Saturday, May 22, 2021
What's the Way Ahead for India? ... for the Whole Humanity?
Sunday, May 9, 2021
The Lucifer Effect within the Prosperity Paradigm
Saturday, April 24, 2021
Cantillon Effect: The Prosperity Paradigm Perspective
Richard Cantillon was one of
the earliest economists who could correctly analyse the flow of money in an
economy through cause and effect mechanism.
(https://en.wikipedia.org/wiki/Richard_Cantillon) He was the first to recognize
the role of entrepreneurs in economy.
Cantillon suggested that inflation occurs gradually and that the
new supply of money has a localised effect on inflation. He, not only made this
observation, but also gained a lot by masterminding the Mississippi Bubble! This priced that the greatest benefit will accrue to the first in the flow while affecting the farthest in the worst manner in largely zero sum economy, which were built by the financial institutions and the predominant but largely nonproductive sociocultural forces!
Until recently, the flow of money has been the prerogative of
the financial institutions and the respective governments. Largely, all these
institutions have been working solely to appropriate the most value benefit at the
lowest risk. While this arrangement has been helping the financial
institutions and the leaders within these institutions to strengthen their grip
on the economy as the time passed. At the same time, all other segments of the
economy are getting less benefit while increasing benefit to the financial
institutions but the segments down the flow further are losing to the segments
prior to them heavily, in the zero sum economies. And due to this circular flow within the economies the
disparity between the financial institutions in terms wealth & value has
been increasing, exponentially. The disparity gets accentuated especially in the worst times
such as the present Covid Crisis the world is going through.
Effectively, till date, the money, hence wealth & economic
value, has been in the ever stronger grips of the holders & hoarders of generally nonproductive yet high value assets, since many generations prior to them. The sociocultural forces till date
have ensured increased concentration of wealth in the hands of few and most of
the times, the money is stuck largely with the least effective & efficient
value creating assets. Over centuries, whole world has experienced the worst
effects of the Asset Bubbles, while the farthest segments in the economies have
been affected by these bubbles. Due to series of such economic bubbles, the
lower strata have been affected badly and many times revolted thus leading to
chaos and failures. The most productive people and entrepreneurs have been at
the receiving side of such consequences for millennia!
But, after centuries in human history, we have laid the foundation for the 'money' to be 'created' and 'propagated' right in the midst of entrepreneurs, thanks to cyber currencies! The greatest benefit of this new 'economy', due to Cantillon Effect, is in helping the entrepreneurs to not only create value but appropriate most of the value. In addition, the flow also happens in such a way to benefit the most productive assets, people and institutions the most. This brings the Prosperity Paradigm right in the centre of the economy ensuring not only the greatest value creation engines are created but also help the entrepreneurs to appropriate the most of the value, this encouraging and inventivising the entrepreneurs to create Virtuous Cycles of value & wealth creation and ensuring the faster velocity of flow among the most productive segments in the economy. Inaddition, the most of the high value creators will move up the sociocultural strata to perpetuate the Virtuous Cycles & Ecosystems in societies. Hence the greater benefits of Prosperity Paradigm are enjoyed by most of the people, especially the ones who were kept out of the 'old' economies! Effectively, the whole process driven by Prosperity Paradigm ensures evolution of mankind faster this ensuring the thriving of humanity leading to the predominant position for all of us collectively, in the universe!
Sunday, April 18, 2021
The Prosperity Paradigm: Cornerstone
Jobs-to-be-Done (Jobs2BDone) Theory was presented with the example of Thick Milk Shakes with Chunks throughout Prof. Clayton Christensen's literature. That is the most wonderful way of identifying the needs & wants of the consumers. This example also emphasizes the rest about the consumers themselves having difficulty in articulating their needs wants, even when they have been already getting satisficed. Though this example highlights leveraging of the available technologies, it is the most apt for diffusion of new technologies.
Original
Image Source:
https://en.wikipedia.org/wiki/Disruptive_innovation
Disruptive Technologies not only dramatically increase the performances thus disrupting the present markets, they also can do completely new 'jobs' for the customers, consumers and clients.
Just to give an example, Gordon Moore's Law of doubling the performance of the CPUs every 18 months made PCs to do more new 'jobs' for the end users. The ecosystem driven by the duopoly of Intel & Microsoft relentlessly delivered increasing number of new jobs to be done for the end users for more than 2 decades. And ... in addition, Steve Jobs made the whole ecosystem more challenging, exciting.
Interestingly, Sony has been in the forefront of creating new markets by leveraging the available technologies while riding the disruptive technology curves. Steve Jobs finessed the art of creating new markets. This type of Market Creation has greater challenge in identifying the unarticulated needs and then meeting those needs in the most satisficing manner, while building the value chain. The challenge doesn't end there, the Market Makers have to lead & dominate those markets for decades to come by providing the leading edge products for the most underserved markets!
Jobs2BDone Theory is critical and forms the cornerstone of Prosperity Paradigm for two reasons:
1) The existence of market, the needs & wants of the end users can be highly context specific and are dependent on changing times. And the necessary ecosystems are built for value delivery to the markets in the most optimum manner.
2) The market creation and the necessary ecosystem building can be possible by leveraging the technologies thus Diffusion of Technologies is the way to ensure dramatic value delivery leading to reward sharing by the Market Creators through the ecosystem.
As the humanity evolves at accelerating pace more and more Disruptive Technologies are going to emerge. Presently, we have reached stage of faster adoption of the technologies for the whole humanity facilitated by the latest communication technologies & infrastructure. So we have reached a stage with many disruptive technologies accessible to most of us. The real challenge lies in diffusion of these disruptive technologies unlocking the immense value for the market. The Market Creators are at the barrage point of facing the humongous opportunities. The disruptive innovations unleashed by the Market Creators till date have diffused the disruptive technologies in the service of the humanity. In addition, those innovations have created the necessary infrastructure to facilitate the diffusion of more disruptive technologies to 'do the job' for the humanity. So the new Market Creators are not only leveraging the disruptive technologies to deliver value and thus create the foundation for the forthcoming disruptive technologies. This is how the floodgates of humongous value is opened. And this is the crux of the Prosperity Paradigm.
Saturday, April 17, 2021
Emergence: The Prosperity Paradigm
Prof. Clayton
Christensen, through his lifelong, dedicated, focused, intensive work on
Disruptive Innovations, has offered the foundation for the Prosperity Paradigm
through his last book The Prosperity Paradox. (https://www.harpercollins.com/products/the-prosperity-paradox-clayton-m-christensenefosa-ojomokaren-dillon?variant=32207525511202)
He has made a distinct
differentiation about Market Creation Innovations deviating from his earlier references
to Disruptions. He changes the viewpoint from the nature of the innovation to
the opportunity available for the Market Creators, thus changing the whole
outlook on innovations. I had been going through Prof. Clayton Christensen’s books
as they got published through Innovator’s Dilemma, Innovator’s Solution, What’s
Next,... He was a visionary in understanding the impact of disruptive
innovations. He not only outlined the effect of disruptive innovations on the
existing enterprises; but also offered the solution to the business leaders
& managers to leverage Disruptive Innovations to their advantage. He
guided, mentored and advised many enterprises and business groups to navigate
through the series of challenges right in the middle of multiple disruptive
innovations.
In recent times, Intel &
Microsoft Duopoly, Google, Facebook, WhatsApp, Zoho,... and many organizations
have leveraged disruptive innovations to their advantage to grow exponentially
at their prime to thrive in their respective markets. While the predominant
players in their respective markets had the benefits of the Business Leadership
thought leaders, the new Market Creators didn't have the humongous burden of
realigning their large organizations in response to the disruptive innovation. With
their passion, dedication, deeper understanding of the new technologies,
trends, tenets, trendsetting techniques & tactics, all these Market Creators could scale
up well.
Sometimes, I get a feeling that Einstein’s
Theory of Relativity offered E=mc². The disruptive revelation at the beginning
of the last century presented the hope of almost infinite source of energy. The best scientific, engineering and technological minds started working on
unleashing energy. But the projections for Nuclear Energy Generations
aren't being met! Nuclear energy generation through both Fusion & Fission
is being explored. Both, Nuclear Fission & Fusion have their own challenges,
though we have been tantalizingly close to solve!
The Market Creators can identify the
Potential New Markets and build them. Value Chain for the New Market, Value
Infrastructure with Virtuous Cycles of Value Generation & Appropriation
Points by leveraging the Disruptive Innovations.
Recently (in March 2021), I was
watching Silicon Valley: the Untold Story. Jan Koum was talking about
how everybody innovator is so close to each other. It's a different world
altogether, serendipity happens at the speed of light everyday... and overnights! The Startups grow exponentially overnight, it all ends up in a blur! And it's
quite possible while everybody is bathing in the blitzkrieg of breakthrough
Innovations, nobody has time to review,... And many, including Steve Jobs,
headed towards a ‘non-traditional’ breakout. And... it all started from the HP
Garage, which paved HP Way, generosity, equability, it’s okay to fail, but not
too many times! The narrative here gives a good indication of the dynamics and
mechanics of the phenomenon of Market Creation.
Genuine exponential scaling up to attain seemingly Humongous Instant Mass Appeal by leveraging initial encouragement from the aficionados, is the name of the game!
The moment Disruptive Innovation is considered as the Market Creation Innovation, the perspective, in turn, the paradigm changes dramatically & diametrically in the opposite direction! In fact, Prof. Clayton Christensen once spoke about a completely different perspective by the US Military when he presented the Disruptive Innovation idea to them.
A completely new humongous market opportunity emerges on the back of any Disruptive,... rather, Market Creation Innovation. The greatest challenge lies in identifying the seemingly Non Existent Market, then the greater challenge is competing with Non Consumption. The challenge for the Market Creation Innovator is in first articulating that nebulous uncertain Non Existent Market. The chances of even the conceptually consistent & closest partners buying into the idea of the Humungous Market Creation Opportunity is rather very slim! Steve Wozniak couldn't continue the journey with Steve Jobs, similar was the case of Paul Allen with Bill Gates; similar is the case with Eduardo Saverin with Mark Zuckerberg!
The greatest challenge before the Market Creation Innovators lies in turbo-propping the Value Infrastructure through the Value Creating Virtuous Cycles (VCVCs). These VCVCs have to be kept in perpetual motion to prop the Value Infrastructure to rise up to the challenges of the market as the Value Performance of the Market Creation Innovation continues to grow exponentially! The Value Chain needs to rise up to more profitable market and appropriate the exponentially increasing value in equitable manner.
The Market Creation Innovator has to be highly competent, capable, confident and resourceful enough to visualize the shape of the product offerings, acceptability by the markets whom the offerings touch.