Tag: economy

Clone Wars

Prasad AjinkyaLeave a comment

First came Best Buy.

People were happy, they got good deals, saved some money. Good … but meh! Perhaps their launch was before time. Avante Garde.

Then came Groupon.

A multi-billion dollar valuation, e-commerce 2.0 buzz, social media tongues wagging about. It was the next big thing since the Internet.

I guess over a period of time, folks soon realized that the business model was pretty simple really. Get bulk, negotiate with vendors and give back a small share back to the users. That was also the eYantra model. I hear its gotten its second round of funding as well.

Followed by a slew of Groupon clones … there are too many of them really to name a few. The unfortunate thing is that not one of them is willing to call themselves a Groupon mee-to. We are different is what they all say.

Everybody on this planet is unique, just like 7 billion other people.

If you thought that I would be writing another nerdy review of Star Wars, you are mistaken, Ser.

With Groupon clones sprouting everywhere on the Indian e-commerce scene, its going to be a war out there. The war is going to be played out in our inboxes, on our cellphones, on our social media pages and in our tweets. Our credit cards will be the trophies, each transaction a battle on who will get us the cheapest deal. If you thought that it would make me happy, its not.

All the discounts in the world are not worth the beauty of a spam free life. It’s been ages since I have seen an empty inbox, gotten no sms-es. The Clone Wars are on, and you are the next battle!

Indian Services: A bleak future

Prasad AjinkyaLeave a comment

With the Indian economy shifting from an agrarian focus to a service-based industry, a lot of foreign investors are attracted to the nation. However, the sustainability of this is under question. As service experiences from bad to worse and consumers are crying bloody murder in the courts, how will the Great Indian Dream be achieved?

The word service comes from the term – to serve, i.e. to work for another.

I am sure you will agree with me that this is hardly the case these days. To measure the quality of service, all service providers have come up with an excuse called as SLAs (Service Level Agreements). What it means is that the service provider is giving certain time limits for each of his failures, and he won’t recognize the failure until and unless that SLA has been crossed.

Ironically, its very logical and you can’t argue against this. But zoom out a bit and think seriously, if you are providing SLAs for life and death services, what would happen? I won’t call you sick, until you have been sick for three days. Dead until, you have been dead for a day.

I won’t spring into action until and unless the given time goes by.

I will ignore your pleas, until you start shouting murder at me. Then I will create tickets, and play the game of the escalation matrix. Then I will care, and once the issue is resolved, I will stop caring.

As consumers, what can we do?

Well for starters –

  1. Read the SLA’s before taking on the service. Do they seem reasonable? Try negotiating on the SLAs and make them sharp.
  2. Clearly define the Plan ‘B’ – What happens if the impossible does happen? What happens if a service promising 99.95% uptime goes down? Who takes the risk and who takes the hit?
  3. Danda works top-down. Sad, but true. Remember that. If you want the cronies to spring into action, knock at the top.
  4. Get a back-up. It’s expensive, it’s redundant, but it’s a safety net ready to catch you when Plan ‘A’ fails.
  5. There’s an interesting start-up Akosha, consider contacting them
  6. Lastly, switch providers and rinse repeat!

Predicting Business Cycles

Prasad AjinkyaLeave a comment

Back in August 2006, I had written a post on Dot Com Bust 2.0, sadly rediff BLOGS has a bad way of storing posts (week-wise instead of it being individual posts) passed away into oblivion.

Revisiting that post was an interesting exercise, an excerpt –

Do we see history repeating itself? A sudden surge in this Dot Com 2.0 demand, people are already teeming in to cash-in on this new opportunity. Do I start off a firm of my own and try to do the same. Is this risk / venture enough to sustain me through the impending bust? During my induction at TechMahindra, there was a fellow from the top management who was wizened enough to predict that the next bust is going to come in the year 2009. We laughed it off back then, I am not laughing now. Maybe, the dot com bust might relapse, and why not? Fortunately, IT in India is not just about web development anymore. We will pass through this. But will my dream of starting off on my own do the same?

Full marks and respect for that top executive.

A VC who nurtures entrepreneurs

Prasad AjinkyaLeave a comment

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.

Why we pay taxes

Prasad Ajinkya6 Comments

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.

Made in China

Prasad Ajinkya1 Comment

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!!

Software Piracy

Prasad Ajinkya4 Comments

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??