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GIS Business : An Overview is a peer-reviewed scholarly journal and aims to publish original articles, review articles, case reports, short communications, etc. Journal indexed in SCOPUS, papers are not indexed. Send papers to editor@gisbusiness.org

  • GIS-Business Journal is Indexed in Scopus, papers are not indexed. UGC approved journal. Send papers to editor@gisbusiness.org

I should have the right to vote out Trump

I am an Indian citizen. I have no right to vote in the US elections. That's fine - US citizens can make their own choices on who to govern them. But when the US starts passing laws that affect the world, expects global compliance and which  have global consequences, then I am not prepared to keep quiet.

Nowhere is the US effect more on other country citizens than in the area of finance. If it starts a war, as it did in Iraq, at least I am not affected too much and its unlikely that the US will start a war with India. But Trump, by the act of trying to roll back Dodd Frank,  is directly affecting me and is therefore fair game in being virulently criticised.

Dodd Frank what ? Yes that's a fair question as unless you are a student of economics you may not have come across the Dodd Frank Act. Here's the context in layman terms

- Remember the financial crisis of a decade ago. It was caused by global financial behemoths (mainly US based) going crazy
- Post the crisis, the Obama administration enacted the Dodd Frank Act to govern the conduct of financial institutions. Massive compliance requirements were brought in and severe restrictions and policing was introduced on what they could and could not do.
- At the time, the Republican Party was in the phase of "Hell No". Therefore the law was not passed on a bipartisan basis. It was mostly a Democratic Party legislation.
- Republicans hated it, largely because they hated anything Obama did. The big finance companies and banks absolutely loathed it.
- The law is complex, fiddly, adds huge costs of compliance and is an absolute nuisance for those in the finance business. All true.  But we have seen what havoc they can wreck on the world if they are let loose. So their complaints should simply be met with a stonewall.
- This is one perfect example of a bad law being infinitely better than no law.
- The consequence of another financial meltdown is that I, an Indian citizen, will have to pay for it even though Indian financial institutions played absolutely no part in creating the mayhem. Like it or not there's no "Buy American" in finance. Finance is global.

Trump is now trying to loosen the provisions of the Dodd Frank Act.  Thankfully he cannot repeal it as he needs 60 votes in the US Senate and he does not have them as the Democrats are now the party of "Hell No". But he can dilute it considerably and that's what he is starting to do. An Executive Order came out on Friday. Thankfully for now,  the Order is just asking somebody to do something , as most Executive Orders thus far have been.  Nothing really has happened.

But it will happen. Trump's cabinet and advisers are full of Wall Street types. They have a vested interest in undoing the Act .  They must be resisted with every force. And I'll loudly call for Trump to be resisted on this one. As should you, whatever nationality you are. It affects you and me.

Dodd Frank has lots of faults. It's 2300 pages long. That alone is enough to tell you that Ramamritham has run amok. BUT, before anybody tries to do anything with it, he has to prove that it will improve controls and not dilute it.

For, you see, if you want to be really scared, do not think of nuclear war with North Korea. Or Arctic melt down. Or an asteroid hitting the earth. Get mortally terrified with just this one statistic. The total value of financial derivatives in the world at this moment is some $1.5 quadrillion. By comparison the world's  GDP is $80 trillion
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The flying car

Did you see the news item about a flying car, revealed by Kitty Hawk, a Silicon Valley startup funded by Google's founder, Larry Page ? If you didn't , watch the video below

I now petition Kitty Hawk that the best place in the world to launch it first would be in Bangalore. Everybody knows that a basic version of this already exists in the wonderful city's roads , for after all, a two wheeler can come from all 360 degrees to dent your car even  today. But passing over that lightly, let's examine how and why this would be a major hit in Bangalore

Everybody who works in the world famous Ecospace building would buy it immediately. Ecospace is the world's first building where traffic jams are inside the building area and not outside. Average mean time currently for exiting from parking and coming to the gate is 45 mts. With a flying car, the coder will simply jump out of his office window in it and zoom away.  Similarly coders in cubby holes in every other monstrosity - Maanyata, ITPL, Bagmane in that order - are enough to ensure that Kitty Hawk's order book for the next 10 years is filled up.

Two wheeler riders of Bangalore migrating to the flying car are likely to be confused initially as they are genetically programmed only to ride on the pavement or ride on the wrong side of the road. They will need some significant retraining to take to this new vehicle. Two wheeler riders are also currently used to taking the wife and both kids along with them. It is unclear from the prototype of the flying car as to where the two kids can be placed. Perhaps they can be made to hang from the wings. There is no safety worry -  in Bangalore, even babies are trained from birth on how to hang on while on a two wheeler

The world famous cab drivers of Bangalore will be the world's best drivers on this car, as they have considerable practice in ducking and weaving and zooming. So the maneuvers required of a flying car come to them naturally. They will also be doing a massive public service. As they are used to constant honking, they will take this practice to the air and thereby drive off all the pigeons who currently infest every apartment building.

One of the greatest features of this car appears to be that it can instantly stop and hover in a particular spot. This will be very useful to BMTC drivers who like to stop in the middle of the road in an instant, if the fancy hits them.

There is one problem however. In Bangalore, every type of a cable - be it electricity, TV or internet cable dangles about 2 mtrs above every public space. Kitty Hawk will have to design the car such that it can take off and land passing through the 1 nanometer space available between the cables. In this they will be greatly aided by the dodging powers of the legendary cab driver of Bangalore.

We have one of the most proactive governments in the world in Bangalore. They will instantly build KR Puram, Silk Board and Graphite junctions in the air so that Bangaloreans on flying cars would not be deprived of the unique experiences to be had at the aforementioned places.  They will also ensure that enough airpockets are released into the atmosphere so that Bangaloreans will not get sick from a smooth ride - their bodies having being conditioned to the soothing effects of pot holes.

Another design suggestion for Kitty Hawk would be to provide a glass panel whereby owners can paint or affix stickers saying Bhuvaneswari , Parthiban and Rajasekhar (please note that these will be written in Kannada and therefore will require some additional lateral space)

Drivers will have to adjust their perception of tree branches. Today, the sight of a tree branch on the road means a vehicle has broken down and a twig and some leaves have been lodged in a crack to warn others of this fact. From the flying car, a branch and leaves may be safely taken to be on a living tree.

I am not sure of the impact these cars will have on the traffic cops of Bangalore. Perhaps they can climb trees and tow away the flying cars that have been parked on every branch - the ex two wheeler driver being an expert at parking his vehicle on any vacant area in any terrain.

What I am not clear is  how two drivers who have banged each other will fight. Current practice, which is almost a holy covenant is that you stop right there, get out and hurl the choicest abuse on the other guy.  You cannot move even 1 mtr from the spot (ie move to the side of the road) before fighting).  How this will be done mid air in the future scenario requires deep thought.

All in all, Kitty Hawk must simply relocate to Bangalore and start here. In any case the CEO is probably Arvindkatakshan Ramasubramaniam, who originally went from here. Welcome home, Sir !
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Corporate Fluff

Lucy Kellaway of the Financial Times is one of my favourite columnists. One of her specialities is to roast companies that spew out meaningless bullshit in their communications and press releases. She even hands out annual Golden Flannel Awards for the worst corporate gobbledygook.

She's at her best today canning Mondelez (The Oreos to Cadbury company). The company's marketing head quit and this is what they had to say about finding a successor

" Our search for a successor will focus on finding a digital-first, disruptive and innovative leader who can build on Dana’s legacy and mobilise breakthrough marketing in a rapidly changing global consumer landscape"

Every word is a cliché and the sentence says absolutely nothing other than mouth inanities. Does it make you any wiser who they are going to hire ?

She has , over the years, mocked at meaningless drivel, quoting such outstanding examples as these

From Burberry - "In the wholesale channel, Burberry exited doors not aligned with brand status and invested in presentation through both enhanced assortments and dedicated, customised real estate in key doors"

Or this from E Bay - "We are passionate about harnessing our platform to empower millions of people by levelling the playing field for them"

Have you stopped to think about the nonsense that is shovelled each day. Infosys is doing an "orderly ramp down of about 3000 people", ie sacking them.  Citibank was "optimising the customer footprint across geographies " ie, er firing people. What about grandiose words for mundane things .  Speedo's swimming cap is a "hair management solution", another's aluminium doors are "entrance solutions" and Siemen's healthcare business is "Healthineers".

We ourselves mouth such fluff often - We want to touch base . We are moving forward. We are solutioning for a client. We are mitigating risks by risk management. We are at a "workshop" where somebody is droning through 200 slides and the rest are supposedly paying attention. We are tele commuting.

How about some good old plain English for a change. Something the Queen would approve of. Declare the next week as a fluff free week. Speak in simple English. If you cannot, try Gurmukhi ! A language where fundamentally jargon and flowery language is impossible.

A passing note to American readers. I know the English language is strange to you, but you may want to try and learn it !!
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Fear of Flying

In the normal world of business, companies are supposed to treat their customers with kids gloves. And customers are supposed to be very partial to the brands that they buy. It's all supposed to be a love love relationship .

Not so in the airline industry. Customers absolutely loath airlines. The act of flying is considered by most flyers, especially the regular ones, as next only to root canal surgery.  And airlines (mostly) hate their customers. They are little more than cattle, in their eyes. And everybody associated with the act of flying hates everybody else. The security folk are hated by all. Most airports in the world are glorified cattle pens. And yet the industry is booming. The rash of incidents being reported from the US will simply pass over. The hate hate relationship is alive and kicking and will simply continue thriving.

Why is this so ?  Two reasons primarily, in my view

- One, there is no option but to fly.
- Two,  customers care for nothing else but price. All the talk of wanting service is humbug.

We all moan about how seats have become cramped, food has disappeared altogether, everything costs extra , security lines are impossible, etc etc. And yet , if there was a flight that costed $1, but required you to stand on one leg throughout the flight, we'll cheerfully take it. And therein lies the problem.

Take India and the case of New Delhi . I had the misfortune of flying from there a couple of days ago and hence this post.

There are two domestic terminals in Delhi. One is swank, large, with lots of space, small security lines and can compare favourably with the best in the world. The three airlines that use this as the base are very good, serve complimentary food, are generally on time and don't charge ridiculous extras. The other terminal is a disgrace - crowded worse than a train station, no place to even sit, and  a close approximation of a pig pen. The airlines that are based here charge extra for everything, offer no complimentary food and bus you to the plane worse than a Mumbai local. But this lot are generally cheaper than the other lot by say Rs 500; maybe Rs 1000. Absolutely no prizes for guessing which one the passengers prefer.

We really should stop complaining about how airlines treat us. Until we are prepared to open our wallets a little more.
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Turn the world vegetarian



Humans love eating meat. Vegetarians and vegans (this blogger is a vegetarian) don't stand a chance. In quite a few countries in the world, you simply have to starve if you are a vegetarian.  In many others, your only ordering choice in a restaurant is likely to be an apology of a salad, that could more appropriately be fed to a cow !

Any chance that you can turn the human race into vegetarians ? Well, at least one company thinks so. The aptly named Impossible Foods based in California (where else)  would like to try. An interesting Q&A with the founder that I read in the Guardian, prompted this post.

The logic for turning the human race vegan is impeccable. The largest environmental impact that humans have created is from rearing animals for food - cows being the primary culprit. The resources utilised - water, land, etc - per pound of meat is also the largest. The absolutely atrocious conditions in which we rear and kill farm animals has to be a permanent blot on the human species (pig farmers in Iowa - are you listening ?) And if the population of farm animals decreases, there is a better chance of wildlife prospering,  as one of the chief causes of habitat loss is grazing. 

Of course, this is not going to happen. Go back to the first sentence of this post. 

I however have this feeling, totally unsubstantiated by data, that this might be a long term trend. Technology in food production is on the cusp of a revolution. After all humans don't eat meat because they like to kill animals. They eat it because they love the taste. If, and when, plant based foods are engineered to taste like meat, there is every chance that people will start to switch. Especially if it is cheaper.  And then, slowly, the ethical side of it will start to play a part. If you can satisfy your nutrition and the craving for taste without killing, why wouldn't you do it. After all, if many of the meat eaters actually saw how their meat was being produced, a good proportion will turn vegetarians immediately !

But this is not going to happen in a hurry. Impossible Foods is just a fad and, this being California, fads are always welcome. But good luck to them. I might even come out of retirement and open the India branch - at least it will get me into the good books of the awful gau rakshaks !

But one day, in the distant future, maybe 100 generations later, our descendants will look upon with horror at "prehistoric man" for killing and eating animals. And maybe somebody will read my post from the archeological archives and pronounce me as a prescient wise man !

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Companies don't make investment decisions based on tax rates

If you cut tax rates, will companies invest more ? This is almost a religious belief in a certain party in a certain country in the world. Is it justified  ?

The answer, in my opinion, is mostly No.

Companies make investment decisions based on markets, sales projections, competitive advantage, margin potential, scalability and the like.  These are extremely complex business variables and occupy 90% of the time and effort that goes into a business decision.

The tax line is one of the last lines in the cash flows of an investment proposal. It is certainly important, but hardly a determiner of whether the investment goes ahead or not.

There are a few instances when the tax rate indeed becomes a determining variable in the decision. For example, in India, there have been many instances where the government, in an effort to stimulate an underdeveloped part of the country has allowed zero income tax rates for operations located in those areas. In such a case, the tax rate becomes a determiner of the location of the investment; not the investment per se. Nobody puts up a factory just because the tax rate is zero. They put up a factory because the business opportunity is compelling. Having decided to invest, they may choose to locate it in a low tax zone.

The other instance when a tax rate becomes a determiner of investment is if the tax rate is ridiculously high.  For example if the marginal tax rate is 90%, nobody will invest even if the business opportunity is compelling (M. Melenchon's supporters, are you listening ?). But if you cut the tax rate from 35% to 15% , it's a nice bonus, but it will not add one dollar of investment which otherwise would not have been made.

Further, companies make investments based on a 7 or 9 year time horizon. If one President cuts tax rates this year, what stops the next President from increasing it 3 years from now. So its almost inconceivable that a company which would otherwise have not made the investment, will rush to now make it because of the tax cut.

The argument that a major tax cut on companies, will spur investment growth is mostly flawed. It will however have the following consequences

It will improve corporate profits (for after all tax is a cost) and therefore both the investible surplus and/or dividends in the hands of shareholders. It will increase the wealth in the hands of those who are shareholders. They may spend it which will have a beneficial impact on the economy.

It will correspondingly increase the deficit that the government runs, and therefore the nation's borrowings. That will push the cost of borrowing and inflation.

But will it also increase tax revenues and therefore make the measure revenue neutral. Mostly No. But there is one big exception in the US, which will be the subject matter of the next post.
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The pox on Ramamritham (for the nth time)



Regular readers of this blog know that this blogger rather likes railing against Ramamritham. Ever so often, there has to be a post yelling at this cursed individual.

This time it is on the Department of telecom (DoT) which is a pesky nuisance that purports to regulate every aspect of  our phones and how we talk to others. Along with the child it spawned TRAI - The Telecom Regulatory Authority of India, they have been busy over the last decade framing rules and procedures for everything on earth. Did you know that every phone company has to publish its prices and tariffs in a prescribed format  ? If you have seen that format, you'll know that you need a PhD in mathematics to understand it.

One result is that you have to go armed with lots of paper and proof for something as simple as getting a SIM Card. In control obsessed China, I just went to a corner shop and bought a SIM. It took me 2 minutes to do so. In India, you submit an ID proof and an address proof (of course Raramritham has written rules on which documents will be accepted for either of those proofs), then wait a while as the SIM is "activated", then you call up a number and revalidate the proofs you have submitted ........

The latest antics of Ramamritham that has got my goat is that he has ruled that all phones henceforth sold in India must have GPS. His logic ? The safety and security of women is "of utmost importance"  says this blessed specimen. If she is in danger, we can trace her whereabouts through the GPS signal !!

Really ?? Is it the business of Ramamritham to be legislating such nonsense ?  If he was really concerned about women's safety, he would be improving police coverage,  improving response time to complaints, ensuring more policewomen in the force, ensuring that cases are brought to speedy trial,  having a helpline where somebody actually answers the phone, etc etc. No. That's all too difficult to do. Instead he can indulge in his favourite activity - write a rule.

Never mind that if a woman wanted GPS on her phone to reassure her of security, she can simply go and get such a phone. No. It has to be legislated.

India has an installed base of 400 million phones that are euphemistically called "feature phones". Translation - they do not have feature such as GPS ! The cost of a phone is likely to increase by Rs 400 if GPS has to be featured in all phones.  That of course, does not bother Ramamritham.

When the industry protested, in true style Ramamritham replies - " It is reiterated that all mobile handset makers should adhere , blah blah, to implementation of GPS facility in all mobile phones sold in India from January 1 , 2018. The representation (sic) in this regard will not be entertained in future " . Beautiful.

Can all scientists stop their work on space exploration, finding a cure for cancer, sequencing the DNA, etc etc and instead concentrate single mindedly on the eradication of Ramamritham please !
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