Here's a great blog that throws light into a startup companies approach to project delivery.
Could this be applied in services companies too? Let me know your views on this one.
Thursday, August 2, 2007
Thursday, July 26, 2007
A Case Study in Classic Mistakes
Hi everyone, this is my first post here and I plan to write often here now. Thanks Roy for pulling me in as a co-author. I do write at other my weblog here and Roy does it here. Roy has written some interesting posts there. So do visit us!
Ok, this post is about the Case study put up at the yahoo group > GMPIT. I have gone through the doc file and I find that it is common place in most organizations. I have faced this myself several times and here is my learning:
1. Never project timeline without talking with the team and at least add some buffers to accommodate the unknown and based on team personalities you are dealing with. Make sure you know your team well. If not, read each members previous appraisal sheet and resume, if possible. It is not uncommon to have an over-committing guy on your list. So that should be factored in.
2. Team is the key to a successful project. Ensure that there are no personality issues amongst peers. If there are these challenges and you do realize it after the project has been initiated, change the communication strategy and let everyone talk through only you so that the gaps are minimized. It would be ideal if the team has worked before together to successfully deliver a project earlier. If there are new recruits, ensure that the peers are a part of the interview process and that there is some acceptance there. I have seen 'handpicked' teams fail just because of personality issues.
3. Never accept any requirement change or RFEs in the middle of the project unless you can analyse the impact and buy time for that. Make sure that each stakeholder is aware of the impact. If you are not heard, escalate it. Note that your neck will be on the line if you miss the delivery date.
4. Never get into appeasing others. You are digging your own grave by doing it.
5. Throughout the life cycle have a daily status meetings even if it is across geographies. This ensures that there are no gaps and everyone knows what is to be done 'tomorrow'. This may sound like hypothetical but this works. In time bound projects, specially where there is a penalty clause, it is utmost essential that everyone knows his/her daily target and the problems faced are brought to the table in time. Imagine a programmer telling you at the end of the week that since he did not getting the database design document, he worked on something else and is still waiting for it. Daily review is a must.
6. Think proactively. In addition to daily chores of co-ordination and communication, and monitoring and control, one skill that really helps is being proactive. For example, if you know that you might need a database architect at some point during the project, find one NOW. You may not hire him but may give him a heads up on when you might need him.
7. Be very careful in what you communicate. Casual statements may sound rude or even get misinterpreted across geographies.
These are the key things that come to my mind. Do read the case study - it reflects a very typical scenario in the software development firms and would be fun discussing that in the class.
Cheers!
Ok, this post is about the Case study put up at the yahoo group > GMPIT. I have gone through the doc file and I find that it is common place in most organizations. I have faced this myself several times and here is my learning:
1. Never project timeline without talking with the team and at least add some buffers to accommodate the unknown and based on team personalities you are dealing with. Make sure you know your team well. If not, read each members previous appraisal sheet and resume, if possible. It is not uncommon to have an over-committing guy on your list. So that should be factored in.
2. Team is the key to a successful project. Ensure that there are no personality issues amongst peers. If there are these challenges and you do realize it after the project has been initiated, change the communication strategy and let everyone talk through only you so that the gaps are minimized. It would be ideal if the team has worked before together to successfully deliver a project earlier. If there are new recruits, ensure that the peers are a part of the interview process and that there is some acceptance there. I have seen 'handpicked' teams fail just because of personality issues.
3. Never accept any requirement change or RFEs in the middle of the project unless you can analyse the impact and buy time for that. Make sure that each stakeholder is aware of the impact. If you are not heard, escalate it. Note that your neck will be on the line if you miss the delivery date.
4. Never get into appeasing others. You are digging your own grave by doing it.
5. Throughout the life cycle have a daily status meetings even if it is across geographies. This ensures that there are no gaps and everyone knows what is to be done 'tomorrow'. This may sound like hypothetical but this works. In time bound projects, specially where there is a penalty clause, it is utmost essential that everyone knows his/her daily target and the problems faced are brought to the table in time. Imagine a programmer telling you at the end of the week that since he did not getting the database design document, he worked on something else and is still waiting for it. Daily review is a must.
6. Think proactively. In addition to daily chores of co-ordination and communication, and monitoring and control, one skill that really helps is being proactive. For example, if you know that you might need a database architect at some point during the project, find one NOW. You may not hire him but may give him a heads up on when you might need him.
7. Be very careful in what you communicate. Casual statements may sound rude or even get misinterpreted across geographies.
These are the key things that come to my mind. Do read the case study - it reflects a very typical scenario in the software development firms and would be fun discussing that in the class.
Cheers!
Tuesday, March 20, 2007
Imprest System
An imprest system is a system using loans as control against fraud and theft. The most common imprest system known is the petty cash system.
Petty cash imprest system
The Petty Cash Imprest System works on the basis that you only replenish what you have spent. So if you start the month with €100 in your petty cash float and spend €90 of that cash in the month, an amount of €90 will be then placed in your petty cash float to bring the balance of your petty cash float back to €100. The most common imprest system known is the petty cash system.
Why use the imprest system
In this example the maximum amount of petty cash that can be issued (spent) is €100. You can only spend what you have and you are only replenished with what you spend in this case €90.
In a non imprest system where a fixed amount is issued every month e.g. €100 every time cash is required, there is no incentive to ensure all money issued has been documented because when money is all spent a cheque for a fixed amount is issued. It is much more difficult to reconcile a non imprest system as you never know how much exactly should be in the float.
In an imprest system the amount requested is documented. The documentation being the petty cash dockets and their associated receipts or invoices. So at all times you can check how much should be left in the petty cash float by deducting the amount spent from the opening petty cash float.
How petty cash imprest system works
The imprest system ensures that you must document how the petty cash is spent. In a petty cash system, petty cash dockets are written for each amount issued. So when all of these dockets are totalled at the end of the month and deducted from the opening petty cash float, the calculated value must agree with what is left in the petty cash float. Under the imprest system, only that which is recorded as spent is replenished. Any shortfalls may have to be replenished by the guardian, usually a bookkeeper, of the petty cash float from their own personal resources.
Petty cash imprest system
The Petty Cash Imprest System works on the basis that you only replenish what you have spent. So if you start the month with €100 in your petty cash float and spend €90 of that cash in the month, an amount of €90 will be then placed in your petty cash float to bring the balance of your petty cash float back to €100. The most common imprest system known is the petty cash system.
Why use the imprest system
In this example the maximum amount of petty cash that can be issued (spent) is €100. You can only spend what you have and you are only replenished with what you spend in this case €90.
In a non imprest system where a fixed amount is issued every month e.g. €100 every time cash is required, there is no incentive to ensure all money issued has been documented because when money is all spent a cheque for a fixed amount is issued. It is much more difficult to reconcile a non imprest system as you never know how much exactly should be in the float.
In an imprest system the amount requested is documented. The documentation being the petty cash dockets and their associated receipts or invoices. So at all times you can check how much should be left in the petty cash float by deducting the amount spent from the opening petty cash float.
How petty cash imprest system works
The imprest system ensures that you must document how the petty cash is spent. In a petty cash system, petty cash dockets are written for each amount issued. So when all of these dockets are totalled at the end of the month and deducted from the opening petty cash float, the calculated value must agree with what is left in the petty cash float. Under the imprest system, only that which is recorded as spent is replenished. Any shortfalls may have to be replenished by the guardian, usually a bookkeeper, of the petty cash float from their own personal resources.
Saturday, March 3, 2007
Why Not Just Print More Money?
"Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability."
Inflation is caused by a combination of four factors:
Factor 1 -> The supply of money goes up.
Factor 2 -> The supply of other goods goes down.
Factor 3 -> Demand for money goes down.
Factor 4 - >Demand for other goods goes up.
Inflation result from decrease in Aggregate Supply (Total value of goods and services produced in country). When supply gets decrease, cost gets increased.
Aggregate Supply gets decrease becuase of increase in production cost (due to increase in cost of wages, raw materials etc).
This scenario where Supply is less i.e Demand is more than Potential Output (K), which is
nothing but Cost Push Inflation.
Where Inflation cuased due to increased in Aggreagate Demand known as Demand Pull Inflation.
Many people ask question like "Why Not Just Print More Money? " to avoid inflation and to get more wealth.
Consider the example here to answer above question.
Consider the case of the United States. Let’s suppose the United States decides to increase the money supply by mailing every man, woman, and child an envelope full of money. What would people do with that money? Some of that money will be saved, some might go toward paying off debt like mortgages and credit cards, but most of it will be spent. I know the first thing I’d do is go down to Walmart and buy an Xbox or PlayStation 2 .
I’m not going to be the only one who runs out to buy an Xbox. This presents a problem for Walmart. Do they keep their prices the same and not have enough Xboxes to sell to everyone who wants one, or do they raise their prices? The obvious decision would be to raise their prices. If Walmart (along with everyone else) decides to raise their prices right away, we’d have massive inflation, and our money is now devalued.
Since we’re trying to argue this won’t happen, we’ll suppose that Walmart and the other retailers don’t increase the price of Xboxes. For the price of Xboxes to hold steady, the supply of Xboxes will have to meet this added demand. If there are shortages, certainly the price will rise, as consumers who are denied an Xbox will offer to pay a price well in excess of what Walmart was formerly charging.
For the retail price of the Xbox not to rise, we will need the producer of the Xbox, Microsoft, to increase production to satisfy this increased demand. Certainly this will not be technically possible in some industries, as there are capacity constraints like machine and wages. Same time wages rate will increase, for more production more labour and over time also needed which increase production cost.
We’ve seen why an increase in the supply of money causes prices to rise. If the supply of goods increased enough, factor 1 and 2 (mentioned above) could balance each other out and we could avoid inflation.
Suppliers would produce more goods if wage rates and the price of their inputs wouldn’t increase. However, we’ve seen they will increase. In fact, it’s likely that they’ll increase to such a level where it will be optimal for the firm to produce the amount they would have if the money supply had not increased.
This may again cuase inflation here..
Inflation is caused by a combination of four factors:
Factor 1 -> The supply of money goes up.
Factor 2 -> The supply of other goods goes down.
Factor 3 -> Demand for money goes down.
Factor 4 - >Demand for other goods goes up.
Inflation result from decrease in Aggregate Supply (Total value of goods and services produced in country). When supply gets decrease, cost gets increased.
Aggregate Supply gets decrease becuase of increase in production cost (due to increase in cost of wages, raw materials etc).
This scenario where Supply is less i.e Demand is more than Potential Output (K), which is
nothing but Cost Push Inflation.
Where Inflation cuased due to increased in Aggreagate Demand known as Demand Pull Inflation.
Many people ask question like "Why Not Just Print More Money? " to avoid inflation and to get more wealth.
Consider the example here to answer above question.
Consider the case of the United States. Let’s suppose the United States decides to increase the money supply by mailing every man, woman, and child an envelope full of money. What would people do with that money? Some of that money will be saved, some might go toward paying off debt like mortgages and credit cards, but most of it will be spent. I know the first thing I’d do is go down to Walmart and buy an Xbox or PlayStation 2 .
I’m not going to be the only one who runs out to buy an Xbox. This presents a problem for Walmart. Do they keep their prices the same and not have enough Xboxes to sell to everyone who wants one, or do they raise their prices? The obvious decision would be to raise their prices. If Walmart (along with everyone else) decides to raise their prices right away, we’d have massive inflation, and our money is now devalued.
Since we’re trying to argue this won’t happen, we’ll suppose that Walmart and the other retailers don’t increase the price of Xboxes. For the price of Xboxes to hold steady, the supply of Xboxes will have to meet this added demand. If there are shortages, certainly the price will rise, as consumers who are denied an Xbox will offer to pay a price well in excess of what Walmart was formerly charging.
For the retail price of the Xbox not to rise, we will need the producer of the Xbox, Microsoft, to increase production to satisfy this increased demand. Certainly this will not be technically possible in some industries, as there are capacity constraints like machine and wages. Same time wages rate will increase, for more production more labour and over time also needed which increase production cost.
We’ve seen why an increase in the supply of money causes prices to rise. If the supply of goods increased enough, factor 1 and 2 (mentioned above) could balance each other out and we could avoid inflation.
Suppliers would produce more goods if wage rates and the price of their inputs wouldn’t increase. However, we’ve seen they will increase. In fact, it’s likely that they’ll increase to such a level where it will be optimal for the firm to produce the amount they would have if the money supply had not increased.
This may again cuase inflation here..
Sunday, February 25, 2007
Economy of Virtual Worlds
Second Life is a virtual world and has its own economy and a currency referred to as Linden Dollars (L$). This economy is independent of the Pricing, where users pay Linden Lab. In the SL economy, residents buy from and sell to one another directly, using the Linden, which is exchangeable for US dollars or other currencies on market-based currency exchanges. Linden Lab reports that the Second Life economy generated US$3,596,674 in economic activity during the month of September 2005, and as of September 2006 Second Life was reported to have a GDP of $64 Million.
The basis of this economy is that residents (that is, users, as opposed to Linden Lab) can buy and sell services and virtual goods to one another in an open free market. Services include building help, businesses management, entertainment, and other personal services. Virtual goods include buildings, vehicles, devices of all kinds, animations, and works of art. To make money in SL, one must find customers who are willing to pay for the services or products that one can supply.
Because of the existence of virtual land, there is an active virtual real estate market. Originally all land comes from Linden Lab (which is part of the pricing and a revenue stream for them), but after that it is bought and sold much like real-life real estate.
In addition to the main economy, some residents receive a small weekly stipend, depending on the kind of account they have, and when they joined Second Life. There are also the virtual equivalent of minimum wage jobs and charitable organizations that try to introduce new residents to the consumer economy.
Residents may purchase L$ directly through the client, or convert between Linden currency and U.S. currency through either Linden Lab's currency brokerage, the LindeX Currency Exchange, or other third-party currency exchanges. The ratio of USD to L$ fluctuates daily as Residents set the buy and sell price of L$ offered on the exchange, and fluctuated between L$240/USD and L$350/USD between October 2005 and September 2006.
Second Life publishes updated economic stats of its vritual world at http://secondlife.com/whatis/economy_stats.php
The basis of this economy is that residents (that is, users, as opposed to Linden Lab) can buy and sell services and virtual goods to one another in an open free market. Services include building help, businesses management, entertainment, and other personal services. Virtual goods include buildings, vehicles, devices of all kinds, animations, and works of art. To make money in SL, one must find customers who are willing to pay for the services or products that one can supply.
Because of the existence of virtual land, there is an active virtual real estate market. Originally all land comes from Linden Lab (which is part of the pricing and a revenue stream for them), but after that it is bought and sold much like real-life real estate.
In addition to the main economy, some residents receive a small weekly stipend, depending on the kind of account they have, and when they joined Second Life. There are also the virtual equivalent of minimum wage jobs and charitable organizations that try to introduce new residents to the consumer economy.
Residents may purchase L$ directly through the client, or convert between Linden currency and U.S. currency through either Linden Lab's currency brokerage, the LindeX Currency Exchange, or other third-party currency exchanges. The ratio of USD to L$ fluctuates daily as Residents set the buy and sell price of L$ offered on the exchange, and fluctuated between L$240/USD and L$350/USD between October 2005 and September 2006.
Second Life publishes updated economic stats of its vritual world at http://secondlife.com/whatis/economy_stats.php
Network-based marketing
Network-based marketing refers to a collection of marketing techniques that take advantage of links between consumers to increase sales.
A study, co-authored by Shawndra Hill, Wharton professor of operations and information management, found that consumers are far more apt to buy a company's product if they are "network neighbors" with existing customers. Mining data from "social networks" -- who talks to whom or who emails whom -- could allow companies to pinpoint likely customers who otherwise would be overlooked.
The full paper, "Network-Based Marketing: Identifying Likely Adopters via Consumer Networks" can be found at http://arxiv.org/PS_cache/math/pdf/0606/0606278.pdf
This explains why social networking sites like myspace, youtube...etc attract huge valuations.
eBay recently purchased Internet-telephony upstart Skype for $2.6 billion; they now also will have large-scale, explicit data on who talks to whom.
A study, co-authored by Shawndra Hill, Wharton professor of operations and information management, found that consumers are far more apt to buy a company's product if they are "network neighbors" with existing customers. Mining data from "social networks" -- who talks to whom or who emails whom -- could allow companies to pinpoint likely customers who otherwise would be overlooked.
The full paper, "Network-Based Marketing: Identifying Likely Adopters via Consumer Networks" can be found at http://arxiv.org/PS_cache/math/pdf/0606/0606278.pdf
This explains why social networking sites like myspace, youtube...etc attract huge valuations.
eBay recently purchased Internet-telephony upstart Skype for $2.6 billion; they now also will have large-scale, explicit data on who talks to whom.
Wednesday, February 21, 2007
Vertical Marketing System
A vertical marketing system (VMS) is one in which the main members of a distribution channel—producer, wholesaler, and retailer—work together as a unified group in order to meet consumer needs. In conventional marketing systems, producers, wholesalers, and retailers are separate businesses that are all trying to maximize their profits.
When the effort of one channel member to maximize profits comes at the expense of other members, conflicts can arise that reduce profits for the entire channel. To address this problem, more and more companies are forming vertical marketing systems.
http://business.enotes.com/small-business-encyclopedia/vertical-marketing-system has more on this.
Anyone heard of any indian company employing this kind of marketing?
When the effort of one channel member to maximize profits comes at the expense of other members, conflicts can arise that reduce profits for the entire channel. To address this problem, more and more companies are forming vertical marketing systems.
http://business.enotes.com/small-business-encyclopedia/vertical-marketing-system has more on this.
Anyone heard of any indian company employing this kind of marketing?
Saturday, February 17, 2007
Consumer mind at time of buying
"A consumer has a rational or emotional motive at the back of his mind while buying any product or service therefore when a marketer sells a Drill, the buyer buys a perfect hole"
Most of the times the consumer is on his mental journey while making a purchase. It is the duty of marketer to understand the state in which the consumer is while making a buying decision. The most critical factor in all this exercise is that pain and joy exist very close to each other in customer’s heart .
Read the full article at http://www.kuldeeponline.com/mentaljourney.asp
How far is this true? Have you'll also had similar experiences?
Monday, February 5, 2007
Welcome!!
Welcome all,
This shared blog is a good place where all of us could discuss/share/study together on our course subjects/case studies/assignments etc..
If you'd like to make a post on this blog, please send me an e-mail at royrajan78@yahoo.com, I'll be glad to add you as a co-author.
cheers,
Roy.
This shared blog is a good place where all of us could discuss/share/study together on our course subjects/case studies/assignments etc..
If you'd like to make a post on this blog, please send me an e-mail at royrajan78@yahoo.com, I'll be glad to add you as a co-author.
cheers,
Roy.
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