Innovation 101 – Cost vs. Quality. Deuce.

To me it doesn’t matter whether India will be able to maintain its cost advantage. What does is sustainable and long-term value as a combination of cost and quality. In my view we are seeing the end of the traditional benefits of outsourcing. In whichever way customers were disguising their need to leverage lower costs, the only reason for outsourcing was cost arbitrage. We have seen that gap closing especially in the case of Indian talent. Squeezing benefit from outsourcing purely on a cost basis is clearly the last remnants of Industrial age thinking, which besides all other untenable factors, seems to think of human beings as alternatives to machines. I suggest for this reason alone, that we delete ‘outsourcing’ from business lexicon.

Joel Delman, Los Angeles design director for Product Development Technologies(PDT) points out

Having already gained the lion’s share of  manufacturing work, countries like China and India are now focusing on building  their capabilities in the innovation and design phases of product development.  While some may dismiss the seriousness of this trend, we’d be naive to believe  that the United States has a monopoly on a creative workforce.

(read Cost vs. Quality: The Dangers of Outsourcing Design Overseas) Continue reading

Anti-Globalization Bill 2010 passed by America

Dear Mr. President,

Congratulations on the passing of the landmark Anti-Globalization Bill, 2010. I quote from the first 30 minutes of your The 2010 State of the Union Address on 27th January 2010.

Obama – 0:17:45 – 0:17:55 “… to encourage businesses to stay within our borders, it is time to finally slash the taxbreaks to companies that ship jobs overseas and give tax breaks to companies that create those jobs right here in America.”
Sure Mr. Presidunk. But where will you get the skills you need. I believe you exported these to us lesser mortals for mercenary reasons 2 decades ago. Give us a shout if you need us to re-skill your workers.

Obama – 0:20:47-0:20:52 “… they [India and China] are making serious investments in clean energy because they want those [our] jobs.”
Yeah, we all know that there’s a larger world outside America, but do you? C’mon Obama, India has more important issues to think of and things to do than to think of America’s jobs. And guess what, the job market is much larger (and unfortunately for your ilk) and growing in our part of the world. Hey we don’t need your jobs. We actually have jobs on offer. Interested? Only we don’t have your ‘Bogus Bonus’ plans.

Obama0:25:53-0:26:04 ” … because the nation that leads the clean energy economy will be the nation that leads the Global economy. And America must be that nation.”
And why Mr. President, should everything be a race? Why must America always want to be the leader? Why is it always America vs. the rest of the World? The issues of Climate Change & Environment and clean energy are humanity’s collective problem and can be solved better through cooperation than competition. But you can’t understand this even if you tried.

So much duality – us and them all the way. And there’s much applause punctuating your speech, I wonder why.

Yours sincerely etc. etc.,
PS: BTW  “In this new decade, it’s time the American people get a government that matches their decency; …”  What new decade??? Like 2000 was the new millennium?? Haha … 2011 is still 11 months away!!!

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Vendor-Client relationships

Whatever one may try in building relationships with customers, it always comes back to negotiating prices the way it was done in the industrial (material) age. This hilarious, in-your-face video says it all. Is our client listening?? Can they laugh as loudly as we at this beautifully captured absurdity

Read Ann All’s post “Squeezing Vendors Isn’t a Good Idea” 

Counterpoint – Is Fiat Money better than the Gold Standard?

So here’s the rebuttal from the other camp. A comment I received on my previous post Printed Money, Gloom to Doom was from a friend who urged me to look at the opposite view. He said – “Sunil, I’m afraid you’re completely off the mark on money”.

There is no intrinsic virtue to the gold standard. The true basis of any currency is the productive capacity of the economy where it is printed. This has nothing to do with the quantity of gold held by the country. Your credit card issuing bank creates money when it gives you credit. The real issue is when the money supply goes out of kilter with the supply of goods and services in the economy. Right now, inflation is not a problem. Deflation is the threat facing the developed world. The US is tackling that by loosening money supply.

Here, let me help you get on the other side of the debate – “Fiat money is better than the Gold Standard”. The question is why. Continue reading