Who? Me??

Just read this on the Wall Street journal, that there is a venture fund by the name of Pacific Lake Partners who actively seek out young entrepreneurs, give them enough money to scout around for the right organization to takeover. Then help them acquire that organization for a healthy return.

You can read the rest of the article here. An excerpt -

Pacific Lake will provide between $300,000 and $500,000 to entrepreneurs to cover living and travel expenses for two years while they search for a business opportunity – generally an established business with revenue between $10 million and $30 million. There’s no sector focus; it all depends on the opportunity the entrepreneur finds.

It feels good to know that there is a venture fund who values someone who can not only boot strap an organization but take on an already running organization and turn it around. This is the stuff of what legends are made up of. All of the awe-inspiring case studies that we used read in our b-schools have suddenly come real. I wonder if any VC or angel investor follows a similar policy in India. As a developing economy, we need increasing number of such folks.

A discussion with a friend about salary structures resulted in this post -

1. I am damn scared of an IT raid
2. Paying corrupt officials the salary and perks that they dont deserve
3. Paying for infrastructural developments that dont help anyone
4. Reducing the deficits of the nation
5. If I do it, then everyone else could also do it

Despite all this cynicism, I still pay my dues … and I think that gives me a moral authority to demand the same from my fellow Indians.

All it takes is an idea.

Microsoft’s report on Boomers & Technology

During brunch today with a good friend, we were discussing about the sad tale of his failing computer. The fact that every computer part that he was purchasing was a cheap replacement part from China, without being aware of the authenticity of spare part was rattling his nerves. This includes from the motherboard to the power cord. How they manage it to produce it at such a low cost was a puzzle to him. Rightly so, imagine buying a power cord from China at Rs. 20.00, this includes the manufacturing cost, the shipping and the distribution cost.

Imagine the power wielded in such numbers, a country which can change global markets due to the sheer power of its manufacturing. Economies evolve, some do this gradually and some jump the gun. India was an agrarian economy … come the 20th century, and we are a service-based economy. We jumped the gun of becoming a manufacturing economy. Boon or bane?

Bane I say. Without the right set of manufacturing infrastructure, our service economy is an overhyped case of derived demand. A nation depending on the global markets to survive its burgeoning service industry. Almost all the infrastructure for this service comes from outside. What happens when the economy which is providing the manufactured goods suddenly decides to evolve further and move into service industry? They suddenly become more poised to take on stronger service economies simply because they can deliver end-to-end value.

People have been saying it all the time, that the Chinese are better at technology, they are hard workers, intelligent even. The only advantage that we had was previous engagements and our ability to speak english. Languages can be learnt, learning can be multiplied. Sooner or later, the Great Indian Outsourcing Dream will come to an end and turn into Comrade Mao’s Technology Farms. Service has to be differentiated upon quality and not cost. Wake up India!!

There was an incident when I was working in a particular start-up. The company was not used to buying original software licenses for any of its users. One business manager decided to go and register his pirated software. Within a week, the CXOs in this start-up recieve a nicely worded legal notice from you-know-who (Billu bhaiyya and his cronies). The notice said, that the CXOs are liable to go to jail and a penalty of some 3-4 lakhs!! Within days, a software audit was done, and a no. of software licenses were bought. We decided to keep on purchasing licenses till we were completely licensed. It took some months, but it was done!!

75% of the corporates in the country are using pirated software right now. The other 25% are not because either they have taken an ethical stand on this issue, or their clients have taken that stand for them, or they are people who have been caught and are now aware. It’s just a problem of awareness, and of seeing value in buying proprietary licenses. So why not have a hybrid model, where the software firm launches a software for minimal or free of cost, and gives all the killer features for that price. Would that work? Or are Indians just used to getting stuff for free??

That is the question you should be asking yourself whenever you are about to buy something.

If you are not clear then, check out this site. The content is presented by Anne Leonard, who manages to deliver the message so clearly and logically; it’s a shame that we did not notice it earlier. We Indians are copying the western culture to the hilt, so much so that we are trying to adopt the same practices at work, at home, at how we treat things, becoming more of consumers and less of contributors.

Half of the stuff that we buy, do we really need that? A new phone, a brand new gaming desktop (I was thinking of getting this one), a flat screen tv, a dishwasher, an A/C, the list goes on. And once we buy that, we dont stop … we keep on buying newer versions of that. Our perceived obsolescence drives us to trash our already existing goods for the sake of the newer and better. Such a waste.

Please go through the site – storyofstuff.com. And try to make a difference.

On my way home from work, I was having this conversation with a colleague. He made an interesting point, the change in our thinking if we were to legalize corruption. The concept is simple – Declare your black money, pay a nominal amount to the government and you get to keep it for yourself.

I am not thinking through this completely here, but would require your help as well. But here are some points which came to my mind -

• The IT department has to be more thorough and catch all defaulters; that’s a tough task but that is the only way the corrupt people will be encouraged to come forward with their black money
• People will be encouraged to be corrupt, since there is a legitimate way to declare that income!!
• Government gets an inner cut on each bribe it’s official takes!! A kind of a plough back system!!

What do you think?

Addendum -

Seems this is a crazy hair brained idea as any. Read the comments to know more!!

I would like to take a view au contraire to the recent global meltdown. With most of the companies looking at slicing off their costs by targeting their cost centers … they are doing a big mistake. What they should focus on, is how to monetize their cost centers … how to turn their cost centers into revenue centers. Instead, what do we see … job slashing … 1000 sacked! … 50000 sacked!! How is that going to help you? Yes, in the short run, your Quarterly statements might be able to absorb the hit the financial crisis has had on your revenues, but in the longer run, you have just sunk deeper into sinkhole that you are trying to rise from(pardon my french).

The entire reason why companies are seeing the financial crisis is because the finance giants were not cautious enough in making the investments on which they bet their proverbial asses, and are now reeling with the losses. So you screwed up … big time. It takes a great man to admit his mistakes, it takes an even stronger man to move on. In Hindi there is a phrase … agar yeh nahi to wohi sahi.

Organizations are there to do business, and there is business to be done. If the world says that the total amount of business has gone down … well they have to be wrong … or they are not just looking in the right places. So what if Lehmann Brothers closed up … what if AIG has gone for a second round of rescue … there are other firms who will step in the shoes of the fallen ones. Global business … the show … must go on. Where to look at business opportunities one might ask – see a problem, fix it … can it be simpler than that?

So lets see the world back on its feet and totter to the trot that we were used to seeing.

With the changes in the US economy, India is feeling the ripple effects pretty early on. Even before the financial giants announced to the world that they are either wrapping up or being taken over, the Indian IT sector knew that times were going to be hard. Layoffs are bound to follow. The dotcom bust 2.0 is here . I had earlier written about this on my previous blog. A senior management professional at TechMahindra had predicted this as early as August 2006.

If you see the graph above, the dependence of the Indian economy lies largely with the Service sector, and that dependence has been growing constantly over the past years. We had the green revolution to bolster our agricultural sector, over the past decade, we have seen the IT revolution, that has significantly bolstered our services contribution to the GDP. I know this is obvious to most of you … but did we all see it coming? And if we did see it coming, then how come none of us sat up and took action.

Would we now try to start a belated industrial revolution, giving more priority for a product-based economy instead of a service-based economy? Can we see the contribution of Indian industry to our nation’s GDP increase? Or will our aam aadmi continue giving service to the firangs, depending on derived demand to earn his daily bread.