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Showing posts with the label business models

Clay Christensen: How Will You Measure Your Life?

A tribute to Clayton Christensen, the Harvard professor who  introduced "disruption" in his 1997 book  The Innovator's Dilemma , which, in turn, led  The Economist  to term him "the most influential management thinker of his time."  Even more influential  for some would be his 2012 co-authored book How Will You Measure Your Life? . [try here ]. Christensen  passed away in Boston on Jan 23, 2020.

George Sugihara On Early Warning Signs

Earlier this month SEED magazine published this very interesting article by George Sugihara, theoretical biologist at Scripps Institution of Oceanography, on how deep mathematical models tie the events of climat change, epileptic seizure, fishery collapses, and risk management surrounding the global financial crisis. Excerpts: [...] Economics is not typically thought of as a global systems problem. Indeed, investment banks are famous for a brand of tunnel vision that focuses risk management at the individual firm level and ignores the difficult and costlier, albeit less frequent, systemic or financial-web problem. Monitoring the ecosystem-like network of firms with interlocking balance sheets is not in the risk manager’s job description. A parallel situation exists in fisheries, where stocks are traditionally managed one species at a time. Alarm over collapsing fish stocks, however, is helping to create the current push for ecosystem-based ocean management. This is a step in the ri

Gartner: 10 Changes in the Nature of Work in Next 10 Years

"ORGANIZATIONS WILL NEED TO PLAN for increasingly chaotic environments that are out of their direct control, and adaptation must involve adjusting to all 10 of the trends (listed below)", observers Gartner fellow and VP, Tom Austin. In a report published earlier this year titled "Watchlist: Continuing Changes in the Nature of Work, 2010-2020", Gartner says that organizations will need to determine which of the 10 key changes in the nature of work will affect them the most, and consider whether radically different technology models will be required to address them. The other key message that emerges out of the report's overall analysis says: Work will become less routine, characterized by increased volatility, hyper-connectedness, 'swarming' and by 2015, 40 percent or more of an organization's work will be "non-routine," up from 25 percent in 2010. Later next month, Tom Austin is scheduled to speak in London on these trends: De-routinizat

Infographic: Labour Cost Disparities

DISPARITIES OF LABOR COSTS: Interesting Infographic showing how long does it take other countries to make the equivalent of US minimum wage of USD 15,080. Click the image to enlarge Source: FixR With respect to India, the calculation considers the Government recommended minimum daily wage which is about USD 2.5. In practice, a common worker shall make double to three times of this amount, which is still very less compared to high cost regions but it would make the ratio less skewed. Further, if Purchasing Power Parity (PPP) is considered, the difference between USA and India costs shall be about 6 years and 3 months.

The Purpose of Business

"EVERYONE LIVES BY SELLING SOMETHING." Robert Louis Stevenson, the Scottish traveller and writer, once concluded. In the knowledge industry of the modern era, the selling could be of — an idea, a change, an example (PoC), an influence, a model. The logical outcome of which is value creation. Which further translates into profit or benefits of various kinds at different levels of its hierarchy. Peter Drucker had a different view. Creating profit didn't seem to him to be the main goal of an enterprise. While advocating for Not-for-profit organizations, Drucker observed that there are obvious limitations to making continuous profit-making business models. According to him, to be responsible and relevant in the society, a business model could make profit that is equal to its cost of capital. However, if the goal of the business model is to create a customer , that could possibly provide a sustainable model for existence of a business. Taking this argument a notch furthe

Consulting and Creative (un)commons

Santa and Banta submitted the tender for digging the second underwater Euro Channel Tunnel connecting England with France and continental Europe. This was perhaps the first time that a bid for such an extreme engineering project was coming from India, and apparently so it raised a few eyebrows and steered interest. An outsourcing relationship with India was not a new thing, but bidding for second Euro tunnel - that had got to be special... Mr. Santa and Mr. Banta, the proprietors of Santa Banta & Co., were also among the main invitees to present their ideas describing their technology, tools, budget and time-lines to the consortium presiding over the project. As it turned out S B & Co had the lowest quotation, the shortest time-line for the project, the simplest possible plan and most straightforward execution using the most standard of tools: Santa would take one team (of a few hundred thousand labourers) digging from England towards France, and Banta would do the same from

Mind the Gap and Business Technology

"MIND THE GAP AND THE ACCIDENTAL TECHNOLOGISTS" is the topic on which Andy Mulholland wrote an interesting note recently, and I so wish if this were a guest post on this blog, if only for the namesake. Highlighting 'the gap', as he puts it, Andy describes the misalignment of Technology focus with Business needs. The problem is rather recent, cropping up only from 90's, because before that, nobody actually bothered. The flexibility of IT introduced by leaps and bounce of advances of the recent decades is the reason for this widening gap because previously the rigidity of how computer systems worked almost ensured that business accepted what (MIS) system owners dictated.

Peter Principle and Promotions

Peter Principle: "Every new member in a hierarchical organization climbs the hierarchy until he/she reaches his/her level of maximum incompetence." [try here for more] IT IS PARADOXICAL, SOUNDS UNREASONABLE, AND DEFIES COMMON-SENSE. But that is how it works, realistically and evidently, for any hierarchical organization where the way of promotion rewards the best members and where the competence at their new level in the hierarchical structure does not depend on the competence they had at the previous level, usually because the tasks of the levels are very different between each other. Since about 50 years ago when a Canadian psychologist named Laurence J. Peter published his studies to this effect in 1969, there has been many changes in the way organizations and it workforce operate in relation with each other. There has been multiple experimental models across various industries, including Role-based organization, Competency-based designations, (A fusion of sorts of the

Business Development, Pre-sales, Sales and the 'Arrow-head'

HAVING BEEN TRAINED FOR CULTIVATING 'GROWTH' AND evaluated for a few appraisal cycles by now for tasks that were marked under a title called 'Business Development' (or something that either sounds or seems similar), the debate on the subject by a certain groups of 'experienced' personnel almost immediately drew my attention. And it becomes interesting when, with all due respect, the so-called experts, having built their careers in the relevant fields, seemed rather confused between the functioning and mandate of 'Business Development' and 'Sales' functions. Before taking a dig on that, respectfully, here is my version of the 'classical' definition (or differentiation) of the two: "Business Development is a bunch of activities of today, based on your strategic vision of your product/service framework, that the Sales people would be selling tomorrow." Well, this definition might neither be universal nor be entirely technically acc

The Gillette 'trap'

[A little background: It had been a few months that I was searching for twin-blade cartridges for the Gillette SensorExcel safety razor that I prefer. I had almost given up on it by now, and was looking towards this seemingly inevitable upgrade to Mach3 or something when I suddenly hit a jackpot - I found a supermarket selling the make and model that I was looking for. I could finally purchase a year worth of supply. In other words, another year that I would effectively dodge Gillette Mach3 upgrade 'threat'.] The history goes that some hundred years ago, Mr. King Gillette was a wealthy but frustrated failure of an innovator at 40. He had written a book called " The Human Drift ", which argued that all industry should be taken over by a single corporation owned by the public, and that millions of Americans should live in a giant city called Metropolis powered by the Niagara Falls. His boss at the bottle cap company, meanwhile, had just one piece of advice: Invent so

The Future of Business - $0.00 enterprises

A really interesting article by the Editor in Chief at Wired magazine , Chris Anderson titled "Free! Why $0.00 Is the Future of Business" was the subject of much debate recently. Accordingly to Chris, the economy of the brave new world is mainly driven by "scarcity" and "wastage" (as against to the old world concept of demand vs. supply). Out side of online business it may take a rather detailed and elaborate study to apply this new economy driver phenomenon to the world at large, such as manufacturing or airline industry. Chris talks about six business models with examples that are used in the web2.0 economy, and goes on the indicate that all of them revolves around the concept of "Free!". At the same time, he argues that less successful (or failed) ventures have not appreciated the psychological bearer called "penny gap" which separates the cheap from the free. Talking about "Freeconomics", he says that what makes 'f