Archive for the 'Businessworld' Category

My theory of Business evolution

Business is about profiting from scarcity.

  • Demand – Supply =  Scarcity
  • Price – Cost = profit

Evolution in business :

  1. Pick current Scarcity (and which has price $$) fill it with abundant supply
  2. Which creates / props-up new scarcity.
  3. Become leader in servicing the new scarcity.
  4. And the next generation will strive to make the new scarcity abundant and repeat the cycle.

Mass production

Reduce common costs thus increasing profits

Luxury business

High price for extreme unessential (for living) scarcity.

Broadcast model

Zero price subsidized with Ads revenue on a high volume

Google search

Zero price, low cost subsidized with Ads on very high volume

Amazon

Minimum inventory costs for large volume resulting in discount price

Music business

Zero price for music, high price for related experience

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King kills 10% of own soldiers …..because he cannot win anymore !!

ENDERLE: I’m not a big fan of layoffs and large layoffs tend to have a lagging impact of making the company increasingly less competitive as the organization tries to recover from the lost resources of the people that have left. Enderle thinks it would be better for Intel to focus on their lack of competitiveness against rival Advanced Micro Devices.

Marketplace: Intel layoffs

Whenever I see a news about big company laying off (it is always 10% or such of resources), I am reminded that at the end the investor is the king.It is obvious that companies announce such things, for the benefit of investors. Who else would care / like this news. They could have as well done that without shouting out loud.

BUT … Should the investors be happy. Especially for companies like Intel.

Intel made their bucks because they were the leaders in chip making. It is not a good sign, when a leader informs that he didn’t notice when he became lazy (more baggage).To me, it actually means…

Company saying – WE DON”T HAVE ANY NEW/GOOD IDEAS TO BE THE MARKET LEADER .

like a King saying – I am going to kill 10% of my soldiers, because I cannot win anymore.

King killing own soldiersSource:photos.windley.com

Should investors be happy with that ?

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Design principles for PRODUCTLETS

Product-lets

Once upon a time, we used to buy monolithic products.

You bought a machine(one TV box). But now you buy software.

You had software pre-installed (Microsoft veriety). Now we discover new applications (productlets) everyday.

The proliferation of best of breed productlets, drives the innovations to new heights. College teens and new class of “developers” are becoming innovators.

However these ‘small things’ are creating a clutter at home and on computer. There is no theme. No standards to help keep the the things organized.


Definition : Productlets – Small incremental products or components which are built and distributed by small group of amatuers.

Some design principles for such productlets, that I believe will make them sustainable.
1. Use and forget – I cannot keep 1000s of productlets on my counter / desktop. They need to disappear when not in use.

2. No Install or ownership – Can I just use (pay for it), instead of owning and storing it.

3. Remembers me – While I want to use when needed, it should remember what I did last time (Google doesn’t do this).

4. Adapts to my home environment – A beautiful productlet is not good enough, it should be able to intergrate within my home environment ( with all other productlets).

5. Easy to learn – Does Google need to publish a manual to use their search ? yes for advanced users, there are options, but for average user – just type and enter.

6. Grows smoothly – As one uses it, the productlet interface should mature – no one needs to remember CNTRL-C for copy, it is automatic. So I can use menu for more advanced stuff as I use it more.

Productlets should be more like Car rental service – use it, pay it and forget about it.