In: Operations Management
Regarding their effects on competition for jobs and talent, what are the key differences between the opinions expressed in "It's a Flat World," by Thomas Friedman on the one hand, and the views of Richard Florida in "The World is Spiky" on the other? Include a discussion of your own views in this debate and how the the future that your position foretells will likely affect your own real or potential career options. How will emerging these "flat" and/or "spiky" world labor economy conditions affect you and the people you are close to?
Thomas Friedman's book was inspired by a single though as he looked at a flat wall screen in Infosys Technologies Bangalore which connects their global supply chain and enables any employee to connect with another anywhere in the world via a video conference call. The thought that flashed through his mind is the world is flat and business can be managed effectively from any part of the world and the need to be present in areas of high development to succeed is no longer necessary. Globalisation has really arrived. Richard Florida in his article The World is Spiky expresses the view that all economic activity, development and innovation in the world is concentrated in certain cities which he terms as peaks of opportunity, the industrial manufacturing and servicing areas being the hills and the non-productive areas with little connection to the economy and low opportunity as the valleys.
With reference to jobs and talent, Thomas Friedman is of the opinion that, due to globalisation the world has become flat and has opened up opportunities for jobs worldwide by providing equal opportunity to an employee far away who may be more suitable and even cost less. This has led to the proliferation of multi-national companies who have spread to Bangalore and Shenchen for more employable and viable manpower. Also fresh talent required for innovations is employable from any corner of the world without necessarily setting up operations in every place. In his opinion globalisation and communication technology together, have made the world is a village adage seem true, and have opened up the job market like never before where hardwork, enterprise, talent and innovation are being utilised and rewarded like never before.
Richard Florida feels growth and innovation is concentrated in certain areas of high economic output which are the target areas for every job seeker and talented innovator. The kind of growth prospects and returns available in these peak areas are just not possible in the Hills and valleys are not in consideration at all. He supports this with the statistical data of the major cities of USA like New York, DC, Boston, LA, Chicago etc. The very fact that the economic output and commercial activity is so varied across the world and the peak zones keep growing and attracting the ambitious proves that spikes do exist. Therefore, according to him a talented innovator or ambitious job seeker looking for satisfactory growth and success shifts to the peaks causing movement and some to the hills based on their personal goals.
The problem with both these opinions are they are static and sweeping statement, they have both provided us with a beautiful canvas well-painted which represents a fact. To be specific, a momentary fact. I call it a canvas because it is still when the world at large and definitely the economy is a motion picture. Dynamic like never before and just flipping from scene to scene, the technological developments give it the edge of a thriller, where you do not know what may come up next you just need to have the courage to hop on for the ride becuse virtual reality has arrived and allows you to be a part of the film, not watch from your seat but expereience it. Thomas Friedman made the world appear flatter than it truly is, we may get to that but it will take time. Let us take the simple example of information technology industry, if the world were so flat and the opportunities similar to USA be present in Bangalore why would such a huge percent of Indians be in Silicon Valley? Why are Satya Nadella and Sundaram Pichchai in the USA. They are scaling the peaks which Richard Florida mentioned about. However, his theory though more valid, is too focused on a single factor and main drawback has not considered developments brought about by a dynamic economy. He only considers movement of people towards peaks making these areas focus of growth and competition the peaks get taller. However, dynamism is all pervasive in today's world. The hills are becoming peaks and the valleys either hills and surprisingly even peaks. The unbridled talent and unconventional approach of the younger generation is causing spikes to appear in valleys, so slotting the economic world on a static basis is not advisable. We need to say that it's a flat world with technology creating spikes like the one's on a heart monitor. A valley becomes a spike, a spike a plateau, a plateau a hill, and who knows finally we may have an absolutely flat world. Until then let's enjoy the peaks, hills and valleys and follow our dreams for success whether it is to head for the peak or to build our peak in a valley.