Wednesday, September 4, 2013

Micro-economics Principles

Micro-economics is management of the scarce resources for the greater benefit of society.

Any opportunity available has a Opportunity Cost which is the cost of the next best alternative available that was passed over.

In a sequence of decisions Net Marginal Benefit Principle allows to choose the next best alternative choice given the associated opportunity cost with each decision.

The Invisible Hand Principle lets the society move towards making efficient decision as individuals make decision which maximizes their profits.

Trade allows people to exchange things and maximize their overall benefit.

Example :

I need to manage my time (scarce resource) across multiple courses that I am doing  (Invisible hand principle to educate oneself for better life) . Among the 20 odd courses I am taking simultaneously, I see that I would have to Trade some of my personal tasks to get more time that I can allocate to studies. Still, I cannot manage all the courses and have to choose only 10 courses based on their Opportunity Cost. And among these 10 courses activities (lectures, quizzes, assignments, readings, projects) I would have to choose activities based on their Net Marginal Benefit.

Tuesday, September 3, 2013

New Business Model in Society

Old Dominant story of business assumptions 
- Business is primarily about profits and loss
- Only Shareholders matter
- Limitless physical resource world
- Capitalism works
- Given opportunity, business people cheat
- Business works because people are competitive and greedy - Invisible hand effect

New Story of Business
- Business are for a purpose.
- Business creates value for everyone
- Most people work ethically and business increasingly have ethics
- Capitalism works because Humans are complicated and cooperate to create value
- Business and capitalism are the greatest system of social cooperation. Competition is important but value creation is the main engine of capitalism.

Sunday, September 1, 2013

Business Strategy Anlysis

Strategic analysis is the evaluation of an organization current competitive position and the identification of future valuable competitive positions and how to achieve them through a business strategy

  • Vision and Mission of the organization operation in product and market terms.
  • Define the strategic Plan to leverage internal resource and capabilities to accomplish the mission
  • Strategic actions – Individual actions taken to execute plan to attain mission


Building a business strategy for an organization


Understanding Shyness – Stanford Prison Experiment

The Stanford prison experiment performed by Philip Zimbardo in the basement of the Stanford Psychology department wherein group of male subjects were divided into two groups – Prisoners and Guards, after a week of experimentation when the experiment was stopped the two groups had started to identify themselves as prisoner or guard. 

The guards with their full authority had becomes sadistic, their only source of enjoyment was derived by harassing the prisoners. The prisoners had lost total control of their situation and had resigned themselves to whims and fanciful punishment of the guards. The prisoners turned their desperation inwards becoming quiet and introvert. And the guards turned their absolute power outwards and becoming more and more extrovert.

 Both the groups had lost the sense of their reality that they were in a psychological experiment. How often do we allow the sadistic world allow us to prison of our mind into confinement? Do we become shy when we are defeated again and again by the world and resign our fate to the world? Do we become quiet in front of the people who are more powerful? Do we express our true belief to such powerful people who have a different opinion?

Obedience to Authority

The classic work of the Stanley Milgram on the ‘Obedience to Authority’ years ago which has been validated again even today is an amazing eye opener on the behaviour of normal people in the situational context.
As presented in the experiment, it’s hard to believe when people knowingly give the dangerous electric shocks to the other person on the command of an authority figure. Some of the reason which subjects ’Teacher’ gave to justify the action in the experiment where
  1.    They trusted the Authority figure to understand what is being done is correct although they are able to hear the cries of the subject being given shock.
  2.    They assign the result of their actions to the experimenter and won’t take the ownership of their actions. For them they did as was told to them by the experimenter.

A lot of times this obedience to authority has manifested into dangerous actions taken by the common man on behest of the authority figure

Where have you seen people making decision against their will based on the command of the Authority?

Friday, August 30, 2013

Design Thinking

Recently, I had the opportunity to take the Design Thinking Action Lab course from Stanford University and it really helped to concertize the process of developing a solution to a wicked problem through the process of design thinking.

Empathize - Understand your target consumer and understand the world from his perspective, get into his shoes to understand his pain.

Define - Define his problem

Ideate - Think 50 ideas to solve his problem, practical ideas, cost effective ideas, ideas with unlimited resource availability, ideas with minimal changes, ideas with drastic changes and BLUE-SKY ideas - out of the world crazy ideas. Important thing to remember when ideating don't put your critical thinking hat and stop/obstruct the generation of ideas. If you are doing this in your teams don't be critical as it will stop the ideas flow. Filtering of ideas can be done later but this is the phase to open the flood gates and let the ideas flood you.

After you have listed all your ideas, pick the top 3 - Practical, Favorite and Most Disruptive.

Prototype or Pretotype - This is the stage when you basically, take your top 3 ideas and do a quick prototype or pretotype. The idea is to have a cost effective way to validate a concept.

Test - Get your target customer feedback on your idea prototype and revise it if needed.

Sunday, March 11, 2012


NorthEast Expedition : The Cold Arrival

The next day spent in the train was unarguably the most comfortable in the whole trip. We toggled between the two coaches and most of the time was spent in planning and mapping the expedition and in calculating the top speed of the train. It was always a mystery and something that I always wanted to know from my childhood days. Now, I had the technology to do so and that is the built in GPS in my mobile and after spending initially around 10-15 minutes to lock-in onto the satellite, tracking the train even at its top speed of 112km/hr was a breeze. Even after spending time in all kind of activities, train travel leaves a lot of time to be filled in and when you have a lot of time to do nothing but see things pass by, you start thinking of the life gone by. And when you spend quality time with no one but yourself then you really get to know yourself.

The Young Claimant

Interestingly at our original RAC berth, the young claimant of our yesterday’s tripartite division of lower berth never came down to proclaim his property. And, whenever we toggled back to the RAC berth and in case if we found him sitting there he would politely leave the lower berth and move up to the upper berth. Even when told to comfortably sit in lower berth. However, more perplexing was when during our discussion over itinerary we needed a pen and I looked up to the upper berth and asked him if he had a pen. He had a disappointing look at his face, he looked around for the pen which mostly wasn’t there and he searched for some 5 minutes trying each and every nook and corner. I was about to peek up to the upper berth to say ”That it’s ok”. But then he was actually coming down, I guess the pen search was already abandoned and probably the nature’s call had taken more priority. But then he started looking below the berth probably for the sleepers but surprised that he was pulling out his luggage and then suddenly popped two pens. I was surprised at the length of effort he put in to give us the pen and more interestingly the overnight change in the attitude towards us.  

The Old Rusty City

At dawn, Kolkata was still wrapped in a blanket of fog as if though shielding itself from the pinching cold. But the sun rays had their own wish to pierce and puncture the fog and wake up the old slumbering city, which once in its golden days was at the center of everything. Slowly but surely we were moving towards our final destination, Howrah.  Although late, we reached the Howrah station at around 7.45 a.m. It was time to come out of the cocoon and step into the unplanned world. 


The first task was to answer the morning call which started the hunt for the upper class waiting hall. It was like waiting hall just wanted to be left undiscovered. The initial direction arrow heads led our footsteps to a neat and clean grand reception, well all my instincts and guts were saying it can’t be the waiting hall but you never know miracles do happen in Indian railway stations if the railway minister also happens to be state chief minister. So, with hesitation I asked the person at reception “Is this the upper class waiting hall?” The answer was quick to bring me back to reality “No, it’s a restaurant cum hotel. Go back and take the left for waiting hall.”  While retracing the steps backward first left had  a narrow staircase winding upwards with people queuing up on it, which looked like a reservation counter queue and next left on the passage way was straight away taking us out to the taxi stand.

We followed the winding staircase already narrowed with the queue of the people, there was no sign of the waiting hall at the first floor, we asked a guy who appeared to be someone working there and the answer was to follow a narrow passage way with the rusty old closed windows and the cobwebs adding to its vintage ancient look. And finally we arrived at the upper class waiting hall a dilapidated room with some old benches lying around, to an uninitiated traveler the naming convention in India can be misleading wondering if it was named so because it’s in the upper floor or probably to keep the general public at distance.

Live the Marxist way

After the morning business done to satisfaction, it was time to book tickets to our next destination Siliguri. And you come face to face with the Marxist state.  We wanted to start moving towards our destination as soon as possible and the possible ways to either take the train or the bus. The next train was in afternoon at around 2.00 p.m. So the best shot was to take the bus and we headed outside the railway station and you get the first glimpse of Kolkata still slowly peaking through the fog cover trying to get started in the cold morning, a cold breeze from the Hooghly river touches your face. And after getting the clue of the bus station from the taxi driver, we headed towards the Hooghly bridge, the old steel bridge still standing tall, keeping the legacy of the British still alive.

The task was simple go to the other side of the road and catch a bus going towards the other end of the bridge and most probably it would be going to the bus stand.  There were only night buses for Siliguri and the other option was to hope on local buses and get to the destination but people advised against it given the condition of the state buses it was well justified, we would reached Siliguri but it would have left us with an aching body crying for rest instead of sightseeing. So , after our breakfast at a road side food joint at the bus stand, we headed back to the railway station to do our reservation.

There are number of main entrance to the Howrah station and every entrance appeared to have a booking counter and when approached the answer was to go to the next building. And you really get to know the real meaning of pillar to post. After asking at each of the counter we reached the last building and the answer was go to the next building in front. Well, It was time to repeat the cycle again but before we do that the situation demanded a root cause analysis and it appeared that instead of asking for the tickets in the specific train, we would ask for the ticket to Siliguri. As, we were looking for the unreserved tickets and not for reservation, bingo! We got into next reservation counter long queue and we had our tickets to Siliguri.

It was time to go for a little sightseeing in the Marxist state capital. And we looked for a cloak room to keep our luggage. And we did found one with a long queue, processing one passenger at a time with the easy go attitude. After keeping the luggage it was time to head towards Kalighat, now that was my friends choice as he had already been and seen Kolkata.
The railway bus stand was like a chaotic maze with the buses coming in and then displaying themselves on a semi circular ramp, the interested customers trying to catch a glimpse of its nameplate and jumping into it. For amateur customers like us navigating the maze required guidance from the experienced customers or taking a direct approach of asking the driver or conductor.  Ultimately, after numerous trade dialogs we got our bus to Kalighat a rickety bus made of wood, when you walk over it each and every wooden piece creaking to say go slow or you will break me. And you wonder why this bus is still operational, when it could have easily made into a prized possession of an antique collector.

  After a bumpy ride in the rickety wooden bus we reached our destination Kalighat.  Now, I don’t classify myself as a believer nor a skeptic. I like to maintain the status quo between the two sides and that some people would call as being agnostic. But I don’t mind accompanying the believers. However, Kalighat is famous for more than one thing and when you get to the street that leads to the Kali temple, you would see the materialism and spiritualism side by side. On one side of the street you would see all the shops selling all the materials for the puja and everything that leads you to the spirituality and on the other side of the street you would see vividly painted girls demonstrating themselves to catch your attention and get a customer.

At first glimpse it may appear as two side locked in a war.  But then you wonder why should these girls choose this place for their business. It would require extra effort here to get a customer then in a place anywhere else.   And when you look a little deeper into the past and then you start thinking if these girls trace the roots back to the ancient devdasis, who initially were to please the gods but actually pleased the servants. And then you also wonder with Kali comes tantra naturally and if they helped the ascetics to satisfy their carnal desires to reach nirvana. After all nirvana is a state where you don’t have any more desires and how can you reach there if you haven’t satisfied all your aspirations.

And when you get near the temple you don’t get any glimpse of any spirtuality but you come face to face the materlistic way of the so-called brahmins readily packaged spiritual tour. Courting you all the time trying to guide you and choose all the items for the tour, but today they caught the wrong guy and after dodging all the touts we just went around the temple, that was enough to rub the spiritualism on our souls.

After the lunch, it was time to head towards the station at around 1.00 p.m. By the time we reached the station it was 1.30 p.m. And after  buying the India travel guide it was time to get our luggage from the cloak room and catch our train which was about to arrive at the platform around 1.55 p.m.  And when we reached the Cloak room came the shocker there was a long queue at the cloak room window, we thought it was the queue for keeping the luggage and then we went in directly through the door in a hurry to collect the luggage. And were sternly told that we need to get into the queue and wait for our turn to collect our luggage and that punctured the balloon of our hopes. Looking at the queue there was no way to catch our train to Siliguri as it was already around 1.45 p.m.  And a closer look at the queue showed some familiar faces, the young claimant of our lower berth was in the middle of the line and then passengers from my upper berth were at the end of the queue.  There was a struggle to make the decision whether to get at the end of the queue or to start pleading or bribe the person at the core of the business doling out the luggage. But his stern words had not left any room of going back into the cloak room. And when you don’t have any option left you generally approach the familiar faces for help and the most likely choice was the young claimant inching closer to the head of the queue. We approached  him  smiliing ”Hey long queue.” And waited along side him to make it look natural for others as if though that we are all together, and after some struggle with the mind the request popped out “Hey can you get our luggage as well. We need to catch our train in next 10 minutes.”  There was hesitation and after some time he took our reciept.  There was now hope but then he said that if the counter guy accepts only one receipt then he is going to give his first and the ray of hope that had come suddenly disappeared with the same speed. As we approached the counter along with him, he said ”You can come in to the queue and stand in front of me. ” Our only apprehension was that the people in the back of the queue should not shout at us. Stepping in and out of the queue, we tried to convince everyone that we are in line. No one shouted and we reached the counter gave our receipt and quickly ran in to collect our luggage. Gave big thank to our young claimant and started running towards the platform where the train had already arrived it was around 2.10 p.m and the scheduled departure was at 2.15 p.m.

 Tip1: When arriving at your destination in the morning after an overnight journey. If you are a budget traveler look for a good restaurant for breakfast and you would be treating yourself to good food and a clean toilet. Public toilets in India are mostly very filthy and dirty.