worldisflat2

181
00:13:52,514 --> 00:13:56,518
And I said, "Betty, could I ask where you are right now?"

182
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She said, "Honey, I'm in my slippers up in my bedroom, looking out of the most beautiful scene of Salt Lake City Utah"

183
00:14:02,940 --> 00:14:08,025
Because Jet Blue has created a complete home reservation system

184
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Jet Blue was founded by David Neeleman, a developed Mormon

185
00:14:11,062 --> 00:14:15,413
Who believes that families would be held together better if one of the spouses works at home

186
00:14:15,448 --> 00:14:19,121
And so he created a complete home reservation system

187
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That’s mean largely by retiree and housewives in Salt Lake City Utah

188
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So if you call Jet Blue for reservation, you could get Betty in her bedroom

189
00:14:28,639 --> 00:14:34,941
You might get Bob in the basement
You might get Sue out by the hot tub on her laptop

190
00:14:34,976 --> 00:14:38,733
But that's who will make your Jet Blue reservation

191
00:14:38,768 --> 00:14:41,452
And then I kept moving east

192
00:14:41,487 --> 00:14:44,880
I got all the way to Washington. D. C, I picked up the Washington Post one day
我去了Washington，有天拿起了華盛頓郵報

193
00:14:44,915 --> 00:14:48,935
They had a remarkable story about a pilot project begun by McDonald’s

194
00:14:48,970 --> 00:14:54,091
Where if you drive up to McDonald’s now, at certain locales you drive up to the driving window

195
00:14:54,126 --> 00:14:57,663
And you order 6 Big Mac, 6 milk shake and 18 fries for the kids

196
00:14:57,698 --> 00:15:04,667
You are not actually speaking to that McDonald’s
You are speaking out to McDonald’s call center in Colorado Springs

197
00:15:04,702 --> 00:15:08,555
That's taking down your order and taking your picture

198
00:15:08,590 --> 00:15:13,339
And then zapping your picture and your order electronically back to that McDonald’s

199
00:15:13,374 --> 00:15:17,790
Where your picture and order are matched up when you drive up to the driving window

200
00:15:17,825 --> 00:15:21,192
So the world is being flattened

201
00:15:21,227 --> 00:15:28,639
In all kinds of ways that a lot of us aren't fully aware of
I certainly was not aware of it when I started this project

202
00:15:28,674 --> 00:15:34,106
That sort of brings me to the kind of metathesis of the book which is the end of the first chapter

203
00:15:34,141 --> 00:15:40,192
Basically what I am arguing there is that, there've been 3 great era of globalization I would argue

204
00:15:40,227 --> 00:15:43,926
The first era, try to call globalization 1.0

205
00:15:43,961 --> 00:15:48,623
Lasted from, while I would say, 1492 until the early 1800s

206
00:15:48,658 --> 00:15:51,900
Say 1820 was the beginning of global arbitrage

207
00:15:51,935 --> 00:15:59,062
The first era of globalization 1.0 really shrank the world from a size large to a size medium

208
00:15:59,097 --> 00:16:04,770
That era of globalization was really spearheaded by countries’ globalizing

209
00:16:04,771 --> 00:16:08,758
You went global through your country

210
00:16:08,793 --> 00:16:13,856
While Spain exploring the new world, Portugal East Asia, Britain colonizing India

211
00:16:13,891 --> 00:16:20,416
It was countries going global for reasons of imperialism, power, natural resources…

212
00:16:20,451 --> 00:16:24,186
But the dynamic agent of globalization in that era

213
00:16:24,221 --> 00:16:25,761
Was really the country

214
00:16:25,762 --> 00:16:29,863
The second great era of globalization, globalization 2.0

215
00:16:29,898 --> 00:16:34,767
I would argue was from early 1800s until the year 2000, it just ended

216
00:16:35,711 --> 00:16:39,413
And that era of globalization shrank the world from size medium to size small

217
00:16:39,804 --> 00:16:45,061
And that era of globalization, I would argue, was spearheaded by companies’ globalizing

218
00:16:45,096 --> 00:16:48,372
Multinationals globalizing for markets and for labor

219
00:16:48,407 --> 00:16:53,732
And in that era of globalization, you went global through your company

220
00:16:53,767 --> 00:16:58,395
The company was the dynamic agent of that era of globalization

221
00:16:59,562 --> 00:17:03,230
What I am trying to argue in this book is while you were sleeping

222
00:17:03,265 --> 00:17:06,062
We enter globalization 3.0

223
00:17:06,097 --> 00:17:07,638
Certainly while I was sleeping

224
00:17:07,673 --> 00:17:11,222
It is shrinking the world from size small to size tiny

225
00:17:11,257 --> 00:17:15,525
And flattening the global economic playing field at the same time

226
00:17:15,560 --> 00:17:20,430
Only what's really new, unique and different about this era

227
00:17:20,465 --> 00:17:27,783
Is that this era of globalization is not built around countries’ globalizing

228
00:17:27,818 --> 00:17:31,263
And is not built around companies’ globalizing

229
00:17:31,298 --> 00:17:41,590
What is new and unique about this era is a degree to which it is and will continue to be built around individuals globalizing

230
00:17:41,625 --> 00:17:43,870
Individuals and small groups
231
00:17:43,905 --> 00:17:52,303
That is the new and unique thing about this era is the degree to which individuals and small groups can globalize themselves

232
00:17:52,338 --> 00:17:58,135
And increasingly must they think themselves globally and locate themselves globally

233
00:17:59,111 --> 00:18:00,834
And pay attention

234
00:18:00,869 --> 00:18:03,818
This era of globalization, I would argue

235
00:18:03,853 --> 00:18:06,816
Unlike globalization 1.0 and 2.0

236
00:18:06,851 --> 00:18:12,697
Is not gonna be built exclusively around a group of white west individuals

237
00:18:12,732 --> 00:18:14,952
Who dominated the first 2 eras of globalization

238
00:18:14,987 --> 00:18:23,080
It's gonna be built around individuals and small groups of every color of the rainbow who would be able to plug and play

239
00:18:24,010 --> 00:18:26,547
So that's the kind of the meta argument here

240
00:18:26,582 --> 00:18:29,505
Now the second chapter of the book, the one that really took me the longest

241
00:18:29,540 --> 00:18:32,683
Is called "the Tens Days of Flattened World"

242
00:18:32,718 --> 00:18:37,851
It's about the ten forces, technology and advances I tried to build each one around a day

243
00:18:37,886 --> 00:18:42,757
That really created this level, this global playing field

244
00:18:43,733 --> 00:18:47,853
And let me go through what I called "The Ten Flatteners" as quickly as I can

245
00:18:47,888 --> 00:18:51,332
The first flattener is 11/9

246
00:18:51,367 --> 00:18:53,747
Not 9/11, 11/9

247
00:18:53,782 --> 00:18:55,888
11/9/1989

248
00:18:55,923 --> 00:18:59,152
11/9 is the day the Berlin Wall came down

249
00:18:59,187 --> 00:19:02,666
Wonderful sort of cabalistic accident of days

250
00:19:02,701 --> 00:19:06,741
And the fall of the wall was a huge flattener

251
00:19:06,776 --> 00:19:12,486
Because the fall of the wall aloud us to see and think of the world as a single flat plane

252
00:19:12,521 --> 00:19:16,781
I dare say if we look back in the archives of MIT or New York Times

253
00:19:16,816 --> 00:19:22,382
We won't find a lot of people or a lot of courses about globalization in 1970 or 1980

254
00:19:22,417 --> 00:19:27,158
People had eastern policies and they had western policies

255
00:19:27,193 --> 00:19:30,046
They taught about the north and they taught about the south

256
00:19:30,081 --> 00:19:34,325
But no one was really talking about globalization because there was a wall in the way

257
00:19:34,360 --> 00:19:41,766
And the fall of the wall was a huge flattener because it allowed us to see and think of the world as a single flat plane

258
00:19:43,340 --> 00:19:48,657
I call this first flattener when the walls came down and the windows came up

259
00:19:48,692 --> 00:19:55,858
Because the Windows operating system 3.0, the breakthrough system shift 5 months after the fall of the Berlin Wall

260
00:19:55,893 --> 00:19:58,610
And so those two things happened at the same time

261
00:20:00,099 --> 00:20:10,626
Not only the wall came down and gave us the ability to look at the world through a single space, but we are suddenly endowed with a kind of a single graphic user interface to out start to look at the world through

263
00:20:13,604 --> 00:20:17,115
To the 2nd of flattener is 1995.8.9

264
00:20:17,150 --> 00:20:22,426
I consider 1995 8.9 one of the most important day is in western civilization

265
00:20:22,461 --> 00:20:31,257
August 9th 1995 is the day a small start of a company in Mountain View California called Netscape when public

266
00:20:31,292 --> 00:20:35,131
And Netscape is going to be the huge flattener for 3 reasons

267
00:20:35,166 --> 00:20:39,178
First of all, it was really the Netscape Browser

268
00:20:39,213 --> 00:20:44,866
That gave us the 1st commercial browser that really brought the Internet alive

269
00:20:44,901 --> 00:20:49,553
Brought it alive in the way that grandma and grandpa, grandson and granddaughter could use it

270
00:20:49,588 --> 00:20:53,593
Not just the computer scientists trained in MIT

271
00:20:53,628 --> 00:20:58,835
And so, the huge breakthrough of Netscape was it, in my view brought the Internet alive

272
00:20:58,870 --> 00:21:09,298
As a device that people from more different places in more different ways could connect with one another than ever before

273
00:21:09,333 --> 00:21:13,428 the 2nd thing in Netscape contribute to, certainty didn’t do it along with

274
00:21:13,463 --> 00:21:17,537
Netscape commercialize a set of transmission protocols based on open standard

275
00:21:17,572 --> 00:21:26,034
Which help ensure that the Internet would be interoperable and won’t be the province of any single company or anyone’s ward garden

276
00:21:26,069 --> 00:21:30,123
Third, the most importantly to me Netscape trigger the .com boom

277
00:21:30,158 --> 00:21:32,522
And that trigger the dot com bubble

278
00:21:32,557 --> 00:21:44,772
And that trigger the accidental ridiculous absurd outrageous insane overinvestment, of something closed to a trillion dollars in fiber optic cable in 5 years.

279
00:21:44,807 --> 00:21:52,751
And that crazy, absurd ridiculous investment of nearly a trillion dollars in fiber optic cable in 5 years

280
00:21:52,786 --> 00:21:59,904
Accidentally made Peking, Bangalore and Bethesda, where I live, next-door neighbors

281
00:21:59,939 --> 00:22:03,688
Without anyone, anywhere planning it to happen

282
00:22:03,723 --> 00:22:07,000
You recall how it to place.

283
00:22:07,035 --> 00:22:09,733
Netscape went public on the morning of 1995.8.9

284
00:22:09,768 --> 00:22:13,706
At the price of 28 dollars, that was the opening price

285
00:22:13,741 --> 00:22:18,893
The stuck open the day at 71, closed the day at 56

286
00:22:18,928 --> 00:22:27,374
And we all looked that and said: Wow~ there is gold over them there’re hells

287
00:22:28,446 --> 00:22:32,125
and so what we do, we all went out, and we brought GlobalAcrossing

288
00:22:32,160 --> 00:22:36,708
Nortel, Lucent

289
00:22:36,743 --> 00:22:39,470
拜託，承認吧，這是在你們的退休計畫裡面的股票
Come on admitted it was in your 4O1K

290
00:22:40,798 --> 00:22:43,405
And those companies took our money,

291
00:22:43,440 --> 00:22:53,369
And mutual funds and they laid mile after mile of under sea and over land fiber optic cable

292
00:22:54,600 --> 00:22:57,162
And I only to tell this crowd about fiber optic cable

293
00:22:57,197 --> 00:23:03,362
That it is the gift that keeps on giving

294
00:23:04,309 --> 00:23:13,371
Coz once sets in the ground, all you have to do is to keep improving those switches at each end and you light more and more capacity

295
00:23:14,541 --> 00:23:20,596
And basically, that glut, that massive glut of fiber optic cable

296
00:23:20,631 --> 00:23:29,508
Allowed suddenly more people in more places to communicate virtually for free than ever before in the history of the planet

297
00:23:30,795 --> 00:23:34,771
So, that really is what the Netscape flattener was all about

298
00:23:34,806 --> 00:23:36,989
The third flattener I simply called work flow

299
00:23:37,024 --> 00:23:44,198
And work flow is simply my catch for all the software and all the standards

300
00:23:44,233 --> 00:23:52,309
That allowed work to flow, everything from Microsoft word ,to Microsoft Net meeting to all the proprietor software that you are right and work on in your daily work

301
00:23:52,344 --> 00:23:57,273
Again I will go back to MIT probably in the sometime in the 80s

302
00:23:57,308 --> 00:24:02,739
You know the admissions department would be probably running the Microsoft, the bookkeeping department was running Novell,

303
00:24:02,774 --> 00:24:08,272
Both departments are much more efficient because they had computers,

304
00:24:08,307 --> 00:24:12,018
But applications did not connect applications

305
00:24:12,053 --> 00:24:16,984
Now, a lot of applications still don’t connect applications, we certainly know that

306
00:24:17,019 --> 00:24:25,432
But over the 90s, there was a revolution in software that has connect a lot of more applications with a lot of more other applications

307
00:24:25,467 --> 00:24:29,401
And the net result of that create revolution from middle ware

308
00:24:29,402 --> 00:24:32,5
All kinds of transmission protocols

309
00:24:32,612 --> 00:24:42,041
The net result of that is that people are able to work together with other people on more stuff than ever before

310
00:24:42,076 --> 00:24:46,328
When my applications can work with your applications, virtually that we don’t have to think about it

311
00:24:46,363 --> 00:24:52,936
It means that we can work together like never before

312
00:24:52,971 --> 00:25:00,111
And this I would argue, some point in the mid 1990s was what I called the genesis moment of the flat world.

313
00:25:00,146 --> 00:25:08,614
Because when you take that Netscape revolution, people able to connect with people over a network like never before.

314
00:25:09,304 --> 00:25:16,599
And then you take the revolution in software of more and more applications connecting to more other applications than never before.

315
00:25:16,634 --> 00:25:25,382
What we created really, willy-nilly was a global platform for multiple forms of collaboration

316
00:25:25,417 --> 00:25:35,933
Suddenly more people could collaborate and connect on more stuff than ever before in the history of the world

317
00:25:35,968 --> 00:25:40,228
And that to me was the genesis moment for the flattening of that world

318
00:25:40,263 --> 00:25:46,061
Now the next six flatteners, are the new forms of collaboration

31900:25:46,096 --> 00:25:48,829
That sprang from that platform and have come back to flatten the world even more

320
00:25:48,864 --> 00:25:50,359
I’ll go through them quickly

321
00:25:50,394 --> 00:25:52,200
The first of course is Outsourcing

322
00:25:52,235 --> 00:25:55,537 Outsourcing is just a new form of collaboration

323
00:25:55,572 --> 00:26:00,465
Empowered by this platform of people to people and application to application

324
00:26:00,500 --> 00:26:09,218
Now, MIT, if it wants to, can outsource the whole bookkeeping apartment to North Boston, North Dakota or North Bangalore

325
00:26:09,253 --> 00:26:13,122
Of these platform either one would be almost equally easy

326
00:26:13,157 --> 00:26:16,103
Outsourcing, a new form of collaboration

327
00:26:16,138 --> 00:26:19,312
The next new form of collaboration is Offshoring

328
00:26:19,347 --> 00:26:26,825
I build each of these around the dates, so outsourcing is built around Y2K, offshoring is built around when China joined the world trade organization 

32900:26:26,860 --> 00:26:29,560
將境外生產帶到了一個截然不同的等級
Which takes offshoring to a whole new level

330
00:26:29,595 --> 00:26:34,282
Now I take my whole factory from Canton Ohio and I move it to Canton in China

331
00:26:34,317 --> 00:26:37,441
And integrate it into my global production system

332
00:26:37,476 --> 00:26:38,800
offshoring

333
00:26:38,835 --> 00:26:41,713
Third new form of collaboration is opensourcing

334
00:26:42,641 --> 00:26:48,065
opensource to me is a verb. It’s opensourcing, a new form of collaboration

335
00:26:48,100 --> 00:26:53,919
It’s a bunch of geeks like half of you, sitting at home, working on the LINUX operating system

336
00:26:54,421 --> 00:26:57,215
Which the day has 15% in global OS market

337
00:26:57,250 --> 00:27:02,333 Brazil just announced a couple month ago. It’s converting the whole Brazilian government to LINUX

338
00:27:02,368 --> 00:27:07,941
This a whole new form of collaboration obviously, and innovation

339
00:27:08,885 --> 00:27:12,671
And you know then, how it likes to be Microsoft, how it makes Bill Gates

340
00:27:12,706 --> 00:27:15,003
And how would you like to be Bill Gates

341
00:27:16,051 --> 00:27:22,244
So, your old models is anyone challenges you and you undercut them on price

342
00:27:23,362 --> 00:27:26,776
And, it’s hard to be free.

343
00:27:26,811 --> 00:27:28,407
It’s hard to be free

344
00:27:28,442 --> 00:27:38,166
It’s hard to be a bunch of geeks sitting at home writing a next operation system or next version of Microsoft Word or Adobe Acrobat for free…

345
00:27:38,201 --> 00:27:40,733
Some doing it because they hate Microsoft

346
00:27:40,768 --> 00:27:44,037
And let’s be honest, many doing it because they hate Microsoft

347
00:27:44,072 --> 00:27:49,133
That’s just a question whether there be an open source movement if there were no Microsoft

348
00:27:49,168 --> 00:27:56,030
And many others doing it for all the reasons you, this crowd understands the best, which is the purest view of science of it

349
00:27:56,065 --> 00:27:59,366
Look at this algorithms I came up with

350
00:27:59,401 --> 00:28:03,614
Look at the patch, this is so cool, you gotta try this

351
00:28:06,133 --> 00:28:07,292
Bur whatever reason they are doing it

352
00:28:07,327 --> 00:28:10,773
This is only crowd in America who laughs

353
00:28:10,808 --> 00:28:12,940
It is so good, it is great!

354
00:28:16,018 --> 00:28:18,289
Other people just sit there what he talking about

355
00:28:20,794 --> 00:28:22,448
But for whatever reason they are doing it

356
00:28:22,483 --> 00:28:26,992
This to me is a whole new form of collaborate, Firefox.

357
00:28:27,027 --> 00:28:33,047
Here is web browser produced by a 19-year old Stanford along with a 24 year old from New Zealand

358
00:28:33,082 --> 00:28:35,735
Who had never met yet

359
00:28:35,770 --> 00:28:40,025
And, you know in one month, it has been download 10 million times!

360
00:28:40,060 --> 00:28:43,279
Takes 5% Microsoft explorer’s market in a month

361
00:28:43,314 --> 00:28:48,007
so this is an incredibly powerful new form of collaboration

362
00:28:48,042 --> 00:28:54,447
And the Open University at MIT is doing which I had a pleasure of learning all about today

363
00:28:54,482 --> 00:28:56,375
It’s just another expression of this

364
00:28:56,376 --> 00:29:00,615
and it is going to be, I think, incredibly power form of innovation

365
00:29:00,650 --> 00:29:02,305
The flatter the world gets

366
00:29:02,340 --> 00:29:07,642
The forth new form of collaboration, I called supply chaining

367
00:29:07,677 --> 00:29:09,987
Supply chaining is what Wal-Mart does

368
00:29:11,731 --> 00:29:16,547
That is designing a global supply chaining down to the last atom of efficiency
369
00:29:17,476 --> 00:29:22,760
so, you take an item off the shelf from the Wal-Mart in Brookline, and another is immediately made in Shenzhen, China

370
00:29:22,795 --> 00:29:26,721
Wal-Mart were a country, it would be China’s 8th largest trading partner today.

371
00:29:26,756 --> 00:29:28,961
Ahead of Canada and Australia

372
00:29:29,729 --> 00:29:36,208
and my friend Yossi Sheffi who’s here has taught me something about supply chains

373
00:29:36,243 --> 00:29:42,054
And he has a nice saying, which is that: ”Making stuff? Making stuff!” That is easy

374
00:29:42,089 --> 00:29:45,455
Supply chains, that really hard

375
00:29:47,437 --> 00:29:50,094
Think about Wal-Mart, as he says

376
00:29:50,954 --> 00:29:55,380
Wal-Mart is the biggest company in America, and they don’t make anything

377
00:29:56,693 --> 00:30:01,850
Just a supply chain, down to the last atom of efficiency

378
00:30:01,885 --> 00:30:03,892
Whole new form of collaboration

379
00:30:03,927 --> 00:30:07,306
The fifth new form of collaboration I called insoucing

380
00:30:07,341 --> 00:30:09,572
Insoucing is what UPS does

381
00:30:09,607 --> 00:30:13,035
你知道那些開著可笑褐色卡車，穿著可笑褐色短褲的人
You know the people in the funny brown trucks in the funny brown shorts

382
00:30:14,075 --> 00:30:19,994
If you think all they’re doing is delivering packages, you are not paying attention

383
00:30:21,159 --> 00:30:23,984
There’s a little hint of what they are up to is on the side of their truck now

384
00:30:24,019 --> 00:30:27,697
現在寫著，「同步你的世界」
It simply says <your world synchronized >

385
00:30:27,732 --> 00:30:30,470
Coz what UPS does now is internal logistics

386
00:30:30,896 --> 00:30:37,941
They come into your company, right up to your neck, right up to headquarters, and take over your entire, internal logistics. That’s I called insourcing

387
00:30:39,067 --> 00:30:41,334
So you have a Toshiba laptop

388
00:30:41,369 --> 00:30:45,432
And it breaks, and you go to your warrant, and it says called 1-800-HELP

389
00:30:45,467 --> 00:30:46,801
You called 1-800-HELP

390
00:30:46,836 --> 00:30:49,633
And they tell you take your Toshiba laptop to the UPS store

391
00:30:49,668 --> 00:30:52,408
And send it to us and had it back to in 72 hours

392
00:30:52,443 --> 00:30:53,616
Here’s what you don’t know

393
00:30:53,651 --> 00:31:00,123
Your Toshiba laptop goes from the UPS store to the UPS hub at Louisville airport in Kentucky

394
00:31:00,158 --> 00:31:04,098
在當地Louisville機場的機庫無塵室中，
Where in an airline hanger at Louisville airport, in a clean room

395
00:31:04,133 --> 00:31:08,201
your Toshiba laptop is repaired by a UPS employee

396
00:31:08,236 --> 00:31:11,168
It never touches Toshiba’s hands

397
00:31:11,203 --> 00:31:14,505
Toshiba has insourced that entirely to UPS

398
00:31:14,540 --> 00:31:19,160
Nike.com, you want gets the kids a new pair of sneakers, you go on-line Nike.com

399
00:31:19,195 --> 00:31:24,624
What you don’t know is on the other side of the screen, there’s someone in funny brown shorts

400 00:31:25,928 --> 00:31:33,679
Who is taking down your order, picking and packing the shoes from the Nike house that UPS manages

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