Chapter 3 – The Triple Convergence

Examples:

1. Flying Southwest Airlines used to mean getting there early to get boarding pass with A, B, or C printed on ticket. Author got there early only to get a B. What was the deal? Other passengers walked up to gate with paper (not e-ticket) in hand with As. Southwest was now offering e-tickets which you could print from home if you check in within 24 hours of flight.
2. Bizhub - Print/copy/scan/fax/email - all in one machine
   

Convergences

1. In 2000, all ten of the flatteners discussed started to converge and work together in ways that created a new, flatter, global playing field. As this new playing field became established, both businesses and individuals began to adopt new habits, skills, and processes to get the most out of it.
2. Merger of the new playing field for doing business with the new ways of doing business
3. New group of people (several billion) walked into the playing field from China, India, and Soviet Empire

Convergence I

• At turn of century (2000)
• workflow software and hardware converged in a way that enabled bizhubs
• Opening of Berlin Wall, Netscape, work flow, outsourcing, offshoring open-sourcing, insourcing, supplying-chaining, in-forming, and steroids amplifying them all reinforced one another, like complementary goods
• 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.

Convergence II

• Many of ten flatteners have been around for years
• New set of business practices and skills that now get the most out of the flat world
• Globalization

• Globalization 2.0 – era of mainframe computing – vertical – command & control
• Globalization 3.0 – era of PC, Internet, fiber optics – horizontal – value creation

Convergence III

• Not only did the West embrace this new playing field, 3 billion new players from East joined

• China, India, Russia, Eastern Europe, Latin America, and Central Asia
• Thanks to the ten flatteners, playing field came to them

• Friedman believes that this triple convergence of new players, on a new playing field, developing new processes and habits for horizontal collaboration is the most important force shaping global economics and politics in 21st century

• 1985 – global econ world was comprised of North America, Europe, Japan, and chunks of Latin America, Africa, and East Asia – 2.5 billion people

• 2000 – add Soviet Empire, India, China – now 6 billion people

• Globalization will be driven by individuals who understand the flat world, adapt themselves quickly to its processes and technologies, and go forward without approval

• India

• Zippies - Cohort of Indian youth – young city or suburban resident, 15 to 25, zip in stride, gen Z, male or female, studying or working, oozes attitude, ambition, aspiration, cool, confident, creative, seeks challenges, loves risks and shuns fear, likes to make and spend money
• In a flat world, you can innovate without having to emigrate
• Instead of complaining about outsourcing, Americans and Western Europeans would be better off thinking about how you can raise the bar and raise yourselves into doing something better – don’t whine
• It’s about efficiency, collaboration, competitiveness, being a player, staying sharp, & being in the game

• China

• Increase in students coming to US to study

• Russia

• Outsourcing of Russian engineers and scientists by American companies

Carly Fiorina, HP CEO, says “Now we are going into the main event, an era in which technology will literally transform every aspect of business, every aspect of life and every aspect of society.”