Monday, July 16, 2007

What is "convergence" as friedman describes it? Why is it importaint?

There are three pieces to convergence as Friedman describes it. They include the ten flatteners coming together, alligning businesses horizontally versus veritically and three billion people from arounf the world joining business production.
The first piece is the ten flatteners coming together to flatten the playing field for businesses. This created a new global platform for people to educate communicate, collaborate and work together. Friedman believes that these ten forces are now well established and working together like complimentary goods making a whole new global platform.
The second piece is businesses and individuals alligning horizontally not vertically. For example, H.P. demonstrates this with the consolidation of their supply chains. They had 87 different supply chains all with their own staff and administration, however they now have reduced to only five supply chains wiht one staff cpmleting tasks such as accounting, billing and human resources versus one for each supply chain. This also forces employees, companies and individuals to acquire new skills. Friedman discusses South West Arline e-ticket process and how this process had helped South West Airlines improve but not himself until he became educated to the e-ticket process and realized he could print his ticket at home saving himself time and South West Arlines the staff person to print the ticket.
The third piece to Friedman's convergence is three billion people from China, Russia, India, Eastern Europe and Latin America joining the business production world. For the most part these folks have not been competing with us before. It brings a huge number of people into the world market for competition of jobs, resources and products. Friedman feels that this is the most important piece of convergence. Convergence is very important because now innovation will come from all over the world not just America.

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