalism • Reuters
– Leader in world news
• Bangalore, India– Flash Headlines from news
releases
• US reporters– Analysis– Cut staff by 1/4
• 1/5 Cost 9
Call Centers• 24/7 Customer
– 2500 in Bangalore– Dell, IBM, MS, Airlines
• 245,000 in India • Prestige, Training & Education• Jobs lost or Jobs not wanted?• Use U.S. Products
– Computers, SW, Air conditioning– Bottled water, soft drinks, etc.– More disposable income in India
10
Remote Personal Assistant• Brickwork (div. of B2K Co.)
– $1500 to $2000 month– Typically work during our night
• What do they do?– Research --Presentations– Reports
• Clients: Health Care Consultants, Investment Banks, Financial Services 11
Dalian, Bangalore of China• Outsourced from Japan &
other Asian operations• Data entry of handwritten
Japanese• CAD – architects• GE, MS, Dell, SAP, HP, Sony,
Accenture
12
Jet Blue Airlines
• Home Sourcing• 100% of phone reservations • 400 women (mostly) in Salt Lake
City• 30 hour weeks at home• 1 day a month in office for training• 30% more productive than similar
on-site reservation facilities
13
U.S. Army
• Predator drones – Unmanned spy planes– Flying over Iraq– Flown by soldier in Las Vegas,
Nevada
14
McDonalds(yes, the hamburger place)
• Missouri, Minnesota, Massachusetts• Call center in Colorado Springs, Co.• Pay operators more but costs down
10%• Cut errors by 1/2• Service time down by 30 seconds• Next step: “phones” at tables which
go to the call center• Headquarters doing a trial
15
E-Tutoring
• From India• $15 to $20 per hour• Use cameras, microphones,
digital pencils, scanners
16
What does this mean?•10
Flatteners•Level
Playing Field•All have to
do with the computer
17
Ten Forces that Flattened the World
1. 11/9/892. 8/9/95*3. Work Flow
Software*4. Uploading*5. Outsourcing*6. Offshoring*
7. Supply-chaining*
8. Insourcing9. In-
forming*10.The
Steroids
18
How has the computer changed the world as you know it???•Cell Phones•Music Downloads•Online Courses•YouTube•Face Book – My Space•Online Shopping
19
Still changing……
• eHarmony.com• Wikipedia• Ebay• Travelocity.com• Email• Instant messenger• Text Messaging
20
What are YOUR Plans???• Where will you work?• What will you do?• Who will you work with?
ALL of this is changing as we speak! Much of the change is due to the computer and the related technology!
21
How is the world economy and job market changing?
• Today we will discuss WHAT is happening. Actually what has already happened!
• Not why it happened!• Not is it good or bad!• That is for you to
decide!!
22
Outsourcing
• 1800’s – Conestoga Wagon Covers
• Today – Manufacturing
• Cars, Clothes,
– Help desks & Call Centers– Programming
• Outsourcing will not be the end of civilization as we know it!!
23
Are all the jobs leaving the US?
• This is a serious question.
• But the answer might be no!
24
True Change is Occurring!!!• How do we manage it?• Who regulates it?• Who taxes it?
• A significant change is occurring in ALL aspects of our world and at SUPER speed!
25
What’s Next??
• What will be the next BIG change??
• I don’t know!• I know you better be
comfortable with computers and technology!!
26
Questions or Comments?
27