And now the icing on the cake, the iibersteroid that makes it all mobile: wireless. Wireless is what will allow you take everything that has been digitized, made virtual and personal, and do it from anywhere.
   “The natural state of communications is wireless,” argued Alan Cohen, the senior vice president at Airespace. It started with voice, because people wanted to be able to make a phone call anytime, from anyplace, to anywhere. That is why for many people the cell phone is the most important phone they own. By the early twenty-first century, people began to develop that same expectation and with it the desire for data communication-the ability to access the Internet, e-mail, or any business files anytime, anywhere, using a cell phone, PalmPilot, or some other personal device. (And now a third element is entering the picture, creating more demand for wireless technology and enhancing the flattening of the earth: machines talking to machines wirelessly, such as Wal-Mart's RFID chips, little wireless devices that automatically transmit information to suppliers' computers, allowing them to track inventory.)
   In the early days of computing (Globalization 2.0), you worked in the office. There was a big mainframe computer, and you literally had to walk over and get the people running the mainframe to extract or input information for you. It was like an oracle. Then, thanks to the PC and the Internet, e-mail, the laptop, the browser, and the client server, I could access from my own screen all sorts of data and information being stored on the network. In this era you were delinked from the office and could work at home, at the beach house, or in a hotel. Now we are in Globalization 3.0, where, thanks to digitization, miniaturization, virtualization, personalization, and wireless, I can be processing, collecting, or transmitting voice or data from anywhere to anywhere-as an individual or as a machine.
   “Your desk goes with you everywhere you are now,” said Cohen. And the more people have the ability to push and pull information from anywhere to anywhere faster, the more barriers to competition and communication disappear. All of a sudden, my business has phenomenal distribution. I don't care whether you are in Bangalore or Bangor, I can get to you and you can get to me. More and more, people now want and expect wireless mobility to be there, just like electricity. We are rapidly moving into the age of the “mobile me,” said Padmasree Warrior, the chief technology officer of Motorola. If consumers are paying for any form of content, whether it is information, entertainment, data, games, or stock quotes, they increasingly want to be able to access it anytime, anywhere.
   Right now consumers are caught in a maze of wireless technology offerings and standards that are still not totally interoperable. As we all know, some wireless technology works in one neighborhood, state, or country and not in another.
   The “mobile me” revolution will be complete when you can move seamlessly around the town, the country, or the world with whatever device you want. The technology is getting there. When this is fully diffused, the “mobile me” will have its full flattening effect, by freeing people to truly be able to work and communicate from anywhere to anywhere with anything.
   I got a taste of what is coming by spending a morning at the Tokyo headquarters of NTT DoCoMo, the Japanese cellular giant that is at the cutting edge of this process and far ahead of America in offering total interoperability inside Japan. DoCoMo is an abbreviation for Do Communications Over the Mobile Network; it also means “anywhere” in Japanese. My day at DoCoMo's headquarters started with a tour conducted by a robot, which bowed in perfect Japanese fashion and then gave me a spin around DoCoMo's showroom, which now features handheld video cell phones so you can see the person you are speaking with.
   “Young people are using our mobile phones today as two-way videophones,” explained Tamon Mitsuishi, senior VP of the Ubiquitous Business Department at DoCoMo. “Everyone takes out their phones, they start dialing each other and have visual conversations. Of course there are some people who prefer not to see each other's faces.” Thanks to DoCoMo technology, if you don't want to show your face you can substitute a cartoon character for yourself and manipulate the keyboard so that it not only will speak for you but also will get angry for you and get happy for you. “So this is a mobile phone, and video camera, but it has also evolved to the extent that it has functions similar to a PC,” he added. “You need to move your buttons quickly [with your thumb]. We call ourselves 'the thumb people.' Young girls in high school can now move their thumbs faster than they can type on a PC.”
   By the way, I asked, what does the “Ubiquitous Department” do?
   “Now that we have seen the spread of the Internet around the world,” answered Mitsuishi, “what we believe we have to offer is the next step. Internet communication until today has been mostly between individuals-e-mail and other information. But what we are already starting to see is communication between individuals and machines and between machines. We are moving into that kind of phenomenon, because people want to lead a richer lifestyle, and businesses want more efficient practices... So young people in their business life use PCs in the offices, but in their private time they base their lifestyles on a mobile phone. There is now a growing movement to allow payment by mobile phone. [With] a smart card you will be able to make payments in virtual shops and smart shops. So next to the cash register there will be a reader of the card, and you just scan your phone and it becomes your credit card too...
   “We believe that the mobile phone will become the essential contrailer of a person's life,” added Mitsuishi, oblivious of the double meaning of the English word “control.” “For example, in the medical field it will be your authentication system and you can examine your medical records, and to make payments you will have to hold a mobile phone. You will not be able to lead a life without a mobile phone, and it will control things at home too. We believe that we need to expand the range of machines that can be controlled by mobile phone.”
   There is plenty to worry about in this future, from kids being lured by online sexual predators through their cell phones, to employees spending too much time playing mindless phone games, to people using their phone cameras for all sorts of illicit activities. Some Japanese were going into bookstores, pulling down cookbooks, and taking pictures of the recipes and then walking out. Fortunately, camera phones are now being enabled to make a noise when they shoot a picture, so that a store owner, or the person standing next to you in the locker room, will know if he is on Candid Camera. Because your Internet-enabled camera phone is not just a camera; it is also a copy machine, with worldwide distribution potential.
   DoCoMo is now working with other Japanese companies on an arrangement by which you may be walking down the street and see a poster of a concert by Madonna in Tokyo. The poster will have a bar code and you can buy your tickets by just scanning the bar code. Another poster might be for a new Madonna CD. Just scan the bar code with your cell phone and it will give you a sample of the songs. If you like them, scan it again and you can buy the whole album and have it home-delivered. No wonder my New York Times colleague in Japan, Todd Zaun, who is married to a Japanese woman, remarked to me that there is so much information the Japanese can now access from their Internet-enabled wireless phones that “when I am with my Japanese relatives and someone has a question, the first thing they do is reach for the phone.”
   I'm exhausted just writing about all this. But it is hard to exaggerate how much this tenth flattener-the steroids-is going to amplify and further empower all the other forms of collaboration. These steroids should make open-source innovation that much more open, because they will enable more individuals to collaborate with one another in more ways and from more places than ever before. They will enhance outsourcing, because they will make it so much easier for a single department of any company to collaborate with another company. They will enhance supply-chaining, because headquarters will be able to be connected in real time with every individual employee stocking the shelves, every individual package, and every Chinese factory manufacturing the stuff inside them. They will enhance insourcing-having a company like UPS come deep inside a retailer and manage its whole supply chain, using drivers who can interact with its warehouses, and with every customer, carrying his own PDA. And most obviously, they will enhance informing-the ability to manage your own knowledge supply chain.
   Sir John Rose, the chief executive of Rolls-Royce, gave me a wonderful example of how wireless and other steroids are enhancing Rolls-Royce's ability to do work flow and other new forms of collaboration with its customers. Let's say you are British Airways and you are flying a Boeing 777 across the Atlantic. Somewhere over Greenland, one of your Rolls-Royce engines gets hit with lightning. The passengers and pilots might be worried, but there is no need. Rolls-Royce is on the case. That Rolls-Royce engine is connected by transponder to a satellite and is beaming data about its condition and performance, at all times, down into a computer in Rolls-Royce's operations room. That is true of many Rolls-Royce airplane engines in operation. Thanks to the artificial intelligence in the Rolls-Royce computer, based on complex algorithms, it can track anomalies in its engines while in operation. The artificial intelligence in the Rolls-Royce computer knows that this engine was probably hit by lightning, and feeds out a report to a Rolls-Royce engineer.
   “With the real-time data we receive via satellites, we can identify an 'event' and our engineers can make remote diagnoses,” said Rose. “Under normal circumstances, after an engine gets hit by lightning you would have to land the plane, call in an engineer, do a visual inspection, and make a decision about how much damage might have been done and whether the plane has to be delayed in order to do a repair.
   “But remember, these airlines do not have much turnaround time. If this plane is delayed, you throw off the crews, you drop out of your position to fly back home. It gets very costly. We can monitor and analyze engine performance automatically in real time, with our engineers making decisions about exactly what is needed by the time the plane has landed. And if we can determine by all the information we have about the engine that no intervention or even inspection is needed, the airplane can return on schedule, and that saves our customers time and money.”
   Engines talking to computers, talking to people, talking back to the engines, followed by people talking to people-all done from anywhere to anywhere. That is what happens when all the flatteners start to get tur-bocharged by all the steroids.
   Can you hear me now?

THREE: The Triple Convergence

   What is the triple convergence? In order to explain what I mean, let me tell a personal story and share one of my favorite television commercials.
   The story took place in March 2004. I had made plans to fly from Baltimore to Hartford on Southwest Airlines to visit my daughter Orly, who goes to school in New Haven, Connecticut. Being a tech-sawy guy, I didn't bother with a paper ticket but ordered an e-ticket through American Express. As anyone who flies regularly on Southwest knows, the cheapo airline has no reserved seats. When you check in, your ticket says simply A, B, or C, with the As boarding first, the Bs boarding second, and the Cs boarding last. As veterans of Southwest also know, you do not want to be a C. If you are, you will almost certainly end up in a middle seat with no space to put your carry-ons in the overhead bin. If you want to sit in a window or aisle seat and be able to store your stuff, you want to be an A. Since I was carrying some bags of clothing for my daughter, I definitely wanted to be an A. So I got up early to make sure I got to the Baltimore airport ninety-five minutes before my scheduled departure. I walked up to the Southwest Airlines e-ticket machine, stuck in my credit card, and used the touch screen to get my ticket-a thoroughly modern man, right? Well, out came the ticket and it said B.
   I was fuming. “How in the world could I be a B?” I said to myself, looking at my watch. “There is no way that many people got here before me. This thing is rigged! This is fixed! This is nothing more than a slot machine!”
   I stomped off, went through security, bought a Cinnabon, and glumly sat at the back of the B line, waiting to be herded on board so I could hunt for space in the overhead bins. Forty minutes later, the flight was called. From the B line, I enviously watched all the As file on board ahead of me, with a certain barely detectable air of superiority. And then I saw it.
   Many of the people in the A line didn't have normal e-tickets like mine. They were just carrying what looked to me like crumpled pieces of white printer paper, but they weren't blank. They had boarding passes and bar codes printed on them, as if the As had downloaded their boarding passes off the Internet at home and printed them out on their home printers. Which, I quickly learned, was exactly what they had done. I didn't know it, but Southwest had recently announced that beginning at 12:01 a.m. the night before a flight, you could download your ticket at home, print it out, and then just have the bar code scanned by the gate agent before you boarded.
   “Friedman,” I said to myself, looking at this scene, “you are so twentieth-century... You are so Globalization 2.0.” In Globalization 1.0 there was a ticket agent. In Globalization 2.0 the e-ticket machine replaced the ticket agent. In Globalization 3.0 you are your own ticket agent.
   The television commercial is from Konica Minolta Business Technologies for a new multipurpose device it sells called bizhub, a piece of office machinery that allows you to do black-and-white or color printing, copy a document, fax it, scan it, scan it to e-mail, or Internet-fax it—all from the same machine. The commercial begins with a rapid cutting back and forth between two guys, one in his office and the other standing at the bizhub machine. They are close enough to talk by raising their voices. Dom is senior in authority but slow on the uptake-the kind of guy who hasn't kept up with changing technology (my kind of guy!). He can see Ted standing at the bizhub machine when he leans back in his chair and peers out his office doorway.
   Dom: (At his desk) Hey, I need that chart. Ted: (At the bizhub) I'm e-mailing it now.
   Dom: You're e-mailing from the copy machine?
   Ted: No, I'm e-mailing from bizhub.
   Dom: Bizhub? Wait, did you make my copies yet?
   Ted: Right after I scan this.
   Dom: You're scanning at an e-mail machine?
   Ted: E-mail machine? I'm at the bizhub machine.
   Dom: (Bewildered) Copying?
   Ted: (Trying to be patient) E-mailing, then scanning, then copying.
   Dom: (Long pause) Bizhub?
   VO: (Over an animated graphic of bizhub illustrating its multiple functions) Amazing versatility and affordable color. That's bizhub, from Konica Minolta.
   (Cut to Dom alone at the bizhub machine, trying to see if it will also dispense coffee into his mug.)
   Southwest was able to offer its at-home ticketing, and Konica Minolta could offer bizhub, because of what I call the triple convergence. What are the components of this triple convergence? The short answer is this: First, right around the year 2000, all ten of the flatteners discussed in the previous chapter started to converge and work together in ways that created a new, flatter, global playing field. As this new playing field became established, both businesses and individuals began to adopt new habits, skills, and processes to get the most out of it. They moved from largely vertical means of creating value to more horizontal ones. The merger of this new playing field for doing business with the new ways of doing business was the second convergence, and it actually helped to flatten the world even further. Finally, just when all of this flattening was happening, a whole new group of people, several billion, in fact, walked out onto the playing field from China, India, and the former Soviet Empire. Thanks to the new flat world, and its new tools, some of them were quickly able to collaborate and compete directly with everyone else. This was the third convergence. Now let's look at each in detail.
   Convergence I
   All ten flatteners discussed in the previous chapter have been around, we know, since the 1990s, if not earlier. But they had to spread and take root and connect with one another to work their magic on the world. For instance, at some point around 2003, Southwest Airlines realized that there were enough PCs around, enough bandwidth, enough computer storage, enough Internet-comfortable customers, and enough software know-how for Southwest to create a work flow system that empowered its customers to download and print out their own boarding passes at home, as easily as downloading a piece of e-mail. Southwest could collaborate with its customers and they with Southwest in a new way. And somewhere around the same time, the work flow software and hardware converged in a way that enabled Konica Minolta to offer scanning, e-mailing, printing, faxing, and copying all from the same machine. This is the first convergence.
   As Stanford University economist Paul Romer pointed out, economists have known for a long time that “there are goods that are complementary-whereby good A is a lot more valuable if you also have good B. It was good to have paper and then it was good to have pencils, and soon as you got more of one you got more of the other, and as you got a better quality of one and better quality of the other, your productivity improved. This is known as the simultaneous improvement of complementary goods.”
   It is my contention that the opening of the Berlin Wall, Netscape, work flow, outsourcing, offshoring, open-sourcing, insourcing, supply-chaining, in-forming, and the steroids amplifying them all reinforced one another, like complementary goods. They just needed time to converge and start to work together in a complementary, mutually enhancing fashion. That tipping point arrived sometime around the year 2000.
   The net result of this convergence was the creation of a global, Web-enabled playing field that allows for multiple forms of collaboration-the sharing of knowledge and work-in real time, without regard to geography, distance, or, in the near future, even language. No, not everyone has access yet to this platform, this playing field, but it is open today to more people in more places on more days in more ways than anything like it ever before in the history of the world. This is what I mean when I say the world has been flattened. It is the complementary convergence of the ten flatteners, creating this new global playing field for multiple forms of collaboration.
   Convergence II
   Great, you say, but why is it only in the past few years that we started to see in the United States the big surges in productivity that should be associated with such a technological leap? Answer: Because it always takes time for all the flanking technologies, and the business processes and habits needed to get the most out of them, to converge and create that next productivity breakthrough.
   Introducing new technology alone is never enough. The big spurts in productivity come when a new technology is combined with new ways of doing business. Wal-Mart got big productivity boosts when it combined big box stores-where people could buy soap supplies for six months-with new, horizontal supply-chain management systems that allowed Wal-Mart instantly to connect what a consumer took off the shelf from a Wal-Mart in Kansas City with what a Wal-Mart supplier in coastal China would produce.
   When computers were first introduced into offices, everyone expected a big boost in productivity. But that did not happen right away, and it sparked both disappointment and a little confusion. The noted economist Robert Solow quipped that computers are everywhere— except “in the productivity statistics.”
   In a pathbreaking 1989 essay, “Computer and Dynamo: The Modern Productivity Paradox in a Not-Too Distant Mirror,” the economic historian Paul A. David explained such a lag by pointing to a historical precedent. He noted that while the lightbulb was invented in 1879, it took several decades for electrification to kick in and have a big economic and productivity impact. Why? Because it was not enough just to install electric motors and scrap the old technology-steam engines. The whole way of doing manufacturing had to be reconfigured. In the case of electricity, David pointed out, the key breakthrough was in how buildings, and assembly lines, were redesigned and managed. Factories in the steam age tended to be heavy, costly multistory buildings designed to brace the weighty belts and other big transmission devices needed to drive steam-powered systems. Once small, powerful electric motors were introduced, everyone hoped for a quick productivity boost. It took time, though. To get all the savings, you needed to redesign enough buildings. You needed to have long, low, cheaper-to-build single-story factories, with small electric motors powering machines of all sizes. Only when there was a critical mass of experienced factory architects and electrical engineers and managers, who understood the complementarities among the electric motor, the redesign of the factory, and the redesign of the production line, did electrification really deliver the productivity breakthrough in manufacturing, David wrote.
   The same thing is happening today with the flattening of the world. Many of the ten flatteners have been around for years. But for the full flattening effects to be felt, we needed not only the ten flatteners to converge but also something else. We needed the emergence of a large cadre of managers, innovators, business consultants, business schools, designers, IT specialists, CEOs, and workers to get comfortable with, and develop, the sorts of horizontal collaboration and value-creation processes and habits that could take advantage of this new, flatter playing field. In short, the convergence of the ten flatteners begat the convergence of a set of business practices and skills that would get the most out of the flat world. And then the two began to mutually reinforce each other.
   “When people asked, 'Why didn't the IT revolution lead to more productivity right away?' it was because you needed more than just new computers,” said Romer. “You needed new business processes and new types of skills to go with them. The new way of doing things makes the information technologies more valuable, and the new and better information technologies make the new ways of doing things more possible.”
   Globalization 2.0 was really the era of mainframe computing, which was very vertical-command-and-control oriented, with companies and their individual departments tending to be organized in vertical silos. Globalization 3.0, which is built around the convergence of the ten flatteners, and particularly the combination of the PC, the microprocessor, the Internet, and fiber optics, flipped the playing field from largely top-down to more side to side. And this naturally fostered and demanded new business practices, which were less about command and control and more about connecting and collaborating horizontally.
   “We have gone from a vertical chain of command for value creation to a much more horizontal chain of command for value creation,” explained Carly Fiorina. Innovations in companies like HP, she said, now come more and more often from horizontal collaboration among different departments and teams spread all across the globe. For instance, HP, Cisco, and Nokia recently collaborated on the development of a camera/ cell phone that beams its digitized pictures to an HP printer, which quickly prints them out. Each company had developed a very sophisticated technological specialty, but it could add value only when its specialty was horizontally combined with the specialties of the other two companies.
   “How you collaborate horizontally and manage horizontally requires a totally different set of skills” from traditional top-down approaches, Fiorina added.
   Let me offer just a few examples. In the past five years, HP has gone from a company that had eighty-seven different supply chains-each managed vertically and independently, with its own hierarchy of managers and back-office support-to a company with just five supply chains that manage $50 billion in business, and where functions like accounting, billing, and human resources are handled through a companywide system.
   Southwest Airlines took advantage of the convergence of the ten flat-teners to create a system where its customers can download their boarding passes at home. But until I personally altered my ticket-buying habits and reengineered myself to collaborate horizontally with Southwest, this technological breakthrough didn't produce a productivity breakthrough for me or Southwest. What the bizhub commercial is about is the difference between the employee who understands the convergent technologies in the new bizhub machine (and how to get the most out of them) and the employee in the very same office who does not. Not until the latter changes his work habits will productivity in that fictional office go up, even though the office has this amazing new machine.
   Finally, consider the example of WPP-the second-largest advertising-marketing-communications consortium in the world. WPP, which is based in England, did not exist as we now know it twenty years ago. It is a product of the consolidation of some of the biggest names in the business-from Young & Rubicam to Ogilvy & Mather to Hill & Knowlton. The alliance was put together to capture more and more of big clients' marketing needs, such as advertising, direct mail, media buying, and branding.
   “For years the big challenge for WPP was how to get its own companies to collaborate,” said Allen Adamson, managing director of WPP's branding firm, Landor Associates. “Now, though, it is often no longer enough just to get the companies in WPP to work together per se. Increasingly, we find ourselves pulling together individuals from within each of these companies to form a customized collaborative team just for one client. The solution that will create value for that client did not exist in any one company or even in the traditional integration of the companies. It had to be much more specifically tailored. So we had to go down inside the whole group and pluck the individual who is the right ad person, to work with the right branding person, to work with the right media person for this particular client.”
   When GE decided in 2003 to spin off its insurance businesses into a separate company, WPP assembled a customized team to handle everything from the naming of the new company-Genworth-all the way down to its first advertising campaign and direct-marketing program. “As a leader within this organization,” said Adamson, “what you have to do is figure out the value proposition that is needed for each client and then identify and assemble the individual talents within WPP's workforce that will in effect form a virtual company just for that client. In the case of GE, we even gave a name to the virtual collaborative team we formed: Klamath Communications.”
   When the world went flat, WPP adapted itself to get the most out of itself. It changed its office architecture and practices, just like those companies that adjusted their steam-run factories to the electric motor. But WPP not only got rid of all its walls, it got rid of all its floors. It looked at all its employees from all its companies as a vast pool of individual specialists who could be assembled horizontally into collaborative teams, depending on the unique demands of any given project. And that team would then become a de facto new company with its own name.
   It will take time for this new playing field and the new business practices to be fully aligned. It's a work in progress. But here's a little warning. It is happening much faster than you think, and it is happening globally.
   Remember, this was a triple convergence!
   Convergence III
   How so? Just as we finished creating this new, more horizontal playing field, and companies and individuals primarily in the West started quickly adapting to it, 3 billion people who had been frozen out of the field suddenly found themselves liberated to plug and play with everybody else.
   Save for a tiny minority, these 3 billion people had never been allowed to compete and collaborate before, because they lived in largely closed economies with very vertical, hierarchical political and economic structures. I am talking about the people of China, India, Russia, Eastern Europe, Latin America, and Central Asia. Their economies and political systems all opened up during the course of the 1990s, so that their people were increasingly free to join the free-market game. And when did these 3 billion people converge with the new playing field and the new processes? Right when the field was being flattened, right when millions of them could compete and collaborate more equally, more horizontally, and with cheaper and more readily available tools than ever before. Indeed, thanks to the flattening of the world, many of these new entrants didn't even have to leave home to participate. Thanks to the ten flatten-ers, the playing field came to them!
   It is this triple convergence-of new players, on a new playing field, developing new processes and habits for horizontal collaboration—that I believe is the most important force shaping global economics and politics in the early twenty-first century. Giving so many people access to all these tools of collaboration, along with the ability through search engines and the Web to access billions of pages of raw information, ensures that the next generation of innovations will come from all over Planet Flat. The scale of the global community that is soon going to be able to participate in all sorts of discovery and innovation is something the world has simply never seen before.
   Throughout the Cold War there were just three major trading blocs-North America, Western Europe, and Japan plus East Asia-and the competition among the three was relatively controlled, since they were all Cold War allies on the same side of the great global divide. There were also still a lot of walls around for labor and industries to hide behind. The wage rates in these three trading blocs were roughly the same, the workforces roughly the same size, and the education levels roughly equivalent. “You had a gentlemanly competition,” noted Intel's Chairman Craig Barrett.
   Then along came the triple convergence. The Berlin Wall came down, the Berlin mall opened up, and suddenly some 3 billion people who had been behind walls walked onto the flattened global piazza.
   Here's what happened in round numbers: According to a November 2004 study by Harvard University economist Richard B. Freeman, in 1985 “the global economic world” comprised North America, Western Europe, Japan, as well as chunks of Latin America, Africa, and the countries of East Asia. The total population of this global economic world, taking part in international trade and commerce, said Freeman, was about 2.5 billion people.
   By 2000, as a result of the collapse of communism in the Soviet Empire, India's turn from autarky, China's shift to market capitalism, and population growth all over, the global economic world expanded to encompass 6 billion people.
   As a result of this widening, another roughly 1.5 billion new workers entered the global economic labor force, Freeman said, which is almost exactly double the number we would have had in 2000 had China, India, and the Soviet Empire not joined.
   True, maybe only 10 percent of this new 1.5 billion-strong workforce entering the global economy have the education and connectivity to collaborate and compete at a meaningful level. But that is still 150 million people, roughly the size of the entire U.S. workforce. Said Barrett, “You don't bring three billion people into the world economy overnight without huge consequences, especially from three societies [like India, China, and Russia] with rich educational heritages.”
   That is exactly right. And a lot of those new workers are not just walking onto the playing field. No, this is no slow-motion triple convergence. They are jogging and even sprinting there. Because once the world has been flattened and the new forms of collaboration made available to more and more people, the winners will be those who learn the habits, processes, and skills most quickly-and there is simply nothing that guarantees it will be Americans or Western Europeans permanently leading the way. And be advised, these new players are stepping onto the playing field legacy free, meaning that many of them were so far behind they can leap right into the new technologies without having to worry about all the sunken costs of old systems. It means that they can move very fast to adopt new, state-of-the-art technologies, which is why there are already more cell phones in use in China today than there are people in the United States. Many Chinese just skipped over the landline phase. South Koreans put Americans to shame in terms of Internet usage and broadband penetration.
   We tend to think of global trade and economics as something driven by the IMF, the G-8, the World Bank, the WTO, and the trade treaties forged by trade ministers. I don't want to suggest that these governmental agencies are irrelevant. They are not. But they are going to become less important. In the future globalization is going to be increasingly driven by the individuals who understand the flat world, adapt themselves quickly to its processes and technologies, and start to march forward-without any treaties or advice from the IMF. They will be every color of the rainbow and from every corner of the world.
   The global economy from here forward will be shaped less by the ponderous deliberations of finance ministers and more by the spontaneous explosion of energy from the zippies. Yes, Americans grew up with the hippes in the 1960s. Thanks to the high-tech revolution, many of us became yuppies in the 1980s. Well, now let me introduce the zippies.
   “The Zippies Are Here,” declared the Indian weekly magazine Outlook. Zippies are the huge cohort of Indian youth who are the first to come of age since India shifted away from socialism and dived headfirst into global trade and the information revolution by turning itself into the world's service center. Outlook called India's zippies “Liberalization's Children” and defined a zippie as a “young city or suburban resident, between 15 and 25 years of age, with a zip in the stride. Belongs to Generation Z. Can be male or female, studying or working. Oozes attitude, ambition and aspiration. Cool, confident and creative. Seeks challenges, loves risks and shuns fear.” Indian zippies feel no guilt about making money or spending it. They are, says one Indian analyst quoted by Outlook, “destination driven, not destiny driven, outward looking, not inward, upwardly mobile, not stuck-in-my-station-in-life.” With 54 percent of India under the age of twenty-five-that's 555 million people-six out of ten Indian households have at least one potential zippie. And the zippies don't just have a pent-up demand for good jobs; they want the good life.
   It all happened so fast. P. V. Kannan, the CEO and cofounder of the Indian call-center company 24/7 Customer, told me that in the last decade, he went from sweating out whether he would ever get a chance to work in America to becoming one of the leading figures in the outsourcing of services from America to the rest of the world.
   “I will never forget when I applied for a visa to come to the United States,” Kannan recalled. “It was March 1991.1 had gotten a B.A. in chartered accountancy from the [Indian] Institute of Chartered Accountants. I was twenty-three, and my girlfriend was twenty-five. She was also a chartered accountant. I had graduated at age twenty and had been working for the Tata Consultancy group. So was my girlfriend. And we both got job offers through a body shop [a recruiting firm specializing in importing Indian talent for companies in America] to work as programmers for IBM. So we went to the U.S. consulate in Bombay. The recruiting service was based in Bombay. In those days, there was always a very long line to get visas to the United States, and there were people who would actually sleep in the line and hold places and you could go buy their place for 20 rupees. But we went by ourselves and stood in line and we finally got in to see the man who did the interview. He was an American [consular official]. His job was to ask questions and try to figure out whether we were going to do the work and then come back to India or try to stay in America. They judge by some secret formula. We used to call it 'the lottery'-you went and stood in line and it was a life lottery, because everything was dependent on it.”
   There were actually books and seminars in India devoted entirely to the subject of how to prepare for a work visa interview at the U.S. embassy. It was the only way for skilled Indian engineers really to exploit their talent. “I remember one tip was to always go professionally dressed,” said Kannan, “so [my girlfriend and I] were both in our best clothes. After the interview is over, the man doesn't tell you anything. You had to wait until the evening to know the results. But meanwhile, the whole day was hell. To distract our minds, we just walked the streets of Bombay and went shopping. We would go back and forth, 'What if I get in and you don't? What if you get in and I don't?' I can't tell you how anxious we were, because so much was riding on it. It was torture. So in the evening we go back and both of us got visas, but I got a five-year multiple entry and my girlfriend got a six-month visa. She was crying. She did not understand what it meant. 'I can only stay for six months?' I tried to explain to her that you just need to get in and then everything can be worked out.”
   While many Indians still want to come to America to work and study, thanks to the triple convergence many of them can now compete at the highest levels, and be decently paid, by staying at home. In a flat world, you can innovate without having to emigrate. Said Kannan, “My daughter will never have to sweat that out.” In a flat world, he explained, “there is no one visa officer who can keep you out of the system... It's a plug-and-play world.”
   One of the most dynamic pluggers and players I met in India was Rajesh Rao, founder and CEO of Dhruva Interactive, a small Indian game company based in Bangalore. If I could offer you one person who embodies the triple convergence, it is Rajesh. He and his firm show us what happens when an Indian zippie plugs into the ten flatteners.
   Dhruva is located in a converted house on a quiet street in a residential neighborhood of Bangalore. When I stopped in for a visit, I found two floors of Indian game designers and artists, trained in computer graphics, working on PCs, drawing various games and animated characters for American and European clients. The artists and designers were listening to music on headphones as they worked. Occasionally, they took a break by playing a group computer game, in which all the designers could try to chase and kill one another at once on their computer screens. Dhruva has already produced some very innovative games— from a computer tennis game you can play on the screen of your cell phone to a computer pool game you can play on your PC or laptop. In 2004, it bought the rights to use Charlie Chaplin's image for mobile computer games. That's right-a start-up Indian game company today owns the Chaplin image for use in mobile computer games.
   In Bangalore and in later e-mail conversations, I asked Rajesh, who is in his early thirties, to walk me through how he became a player in the global game business from Bangalore.
   “The first defining moment for me dates back to the early nineties,” said Rajesh, a smallish, mustachioed figure with the ambition of a heavyweight boxer. “Having lived and worked in Europe, as a student, I was clear in my choice that I would not leave India. I wanted to do my thing from India, do something that would be globally respected and something that would make a difference in India. I started my company in Bangalore as a one-man operation on March 15, 1995. My father gave me the seed money for the bank loan that bought me a computer and a 14.4 kbp modem. I set out to do multimedia applications aimed at the education and industry sectors. By 1997, we were a five-man team. We had done some pathbreaking work in our chosen field, but we realized that this was not challenging us enough. End of Dhruva 1.0.
   “In March 1997, we partnered with Intel and began the process of reinventing ourselves into a gaming company. By mid-1998, we were showing global players what we were capable of by way of both designing games and developing the outsourced portions of games designed by others. On November 26, 1998, we signed our first major game development project with Infogrames Entertainment, a French gaming company. In hindsight, I think the deal we landed was due to the pragmatism of one man in Infogrames more than anything else. We did a great job on the game, but it was never published. It was a big blow for us, but the quality of our work spoke for itself, so we survived. The most important lesson we learned: We could do it, but we had to get smart. Going for all or nothing-that is, signing up to make only a full game or nothing at all-was not sustainable. We had to look at positioning ourselves differently. End of Dhruva 2.0.”
   This led to the start of Dhruva's 3.0 era-positioning Dhruva as a provider of game development services. The computer game business is already enormous, every year grossing more revenue than Hollywood, and it already had some tradition of outsourcing game characters to countries like Canada and Australia. “In March 2001, we sent out our new game demo, Saloon, to the world,” said Rajesh. “The theme was the American Wild Wild West, and the setting was a saloon in a small town after business hours, with the barman cleaning up... None of us had ever seen a real saloon before, but we researched the look and feel [of a saloon] using the Internet and Google. The choice of the theme was deliberate. We wanted potential clients in the U.S.A. and Europe to be convinced that Indians can 'get it.' The demo was a hit, it landed us a bunch of outsourced business, and we have been a successful company ever since.”
   Could he have done this a decade earlier, before the world got so flat?
   “Never,” said Rajesh. Several things had to come together. The first was to have enough installed bandwidth so he could e-mail game content and instructions back and forth between his own company and his American clients. The second factor, said Rajesh, was the spread of PCs for use in both business and at home, with people getting very comfortable using them in a variety of tasks. “PCs are everywhere,” he said. “The penetration is relatively decent even in India today.”
   The third factor, though, was the emergence of the work flow software and Internet applications that made it possible for a Dhruva to go into business as a minimultinational from day one: Word, Outlook, NetMeeting, 3D Studio MAX. But Google is the key. “It's fantastic,” said Rajesh. “One of the things that's always an issue for our clients from the West is, 'Will you Indians be able to understand the subtle nuances of Western content?' Now, to a large extent, it was a very valid question. But the Internet has helped us to be able to aggregate different kinds of content at the touch of a button, and today if someone asks you to make something that looks like Tom and Jerry, you just say 'Google Tom & Jerry' and you've got tons and tons of pictures and information and reviews and write-ups about Tom and Jerry, which you can read and simulate.”