TRIPPLE CONVERGENCE 3 FACTORS CONVERGING All Factors Converging
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TRIPPLE CONVERGENCE 3 FACTORS CONVERGING
All Factors Converging • Friedman explains that as each of the 10 factors came together, they had to spread and take root to create the environment rich for flattening. • These are involved with globalization of countries( I. 0), companies (globalization 2. 0) and individuals (globalization 3. 0) – to create a new flattener • Convergence of companies, countries and individuals (each respectively are terribly empowered to do things)
Example • Friedman – wanted to fly through South west airlines. He bought e- ticket from American express card. • Boarding passes are marked as A, B and C • He arrived 90 minutes earlier at the airport to get the boarding pass A. Instead he got boarding pass B. • Others had booked the boarding pass A online and taken the printout. • Touch screen has given way to online checkin.
• • Ticket agent – (G 1. 0) E- ticket machine (G 2. 0) Ticket print out at home (G 3. 0) Example 2: Multipurpose device called Bizhub introduced by Konica. ( Black/ white/ colour printing + copy / fax / scan documents)
Convergence 1 Vertical system of creating value (hierarchy) changed to Horizontal system of creating value. Command+ control ----> Connect & Collaborate)
Convergence 2 • As a consequence of connect, collaborate, new business practices emerged. • Companies started working together eg : ü WPP a second largest advertising, marketing, communications, consortium in the world. ü The alliance was put together to capture more and more of big clients’, marketing needs such as advertising, direct mail, media buying and branding
CONVERGENCE 3 • People of China, Russia, Eastern Europe, Latin America, Central Asia – were increasingly free to join the free market game. • New players on a new playing field developing new processes and habits of horizontal collaboration. • The global economy from here on will be shaped less by the finance ministers and more by the spontaneous explosion of energy from the ‘ZIPPIES’.
• • Zippies – hippies of America in 60’s and Yuppies of 80’s – tech savvy youth The word taken from the Outlook by Friedman. The word combines hippies + Zip Hippies was a kind of rebelling group against government. Zip - speed at which the current generation is flowing Globalization 3 shows the individual side, the Asian countries coming up ( not only US and Europe)
