Wednesday, September 24, 2008

The ICT Convergence

So after several years of talking, the industry is now walking the talk. The ICT convergence is set on full swing and a formal competition is also launched. Apple iPhone set a trend bringing in an instrument that exhibits potential to be the device of the future. And with Google & Amazon joining hands for the next one, threatening Apple's leadership in music industry along with, this competition is bound to become an interesting one.

When the most creative and risk-taking minds of the globe compete with each other, lets hope that our quest for the holy grail will become a reality soon. At some point we will have a device that can do/be: lock/open doors of homes/cars, toll/metro pass, camera/music/photos/games, internet/email/IM/video-conf, ration cards/passport/voter ID/driver license, remote control for TVs, TV/digi-movie screen, debit/credit cards..... I dont think I am dreaming too much. Most of this is already available in instruments today.. the SIM will be the alternate-blood of our life.

May we live in interesting times.

Thursday, September 18, 2008

Stop it Merrill. You got Lynched

I couldn't control my laughter when I read this - Buy ICICI, Target 1010, advises ML .

Come on Merill. Stop advising people now. You have been bought. You have been shamed in public. And all smart egoistic investment bankers of Merill - THANKS for the comments, but we know better.

Monday, September 15, 2008

Wall Street Crisis and Why Financial Institutions Deserve this

Let me first start by assuring you that I am not a sadist. It is not good to see age old institutions crumble. It is definitely not good to see investors lose out millions of $$$ when such a crisis hits the street. But it is important to realize that it is the same set of greedy investors and limited-vision top-management that have caused downfalls of esteemed financial institutions.

The success of capitalism lies in the concept of wealth-creation. Remember that wealth creation refers to society in general. And this leads to betterment of lives of people. However financial institutions and greedy investors have read the text completely wrong. All they have managed to do is to just recycle wealth smartly.

And while taking someone else's wealth at the pretext of expanding it, the financial institutions have managed to keep a larger cut for themselves. As they ran out of ideas on this and the greedy investors pushed these companies to show increased growth every quarter, the companies hired brains from top schools, made them think like Shylocks and finally ended up innovating on stuff like sub-prime lending and reverse mortagages. In India, we have had similar innovations on sub-prime credit cards, unasked personal loans and improperly checked home loans.

The middle class, which is cursed to be a loser in every game, fell for this trap as usual. All these financial institutions have done is to suck blood of these unsuspecting middle class. When the loose foundation begins to crumble, these companies have no option but to cave in. Lehman, Merril Lynch, Bear Sterns, AIG - all are nothing but a failure in their own greed.. And with this downfall, they will take their greedy investors and unfortunately dependent industries and whole economy with them.

In India, good institutions like ICICI are also moving towards innovating on this sector. What everyone has to remember that success of institutions and economy & capitalism come by wealth-creation, not by robbing middle class and the like. I really hope that ICICI, HDFC etc.,
take good lessons from these fallen US giants. And IIMs and other institutions should stop teaching their students to be money bloodsuckers and instead show them the right way to make good growth.

And yeah, the rhetoric. The middle class should learn. After depression, sub prime, recessions, chit-funds, Harshad Mehta scandals, credit card payment issues etc., it is time to realize that only hard earned money and smart investments will sustain.

Thursday, September 11, 2008

Hype Cycle for Emerging Technologies


(Source: Gartner's review-July 2008)

Friday, August 22, 2008

Behind the scenes at Biz schools

Here is an article that, I am sure, most in top global business schools will definitely relate to, at least to some parts of it if not the whole. I know my ISB batchmates will!

(Reproduced verbatim from Business Week: Original article is here)

In Ahead of the Curve: Two Years at Harvard Business School, Broughton provides an insightful and entertaining, behind-the-scenes glimpse at a powerful institution that he sees as generally succeeding in its mission of transforming students into business leaders. But he views HBS as failing them in almost every other way. It is, in his persuasive account, a "factory for unhappy people."

Why this should be, despite the obvious successes and accomplishments of graduates, is a complex subject that Broughton dissects with a reporter's eye for detail. In his retelling, the 895 members of his class were men and women of modest talents but outsize ambition. Boastful, insecure, and occasionally charming, they were destined for careers that required them to sacrifice family and friends for the success they felt they so richly deserved.

As one of the handful of students who came to HBS in 2004 with few ambitions of his own—he had no idea what he wanted to do—Broughton was well qualified to describe how Harvard in particular, and B-school in general, does such people a disservice. With a second child on the way, he struggled to find a career path that would allow him to spend time with his family—a requirement that kept him from joining the droves in pursuit of consulting and investment-banking careers. The pressure to follow conventional paths is a recurring theme, with classmate after classmate either battling the forces of conformity or succumbing to the siren song. In the end, Broughton spent the summer after his first year in Cambridge working on a novel instead of an internship and graduated without a job after interviews at Google and McKinsey. Today, he retains one foot in journalism while pursuing a few "entrepreneurial ventures."

Broughton found little to criticize and much to praise about the HBS case study method, which gets students to find fixes for company problems. It's a testament to the method of the Harvard faculty that Broughton managed to become conversant in the language of business with so little prior exposure to it.

But ethics is another matter. Many of Broughton's classmates came to HBS ethically challenged, he says; some qualified for financial aid by depleting their savings with the purchase of expensive cars. But HBS didn't much alter their attitudes. In 2005, for example, 119 HBS applicants were caught attempting to hack into a Web site that stored admissions information. For those who had been accepted, Harvard retracted its offers, and its dean called the behavior "a serious breach of trust." But in Broughton's "corporate accountability" class, it was Harvard that was faulted—75% of the class sided with the hackers.

The author gives insight into daily life at Harvard and the "fear of missing out" that leads many students to attend every event, no matter how trivial. But in the end he didn't seem to find it "transformational," at least not in the way HBS hopes it will be. If anything, exposure to business in all its forms deepened his cultural bias against it. He came away appalled by the power that business wields in our society and by the ability of an institution like Harvard to perpetuate that state of affairs. "Has society allotted too much authority to a single, narcissistic class of spreadsheet makers and PowerPoint presenters?" he asks. Broughton leaves no doubt about what he thinks.

Tuesday, August 19, 2008

11.2 million percent Inflation - you must be joking

Let me use few articles as a precursor to my one of my major article on "Why World Bank is a Irrelevant and Irresponsible Institution".

Zimbabwe is skyrocketing in its inflation. Currently the official figure stands at 11.2 million percent, while some of the private reports state that real inflation is close to 20 million percent. Billion $$$ notes are being printed in Zimbabwe and rates get higher by thousands for one SINGLE bread if you delay buying it even by a second. All this for a country which was not long ago called the Bread-Basket of Africa!!

True - it is yet another African country with irresponsible government, hopelessly uneducated mass, topping in corruption and scams blah, blah and blah. And yeah the West has denied every kind of support to the nation. Absence of donors means that the inflation is heading to even roaring heights. All pointing to mass killings & murders, refugees, countless starvation deaths and total collapse of yet another African nation.

And the United Nations and World Bank and IMF stand by and watch. It is not enough to have Millennium Development Goals... it is more important to save millions who are dying without food & water right in front of our eyes. Professor Jeffrey Sachs single handedly has done MUCH more in the past 20 years than what all of World Bank and IMF have done to prevent these kind of economic disasters.

It is easy to blame political parties and government in Zimbabwe for all this. What did the poor people who have no clue about any of this do? The only superpower of the World - United States - will fight in Iraq and other places for democracy. But it will stand by the egoistic economists in World Bank and watch the millions of poor African men & women and children die. After all, Zimbabwe doesn't have oil.

World Bank - be ashamed for what you do... and what you don't!.