Predictably Irrational
- The Hidden Forces that shape our decisions
DAN ARIELY
“Dad, don’t you think you are drinking too much?” asked the son.
“Come with me” says dad and takes him to his bar.
“Here, you see son” says dad takes out two glasses. In one glass he pours plain water and in another glass some whiskey. “Look carefully son” he says, as he drops two small worms in each one of them.
Poof - worm in the water continues to swim well and the worm inside the whiskey glass dies right away.
“Now, as you can see, I drink just to kill worms and at my age there are lots of worms inside my stomach!”. Son leaves the bar convinced that, if he ever he gets worms in his stomach when he gets old he would drink like his dad and thus drinking whiskey is not a bad idea after all.
No matter how apocryphal this story is, for me, it demonstrates a quirky point. You can devise some clever experiment to make a point or its counter point and convince some one – at least temporarily.
Now, here comes Prof Dan Ariely, an ultra smart Israeli M.I.T professor who does series of experiments with equally smart professors from similar campuses at Harvard, INSEAD, ULCA and all.
These experiments on human behavior are not like Michelson-Morley experiment, where you can eventually converge. For a moment, I visualized myself as President of MIT or dean or whatever so that I can pose this question: “Dan, I am awestruck! But to disprove all these points what are all the experiments you would come up with. Figuring that out is your assignment for this semester” (I will let you know when Dan comes back).
Dan starts with a personal incident at the age of 18, when he met with a fateful fire accident incurring about 70% burns. So, for the next few years, he was on a series of medical procedures and dressed as he says “as a crooked version of spider man”. During that period he had the luxury to observe lots of stuff pertinent to human behavior that perhaps shaped his career. Later, he would go on to study at Telaviv University and then move to MIT to conduct more and more experiments. In the introduction itself he sets the context well to make a neat claim: “We are not only irrational – but predictably so”. In the 13 chapters that would follow he does corroborate this idea well with experimental results. The style of writing is very lucid and appealing. Let us take 4 of 13 for the commentary purposes. Chapters are nearly independent and hence can be read in any order also.
The Chapter-9, “Keeping doors open” is indeed an eye-opener. He gives the historical example of 210B.C Chinese commander, who burnt all the boats and broke all the pots to cook which left no option but to win or die – of course, they did win 9 consecutive battles. Point is that, when options are limited, focus is so high, objective is achieved. However, I am sure the same Dan would is well aware of the siege of Massada, where, for lack of options to escape in the middle of fortified desert, all the rebellious Jews ended up committing mass suicide after killing their own families.
Be it dating or elective papers or choice of vehicle, as per Dan, we would prefer the options open as all long as possible and he says, “It is a fool’s game which we are remarkably adept in playing”. Even Dan had problems in deciding between MIT and Stanford.
The Chapters-11 & 12, “The context of Character Part 1 & 2” are quite interesting and troubling too. He conducts a series of experiments in MIT and concludes that “humans are honest to the extent it suits them”. In an experiment he had four batches tested with a question paper. First batch fully is controlled. Second batch, only self checks and claim money. Third batch self check + shredding & claim money. Forth batch self check + shredding + pick up from the money jar. Needless to add, the average correct answers increased upwards, but it did not increase beyond certain point albeit there no chance of being caught. It appears even when we have no chance of getting caught, we don’t become wildly dishonest.
To summarize:
CONTROL LEVEL Average
Condition # 1 Control (no chance to cheat) 32.6
Condition # 2 Self Check 36.2
Condition # 3 Self Check +Shredding 35.9
Condition # 4 Self Check + Shredding + Money Jar 36.1
“A measure of a man’s character is what he would do if he knew that, he would NOT be found out” says Macaulay. Dan has done a good deal of objective measurement – of course, results are troubling and his “take” on results are very convincing.
The Chapter-4, “The cost of social Norms” is insightful. We live in two worlds simultaneously. One is social and the other is business. In the social world, reciprocation need not be immediate, where as in business it has to be nearly real time and instantaneous. When the two worlds collide there is trouble.
He gives some dramatic examples. His “Day care” example: It imposed fine to the parents when they were late. Interestingly, parents construed it as they can chose to be late by paying fine (from social to market norm) hence late pick up increased. Palpably, that was not what the day care center intended to convey as the main message. So, they withdrew the penalty program. It did not help. Hence, once they collide and triumphed by market norms, social norms rarely returns.
After reading this book, for a moment, I felt it should have been titled “Design of experiments”.
Somehow, author has developed agreeable measurements for many of the hard to quantify stuff like honesty etc.
Distinguished French historian Emmanuel Le Roy Ladurie, once remarked there are two kinds of historians. One kind is parachutists and other is truffle hunters. Former kind observes history from afar, slowly floating down to earth while latter fascinated by the treasures of soil, keeps the nose close to the ground. It need not apply only to historians. This book indeed brought out many treasures-of-insight. Don’t miss this one.
Thanks for reading this far.
Regards,
madhu
Monday, February 1, 2010
Friday, January 1, 2010
The START UP Nation
Book : START-UP NATION (The story of Israel’s Economic Miracle)
Authors : Dan Senor and Saul Singer
“How do we get more out of people?.
Who can object to this? But it is a loaded question with industrial age thinking. Ironically, the management model encapsulated in this question virtually guarantees that company will never get the best out of its people. Vassals and conscripts may work very hard, but they do not do it willingly. This is a crucial difference when the prosperity depends on creativity and an enthusiastic workforce will consistently outperform a group which is merely industrious. Can you remember any instance when the assigned work brought more joy than the one which you choose to do?".
That was the management guru, Gary Hamel when he makes a passionate pitch that volition is better than assigned or forced or “draft” work. But, even he might have to change his mind seeing this country. Israel as a nation does know how to create lots of enthusiastic and ultra creative conscripts.
Let us quickly see how it does that.
Military service is compulsory and they have one of the toughest trainings. Entries in to elite programs like Air Force are even more demanding. The toughest being “Talpiot” which systematically garners the brightest of the bright and they go through longer and intense trainings. They invariably end up in creating some of the most promising startups to lift the industries in to the next plane of contributions. Real life battle hardened, intensely well trained on technology and strategy are ideal qualities for any company or startups and that is what this “draft” does to business.
This new book (released in November-2009) gives a good understanding of Israel as a nation from a startup stand point. It weaves quite a bit of perspectives in a story telling manner.
We will see two more stories, but before that, quick summary of key points.
1. Questioning status-quo approach is inculcated from childhood.
2. “Draft” training brings all strata of society folks to common ground and brings in a sense of identity and purpose in life very early. Many years of experience is compressed into handful of years.
3. Due to lack of resources, they are very resourceful. Runtime improvisations is something taken for granted.
4. Ownership of assignments is 100% - if not more (Example: Intel Israel case study )
5. Because of high interconnections, transparency is very high to the point of making a claim “everyone knows everyone” (being small, there is no place to run away).
6. Immigration as a policy is integrated at a constitutional level and processes & policies are geared toward enhancing the efficacy of it.
7. Israel seems to have a unique reserve system to address the military and safety needs of the country.
8. Inter disciplinary approaches are very common like Biology and Math, Rockets and Drug discovery and delivery.
Now two selected stories (because, I don’t want to rob the suspense of the remaining)
1. “Our Idea is quite simple. We believe the world is divided between good people and bad people and the trick to beating fraud is to distinguish between them on the web” – Imagine this elevator pitch to the e-bay Chief of operation who handles all the pay pal stuff - the largest internet payment service in the world. But, that is exactly what Shvat Shaked did. His small team developed an algorithm that detected fraud far more accurately than the much bigger team which e-bay had. Eventually, his company got acquired by e-bay. The story is fascinating.
2. The startup “Beta-O2” is working on bio-reactor for diabetes patients. Patients suffer from this disorder which causes their beta cells to cease the production of insulin. Transplanted beta cells would do but they need oxygen supply. Beta-O2's solution is to create micro eco system that has oxygen producing algae and a fiber optic light source. The beta cells consume oxygen and produce CO2 and algae do just the opposite thereby creating closed loop. The skin implantable reactor device can be replaced every year with a 15 minute outpatient procedure.
Some of the dialogues are very appealing. For example,
”What do you think of hybrid cars?”.
“A hybrid car is like mermaid; if you want a fish, you get a woman; if you want a woman, you get a fish”.
In this book, authors do ask a pertinent and a profound question “where is our Nokia?” – implying where are our big corporates. There is no explicit answer for that question. I think, it is very unlikely it would create a big corporation. I surmise it may be more out of conscious strategy and I see a lot of prudence in it. Centralized production may bring economy-of-scale, but I see the price of that as economy-in-innovation & economy-in-initiative - that may be a frightening prospect for Israel. Aside the culture “Why you are my boss and not the other way around” kind of attitude simply does not lend itself to building a corporate behemoth. May be, it is Shinkansen (Japan bullet train) approach – that is, there is no one big engine that pulls the train, but each coach has an engine “embedded” in to it. We all know it is one of the fastest and effective train system in the world since its inception. Add to that, any mammoth would have huge localized risk which is expensive to protect and oversee. Sum of parts would be always greater than the whole in this country.
Finally, the book contains so many inspiring stories on start up, if you are a cat-on-the-wall pondering about getting in to startup, this book can provide the final push in to the startup river.
Thanks for reading this far…..
Regards,
madhu
Authors : Dan Senor and Saul Singer
“How do we get more out of people?.
Who can object to this? But it is a loaded question with industrial age thinking. Ironically, the management model encapsulated in this question virtually guarantees that company will never get the best out of its people. Vassals and conscripts may work very hard, but they do not do it willingly. This is a crucial difference when the prosperity depends on creativity and an enthusiastic workforce will consistently outperform a group which is merely industrious. Can you remember any instance when the assigned work brought more joy than the one which you choose to do?".
That was the management guru, Gary Hamel when he makes a passionate pitch that volition is better than assigned or forced or “draft” work. But, even he might have to change his mind seeing this country. Israel as a nation does know how to create lots of enthusiastic and ultra creative conscripts.
Let us quickly see how it does that.
Military service is compulsory and they have one of the toughest trainings. Entries in to elite programs like Air Force are even more demanding. The toughest being “Talpiot” which systematically garners the brightest of the bright and they go through longer and intense trainings. They invariably end up in creating some of the most promising startups to lift the industries in to the next plane of contributions. Real life battle hardened, intensely well trained on technology and strategy are ideal qualities for any company or startups and that is what this “draft” does to business.
This new book (released in November-2009) gives a good understanding of Israel as a nation from a startup stand point. It weaves quite a bit of perspectives in a story telling manner.
We will see two more stories, but before that, quick summary of key points.
1. Questioning status-quo approach is inculcated from childhood.
2. “Draft” training brings all strata of society folks to common ground and brings in a sense of identity and purpose in life very early. Many years of experience is compressed into handful of years.
3. Due to lack of resources, they are very resourceful. Runtime improvisations is something taken for granted.
4. Ownership of assignments is 100% - if not more (Example: Intel Israel case study )
5. Because of high interconnections, transparency is very high to the point of making a claim “everyone knows everyone” (being small, there is no place to run away).
6. Immigration as a policy is integrated at a constitutional level and processes & policies are geared toward enhancing the efficacy of it.
7. Israel seems to have a unique reserve system to address the military and safety needs of the country.
8. Inter disciplinary approaches are very common like Biology and Math, Rockets and Drug discovery and delivery.
Now two selected stories (because, I don’t want to rob the suspense of the remaining)
1. “Our Idea is quite simple. We believe the world is divided between good people and bad people and the trick to beating fraud is to distinguish between them on the web” – Imagine this elevator pitch to the e-bay Chief of operation who handles all the pay pal stuff - the largest internet payment service in the world. But, that is exactly what Shvat Shaked did. His small team developed an algorithm that detected fraud far more accurately than the much bigger team which e-bay had. Eventually, his company got acquired by e-bay. The story is fascinating.
2. The startup “Beta-O2” is working on bio-reactor for diabetes patients. Patients suffer from this disorder which causes their beta cells to cease the production of insulin. Transplanted beta cells would do but they need oxygen supply. Beta-O2's solution is to create micro eco system that has oxygen producing algae and a fiber optic light source. The beta cells consume oxygen and produce CO2 and algae do just the opposite thereby creating closed loop. The skin implantable reactor device can be replaced every year with a 15 minute outpatient procedure.
Some of the dialogues are very appealing. For example,
”What do you think of hybrid cars?”.
“A hybrid car is like mermaid; if you want a fish, you get a woman; if you want a woman, you get a fish”.
In this book, authors do ask a pertinent and a profound question “where is our Nokia?” – implying where are our big corporates. There is no explicit answer for that question. I think, it is very unlikely it would create a big corporation. I surmise it may be more out of conscious strategy and I see a lot of prudence in it. Centralized production may bring economy-of-scale, but I see the price of that as economy-in-innovation & economy-in-initiative - that may be a frightening prospect for Israel. Aside the culture “Why you are my boss and not the other way around” kind of attitude simply does not lend itself to building a corporate behemoth. May be, it is Shinkansen (Japan bullet train) approach – that is, there is no one big engine that pulls the train, but each coach has an engine “embedded” in to it. We all know it is one of the fastest and effective train system in the world since its inception. Add to that, any mammoth would have huge localized risk which is expensive to protect and oversee. Sum of parts would be always greater than the whole in this country.
Finally, the book contains so many inspiring stories on start up, if you are a cat-on-the-wall pondering about getting in to startup, this book can provide the final push in to the startup river.
Thanks for reading this far…..
Regards,
madhu
Tuesday, December 1, 2009
Complications – Notes from the life of a young surgeon by Atul Gawande
“Baala Joshiyam. Virudha vaidheedam” – says a Sanskrit lore.
It means if you have to consult an astrologer or a fortune-teller, find the youngest person possible. Logic is that, he is yet to learn the subtleties of psychology and owing to his inexperience he is likely to tell what is most probable that would happen no matter how unpleasant it may be, rather than saying what you want to hear. On the other hand, when you go to doctor, choose the eldest possible since he would have done many experiments with so many folks that his diagnosis is likely to be better than a younger one.
So, with that frame of mind, “young surgeon” was more a warning than a reassurance for me.
Add to that, from childhood, I am always used to the jokes on doctors in the vernacular magazines.
(For example, patient is asking the doctor, “Is this operation so difficult doctor?”. Doctor replies, “Oh, no, it is dead easy”). Well, I was in for a pleasant surprise. It is a serious and an impressive read.
This book contains three broad sections. (1) Fallibility (2) Mystery (3) Uncertainty, each containing four or five cases. The title “Complications” comes not just from unexpected turns that can result in medicine but also the underlying dilemmas in what we do. Author says “medicine, we have taken it to be both more perfect that it is and less extraordinary than it can be”.
Fallibility section has five good chapters. I am picking up “The computer and the Hernia factory” where he specifically talks about the Shouldice Hospital near Toronto. The recurring rate is an awesome 1% where as rest of country or anywhere in the world is way above that. Since this is a hospital that focuses one and only one on hernia operations, staffs are better trained; the infrastructure is designed very well to support this kind of surgery in large volumes and so on. A defining trait of experts is that, they move more and more problem solving in to an automatic mode.
In basket ball game, they call it as muscle memory - That is, you practice so much, instead of head, hand remembers how to pocket the ball.
Reading about this hospital makes me wonder, if doctors have to be trained very early for some specific super specialty. It also gels with the observation made by one of the very leading surgeon here at Bangalore- When he was interviewed as to why he assigns relatively very young personnel for such complicated surgeries, he responded with confidence that, “it is a question of experience, that is, number of exposures a person has had. Here, we do so many operations per day, such expertise comes much early in their lives than our counter parts elsewhere”.
Mystery section reminds me of the oft heard quote “just because your doctor has a name for your condition does not mean he knows what it is”. It has five neat stories and I am picking up “The pain perplex”. He talks about a person who was very physically fit, but after a fall in the construction site developed a kind of uncontrollable pain. It was so much that, he could not work for more than 2 or 3 hours a day. He would suddenly develop pain hence sustained working was impossible. After CT-scans, countless X-rays etc source and cause could not be figured out. After that, he was directed to meet Dr Ross who is a pain specialist. Dr Gawante makes a keen observation about Dr Ross’s waiting hall. Most of the testimonies he has put up hardly talks about the cure but they are testimonials of serious “Thank You Doctor” types for simply taking the patient’s pain seriously. It looks like recognition and acknowledgement of pain for an undetected cause is an issue. Dr Gawante talks about some interesting experiments we can do by ourselves in the pain area. He also talks about RSI rise and fall in Australia. It seems to me pain as a phenomenon is yet to be understood clearly even by medical fraternity, quite so because, it is complex concoction of physical, physiological, psychological and a bit a faking or ‘making up” by brain.
Uncertainty section has 4 stories. I would pick “whose body is it, anyway?” as a sample. He talks about a sober case of a patient called Lazaroff who had extensive cancer in liver, bowel and all the way to spine. The choice was to do nothing and have a peaceful death. The second option was to attempt a spine surgery which again had low probability of success and even so it would not cure him. Mae West would say, ”Whenever I'm caught between two evils, I take the one I've never tried”. Lazaroff has not tried both and the end is sure either way but a question of time. He chose surgery. 14 days past surgery, during which time he always had life system support, finally, Dr Gawande leans towards him at bedside and informs him (just in case if he can hear) that breath tube would be taken out of his mouth. 13 minutes later Larzaroff had died. Post that the case, author delves about patient’s autonomy which leaves you thinking deeply. While autonomy is fine, I also intuitively feel that, as he also says, patients prefer choices. Yet, when it comes to making decisions on critical medical choices, they prefer some near & dear and the doctor to take that decision rather than by themselves. He neatly says “Just as there is an art of being doctor, there is an art of being patient – You must choose wisely when to submit and when to assert”. I wonder when physical condition is in bad shape, weighing the alternatives would be an appropriate possibility at all. To me, it is an equation between difficulty-in-understanding versus the-danger-of-trust. When age crosses certain watermark which is of course individual specific, one is better off on the trust side!
One of Dr Gawante’s remarks caught my attention: “It is a reality in medicine that choosing to NOT do something – to not to order a test, to not to give antibiotic, to not to take the patient to the operating room – is far harder than choosing to do it”. I could not help recalling Software testing side. G.M.Weinberg, one of the software gurus, ask us to imagine having a buffet plate and load it the way you want – except that, the number of trips to the table is limited to two or three and so would be the number of plates and its size. In short, what you include in the plate would determine the sagacity as a test leader since there is so much to choose from. Is medicine is based on “exclusion” and software testing is based on “inclusion”?.
Nobel Physicist Murray Gell-Mann once proposed an interesting question.”Imagine how complex physics would be if atoms can think”. Well, the answer may be the practice of medicine from the complexity standpoint.
This is a must read for anyone who, like me, has no clue about the field of medicine yet want to story based start! Hats off to Doctors!
Thanks a lot for reading this far…..
Regards,
madhu
Sunday, November 1, 2009
The Future of life by E.O.Wilson
“A truly good book teaches me better than to read it. I must soon lay it down and commence living on its hint. What I began by reading, I must finish by acting”
– Henry David Thoreau (1817- 1862)
E.O.Wilson starts with a fascinating letter to the Poet, Henry David Thoreau (the above quote is not from the book!). He explains to the Poet how the Walden woods (one of Thoreau’s master pieces) have changed or not changed. Authenticity, rigor and the manner of delivery - I enjoyed every line
Wilson is a prolific writer and has authored many books. Surprisingly, I think this book is the least controversial and also a very passionate one.
Initially, he talks about various organisms that live on the edge of extremes (like ultra low or high temperatures or pressures, radiation etc).
As a thinker, he is very keen on the concept of “bio-diversity”. He explains with solid examples, how some of the living beings have become extinct because of our indiscriminate utilization of resources.
His point is that, humans just like other species evolved in this planet, we also exist as an organic miracle. We are all intimately inter-connected and we would better take care of other species. Each species’ disappearance from the face of earth makes the earth poorer.
From a grading point, he classifies the world outlook into three views:
1. Anthropocentricism: only the things which affects humanity matters.
2. Pathocentricism : intrinsic rights to be extended to dogs, chimps etc and finally
3. Bio-centralism : all living things.
He goes on to add they are NOT mutually exclusive.
He gives a serious warning: “After evolving for 3billion years, she gave birth to us a mere million years ago - An eye blink in the evolutionary clock. Nature will not tolerate undisciplined appetite of her gargantuan infant much longer”.
Let us look at some examples as to how bio-diversity helps…….
Serendipity is the hallmark of Pharmacological research. Routine screening for example, revealed that an obscure fungus growing in the mountains of interior Norway produces a powerful suppressor of the human immune system. When the molecule was isolated from the fungal tissue and identified, it proved to be complex molecule that is not encountered by organic chemists. Nor could its effect be explained by contemporary principles of modern molecular biology. But its relevance to medicine was obvious. When an organ is transplanted from one person to another, the immune system of the host must be prevented from rejecting the alien tissue. Thus, the new agent Cyclosporine became an essential part of organ transplant industry.
Another one which got my attention: Poison dart frogs in south and Central America belonging to the genre of Dendrobates. They are tiny enough to perch on the human finger nail. They are adored for their beautiful colors. They hop about very slowly unmindful of any potential predators. Wilson confesses that, as a trained naturalist, it triggers an alarm in him. If a small and otherwise unknown animal encountered in the wild, is strikingly beautiful, then it is probably poisonous – if it easy to catch, then it is deadly. As it turns out, it carries enough poison to kill 10 people. As a side story, Red Indian tribes rub the tip of their blowgun darts over the back of the frogs very carefully then release it unharmed. See, in those days, we have been more eco-friendly!
He also talks about HIPPO effect on bio-diversity. H (Habitat destruction). I (Invasive species – Ants and other species which are alien displacing the natives). P (Pollution).P (Population). O (Over harvesting – Hunting to extinction)
Another problem he states is that, we don’t even have a remote idea till date about how many species we have in this planet. Hence, we cannot properly fathom the loss we are incurring in terms of diversity. He narrates a touching incident of a last minute rescue operation of a snail species (Partulina turgida) which ceased to exist even as captive at London’s zoo. The memorial of it at the London Zoo reads thus: “1.5 Million Years B.C to January 1996”. Only Mother Nature would have a clear idea as to how many species we have decimated without even such memorials.
A myth he busts is that, endangered species is not like a dying patient whose care is too expensive and prolonging the life is futile. He argues that the opposite is true. They die young and healthy. They just need room to survive and goes on to give California condor bird as an example. They came to the brink of extinction because their habitats were destroyed and they were indiscriminately poisoned. Thankfully, the last 25 were held in captive in a colony in Sandeigo, given protection with uncontaminated food and now the candor population is bouncing back again.
Another point he makes is that, area of the habitat is very critical. When it is small it can hold lesser number of species that can live sustainably within it. For example in Montana, which has large chunk of habitat, did not lose a single species.
We also have be to be very careful about new species introduction (plants or animals) in a new area.For example, in 1890-91, about 100 euro starlings were introduced in New York. The goal was to establish in USA the birds that are mentioned in Shakespeare’s plays. He laments that, “now the plague USA”. The reason is that, immigrants are held in check by natural enemies and population controls and when these constraints no longer exists, the population explode in the new environment.
Conservation biology is described as discipline-with-a-deadline. Each imperiled species is a master piece of evolution. You and I would be forgotten 1000 years from now. But, black footed ferret or snow leopards which are flirting with extinction because of us will not be forgotten – not while there is a civilization. Our conservation success is truly the enduring part of us, which will live in their survival.
To conclude, to conserve biological diversity, is to invest in immortality!
If you take this book seriously, just like Henry David Thoreau says, one would automatically start living on this book’s hint. It should be there in your book shelf and you should keep visiting it for the hints as often as you can.
Thanks for reading this far……
Regards,
madhu
– Henry David Thoreau (1817- 1862)
E.O.Wilson starts with a fascinating letter to the Poet, Henry David Thoreau (the above quote is not from the book!). He explains to the Poet how the Walden woods (one of Thoreau’s master pieces) have changed or not changed. Authenticity, rigor and the manner of delivery - I enjoyed every line
Wilson is a prolific writer and has authored many books. Surprisingly, I think this book is the least controversial and also a very passionate one.
Initially, he talks about various organisms that live on the edge of extremes (like ultra low or high temperatures or pressures, radiation etc).
As a thinker, he is very keen on the concept of “bio-diversity”. He explains with solid examples, how some of the living beings have become extinct because of our indiscriminate utilization of resources.
His point is that, humans just like other species evolved in this planet, we also exist as an organic miracle. We are all intimately inter-connected and we would better take care of other species. Each species’ disappearance from the face of earth makes the earth poorer.
From a grading point, he classifies the world outlook into three views:
1. Anthropocentricism: only the things which affects humanity matters.
2. Pathocentricism : intrinsic rights to be extended to dogs, chimps etc and finally
3. Bio-centralism : all living things.
He goes on to add they are NOT mutually exclusive.
He gives a serious warning: “After evolving for 3billion years, she gave birth to us a mere million years ago - An eye blink in the evolutionary clock. Nature will not tolerate undisciplined appetite of her gargantuan infant much longer”.
Let us look at some examples as to how bio-diversity helps…….
Serendipity is the hallmark of Pharmacological research. Routine screening for example, revealed that an obscure fungus growing in the mountains of interior Norway produces a powerful suppressor of the human immune system. When the molecule was isolated from the fungal tissue and identified, it proved to be complex molecule that is not encountered by organic chemists. Nor could its effect be explained by contemporary principles of modern molecular biology. But its relevance to medicine was obvious. When an organ is transplanted from one person to another, the immune system of the host must be prevented from rejecting the alien tissue. Thus, the new agent Cyclosporine became an essential part of organ transplant industry.
Another one which got my attention: Poison dart frogs in south and Central America belonging to the genre of Dendrobates. They are tiny enough to perch on the human finger nail. They are adored for their beautiful colors. They hop about very slowly unmindful of any potential predators. Wilson confesses that, as a trained naturalist, it triggers an alarm in him. If a small and otherwise unknown animal encountered in the wild, is strikingly beautiful, then it is probably poisonous – if it easy to catch, then it is deadly. As it turns out, it carries enough poison to kill 10 people. As a side story, Red Indian tribes rub the tip of their blowgun darts over the back of the frogs very carefully then release it unharmed. See, in those days, we have been more eco-friendly!
He also talks about HIPPO effect on bio-diversity. H (Habitat destruction). I (Invasive species – Ants and other species which are alien displacing the natives). P (Pollution).P (Population). O (Over harvesting – Hunting to extinction)
Another problem he states is that, we don’t even have a remote idea till date about how many species we have in this planet. Hence, we cannot properly fathom the loss we are incurring in terms of diversity. He narrates a touching incident of a last minute rescue operation of a snail species (Partulina turgida) which ceased to exist even as captive at London’s zoo. The memorial of it at the London Zoo reads thus: “1.5 Million Years B.C to January 1996”. Only Mother Nature would have a clear idea as to how many species we have decimated without even such memorials.
A myth he busts is that, endangered species is not like a dying patient whose care is too expensive and prolonging the life is futile. He argues that the opposite is true. They die young and healthy. They just need room to survive and goes on to give California condor bird as an example. They came to the brink of extinction because their habitats were destroyed and they were indiscriminately poisoned. Thankfully, the last 25 were held in captive in a colony in Sandeigo, given protection with uncontaminated food and now the candor population is bouncing back again.
Another point he makes is that, area of the habitat is very critical. When it is small it can hold lesser number of species that can live sustainably within it. For example in Montana, which has large chunk of habitat, did not lose a single species.
We also have be to be very careful about new species introduction (plants or animals) in a new area.For example, in 1890-91, about 100 euro starlings were introduced in New York. The goal was to establish in USA the birds that are mentioned in Shakespeare’s plays. He laments that, “now the plague USA”. The reason is that, immigrants are held in check by natural enemies and population controls and when these constraints no longer exists, the population explode in the new environment.
Conservation biology is described as discipline-with-a-deadline. Each imperiled species is a master piece of evolution. You and I would be forgotten 1000 years from now. But, black footed ferret or snow leopards which are flirting with extinction because of us will not be forgotten – not while there is a civilization. Our conservation success is truly the enduring part of us, which will live in their survival.
To conclude, to conserve biological diversity, is to invest in immortality!
If you take this book seriously, just like Henry David Thoreau says, one would automatically start living on this book’s hint. It should be there in your book shelf and you should keep visiting it for the hints as often as you can.
Thanks for reading this far……
Regards,
madhu
Thursday, October 1, 2009
Napoleon’s Buttons
Napoleon’s Buttons:
17 Molecules that changed the world.
(Book Commentry)
Authors: Penny LeCouteur & Jay Burreson (Pages: 375)
Title of the book often has an influence on purchase decision of the book. To me, this one sounded curious enough to be picked up.
Authors attribute the defeat of Napoleon’s army in Russia to the buttons soldiers used during their campaign. It was made of tin. Russian winter was so severe at that time, the buttons got pulverized and as a consequence soldiers were exposed to cold so much that, most of them perished and the war was lost.
In a highly chancy event like war, taking one factor like this as a cause is stretching beyond credulity. But then, it does make a good cover story to start with. Obviously, they did not miss the chance to mention the Challenger disaster where they attribute neglecting the molecular property of rubber as the cause of such a disastrous event saying “all for a want of ‘O’ ring”. As per them, that cold morning of Jan 1986, temperature was 15 degrees lower than previous launches and rubber would have lost its pliability. Having lost the original shape, it did not fit in properly and there by triggering the fateful leak. Since, no less than Physics legend Dr Feynman pointed fingers at this ring, I would rest my case.
Authors examine the following. (1) Peppers, Nutmeg and Cloves (2) Ascorbic Acid (3) Glucose (4) Cellulose (5) Nitro compounds (6) Silk and Nylon (7) Phenol (8) Isoprene (9) Dyes (10) Wonder Drugs (11) The Pill (12) Molecules and Witch craft (13) Morphine, Nicotine and Caffeine (14) Oleic Acid (15) SALT (16) Chloro-carbon Compounds (17) Molecule Versus Malaria
Each chapter is independent and hence you can read in any order, narration includes numerous anecdotes. Knowledge of Chemistry is required perhaps at a high school level.
When reading about Peppers, Dyes, Silk, Cotton etc, you cannot help but feel sad about child labor and other abuses these industries witnessed. To contain the inputs costs and to maintain the high profit margins, we as a race seem to have “exploitation” as a solution. How exploitation is used varies depending on the era – now, we have sweat shops instead of slave labor.
Authors clearly distinguish the two words, “Synthetic” and “Artificial”. From Chemical stand point, synthetic is a compound which is human made by chemical reactions. It may occur in nature or may not. If it does, synthetic version will be chemically identical to the natural source – for example, vitamin-C. The term, Artificial is applied to the properties of the compound. It would have a different chemical structure but its properties are similar enough to mimic the other’s role – for example, artificial sweetener does not have the same molecule structure of sugar but has an important property, in this case, sweetness to make it a good substitute.
The negative tendency reader would witness is the humans’ constant efforts to be in monopolistic regime in order be profitable without any time limit. To reach this goal, we humans have gone out of the way to keep a tight control over the key inputs. For example, destroying the lands where such resources are cultivated but not in their control, boil the seeds so that there is no scope of cultivating elsewhere before exporting them or at least soak in calcium to eliminate any chance of germination, execute people who try to smuggle the seeds etc. Eventually, the regime ends though.
On the positive side, when the demand is too high for natural compounds to be supplied or satisfied, the quest for synthetic or artificial stuff really zooms. For example, demand for ivory because of the exploding popularity of billiard game was too high to be met. They must be cut from the very center of the flaw free animal tusk and only one out of every 50 tusks provided the required quality and consistency. You can imagine the rate of depletion of elephants. First, it was a combo of wood pulp and bone dust coated with hard resin, then by Bakelite and eventually, it was replaced fully by thermo plastics fully. There are many such innovations like that – Nylon and host of polymers.
Chapter on SALT, I found it interesting. Having grown up in Tuticorin (perhaps the second biggest salt producing area in INDIA) for some time during my childhood, thereby taking the presence of salt just as ubiquitous and cheap as sand, it was indeed an awakening for me. There was a period (14th Century) where it was treated on par with the gold!
Chemical equation NaCl = Au (Chemistry fans would claim it is already an unbalanced equation, but I meant more from today’s commercial perspective) was too much for me. When I recalled Aluminum which was scarce during the Napoleon period and hence very precious so much so that, only royal folks were allowed to use it. Just like every dog has its day, it seems every element or compound has its day or eraJ.
Given the fact, this book was written much later after the book The silent spring, celebration of DDT was a surprise for me. Molecules and Witchcraft chapter was really good. Also,CFC effect was concisely explained.
Chemistry is a heavily an observational science with well designed experiments. I don’t know of any theoretical chemists who made it to Nobel. It is systematic study of nature’s inanimate side. Correct observations which are repeatable each time in various form of experiments holds the key. My school teacher used to warn or encourage (depending on your view point) us that, “Don’t take the equations I write or what is there in the book for granted. It happens like that and therefore we write those equations – not because we write that it happens”. It took quite a while for me to understand the profundity of the statement. He being a passionate Chemistry teacher was perhaps hoping that, we will take a stoic look at those equations and correct a few or come up with new ones as outstanding chemistry folks.
Scientist Ernest Rutherford famously said, “Physics is the real science, rest are just stamp collection”. Given the kind of impact chemistry has made on humankind, albeit I have majored in Physics, I may not really agree with him.
Given the anecdotal value this book delivers, it would be a very good read from your local library.
Thanks for reading this far.
Regards,
madhu
17 Molecules that changed the world.
(Book Commentry)
Authors: Penny LeCouteur & Jay Burreson (Pages: 375)
Title of the book often has an influence on purchase decision of the book. To me, this one sounded curious enough to be picked up.
Authors attribute the defeat of Napoleon’s army in Russia to the buttons soldiers used during their campaign. It was made of tin. Russian winter was so severe at that time, the buttons got pulverized and as a consequence soldiers were exposed to cold so much that, most of them perished and the war was lost.
In a highly chancy event like war, taking one factor like this as a cause is stretching beyond credulity. But then, it does make a good cover story to start with. Obviously, they did not miss the chance to mention the Challenger disaster where they attribute neglecting the molecular property of rubber as the cause of such a disastrous event saying “all for a want of ‘O’ ring”. As per them, that cold morning of Jan 1986, temperature was 15 degrees lower than previous launches and rubber would have lost its pliability. Having lost the original shape, it did not fit in properly and there by triggering the fateful leak. Since, no less than Physics legend Dr Feynman pointed fingers at this ring, I would rest my case.
Authors examine the following. (1) Peppers, Nutmeg and Cloves (2) Ascorbic Acid (3) Glucose (4) Cellulose (5) Nitro compounds (6) Silk and Nylon (7) Phenol (8) Isoprene (9) Dyes (10) Wonder Drugs (11) The Pill (12) Molecules and Witch craft (13) Morphine, Nicotine and Caffeine (14) Oleic Acid (15) SALT (16) Chloro-carbon Compounds (17) Molecule Versus Malaria
Each chapter is independent and hence you can read in any order, narration includes numerous anecdotes. Knowledge of Chemistry is required perhaps at a high school level.
When reading about Peppers, Dyes, Silk, Cotton etc, you cannot help but feel sad about child labor and other abuses these industries witnessed. To contain the inputs costs and to maintain the high profit margins, we as a race seem to have “exploitation” as a solution. How exploitation is used varies depending on the era – now, we have sweat shops instead of slave labor.
Authors clearly distinguish the two words, “Synthetic” and “Artificial”. From Chemical stand point, synthetic is a compound which is human made by chemical reactions. It may occur in nature or may not. If it does, synthetic version will be chemically identical to the natural source – for example, vitamin-C. The term, Artificial is applied to the properties of the compound. It would have a different chemical structure but its properties are similar enough to mimic the other’s role – for example, artificial sweetener does not have the same molecule structure of sugar but has an important property, in this case, sweetness to make it a good substitute.
The negative tendency reader would witness is the humans’ constant efforts to be in monopolistic regime in order be profitable without any time limit. To reach this goal, we humans have gone out of the way to keep a tight control over the key inputs. For example, destroying the lands where such resources are cultivated but not in their control, boil the seeds so that there is no scope of cultivating elsewhere before exporting them or at least soak in calcium to eliminate any chance of germination, execute people who try to smuggle the seeds etc. Eventually, the regime ends though.
On the positive side, when the demand is too high for natural compounds to be supplied or satisfied, the quest for synthetic or artificial stuff really zooms. For example, demand for ivory because of the exploding popularity of billiard game was too high to be met. They must be cut from the very center of the flaw free animal tusk and only one out of every 50 tusks provided the required quality and consistency. You can imagine the rate of depletion of elephants. First, it was a combo of wood pulp and bone dust coated with hard resin, then by Bakelite and eventually, it was replaced fully by thermo plastics fully. There are many such innovations like that – Nylon and host of polymers.
Chapter on SALT, I found it interesting. Having grown up in Tuticorin (perhaps the second biggest salt producing area in INDIA) for some time during my childhood, thereby taking the presence of salt just as ubiquitous and cheap as sand, it was indeed an awakening for me. There was a period (14th Century) where it was treated on par with the gold!
Chemical equation NaCl = Au (Chemistry fans would claim it is already an unbalanced equation, but I meant more from today’s commercial perspective) was too much for me. When I recalled Aluminum which was scarce during the Napoleon period and hence very precious so much so that, only royal folks were allowed to use it. Just like every dog has its day, it seems every element or compound has its day or eraJ.
Given the fact, this book was written much later after the book The silent spring, celebration of DDT was a surprise for me. Molecules and Witchcraft chapter was really good. Also,CFC effect was concisely explained.
Chemistry is a heavily an observational science with well designed experiments. I don’t know of any theoretical chemists who made it to Nobel. It is systematic study of nature’s inanimate side. Correct observations which are repeatable each time in various form of experiments holds the key. My school teacher used to warn or encourage (depending on your view point) us that, “Don’t take the equations I write or what is there in the book for granted. It happens like that and therefore we write those equations – not because we write that it happens”. It took quite a while for me to understand the profundity of the statement. He being a passionate Chemistry teacher was perhaps hoping that, we will take a stoic look at those equations and correct a few or come up with new ones as outstanding chemistry folks.
Scientist Ernest Rutherford famously said, “Physics is the real science, rest are just stamp collection”. Given the kind of impact chemistry has made on humankind, albeit I have majored in Physics, I may not really agree with him.
Given the anecdotal value this book delivers, it would be a very good read from your local library.
Thanks for reading this far.
Regards,
madhu
Saturday, September 19, 2009
Normal Accidents
Normal accidents: living with high-risk technologies By Charles Perrow
(Book Commentary)
“Some books are undeservedly forgotten, but none are undeservedly remembered”- Anon.
This was the Quote in the book marker when I ordered my first book @ amazon.com (circa 1998). I happen to get hold of a book called “Normal Accidents” by Charles Perrow written way back in 1984.
If that quote had an author, perhaps I would have contested - certainly it is a undeservedly forgotten book. I was impressed by the oxymoronic title it carried and I liked it.
Science or popular writings did not get very famous those days (some exceptions like Made in Japan, Pepsi to Apple, Tao of Physics etc). The author did write an afterword for his latest edition that includes Y2k – but then, I would rate that as a meek rejoinder.
Basic theme of the book is that, as we move on, accidents are common part of life – yet, he quips that, disasters and catastrophic events are really hard to arrange. So many things have to come in unison to make such things happen. While that observation gives a whiff of relief, as you go on, an eerie feeling comes to you that, the unison events can be totally unrelated and too insignificant on a standalone basis, but can haunt us for generations to come.
Any first rate book first explains the framework no matter how abstract it is and then introduces key concepts and definitions, then moves on to the main theme.
Just to get off a rapid start on the run way, author chose the Three mile Island nuclear disaster first and then gets in to definitions in Chap2. It deals with complexity, coupling and catastrophe, system and component failures, complex and linear systems, tight and loose coupling. All are well explained with examples.
Author’s coverage areas are indeed wide. He deals with Nuclear, Petrochemicals, Aircrafts<>Airways, Marine, Earth bound systems (Dams, Quakes, Mines and lakes), Exotics (Space, weapons and DNA).
His Nuclear, Marine and Airways are really good. If we remember that it was written in 1984, you may not worry too much on DNA part for many things have transpired since then.
Earthbound, he tells very interesting anecdotes. Certainly, it broadens the sense of perspective and also lends a transient solace that, things are just about as the “same” elsewhere as in Software : )
I am refraining quoting any specific ones in that book for many of the narratives are worth reading.
Finally author classifies all in 3 categories.
1. Abandon them => because is beyond our capabilities
2. Redesign them => regardless of the short term costs
3. Regulate them => regardless of the imperfections in the regulations
It is difficult to be optimistic after reading this book –since our collective understanding of such complex things are on a very flimsy footing. But, the major take away is that, it would breed a sense of humility. It comes from the obvious realization that our understanding is really dwarfed by ignorance.
Thanks for reading so far,
regards,
madhu
(Book Commentary)
“Some books are undeservedly forgotten, but none are undeservedly remembered”- Anon.
This was the Quote in the book marker when I ordered my first book @ amazon.com (circa 1998). I happen to get hold of a book called “Normal Accidents” by Charles Perrow written way back in 1984.
If that quote had an author, perhaps I would have contested - certainly it is a undeservedly forgotten book. I was impressed by the oxymoronic title it carried and I liked it.
Science or popular writings did not get very famous those days (some exceptions like Made in Japan, Pepsi to Apple, Tao of Physics etc). The author did write an afterword for his latest edition that includes Y2k – but then, I would rate that as a meek rejoinder.
Basic theme of the book is that, as we move on, accidents are common part of life – yet, he quips that, disasters and catastrophic events are really hard to arrange. So many things have to come in unison to make such things happen. While that observation gives a whiff of relief, as you go on, an eerie feeling comes to you that, the unison events can be totally unrelated and too insignificant on a standalone basis, but can haunt us for generations to come.
Any first rate book first explains the framework no matter how abstract it is and then introduces key concepts and definitions, then moves on to the main theme.
Just to get off a rapid start on the run way, author chose the Three mile Island nuclear disaster first and then gets in to definitions in Chap2. It deals with complexity, coupling and catastrophe, system and component failures, complex and linear systems, tight and loose coupling. All are well explained with examples.
Author’s coverage areas are indeed wide. He deals with Nuclear, Petrochemicals, Aircrafts<>Airways, Marine, Earth bound systems (Dams, Quakes, Mines and lakes), Exotics (Space, weapons and DNA).
His Nuclear, Marine and Airways are really good. If we remember that it was written in 1984, you may not worry too much on DNA part for many things have transpired since then.
Earthbound, he tells very interesting anecdotes. Certainly, it broadens the sense of perspective and also lends a transient solace that, things are just about as the “same” elsewhere as in Software : )
I am refraining quoting any specific ones in that book for many of the narratives are worth reading.
Finally author classifies all in 3 categories.
1. Abandon them => because is beyond our capabilities
2. Redesign them => regardless of the short term costs
3. Regulate them => regardless of the imperfections in the regulations
It is difficult to be optimistic after reading this book –since our collective understanding of such complex things are on a very flimsy footing. But, the major take away is that, it would breed a sense of humility. It comes from the obvious realization that our understanding is really dwarfed by ignorance.
Thanks for reading so far,
regards,
madhu
Friday, September 18, 2009
The NEW age of Innovation
The NEW age of Innovation by CK Prahalad & MS Krishnan
(Book Commentary)
Book Name: The New Age of Innovation
Authors: CK Prahalad and MS Krishnan
Pages: 278 Pages
Publisher: Tata McGraw Hill
Certainly, authors have simplified the main message with a comprehensible equation.
N = 1
R=G
What they mean is that, “one customer at a time” (N=1). Resources (R) are leveraged across the globe (G) Hence R=G !. Resources, as the authors assert need not be owned – access and correct usage of them is vital. The book has heavy Indian flavor since major share of case studies are from Indian companies. Customer is no longer passive - be it buying tire, shoes, soaps or high-tech items. What they call as “co-create” during the buying process. One of their clear predictions is that, B2B and B2C would eventually converge as N=1.
This book, specifically takes a pot shot at current state of affairs at IT (Indian) industry. For example on Page-49
“The economic model in most of the IT firms in India has not kept pace with the changing nature of the service they provide. As a result, revenue growth is tied to the # of employees – legacy of the cost arbitrage business model. For a firm to go from $2billion in revenue (60,000 employees) to $10billion, it has to recruit approximately 240,000 more employees in a short period of time. Needless to say, the time is ripe for fundamental re-examination of this biz model. We must add that, we do not know a single senior manager in the IT industry of India who does not understand this problem at an intellectual level. However, all their business process – be it estimation work, assignment of people to project, pricing, performance evaluation and profit forecasting – are tied to traditional model and optimized for that model”.
Since flexibility and fluidity is the name of the game, from authors’ standpoint IT architecture and its support is very critical to strategy (inputs from traditional, non-traditional, formal, in-formal) all to be processed and Biz analytics plays a key role in their philosophy.
This is indeed a far cry for IT folks. As of now, every move focuses on standardization and large projects, and here they are telling the exact opposite. Let us do a thought experiment.
Even if we take this prescription less-than-half-serious, it would mean exposing the nearly the entire potentially billable population of the firm to any potential client who can pick and choose a handful of people or just one (N=1 remember?), interview them, some short listed, some selected, some conditional bank – that is, picked up after some specific training and good number of rejects. Not be outdone in pricing, it would be based complex concoction of skills, performance, time allotted to the client, market factors for that skill-set etc. I wonder what can be discussed in Quality Meetings (assuming they would still exist) and broad set metrics that would provide indications on skills, productivity etc. Aside staffing team would have to be fully re-trained on Biz analytics and constant change - perhaps, they would be like stock traders on the floors!
It is a frightening prospect at least in near term for its overwhelming complexity it entails.
Authors do bribe us with compelling examples like, ICICI Insurance, Tutor Vista (Education), Pomafin-Finland (Shoes), and TVS Group, TCS, Satyam and a host of others.
Some of you might have read the famous essay; IT does not matter[1] by Nicholas G Carr. Theme there is that, IT is a commodity and what you do with it determine your destiny. To expand this school of thought, in this latest work, the Big Switch, he goes on to quote Electricity evolution as an example where, producer of anything also generated electricity to remain competitive. But, once transmission and cost per unit became so cheap after consolidation, industries piled on and went ahead with their main production agenda taking the electricity for granted as just as a utility or input. Similarly, quips Garr, IT is a utility we just take it for granted from various providers in the near future.
Whereas this duo presents a case where IT does matter – especially from biz analytics standpoint. It may appear exact opposites. But to me, they seem to be saying the same thing at higher level of abstraction.
Another point they make is that, the distinction between Service and product would blur beyond recognition. They take iPOD as a case study.
They are identifying 4 core drivers. (1) Connectivity (2) Digitization (3) Convergence (4) Social Networks. They form the inputs for creating value.
Innovation they insist that it not episodic but a continuous exercise of value creation taking advantage of the four core drivers.
Locus of Innovation has three grades.
ð Build Products
ð Build Solutions
ð Build Experiences for the customer
Needless to add, authors advocate highest level of innovation.
Authors also explain the Social Architecture of the firm which is also one of the key pillars.
Turnaround is typically a transformation that is tragically delayed. This book is about a transformation agenda. Lots of thought would have to go in to customize them on a per company basis, but in the end, it may be well worth the effort.
This book may not be classified as seminal book on Innovation, but certainly a work with terrific case studies that are well articulated. Authors’ passion to convert the digital divide to digital dividend is clear. In any event, one should not miss this book.
Thanks for reading so far.....
Regards,
madhu
[1] Harvard Business Review , May 2003
(Book Commentary)
Book Name: The New Age of Innovation
Authors: CK Prahalad and MS Krishnan
Pages: 278 Pages
Publisher: Tata McGraw Hill
Certainly, authors have simplified the main message with a comprehensible equation.
N = 1
R=G
What they mean is that, “one customer at a time” (N=1). Resources (R) are leveraged across the globe (G) Hence R=G !. Resources, as the authors assert need not be owned – access and correct usage of them is vital. The book has heavy Indian flavor since major share of case studies are from Indian companies. Customer is no longer passive - be it buying tire, shoes, soaps or high-tech items. What they call as “co-create” during the buying process. One of their clear predictions is that, B2B and B2C would eventually converge as N=1.
This book, specifically takes a pot shot at current state of affairs at IT (Indian) industry. For example on Page-49
“The economic model in most of the IT firms in India has not kept pace with the changing nature of the service they provide. As a result, revenue growth is tied to the # of employees – legacy of the cost arbitrage business model. For a firm to go from $2billion in revenue (60,000 employees) to $10billion, it has to recruit approximately 240,000 more employees in a short period of time. Needless to say, the time is ripe for fundamental re-examination of this biz model. We must add that, we do not know a single senior manager in the IT industry of India who does not understand this problem at an intellectual level. However, all their business process – be it estimation work, assignment of people to project, pricing, performance evaluation and profit forecasting – are tied to traditional model and optimized for that model”.
Since flexibility and fluidity is the name of the game, from authors’ standpoint IT architecture and its support is very critical to strategy (inputs from traditional, non-traditional, formal, in-formal) all to be processed and Biz analytics plays a key role in their philosophy.
This is indeed a far cry for IT folks. As of now, every move focuses on standardization and large projects, and here they are telling the exact opposite. Let us do a thought experiment.
Even if we take this prescription less-than-half-serious, it would mean exposing the nearly the entire potentially billable population of the firm to any potential client who can pick and choose a handful of people or just one (N=1 remember?), interview them, some short listed, some selected, some conditional bank – that is, picked up after some specific training and good number of rejects. Not be outdone in pricing, it would be based complex concoction of skills, performance, time allotted to the client, market factors for that skill-set etc. I wonder what can be discussed in Quality Meetings (assuming they would still exist) and broad set metrics that would provide indications on skills, productivity etc. Aside staffing team would have to be fully re-trained on Biz analytics and constant change - perhaps, they would be like stock traders on the floors!
It is a frightening prospect at least in near term for its overwhelming complexity it entails.
Authors do bribe us with compelling examples like, ICICI Insurance, Tutor Vista (Education), Pomafin-Finland (Shoes), and TVS Group, TCS, Satyam and a host of others.
Some of you might have read the famous essay; IT does not matter[1] by Nicholas G Carr. Theme there is that, IT is a commodity and what you do with it determine your destiny. To expand this school of thought, in this latest work, the Big Switch, he goes on to quote Electricity evolution as an example where, producer of anything also generated electricity to remain competitive. But, once transmission and cost per unit became so cheap after consolidation, industries piled on and went ahead with their main production agenda taking the electricity for granted as just as a utility or input. Similarly, quips Garr, IT is a utility we just take it for granted from various providers in the near future.
Whereas this duo presents a case where IT does matter – especially from biz analytics standpoint. It may appear exact opposites. But to me, they seem to be saying the same thing at higher level of abstraction.
Another point they make is that, the distinction between Service and product would blur beyond recognition. They take iPOD as a case study.
They are identifying 4 core drivers. (1) Connectivity (2) Digitization (3) Convergence (4) Social Networks. They form the inputs for creating value.
Innovation they insist that it not episodic but a continuous exercise of value creation taking advantage of the four core drivers.
Locus of Innovation has three grades.
ð Build Products
ð Build Solutions
ð Build Experiences for the customer
Needless to add, authors advocate highest level of innovation.
Authors also explain the Social Architecture of the firm which is also one of the key pillars.
Turnaround is typically a transformation that is tragically delayed. This book is about a transformation agenda. Lots of thought would have to go in to customize them on a per company basis, but in the end, it may be well worth the effort.
This book may not be classified as seminal book on Innovation, but certainly a work with terrific case studies that are well articulated. Authors’ passion to convert the digital divide to digital dividend is clear. In any event, one should not miss this book.
Thanks for reading so far.....
Regards,
madhu
[1] Harvard Business Review , May 2003
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