Vanilla just won't put food on the table anymore. “You have to offer something totally unique,” said Greer. 'You need be able to make Chocolate Chip Cookie Dough, or Cherry (Jerry) Garcia, or Chunky Monkey“-three of the more exotic brands of Ben & Jerry's ice cream that are very nonvanilla. ”It used to be about what you were able to do,“ said Greer. ”Clients would say, 'Can you do this? Can you do that?' Now it's much more about the creative flair and personality you can bring to [the assignment]... It's all about imagination.“
Rule #2: And the small shall act big... One way small companies flourish in the flat world is by learning to act really big. And the key to being small and acting big is being quick to take advantage of all the new tools for collaboration to reach farther, faster, wider, and deeper.
I can think of no better way to illustrate this rule than to tell the story of another friend, Fadi Ghandour, the cofounder and CEO of Aramex, the first home-grown package delivery service in the Arab world and the first and only Arab company to be listed on the Nasdaq. Originally from Lebanon, Ghandour's family moved to Jordan in the 1960s, where his father, AH, founded Royal Jordanian Airlines. So Ghandour always had the airline business in his genes. Shortly after graduating from George Washington University in Washington, D.C., Ghandour returned home and saw a niche business he thought he could develop: He and a friend raised some money and in 1982 started a mini-Federal Express for the Middle East to do parcel delivery. At the time, there was only one global parcel delivery service operating in the Arab world: DHL, today owned by the German postal service. Ghandour's idea was to approach American companies, like Federal Express and Airborne Express, that did not have a Middle East presence and offer to become their local delivery service, playing on the fact that an Arab company would know the region and how to get around unpleasantries like the Israeli invasion of Lebanon, the Iran-Iraq war, and the American invasion of Iraq.
“We said to them, 'Look, we don't compete with you locally in your home market, but we understand the Middle East market, so why not give your packages to us to deliver out here?” said Ghandour. “We will be your Middle East delivery arm. Why give them to your global competitor, like DHL?” Airborne responded positively, and Ghandour used that to build his own business and then buy up or partner with small delivery firms from Egypt to Turkey to Saudi Arabia and later all the way over to India, Pakistan, and Iran-creating his own regional network. Airborne did not have the money that Federal Express was investing in setting up its own operations in every region of the globe, so it created an alliance, bringing together some forty regional delivery companies, like Aramex, into a virtual global network. What Airborne's partners got was something none of them could individually afford to build at the time– a global geographic presence and a computerized package tracking and tracing system to compete with that of a FedEx or DHL.
Airborne “made their online computerized tracking and tracing system available to all its partners, so there was a unified language and set of quality standards for how everyone in the Airborne alliance would deliver and track and trace packages,” explained Ghandour. With his company headquartered in Amman, Jordan, Ghandour tapped into the Airborne system by leasing a data line that was connected from Amman all the way to Airborne's big mainframe computer in its headquarters in Seattle. Through dumb terminals back in the Middle East, Aramex tracked and traced its packages using Airborne's back room. Aramex, in fact, was the earliest adopter of the Airborne system. Once Ghandour's Jordanian employees got up to speed on it, Airborne hired them to go around the world to install systems and train the other alliance partners. So these Jordanians, all of whom spoke English, went off to places like Sweden and the Far East and taught the Airborne methods of tracking and tracing. Eventually, Airborne bought 9 percent of Aramex to cement the relationship.
The arrangement worked well for everyone, and Aramex came to dominate the parcel delivery market in the Arab world, so well that in 1997, Ghandour decided to take the company public on Broadway, also known as the Nasdaq. Aramex continued to grow into a nearly $200-million-a-year company, with thirty-two hundred employees- and without any big government contracts. Its business was built for and with the private sector, highly unusual in the Arab world. Because of the dotcom boom, which deflected interest from brick-and-mortar companies like Aramex, and then the dot-com bust, which knocked out the Nasdaq, Aramex's stock price never really took off. Thinking that the market simply did not appreciate its value, Ghandour, along with a private equity firm from Dubai, bought the company back from its shareholders in early 2002.
Unbeknownst to Ghandour, this move coincided with the flattening of the world. He suddenly discovered that he not only could do new things, but he had to do new things he had never imagined doing before. He first felt the world going flat in 2003, when Airborne got bought out by DHL. Airborne announced that as of January 1, 2004, its tracking and tracing system would no longer be available to its former alliance partners. See you later. Good luck on your own.
While the flattening of the world enabled Airborne, the big guy, to get flatter, it allowed Ghandour, the little guy, to step up and replace it. “The minute Airborne announced that it was being bought and dissolving the alliance,” said Ghandour, “I called a meeting in London of all the major partners in the group, and the first thing we did was found a new alliance.” But Ghandour also came with a proposal: “I told them that Aramex was developing the software in Jordan to replace the Airborne tracking and tracing system, and I promised everyone there that our system would be up and running before Airborne switched theirs off.”
Ghandour in effect told them that the mouse would replace the elephant. Not only would his relatively small company provide the same backroom support out of Amman that Airborne had provided out of Seattle with its big mainframe, but he would also find more global partners to fill in the holes in the alliance left by Airborne's departure. To do this, he told the prospective partners that he would hire Jordanian professionals to manage all the alliance's back-office needs at a fraction of the cost they were paying to have it all done from Europe or America. “I am not the largest company in the group,” said Ghandour, who is now in his mid-forties and still full of energy, “but I took leadership. My German partners were a $1.2 billion company, but they could not react as fast.”
How could he move so quickly? The triple convergence.
First of all, a young generation of Jordanian software and industrial engineers had just come of age and walked out onto the level playing field. They found that all the collaborative tools they needed to act big were as available to them as to Airbome's employees in Seattle. It was just a question of having the energy and imagination to adopt these tools and put them to good use.
“The key for us/' said Ghandour, ”was to come up with the technology and immediately replace the Airborne technology, because without online, real-time tracking and tracing, you can't compete with the big boys. With our own software engineers, we produced a Web-based tracking and tracing and shipment management system.“
Managing the back room for all the alliance partners through the Internet was actually much more efficient than plugging everyone into Airbome's mainframe back in Seattle, which was very centralized and had already been struggling to adapt to the new Web architecture. With the Web, said Ghandour, every employee in every alliance company could access the Aramex tracking and tracing system through smart PC terminals or handheld devices, using the Internet and wireless. A couple of months after making his proposal in London, Ghandour brought all the would-be partners together in Amman to show them the proprietary system that Aramex was developing and to meet some of his Jordanian software professionals and industrial engineers. (Some of the programming was being done in-house at Aramex and some was outsourced. Outsourcing meant Aramex too could tap the best brains.) The partners liked it, and thus the Global Distribution Alliance was born-with Aramex providing the back room from the backwater of Amman, where Lawrence of Arabia once prowled, replacing Airborne, which was located just down the highway from Microsoft and Bill Gates.
