Exploitation as contradiction in ideality

2 really disparate examples of exploitation here, I will do a couple of illustrations for defining these contexts as contradictions in players’ ideality and then applying a trend.

One from the affordable internet efforts and why even with reducing capex and opex telecom companies would not cut prices to customers and continue to exploit.

Player Function Ideality Contradiction and resulting exploitation
ISP/Carrier/Operator connect subscribers                          to internet not lose subscriber base, increasing revenues/cash flows, decreasing spend, monopoly increasing average revenue and profit per user directly contradicts with customers ideality to pay
Customer/Subscriber connect to internet for access to services and information pay nothing for connectivity, highest speed possible, always connected ties with devices, price increasing data plans, speed limitations, and forced congestion from operators
Investor invest for returns in companies that make profits reducing capex and opex with increasing revenues and profit is approaching ideality reduced customer service levels and migration of customers, puts revenue and profits on a decline, hence the stock value as well
Media Industry create and distribute media monopoly for content and affiliated business, no other competitive media / distribution channels becomes viable Access to media from internet directly contradicts with their business model to sell content from traditional forms of discs, cable tv content

Second example is around immigration from the recent Syria crisis, even though legal immigrants add value to the migrated place, why politicians continue to exploit voting population by fueling negative perceptions around immigration. But still continuing to turn a blind eye on labor exploits of immigrants to continue with a not so competitive economy.

Player Function Ideality Contradiction and resulting exploitation
State/Politician development and upholding state  sovereignty zero dollars spent on regulation, and citizens get all priority services from government, and never lose an election allowing cheap immigrant labor into non-subsidized industries maintains a bad economy building a false perception around immigration maintains status quo and votes from conservative population that wants to maintain sovereignty
Immigrant Labor to industry every border is open, every country is ‘migration’ worthy, on par with citizen benefits, rights protected lack of labor law to govern their employment means giving away rights, without votes or rights deprived of having a voice in the country
Industry/Employer Value creation for economy, investor, and customers cheap and exploitable labor use and less than minimum working conditions for higher profits, no litigation on violations lack of labor inspection / governance maintains  status quo, including less than worthy labor conditions and pay to immigrants and this as the only way to maintain competitiveness in a falling economy
Citizen Tax payer and uses benefits from state.Also customer for industry. Subsidized sectors, and unemployment benefits for citizens, Pay/Benefits without job. Subsidy perceived as right and any state capital spent on immigrants is actually something the citizen could be deemed eligible for as lost/wasted.
Border Control Regulate migrant flow into state no immigration (legal / illegal) means no patrol or control necessary migrants posing threats to sovereignty, and citizen welfare, calls for massive spend in border control and leading to a back passage creation

Now in both cases at super system level, you could add regulations that will move some functions from the players to another neutral authority. So Regulatory Authority could standardize price plans, open up migrations across, just like they do in insurance policy terms and conditions. Similarly new technology like unlimited connectivity say from Google Moon or, open id, could turn functions in favor of customers/migrants, while skewing for specific types of businesses and not the legacy ones.

In both cases simple system completeness trend will show deficiencies in the governance bit, and a massive undercut of benefits from customers/migrants as a driving force for the functions delivered.


Sample Innovation Services

What I wrote last week is true of any service, not just innovation service. So I just re framed what I have encountered as innovation services as a list below. Obviously words like facilitation or workshops is missing, but I am sure you will get the drift.

· Idea Generation

o Large number of ideas to choose, merge and conceptualize

o Usable, realistic, futuristic concepts

o Simple situated methods for practice

· Rapid Prototyping

o Demonstrating ideas

o Cost estimates for concepts/ideas

· Consulting

o Process set up

o Leadership mentoring and coaching

· Probe

o Ongoing measurement of outcomes and action impact

o Survey design

· Intrapreneurship Program Management or may be managing internal venture funds


Life of an Idea not Lifecycle

For reasons that are, probably historic lifecycle has become a word without life (a dead process), may be my earlier life in IBM did this to me, without my being aware of it.

For ideas we don’t need a system to support the innovation lifecycle or other point of no returns, we need warm bodies that will breathe life into ideas.

Life comes with indicators like ‘react and sustain’, ‘grow’, ‘respond to stimuli’, ‘reproduce’, and all the rest of life’s richness, not a status and a workflow.

Think twice if you are in innovation management before you get on a new assignment to consolidate idea platforms or building governance around innovation or making innovation social with your organization.


What is a Business Model?

I want to give a very simple illustration of a business model. Most of you in India at least may have seen this business, the Yellow Coin Telephone.

All I knew was, I pay 1 Rupee and talk for a couple of minutes, but how does that owner make money, how does Idea make money, what is the investment, what is the margin, how and when does it break even, are there service levels that are necessary for this, and more questions

Here is how it works,

CAPEX: If I want a phone, I place an order with Idea paying 3500 bucks. Idea installs the phone and gives me free 500 bucks talk time (zero for BSNL).

PRICE: For every call made I get to keep 40 paisa (as against 30 paisa for BSNL payphone)

BREAKEVEN: If 3000/0.40 calls are made, i.e. at 7500 calls I break even, after which anything I get is profit, For 7500 calls to be made it typically takes less than a month in a bus stand (where people run out of charge or do not have a mobile phone), may be more than a year in a not so busy locality.

SLA: My phone has to be up all the time, no excuses, and the operator guarantees this with a penalty clause (not in BSNL)

SELLING: No S G A here

OPEX: Space, and nominal running expenses

When you visualize a business in such real terms, it becomes much clearer, don’t you think?


When did you last send a voice sms?

You may be familiar with the following message
“the number you are trying to reach is switched off or out of reach, to leave a voice sms, please dial * followed by the 10 digit mobile number”
I cut the call and redial after some time to hear the same message. Think about it I have 200+ numbers on my mobile and do not remember more than 5 numbers. While the mobile operator knows the number every time I call, then why should I dial the 10 digit number to leave a voice sms, I hesitate because of the extra effort, to see and type.
1/10 calls reach this message, a billion calls made every day per operator, even if 1 % of those calls become voice sms for 10 paise each…do the math. All by just asking me not to dial the 10 digit mobile number, I want to hear only
“Just dial * to leave a voice sms”
Just saying