There is an interesting book by Thomas Friedman called ”the World is Flat”. The book discussed the rapidly changing nature of the global economy and the forces that are driving this change. Simply put, Friedman argues that the world is becoming increasingly “flat”. By this he means that information, competition, sourcing, markets, customers etc. are now accessible to an increasing number of the world population. The barriers (political, legal, regulatory, etc) that previously separated people and markets are quickly disappearing.
Friedman notes that there are several forces which we need to be aware of: the walls (physical, legal, regulatory etc) are coming down, everyone is getting connected, software is becoming standardized, powerful communities are forming on the internet, outsourcing and off-shoring is becoming the norm, supply chains span the entire globe, the amount of information is exploding and the transfer of information is becoming increasingly cheap and mobile.
Companies need to consider this flat world as they devise their strategies for the 21st century. The mastery of the internet in reaching customers, suppliers and other interest groups is critical.
Friedmans argument is indeed an interesting one and the book is worth reading. However, there are vast differences between countries in the “flatness” of the world. A good source to get an overview of the role the internet plays in different countries is at http://www.internetworldstats.com/stats.htm. Here we can see that different countries are indeed in very different places in terms of internet penetration and use. While we discuss the opportunities and possibilities of the “E-world” it is useful to note that some countries have penetration rates of 86 % while others are at single digits. These stats may prove useful as we discuss the role of the internet in various countries and businesses.