A train of thoughts and writings on development, technology and the economy focusing on the socio-techno-economic-cultural surge of developing economies to regain and partake in leadership of the world. Written by George Easaw, member of the faculty of Business Administration of Allliance University, Bangalore, India. (This is purely an academic site, no commercial use is allowed. Photography rights lie with the respective organisations). Mention credits as needed.
Wednesday, December 22, 2021
Tuesday, December 21, 2021
Reliance Jio Platforms, the next great offering from India ?
It was in September 2016 that Jio, the mobile platform from the Indian conglomerate Reliance led by the elder brother Mukesh Ambani offered its free Internet and free calling to customers around the country on VOLTE (Voice Over Long Term Evolution) networks. What started from one customer in 2016 in five years by 2021, has 426.2 million subscribers, the largest communications network in India and the third largest in the world.
What makes this achievement very much interesting is the fact that all investments into Jio Platforms and Jio Retail that got Reliance indebted for almost $21 billion has been taken up by global IT industry giants like FB, Google, Microsoft etc pumping billions of dollars, making the company totally debt free.
By insisting on advanced VOLTE 4G technology over 2G and 3G technology, Dhirbhai Ambani made the right move by avoiding low tech investments which would not bring revenue.
Prof. Vijay Govindarajan, Anup Srivastava and Mani Venkatesh writing in the HBR of Dec 21 How working with competitors made Jio a telecom giant, (click here) speaks of the strategy adopted by Jio Platforms in emerging successful in the long run. The four major strategies mentioned in the article are given here
1, providing innovative value to telecom ecosystem
2, leveraging partner ecosystem
3, engaging in co-opetition (cooperation + competition) and
4, providing unique digital experience through intermediation
Providing a highly affordable and efficient digital communications network in the country when all cellular players were taking the customers for a ride, was the turning point and the reason why Indians took to Jio platform like duck to water. Economical, affordable and value for money.
In just 26 months Jio platforms has changed the Indian communications, data and entertainment ecosystem, besides retail.
The whole nation looks forward to find what is next ?
George.
Thursday, December 16, 2021
Visit to Toyota Engine Industries ..
Wednesday, December 15, 2021
Visit to Wipro 3D, Peenya, Bangalore
By 9 am we were in the Peenya Wipro establishment and by 9.30 finishing all the arrangements we were received by Arpit Agarwal, the manager at the facility and his two colleagues, engineers. We were inside the facility. We were stunned by the metallic 3D printed components that were on display, mainly parts for the aircraft industry like HAL and ISRO. They were mentioning how through 3D printing WIPRO could help ISRO with a 4 nozzle setup printed as a single component, avoiding any joints, welds, nuts, bolts etc.
Monday, December 13, 2021
Bringing Rockefeller habits to the work area ..
Can the Rockefeller habits be applied to a service firm, is a question many people ask me. According to my experience, Rockefeller habits get maximum benefit when applied to service firms. Besides my industrial experience that related to manufacturing, I was also heading an educational Institute, where Rockefeller habits were very useful. Daily we used to have the 11 AM huddle, where Area chairs or HODs from different departments used to assemble standing and share their problems with the Principal and other colleagues. More often than not, quick suggestions used to come from other colleagues and the problem was half solved.
Rockefeller's three guiding principles are priorities, data, and rhythm. According to the book Mastering the Rockefeller Habits by Verne Harnish, Rockefeller determined that leadership needs to set priorities, learn from data, and create a rhythm within the organization.
What are the 10 Rockefeller Habits ? (www.growthinstitute.com)
The executive team is healthy and aligned
Everyone is aligned with the #1 thing that needs to be accomplished this quarter to move the
company forward
Communication rhythm is established and information moves through the organization quickly
Every facet of the organization has a person assigned with accountability for ensuring goals
are met
Ongoing employee input is collected to identify obstacles and opportunities
Reporting and analysis of customer feedback data is as frequent and accurate as financial data
Core values and purpose are “alive” in the organization
Employees can articulate the key components of the company’s strategy accurately
All employees can answer quantitatively whether they had a good day or week
The company's plans and performance are visible to everyone.
Saturday, December 11, 2021
Visit to Bangalore Bioinnovation Centre
Saturday, December 04, 2021
China's crumbling high speed rail infrastructure ..
China's investment in High Speed Rail infrastructure running for 37,900 kms at end 2020, 19,000 kms in 2015, has been the highest in the world over the past decade. Since 2015, they have invested almost double of what has been done by the rest of the world in 50 years. It has run into losses of $8 billion last year or about $24 million per day.
Is this heavy investment, running to the tune of $900 billion (by the central govt) and another $900 billion by the respective local governments a liability or giving proper returns to the Chinese GDP ? Is it a drain on the Chinese economy ?
Data points to the fact that it is causing Chinese economy to bleed. This article is trying to point to some interesting and important data relating to HSR network in China and the world and how it is helping decongest the supply chain networks in China and other parts of the world. Thanks to the video from Chinese insights. (click here)
The 37000 kms of HSR built in China over the past ten years has been double of what has been built around the world for the past fifty years.
The Tokaido Shikansen HSR built in Japan in 1964, stated generating profits in 3 years, extens for 500 km connecting 8 important cities in Japan and covering 55% of the population of Japan. It has had a passenger travel intensity metric value of 90 million passenger-km per km where the threshold for profits is at 36 million passenger km per km as per a Japanese academic.
The average value of the same metric passenger intensity in China is 17 million passenger-km per km. The maximum has been between Beijing and Shanghai at 47 million passenger km per km while the minimum has been at 2.3 million passenger km per km. Thus we find Chinese HSR has been bleeding for a long time.
The average cost of HSR infrastructure is about 2.3 times higher than ordinary railway while the fare is about 3x. The low occupancy rate of HSR at 30% is one of the main reasons that the Chinese HSR is bleeding.
HSR rail essentially to run at profit has to travel through high population density areas. While Chinese ports account for 40% of global container transportation volume, the sea rail intermodal transportation within China is just 2.5% while the sea rail intermodal transportation rates for US and Europe is at 40% and 38% respectively. China controls about 49% of the world port container freight.
We find that infrastructure cost wise, HSR infrastructure cost is 3 times ordinary rail costs. The weight of a HSR train axle is about 70T that of an ordinary train is just 23T.
For every doubling of speed we find the fare increases 4 times. ie. to save 8 hours on an average for a ride, one has to spend about $32, which does not work well for the Chinese public.
The growth in GDP occurs when for every $100 billion invested in ordinary rail road infrastructure gives a return of more than $100 billion in the long run. But this has not been happening for HSR. The poor occupancy has slowed down the returns that proves that Chinese HSR is bleeding.
It is high time Chinese communist dictators take a relook at their bleeding HSR network.
The Indian political leaders should look at the Chinese failed experiment and instead of going for HSR within the country should go for ordinary rail network running at app 200 kmph speeds.
George.
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