“There is no real ending. It’s just the place where you stop the story.”
― Frank Herbert
We all waited for this and here it is…the end of the flatteners.
The factors that caused a flat world continued:
.Flattener #7- Suply-Chaining- Eating Sushi in Arkansas.
Wal-Mart, Zara and Dell as models. Supply- chaining is a method of collaborating horizontally- among suppliers, retailers and customers- to create value.
Note-Supply- chaining is both enabled by the flattening of the world and a hugely important flattener itself.
“Making stuffs- that’s easy. Supply chain, now that is really hard.”- Yossi Sheffi (Supply Chain Magt Expert).
Making these chains work requires constant innovation and constant adjustment.
Corporate Nuggets: When the world is flat, your company both can and must take advantage of the best producers at the lowest prices anywhere they can be found. If you don’t, your competitors will.
Two basic challenges in developing a global supply chain in a flat world:
– Global Optimisation- to get total cost of delivering all parts on time, in all places at cost lower than competitors.
– Coordinating disruption- prone supply with hard-to-predict demand- to prevent shortages and excesses.
-Replacement of inventory with information.
. Flattener #7- Insourcing- What the Guys in the Funny Brown Shorts Are Really Doing.
UPS and FedEx- Not just delivering packages, but doing logistics.
Insourcing- a whole new form of collaboration and creating value horizontally, made possible by the flat world and flattening it even more.
This came about because once the world went flat, the small could act big. But many didn’t know how to pull all these off or couldn’t afford to mange a complex global supply chain on their own. On the other hand, big companies didn’t want to mange the complexities, which they felt was not part of their core competency.
. Flattener #9- In-forming- Google, Yahoo!, MSN Wen Search.
These search engines are huge flatteners- never before in history of the planet have so many people-on their own- had the ability to find so much information about so many things and about so many people.
In-forming is the individual’s personal analog to uploading, outsourcing, insourcing, supply- chaining, and offshoring.
It is the ability to build and deploy your own personal supply chain- a supply chain of information, knowledge, and entertainment. It is about self-collaboration.
“Search is so highly personal that searching is empowering for humans like nothing else.”- Eric Schmidt (Google CEO)
. Flattener #10- The Steroids- Digital, Mobile, Personal, and Virtual.
The steroids are certain new technologies that are amplifying and turbocharging all the other flatteners.
– Computing- composed of: computational capability, storage capability, and input/output capability.
– Breakthroughs in instant messaging and file sharing- the peer-to-peer model allows computer users to share songs, video and other kinds of files with one another online.
– Breakthroughs in making phone calls over the Internet- thanks to another burgeoning steroid- voice over the Internet protocol service, known as VoIP.
– Voice-conferencing- which is going to a whole new level.
– Recent advances in computer graphics- driven in part by advances in computer games.
– The new wireless technologies and devices- maybe the most important steroid.
These steroids will enhance and make open all other flatteners on this flat playing field.
These flatteners have caused countries,corporations and individuals to run consciously or otherwise. The world my be flattened but definitely not stagnant…we all must run with knowledge on this flat surface.