The World is Flat
A brief history of the 21st century
Thomas Friedman
How it will affect Computer
Science
Dr. Ranette Halverson
1
Chapter 1 – While I Was Sleeping
Author’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, collaboration
4
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 economy
5
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
– Reports
--Presentations
• 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 onsite 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. 11/9/89
2. 8/9/95*
3. Work Flow
Software*
4. Uploading*
5. Outsourcing*
6. Offshoring*
7. Supplychaining*
8. Insourcing
9. 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