The World Is Flat
by: Thomas L. Friedman
Because of technology and transportation today our globalization is growing at remarkable speeds. Friedman put it like this we are equalling the playing field or the world is becoming flatter.
Globalization 0.1 - This phase Incorporated each country creatively using natural resources and transportation.
Globalization 0.2 -This was when multinational companies came into play.
Globalization 0.3 - This phase was when individuals started globalizing themselves.
The 10 Forces the Flattend the World
- 11/9/89 The Berlin Wall comes down. The New Age of Creativity: When the Walls Came Down and the Windows Went Up
- 8/9/95 The New Age of Connectivity: When the Web Went Around and Netscape Went Public
- Work Flow Software
- Uploading- Harnessing the Power of Communities
- Outsourcing Y2K
- Off shoring Running with Gazelles, Eating with Lions
- Supply-Chaining
- In sourcing
- In-forming- Google, Yahoo!, MSN Web Search
- The Steroids- Digital, Mobile, Personal, and Virtual
"The greatest skill a manager can have is ask great questions and listen."
-Elder Bednar
In the book "What Management is" the author talks about how it is important for not only managers to know how to manage but everyone.
Value = producing a product or service that fulfills a customer's need.
Business Models
" A business model is a set of assumptions about how an organization will perform by creating value for all the players on whom it depends, not just its customers."
- Joan Magretta
Business models can act as a scientific study. The author states that profits will tell you whether your business model is working. Start with a hypotheses about your business model just as you would do for a scientific study. Then test it and revise it when necessary.
I really liked how the author brought out the point that a good business model tells a good story. Things that make up a good business model are character, motivation, and plot. The plot is how the business will make money. We must look at the different people that are involved in the business and see how they work and why they work that way.
Part one of the story: "includes all the activities associated with making something: design, the purchase of raw materials, the manufacturing or service-delivery process." -Joan Margretta
Part two of the story: "includes all the activities associated with selling something: finding and reaching customers, transacting a sale, distributing the product or delivering the service." -Joan Margretta
Class Notes
One great way to find the best business model is build a flow chart that shows all of the processes that it takes in order for you to produce your product or service. The processes could include things that take place outside of your company that are necessary in order for you to produce your product. These are some great questions to ask yourself when trying to decide what business model will work best for your company.
How does this company make money?
How does the money flow?
How does information flow internally and externally?
Do your people know what is going on with your company?
