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closed roads。）
〃We are a very flat organization；〃 Ghandour explained。 〃This is not traditional；
because Arabinstitutions in the private sector tend to look like the governments…very
hierarchal and patriarchal。 That is not how Aramex works。 There are no more than two
to three layers between me and anyone in the company。 Every single knowledge worker
in this organization has a computer with e…mail and Internet access。 Right here from
your computer I can access my intranet and see exactly what is happening in the
organization without my senior people having to report to me。〃
In sum； Fadi Ghandour took advantage of several new forms of
collaboration…supply…chaining； outsourcing； insourcing； and all the steroids… to
make his little 200…million…a…year company very big。 Or； as he put it with a smile；
〃I was big locally and small internationally…and I reversed that。〃
Rule #3： And the big shall act small。。。 One way that big companies learn to flourish
in the flat world is by learning how to act really small by enabling their customers
to act really big。
Howard Schultz； the founder and chairman of Starbucks； says that Starbucks estimates
that it is possible to make nineteen thousand variations of coffee on the basis of
the menus posted at any Starbucks outlet。 What Starbucks did； in other words； was
make its customers its drink designers and allow them to customize their drinks to
their exact specifications。 Starbucks never thought of offering soy milk； Schultz
told me； until store managers started to get bombarded with demands for it from
customers； to the point where they were going to the grocery store across the street
in the middle of the day to buy cartons of soy milk。 Starbucks learned from its
customers； and today some 8 percent of all the drinks that Starbucks sells include
soy milk。 〃We didn't dream up the different concoctions with soy milk；〃 said Schultz；
〃the customers did。〃 Starbucks just collaborated with them。 The smartest big
companies clearly understand that the triple convergence allows them to collaborate
with their customers in a totally new fashion…and； by doing so； to act really small。
The way that big companies act small is not by targeting each individual consumer
and trying to serve that customer individually。 That would be impossible and
impossibly expensive。 They do it by making their business； as much as possible； into
a buffet。 These companies create a platform that allows individual customers to serve
themselves in their own way； at their own pace； in their own time； according to their
own tastes。 They are actually making their customers their employees and having them
pay the company for that pleasure at the same time！
One of those big companies that have learned to act small in this way is E*Trade；
the online bank and brokerage house。 It did so； explained
Mitchell H。 Caplan； the CEO of E*Trade as well as a friend and neighbor； by recognizing
that behind all the hoopla around the dot…com boom and bust； something very important
was happening。 〃Some people thought the Internet was going to revolutionize
everything in the world with no limits…it was going to cure the common cold/' said
Caplan。 Sure； it was hype； and it led to crazy valuations and expectations； which
eventually came crashing down。 But meanwhile； with much less fanfare； the Internet
was creating 〃a whole new distribution platform for companies to reach consumers in
a whole new way and for consumers to reach your company in a whole new way；〃 Caplan
said。 〃While we were sleeping； my mom figured out how to use e…mail and connect with
the kids。 My kids were instant…messaging all their friends。 My mom figured out how
to go online and check her E*Trade balances。〃
Companies that were paying attention understood they were witnessing the birth of
the 〃self…directed consumer；〃 because the Internet and all the other tools of the
flat world had created a means for every consumer to customize exactly the price；
experience； and service he or she wanted。 Big companies that could adapt their
technology and business processes to empower this self…directed consumer could act
very small by enabling their customers to act very big。 They could make the consumer
feel that every product or service was being tailored for his or her specific needs
and desires； when in fact all that the company was doing was creating a digital buffet
for them to serve themselves。
In the financial services industry； this constituted a profound change in approach。
Historically； financial services was dominatedby large banks； large brokerage houses；
and large insurance companies that told you what you were getting； how you were getting
it； when and where you were getting it； and the price you had to pay for it。 Customers
reacted to these big companies with emotions ranging from apathy to distaste。 But
if I didn't like the way my bank was treating me； I didn't have any real choice。 Then
the world was flattened and the Internet came along。 Consumers started to feel that
they could have more control； and the more they adapted their buying habits to the
Internet； the more companies…from booksellers to financial services…had to adapt and
offer them the tools to be in control。
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〃Sure； the Internet stocks blew up when the bubble burst；〃 said Caplan； whose own
company's stock price took a big dip in that market storm； 〃but underneath； consumers
were getting a taste of power； and once they tasted it； things went from companies
being in control of consumers' behavior to consumers being in control of companies'
behavior。 The rules of engagement changed； and if you did not respond and offer
customers what they wanted； someone else would； and you would be dead。〃 Where once
the financial services companies acted big； now they strove to act small and to enable
the consumer to act big。 〃Companies who prosper today；〃 argued Caplan； 〃are the ones
who understand the self…directed consumer。〃 For E*Trade； that meant thinking of the
company not as a collection of individual financial services…a bank； a brokerage；
and a lending business…but as an integrated financial experience that could serve
the most self…directed financial consumers。 〃The self…directed consumer wanted
one…stop financial shopping；〃 said Caplan。 〃When they came to our site they wanted
everything integrated； with them in control。 Only recently； though； did we have the
technology to really integrate all our three businesses…banking； lending； and
brokerage…and pull them together in a way that didn't just deliver the price； not
just the service； but the total experience they wanted。〃
If you came to the E*Trade site just three or four years ago； you would see your
brokerage account on one screen page and your lending on another。 Today； said Caplan；
〃On one page you can now see exactly where you stand in terms of your brokerage in
real time； including your buying power； and you see your bank account and the scheduled
payments for your loans…what is pending； what is the balance on your home mortgage；
and ＇what is your＇ line of credit…and you have the ability to move seamlessly between
all three to maximize the benefit of your cash。〃
While Fadi Ghandour coped with the triple convergence by taking a small company and
devising a strategy to make it act very big； Mitchell Caplan survived by taking a
big company and making it act very small so that his customers could act very big。
Rule #4： The best companies are the best collaborators。 In the flat world； more and
more business will be done through collaborations
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within and between companies； for a very simple reason： The next layers of value
creation…whether in technology； marketing； biomedicine； or manufacturing…are
becoming so complex that no single firm or department is going to be able to master
them alone。
〃What we are seeing in so many different fields；〃 said Joel Cawley； the head of IBM's
strategic planning unit； 〃is that the next layers of innovation involve the
intersection of very advanced specialties。 The cutting edge of technical innovation
in every field is increasingly specialized。〃 In most cases； your own company's or
your own department's specialization is going to be applicable to only a very small
piece of any meaningful business or social challenge。 〃Therefore； to come up with
any valuable new breakthrough； you have to be able to combine more and more of these
increasingly granular specialties。 That is why collaboration is so important；〃 Cawley
said。 So you might find that a pharmaceutical company has invented a new stent that
allows it to dispense a whole new class of drugs that a biomedical company has been
working on； and the real breakthrough…where the real profit is created for both…is
in their collaboration in getting the breakthrough drugs from one firm together with
the breakthrough delivery system from another。
Or take a more colorful example： video games。 Game makers have long been commissioning
special music to go with games。 They eventually discovered that when they combined
the right music with the right game they not only sold