From the Bookshelf This is a fortnightly review of bestsellers for business executives New technology and practices create level playing field by Nicole Wong Face up to the challenges of the new era of globalisation In the new millennium, we regularly marvel at the ease of international travel and communication. Global integration is progressing at a tremendous pace and bringing changes in markets, labour practices, technology and attitudes. How many of us, though, have paused to consider the impact of such connectivity on politics and national economies, or even on individual companies and our own roles? In his latest work, The World is Flat: A Brief History of the Globalized World in the 21st Century, Thomas Friedman has some intriguing statements to make. Essentially, he believes, the playing field is being levelled as people anywhere can work and compete with each another. Consequently, the world is becoming a smaller and flatter place (p.7). Friedman illustrates his concept with some eye-opening examples. Thanks to a work flow software program, an Indian firm can now do accounting work outsourced from the US, and the author is surprised to discover his own tax returns are checked in Bangalore. Customers at a McDonald's in Missouri may have their orders taken by a call centre 900 miles away in Colorado, connected by high-speed data lines to the workers preparing the food. In Friedman's view, this "flattening" began with the fall of the Berlin Wall, which tilted the world towards democracies and free markets. Corporations are now further changing the balance by relocating operations to lower-cost countries. Giants like Wal-Mart and UPS are constantly rewriting the definition of business efficiency, as are companies with the latest supply chain software. Collaboration in cyberspace has taken off since the launch of Netscape in 1995 and the launch of open source software. High-powered search engines and wireless communication devices are continuing this revolution in knowledge and information. However, the world is not yet getting flatter for everyone. Certain countries are still wrestling with political unrest and economic hardship. They will presumably see that in the age of global cooperation and competition, business opportunities go to countries with the best infrastructure, education system and investor-friendly laws. India and China loom large in the new era of globalisation, and they present challenges and enormous business opportunities for the rest of the world. To embrace these opportunities, companies have to adjust their business models and reflect market trends. In The World is Flat Friedman refers to two of his friends who saw their profitable multimedia company start to struggle as advances in digital photography allowed freelancers to use the same technology at lower prices. Rather than fighting this inevitable trend, the two outsourced more of their technology-related work and focused instead on offering strategic and creative insights for their assignments. For individuals who aim to compete effectively, it is vital to keep pace with developments in technology and to enhance personal skill sets. In this respect, Friedman recounts how an illustrator saw how computers were making it easier to do routine drawings, so started to provide consultancy services for his clients, helping them to come up with new ideas and images as well. The World is Flat is undoubtedly a thought-provoking book for readers who are not yet familiar with the concept of globalisation or its implications for world politics and economics. Friedman makes his complicated ideas accessible through the use of personal narrative, extracts from interviews, and illustrative examples of economic phenomena, which make the book an entertaining read for the most part. While many of the economic trends he examines may initially be hard to grasp, the book serves as a timely reminder of how we are living in a time of accelerated global competition, in which individuals must learn to apply new skills and adopt creative solutions. Content highlights: The explosion of advanced technologies has enabled the transmission of knowledge and resources, which lays the groundwork for global cooperation. The forces that have contributed to the "flattening" of the world include the fall of the Berlin Wall, the launch of Netscape, the development of work flow software and open-sourcing software, outsourcing and supply chain developments, powerful search engines, and enhanced wireless communications. In the age of global competition, countries must have open economies, while companies and individuals must innovate and expand their skill sets to match market trends. About the authors Thomas Friedman joined The New York Times in 1981 and was appointed Beirut bureau chief in 1982. Having served as chief White House and chief economic correspondent, he became the paper's foreign affairs columnist in 1995. He won Pulitzer Prizes for international reporting in 1983 and 1988 and for commentary in 2002. Mr Friedman's previous works include From Beirut to Jerusalem (1989) and The Lexus and the Olive Tree (2000), which has been published in 27 languages. He also wrote Longitudes and Attitudes: The World in the Age of Terrorism (2002) and the text for Micha Bar-Am's book Israel: A Photobiography. "Eminently worth reading ... It is Friedman's ability to see a few big truths steadily and whole that makes him the most important columnist in America today" -Walter Russell Mead, The New York Times Taken from Career Times 30 September 2005 Your comments are welcome at [email protected]