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Topics in Technology and Marketing The Flat World

Topics in Technology and Marketing The Flat World. Intro from the man himself. Thomas L. Friedman – author of “The World is Flat” Coined the phrase “Flat World” to describe the global convergence of technology, society, and economics. http://mitworld.mit.edu/video/519.

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Topics in Technology and Marketing The Flat World

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  1. Topics in Technology and Marketing The Flat World

  2. Intro from the man himself • Thomas L. Friedman – author of “The World is Flat” • Coined the phrase “Flat World” to describe the global convergence of technology, society, and economics. http://mitworld.mit.edu/video/519

  3. The World Is Flat…tiny, too • “Flat” refers to the reduction/elimination of: • Global economic friction • Historical competitive advantages/disadvantages • Resource wealth/poverty • “Tiny” refers to the immediacy of global: • Communications • Transportation • Logistics • Barriers are lowered. Distance is abolished • Combination of technology and capitalism / democracy have enabled: • Integration on a global scale • Collaboration on a global scale • Competition on a global scale

  4. Waves of Globalization • Globalization 1.0 • 1492-1800 • Led by countries • Globalization 2.0 • 1800-2000 • Led by companies • Globalization 3.0 • 2000-present • Led by individuals

  5. “We live in exponential times” • http://www.youtube.com/watch?v=16tgJFW1o7o • http://www.youtube.com/watch?v=6ILQrUrEWe8

  6. How Did We Get Here?

  7. The Bubble Inflates • Critical mass of desktop PCs • Windows 3.1 launches in 1990 • Media digitalization goes ballistic • Netscape web browser introduced in 1994 • Investment in global bandwidth • Global fiber-optic cable for network backbone • DSL (digital subscriber line) for homes • Explosion in internet applications • Google, Yahoo! • AOL/CompuServe • eBay

  8. Netscape makes a killing • … after 16 months in business • 1994 Y/E results • Net revenue = $0.7MM • Net loss = $8.5MM • 5MM shares IPO • Priced at $28 • Day 1 peak at $75 • Day 1 market cap = $375MM • Day 1 profits for insiders = $300MM http://www.neominds.com.mx/boletin-de-prensa-optimizacion-web/05-06-28-netscape-case-study-1995.html

  9. Partying like it's 1999 • VC funding and IPOs for anything dot-com • Adding an “e-” or “.com” to business name could be worth billions to market cap • The New Economy • Internet good, bricks-and-mortar bad

  10. The Need for Speed • The new economy runs on bandwidth • Never-ending virtuous cycle – like adding lanes to a highway • More traffic requires more bandwidth • More bandwidth allows more interactivity • Faster downloads • Higher graphic intensity • Increasingly sophisticated capabilities • More interactivity results in more traffic • More traffic requires more bandwidth • Bandwidth usage doubling every 3 months • $1 TRILLION in 5 years invested in fiber-optic backbone

  11. March 10, 2000: 5,048.62 (intra-day peak 5,132.52) 78% decline October 9, 2002: 1,114.11 March 2000: The Party Ends • NASDAQ market tanks • VC funding dries up • Market valuations shrivel • 50%-80% of dot-coms don't make it

  12. Problem: How Do You Collaborate Globally?

  13. Open Source (Part 1) • Open Source allows: • Any network to communicate with any other network • Any computer to communicate with any other computer • Any software platform to communicate with any other software platform • Anyone to communicate with anyone else

  14. Problem: How Do You Compete For Free?

  15. Open Source (Part 2) • Open Source means free

  16. Problem: How Do You Communicate Globally? For Free?

  17. The Era of Dark Cable • Dot-com crash results in enormous network overcapacity • Investment based on pre-crash traffic projections • Post-crash traffic grows more slowly • Supply outstrips demand • Network usage costs plummet • Continual growth in traffic over existing fiber-optic cables absorbed through improvements in transmission hardware • Supply continues to outstrips demand • The result: • A planet wired for Internet • A network that costs nothing to use

  18. Problem: How Do You Make Payments Around The World?

  19. PayPal: A Global Currency For Individuals • Confinity • Founded December 1998 • Online December 1999 • X.com • Founded March 1999 • Online December 1999 • PayPal – Confinity/X.com merger in March 2000 • April 2000 – 1MM eBay auctions • October 2002 - Purchased by eBay for $1.5B

  20. What Does All This Mean To You? • Open source means anyone can work with anyone else in the world • Free tools means that everyone has access to the software/platforms needed to compete • Free content distribution means that anyone who creates content has a global audience • Free communication means that anyone can communicate with anyone else in the world • A common currency means that anyone can conduct business with anyone else in the world

  21. What Does All This Mean To You? • Collaboration on a GLOBAL scale • Ridiculously easy to find opportunities to collaborate anywhere in the world • As easy to collaborate across the globe as it is to collaborate across town • The talent pool is phenomenal • Some of the most gifted people in the world • There is literally nothing stopping you from realizing your dreams and bringing your ideas to life

  22. What Does All This Mean To You? • Competition on a GLOBAL scale • Ridiculously easy for you to find opportunities to compete anywhere in the world • As easy to compete across the globe as it is to compete across town

  23. What Does All This Mean To You? • GLOBAL Competition • Ridiculously easy for anyone in the world to compete against you • The talent pool is phenomenal • Some of the most gifted people in the world • 5 Guys Named Rajiv/Sergei/Wei/João • Have a good business idea? They are already working on it • What can be done, will be done • Question is: will you be the one to do it?

  24. You Have No Inherent Advantages • No longer a default advantage to: • Being American • Coming from a wealthy family • Earning a college degree – even from a top university • Having a solid work ethic • You’re actually at a disadvantage • Expectation that the above are still default advantages

  25. 3 Ways To Survive • Be special • Kobe Bryant • JK Rowling • Angelina Jolie • Be specialized • Highly skilled • Highly trained • Highly unique • Be localized • Provide services that can only be delivered locally

  26. IP Is Your Only Real Hope • IP = intellectual property • Your ideas and their creative application • Seek opportunities to maximize your IP where minimized for others • What can you do better than others? • What can you do more special than others? • What is the highest value you can provide?

  27. Don’t Be Pasta. Be The Sauce. • Pasta is: • Bland • Generic • Simple • Anonymous • Sauce is: • Savory • Unique • Complex • Provides an identity

  28. Remember • What CAN be done, WILL be done • The only questions is: • Will you be doing it? • Or will others be doing it to you?

  29. Questions?

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