Friday, January 22, 2010

The World is Flat. Chapter 11

How companies cope

The companies (as well as people) who will succeed in the flat world are those that are most prepared to change. Without attempting to be a "how to succeed in business" sermon, in this chapter, Friedman gives a few rules which he observed out of the successful companies:

  1. When the world goes flat and you - and you are feeling flattened - reach for a shovel and dig inside yourself. Don't try to build walls
  2. And the small shall act big. One way small companies flourish in the flat world is by learning to act really big. And the key to being small and acting big is being quick to take advantage of all the new tools for collaboration farther, faster, wider and deeper.
  3. And the big shall act small... One way that big companies learn to flourish in the flat world is by learning how to act really small by enabling their customers to act really big.
  4. The best companies are the best collaborators. In the flat world, more and more business will be done through collaboration within and between companies, for a very simple reason. The next layers of value creation - whether in technology, marketing, biomedicine, or manufacturing - are becoming so complex that no single firm or department is going to be able to master them alone.
  5. In a flat world, the best companies stay healthy by getting regular chest X-rays and then selling the results to their clients.
  6. The best companies outsource to win, not to shrink. They outsource to innovate faster and more cheaply in order to grow larger, gain market share and hire. More and more different specialists -not to save money by firing more people.
  7. Outsourcing isn't just for Benedict Arnolds. It's also for idealists... i.e. not just to make money, but for helping people as well.

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