Archive for the ‘did you know’ Category

The 3 kinds of (competitive advantage) data

Thursday, February 14th, 2008

I learned some interesting financial jargon today.

Competitive advantage, referred to in financial markets as alpha, only comes when you have information that others do not. (An earlier speaker, Eric Christiansen of Barclay Global Investors, made clear that people like him think of three types of data: data that everyone has that gives you no advantage, data that you need to know because it gives you no advantage but not knowing can really hurt you, and finally, data that only you have, and can (briefly) take advantage of.)

Interesting food for thought. I’m going to chew on this for a while, especially #2. What about me that I don’t know about, that other people can see, that can hurt me? (a.k.a. your blind spot)

A simple solution to a difficult challenge

Wednesday, February 13th, 2008

A simple solution that impact the lives of others by solving a seemingly difficult problem!

From the blog of Guy Kawasaki.

Dominant Logic

Monday, February 4th, 2008

C.K. Prahalad writes on the powers of Dominant Logic,

All of us are prisoners of our own socialization. The lenses through which we perceive the world are colored by our own ideology, experiences, and established management practices. Each one of the groups that is focused on poverty alleviation–the World Bank, rich countries providing aid, charitable organizations, national governments, and the private sector–is conditioned by its own dominant logic.

Makes sense to me. We’ve all had different paths, and each of our paths has shaped our thinking in different ways. This reminds me of something Paul Buchheit said some time ago about the limitation of our own thinking.

In his presentation at Startup School 2007, Paul reminded us that when someone tells you, “That’s impossible” it should be translated as “According to my very limed experience and narrow understanding of reality, that’s very unlikely.” Everyone continuously builds a different set of experiences in their respective lives, and therefore everyone’s understanding of reality is fundamentally different.

I covered that here. Back to the story on why for-profits are generally viewed and treated negatively in their genuine endeavors to do good (and inhibiting them from achieving real success). Prahalad continues,

The policies of the [Indian] government for the first 45 years since independence from Great Britain in 1947 were based on a set of basic assumptions. Independent India started with a deep suspicion of the private sector. The country’s interaction with the East India Company and colonialism played a major part in creating this mindset.

The dominant logic, built over 45 years, is difficult to give up for individuals, political parties, and sections of the bureaucracy. This is the reason why politicians and bureaucrats appear to be vacillating in their positions. Most thinking people know where they have to go, but letting go of their beliefs and abandoning their “zones of comfort” and familiarity are not easy

(more…)

Unbundling production from delivery can change the world

Monday, January 28th, 2008

From this article from the McKinsey Quarterly,

Technology helps companies to utilize fixed assets more efficiently by disaggregating monolithic systems into reusable components, measuring and metering the use of each, and billing for that use in ever-smaller increments cost effectively. Amazon.com, for example, has expanded its business model to let other retailers use its logistics and distribution services. It also gives independent software developers opportunities to buy processing power on its IT infrastructure so that they don’t have to buy their own.

Interesting, but that (Amazon Web Services) seem like an obvious application since IT assets are consumed remotely/virtually, i.e. one isn’t actually physical interacting with it. Does unbundling apply outside of the virtual world too?

Unbundling works in the physical world too. Today you can buy fractional time on a jet, in a high-end sports car, or even for designer handbags. Unbundling is attractive from the supply side because it lets asset-intensive businesses—factories, warehouses, truck fleets, office buildings, data centers, networks, and so on—raise their utilization rates and therefore their returns on invested capital. On the demand side, unbundling offers access to resources and assets that might otherwise require a large fixed investment or significant scale to achieve competitive marginal costs. For companies and entrepreneurs seeking capacity (or variable additional capacity), unbundling makes it possible to gain access to assets quickly, to scale up businesses yet keep their balance sheets asset light, and to use attractive consumption and contracting models that are easier on their income statements.

(more…)

Facts about helplessness at work

Saturday, December 22nd, 2007

I have held previous jobs where I felt just absolutely shitty and felt just completely helpless, not knowing how to dig myself out of the deepest trench in my life. Out of challenging moments and difficult times, you always learn something out of it. Consider it character building–the tough way. I read this today and am sharing this here to remind myself in future:

Among small-business owners and employees, those with a stronger sense that they control what happens to them in life are less likely to become angry, depressed, or agitated when faced with conflicts and strains on the job. But those who feel little control are more prone to getting upset or even quitting.

In a study of 7,400 men and women in London civil service jobs, those who felt they had to meet deadlines imposed by someone else and had little say in how they did their work or with whom they did it had a 50 percent higher risk of developing symptoms of coronary heart disease than those with more job flexibility. Feeling little control over the demands and pressures of the work we have to do holds as a great risk of heart disease as risk factors like hypertension.

That is why, of all the relationships we have at work, the one with our boss has the greatest impact on not just our emotional health, but also our physical health.

(more…)