kenichi omae. Flatteners

 

Kenichi Ohmae made his mark twenty years ago with his book on corporate strategy. It is still a collection of good sense and clear advice, even though some of the examples may now seem a bit dated.

Successful business strategies, he says in "The Mind of the Strategist", do not come from rigorous analysis but from a thought process which is basically creative and intuitive rather than rational.

Having written what many people regarded as the bible of corporate strategy, Kenichi Ohmae moved on to the changing shape of the world of business.

His thinking on these issues has been nicely brought together in his latest book, which he has called 'The Invisible Continent'. The Invisible Continent is the world in which businesses now operate, which is like a new, just discovered continent.

In the Invisible Continent there are four Dimensions:

·  1) the Visible Dimension - physical things to buy and make

·  2) the Borderless World - inevitable globalization

·  3) the Cyber Dimension - the Internet, mobile phones

·  4) the Dimension of High Multiples - exaggerated values put on some stocks by the stock market

But Ohmae has bigger concerns on his mind than business. He worries about the governance of the new continent, about a new sort of Cold War, fought by businesses rather than governments, and about the education of our citizens for this new world.

The 3C's model of Kenichi Ohmae

The 3C's Model is a strategical look at the factors needed for success. It was developed by Kenichi Ohmae, a business and corporate strategist.

The 3C’s model points out that a strategist should focus on three key factors for success. In the construction of a business strategy, three main players must be taken into account:

• A. The Corporation
• B. The Customer
• C. The Competitors

Only by integrating these three C’s (Corporation, Customer, Competitors) in a strategic triangle, a sustained competitive advantage can exist. Ohmae refers to these key factors as the three C’s or strategic triangle.

Hito-Kane-Mono

A favorite phrase of Japanese business planners is hito-kane-mono, standing for people, money and things.

They believe that streamlined corporate management is achieved when these three critical resources are in balance without surplus or waste.

For example: Cash over and beyond what competent people can intelligently expend is wasted. Of the three critical resources, funds should be allocated last.

The corporation should firstly allocate management talent, based on the available mono (things): plant, machinery, technology, process know-how and functional strength.

Once these hito (people) have developed creative and imaginative ideas to capture the business’s upward potential, the kane (money) should be given to the specific ideas and programs generated by the individual managers.

 

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Friedman y la tierra plana

https://en.wikipedia.org/wiki/The_World_Is_Flat

In his book The World Is Flat, Friedman recounts a journey to Bangalore, India, when he realized globalization has changed core economic concepts.^[3] In his opinion, that flattening is a product of the convergence of the personal computer with fiber optic microcable with the rise of work flow software. Friedman termed the period Globalization 3.0, thereby differentiating it from the previous, Globalization 1.0, during which countries and governments were the main protagonists, and Globalization 2.0, during which multinational companies led the way in driving global integration.

Friedman recounts many examples of companies based in India and China that, by providing labor ranging from that of typists and call center operators to accountants and computer programmers, have become integral parts of complex global supply chains; such companies are Dell, AOL, and Microsoft. Friedman's capitalist peace theory called Dell Theory of Conflict Prevention is discussed in the book's penultimate chapter.

Friedman repeatedly uses lists as organizational devices to communicate key concepts, usually numbered and often with provocative labels. Two example lists are the ten forces that flattened the world, and three points of convergence.

Ten flatteners

Friedman defines ten "flatteners" that he sees as leveling the global playing field:

1. Collapse of the Berlin Wall – 11/9/89: Friedman called the flattener "When the walls came down, and the windows came up." The event not only symbolized the end of the Cold War but also allowed people from the other side of the wall to join the economic mainstream. "11/9/89" is a discussion about the Berlin Wall's coming down, the "fall" of communism, and the impact that Windows-powered PCs (personal computers) had on the ability of individuals to create their own content and connect to one another. At that point, the basic platform for the revolution to follow was created: the IBM PC, Windows, a graphical interface for word processing, dial-up modems, a standardized tool for communication, and a global phone network.
2. Netscape – 8/9/95: Netscape went public at the price of $28. Netscape and the Web broadened the audience for the Internet from its roots as a communications medium used primarily by "early adopters and geeks" to something that made the Internet accessible to everyone from five-year-olds to ninety-five-year-olds. The digitization that took place meant that everyday occurrences such as words, files, films, music, and pictures could be accessed and manipulated on a computer screen by all people across the world.
3. Workflow software: This is Friedman's catch-all for the standards and technologies that allowed work to flow. It is the ability of machines to talk to other machines with no humans involved, as stated by Friedman. Friedman believes those first three forces have become a "crude foundation of a whole new global platform for collaboration". There was an emergence of software protocols (SMTP – simple mail transfer protocol; HTML – the language that enabled anyone to design and publish documents that could be transmitted to and read on any computer anywhere) Standards on Standards. This is what Friedman called the "Genesis moment of the flat world". The net result "is that people can work with other people on more stuff than ever before". This created a global platform for multiple forms of collaboration. The next six flatteners sprang from that platform.
4. Uploading: Uploading involves communities that upload and collaborate on online projects. Examples are open source software, blogs, and Wikipedia. Friedman considers the phenomenon "the most disruptive force of all".
5. Outsourcing: Friedman argues that outsourcing has enabled companies to split service and manufacturing activities into components that can be subcontracted and performed in the most efficient, most cost-effective way. This process became easier with the mass distribution of fiber-optic cable during introduction of the World Wide Web.
6. Offshoring: This is the internal relocation of a company's manufacturing or other processes to a foreign land to take advantage of less costly operations there. China's entrance into the World Trade Organization allowed for greater competition on the playing field. Now such countries as Malaysia, Mexico, and Brazil must compete against China and one another to have businesses offshore to them.
7. Supply-chaining: Friedman compares the modern retail supply chain to a river by pointing to Wal-Mart as the best example of a company that uses technology to streamline item sales, distribution, and shipping.
8. Insourcing: Friedman uses UPS as a prime example for insourcing, whereby the company's employees perform services – beyond shipping – for another company. For example, UPS repairs Toshiba computers on behalf of Toshiba. The work is done at the UPS hub by UPS employees.
9. Informing: Google and other search engines and Wikipedia are the prime examples. "Never before in the history of the planet have so many people – on their own – had the ability to find so much information about so many things and about so many other people", writes Friedman. The growth of search engines is tremendous; for example, Friedman states, Google is "now processing roughly one billion searches per day, up from 150 million just three years ago".
"The Steroids": The steroids are wireless, Voice over IP (VoIP), and file sharing and are used on personal digital devices like mobile phones, iPods, and personal digital assistants; on instant messaging; and on VoIP phones. Digital, mobile, personal, and virtual as well as all analog content and processes (from entertainment to photography, to word processing) can be digitized and therefore shaped, manipulated, and transmitted; and these processes can be done at high speed with total ease; mobile can be done anywhere and anytime by anyone; and can be done to anyone.