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possible。 It includes newer tools�察�like XML and SOAP�察�which enabled Web applications 
to communicate with each other more seamlessly�察�and it includes software agents known 
as middleware�察�which serves as an intermediary between wildly diverse applications。 
The nexus of these technologies has been a huge boon to innovation and a huge reducer 
of friction between companies and applications。 Instead of everyone trying to control 
the fire hydrant nozzle�察�they made all the nozzles and hoses the same�察�creating a 
much bigger market that stretched across every neighborhood of the world。 Then 
companies started to compete instead over the quality of the hose�察�the pump�察�and the 
fire truck。 That is�察�they competed over who could make the most useful and nifty 
applications。 Said Joel Cawley�察�the head of IBM's strategic planning unit�察 �Standards 
don't eliminate innovation�察�they just allow you to focus it。 They allow you to focus 
on where the real value lies�察�which is usually everything you can add above and around 
the standard。; 
I found this out writing my last book。 Once Microsoft Word got established as the 
global standard�察�work could flow between people on different continents much more 
easily�察�because we were all writing off the same screen with the same basic toolbar。 
When I was working on my first book�察�From Beirut to Jerusalem�察�in 1988��1 spent part 
of my year's leave in 
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the Middle East and had to take notes with pen and paper�察�as it was the pre´laptop 


and pre´Microsoft Word era。 When I wrote my second book�察�The Lexus and the Olive Tree�察�
in 1998�察�I had to do some of the last´minute editing from the computer behind the 
front desk at a Swiss hotel in Davos on a German version of Microsoft Word。 I could 
not understand a single word�察�a single command function�察�on the toolbar of the German 
version of Word。 But by 1998�察�I was so familiar with the Word for Windows writing 
program�察�and where the various on´screen icons were�察�that I was able to point and 
click my way through the editing on the German version and type my corrections with 
the English letters on the German keyboard。 Shared standards are a huge flattener�察�
because they both force and empower more people to communicate and innovate over much 
wider platforms。 
Another of my favorite examples of this is PayPal�察�which enabled eBay's e´commerce 
bazaar to become what it is today。 PayPal is a money transfer system founded in 1998 
to facilitate C2C ��customer´to´customer�� transactions�察�like a buyer and seller 
brought together by eBay。 According to the Web site ecommerce´guide。com�察�using PayPal�察�
anyone with an e´mail address can send money to anyone else with an e´mail address�察�
whether the recipient has a PayPal account or not。 PayPal doesn't even care whether 
a commercial transaction is taking place。 If someone in the office is organizing a 
party for someone else and everyone needs to chip in�察�they can all do it using PayPal。 
In fact�察�the organizer can send everyone PayPal reminders by e´mail with clear 
instructions as to how to pay up。 PayPal can accept money from the purchaser in one 
of three ways�察�notes ecommerce´guide。com�此�charging the purchaser's credit card for 
any transactions ��payments���察�debiting a checking account for any payments�察�or 
deducting payments from a PayPal account established with a personal check。 Payment 
recipients can use the money in their account for online purchases or payments�察�can 
receive the payment from PayPal by check�察�or can have PayPal directly deposit the 
money into a checking account。 Setting up a PayPal account is simple。 As a payer�察�
all you have to do is to provide your name�察�your e´mail address�察�your credit card 
information�察�and your billing address for your credit card。 
All of these interoperable banking and e´commerce functions flat

tened the Internet marketplace so radically that even eBay was taken by surprise。 
Before PayPal�察�explained eBay CEO Meg Whitman�察 �If I did business on eBay in 1999�察�
the only way I could pay you as a buyer was with a check or money order�察�a paper´based 
system。 There was no electronic way to send money�察�and you were too small a merchant 
to qualify for a credit card account。 What PayPal did was enable people�察�individuals�察�
to accept credit cards。 I could pay you as an individual seller on eBay with a credit 
card。 This really leveled the playing field and made commerce more frictionless。; 
In fact�察�it was so good that eBay bought PayPal�察�but not on the recommendation of 
its Wall Street investment bankers´ on the recommendation of its users。 
;We woke up one day�察─�said Whitman�察 �and found out that 20 percent of the people on 
eBay were saying�察�'I accept PayPal�察�please pay me that way。' And we said�察�'Who are 
these people and what are they doing��' At first we tried to fight them and launched 
our own service�察�called Billpoint。 Finally�察�in July 2002�察�we were at ��an�А�eBay Live 
��convention�А�and the drumbeat through the hall was deafening。 Our community was 


telling us�察�'Would you guys stop fighting�拭�We want a standard´and by the way�察�we have 
picked the standard and it's called PayPal�察�and we know you guys at eBay would like 
it to be your ��standard�В察�but it's theirs。' And that is when we knew we had to buy 
the company�察�because it was the standard and it was not ours。。。 It is the best 
acquisition we ever made。; 
Here's how I just wrote the above section�此�I transferred my notes from the Meg Whitman 
phone interview from my Dell laptop to my Dell desktop�察�then fired up my DSL connection 
and double´clicked on AOL�察�where I used Google to find a Web site that could explain 
PayPal�察�which directed me to ecommerce´guide。com。 I downloaded the definition from 
the ecommerce´guide。com Web site�察�which was written in some Internet font as a text 
file�察�and then called it up on Microsoft Word�察�which automatically transformed it 
into a Word document�察�which I could then use to write this section on my desktop。 
That is also work flow� �And what is most important about it is not that I have these 
work flow tools�察�it is how many people in India�察�Russia�察�China�察�Brazil�察�and Timbuktu 
now have them as well´along with all the transmission pipes and protocols so they 
too can plug and play from anywhere。 

Where is all this going�拭�More and more work flow will be automated。 In the coming 
phase of Web services´work flow�察�here is how you will make a dentist appointment�此�
You will instruct your computer by voice to make an appointment。 Your computer will 
automatically translate your voice into a digital instruction。 It will automatically 
check your calendar against the available dates on your dentist's calendar and offer 
you three choices。 You will click on the preferred date and hour。 The week before 
your appointment�察�your dentist's calendar will automatically send you an e´mail 
reminding you of the appointment。 The night before�察�you will get a computer´generated 
voice message by phone�察�also reminding of your appointment。 
For work flow to reach this next stage�察�and the productivity enhancements it will 
deliver�察 �we need more and more common standards�察─�said IBM's strategic planner Cawley。 
;The first round of standards to emerge with the Internet were around basic data´how 
do you represent a number�察�how do you organize files�察�how do you display and store 
content�察�and how do you share and exchange information。 That was the Netscape phase。 
Now a whole new set of standards is emerging to enable work flow。 These are standards 
about how we do business work together。 For example�察�when you apply for a mortgage�察�
go to your closing�察�or buy a house�察�there are literally dozens of processes and data 
flows among many different companies。 One bank may handle securing your approval�察�
checking your credit�察�establishing your interest rates�察�and handling the 
closing´after which the loan almost immediately is sold to a different bank。; 
The next level of standards�察�added Cawley�察�will be about automating all these 
processes�察�so they flow even more seamlessly together and can stimulate even more 
standards。 We are already seeing standards emerging around payroll�察�e´commerce 
payment�察�and risk profiling�察�around how music and photos are digitally edited�察�and�察�
most important�察�around how supply chains are connected。 All of these standards�察�on 
top of the work flow software�察�help enable work to be broken apart�察�reassembled�察�and 
made to flow�察�without friction�察�back and forth between the most efficient producers。 


The diversity of applications that will automatically be able to interact with each 
other will be limited only by our imaginations。 
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The gains in productivity from this could be bigger than anything we have ever seen 
before。 
;Work flow platforms are enabling us to do for the service industry what Henry Ford 
did for manufacturing�察─�said Jerry Rao�察�the entrepreneur doing accounting work for 
Americans from India。 ;We are taking apart each task and sending it around to whomever 
can do it best�察�and because we are doing it in a virtual environment�察�people need 
not be physically adjacent to each other�察�and then we are reassembling all the pieces 
back together at headquarters ��or some other remote site�А� This is not a trivial 
revolution。 This is a major one。 It allows for a boss to be somewhere and his employees 
to be someplace else。; These work flow software platforms�察�Jerry added�察 �enable you 
to create virtual global offices´not limited by either the boundaries of your office 
or your country´and to access talent sitting in different parts of the world and have 
them complete tasks that you need completed in real time。 And so 24/7/365 we are all 
working。 And all this has happened in the twinkling of an eye´the span of the last 
two or three years。; 
Genesis�此�The Flat World Platform Emerges 
We need to stop here and take stock�察�because at this point´the mid´1990s´the platform 
for the flattening of the world has started to emerge。 First�察�the falling walls�察�the 
opening of Windows�察�the digitization of content�察�and the spreading of the Internet 
browser seamlessly connected people with people as never before。 Then work flow 
software seamlessly connected applications to applications�察�so that people could 
manipulate all their digitized content�察�using computers and the Internet�察�as never 
before。 When you add this unprecedented new level of people´to´people communication 
to all these Web´based application´to´application work flow programs�察�you end up with 
a whole new global platform for multiple forms of collaboration。 This is the Genesis 
moment for the flattening of the world。 This is when it started to take shape。 It 
would take more time to converge and really become flat�察�but this is the moment when 
people started to feel that something was changing。 Suddenly more people from 
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more different places found that they could collaborate with more other people on 
more different kinds of work and share more different kinds of knowledge than ever 
before。 ;It is the creation of this platform�察�with these unique attributes�察�that is 
the truly important sustainable breakthrough that made what you call the flattening 
of the world possible�察─�said Microsof

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