Archive for November, 2006



Cleartrip.com – Travel 2.0 India Firm

Just got of listerning to interesting Podcast (link) of Sandeep Murthy CEO of cleartrip.com.  His take on online travel business is interesting. He believes largely the online travel industry is inviting investment due to the fact potential of growth available based on forecast of new airlines/hotel inventory being made available.  But based on understanding of existing players like makemytip.com , traveljini.com . The sales have been largely driven by sales to destinations abroad or NRI’s taking advantage of booking online for travel to india. Rest of all online travel industry figures are based on transactions being performed on platforms/websites of airlines directly.

For bankers putting their money behind such companies. Should realize on focused opportunity where the travel portals should not be just using the money for bringing more and more people to use online medium for travel booking(un managed business/liesure travel) but also look at how managed travel planning or IATA agents can be made dependent on the technology or business.

India is a country where by just opening a call center would not bring the right offline pressence these online travel agencies feel to provide. Either they would need to follow shaadi.com method of franchising or making the travel agents dependent on them for driving businesses. This would not only help in building the brand but also help people get offline customer service at point near to them. I have shared this thought earlier also “people in india tend to have lot of time to waste” system has made people like this where time value of money is very little for people earning <3L per  year. Which forms a very large population in india. Hence you have to reach out to these people. I will give an example a person who has made reservation with a travel agent in small cities will come to there office atleast 3 times before getting the ticket issued. First to check fare, second to check reservation, third time to get it issued. Keeping this in mind local pressence surely helps them to get satisfaction to walk-in and feel dealing with established player.

When i talked about Online DVD Rental business in india it could work as market does not even exist offline as lack of DVD rental stores commonly accessiable. Hence model exist. But Travel Industry is one of the important sector to india which is called “country of shop keepers”. Here a person who would like to start business either gets into general store,cloth merchant,tours and travel,chemist or eatery. The only way to grow business big is to carry this weight with you. Make these small people adapt their business and re-align to your businesses.

But again best of luck to businesses like cleartrip.com, yatra.com as the model is good but is it worth enough to invest 10 millions dollars in it is to be seen.

Geobeats – Destination Travel Videos

geobeats logo

Another take on trip planning and destination guides. This website uses the power of video blogging and frameworks provided by likes of youtube. To me they look like student film makers just collabrating and creating destination videos. I went through couple of them and liked the concept of just doing 4-5 minutes on each destination. What i like about these new media websites is their ability to address unique captive audience requirement.

This website focus looks to be on international travellers which offcourse is big spending segment. What geobeats should also look is invideo advertising. For long i have been talking about this with other bloggers that why dont video blogger take advantage of in-video advertisement. By this i dont mean inserting one frame on sponsors but actually talking abt a hotel at destination or giving on silde at end recommended list of hotels.

Looking at geobeats kind of websites first question which comes to my mind is what kind of revenue model are these people working on. With so many content websites comming up except for being potential acquisation targets for bigger travel aggregators/portals in market. What do they offer.Which brings to  another important question why would venture capitalist invest in these kind of organizations.

If anyone else know of any similar website. Please do advice.Will surely like to compare both the sites business models.

Till then enjoy GEOBEATS 

Free IT Consulting

Since my return from melbourne all work related activities has been concentrated on IT consulting for SME sector. Working with cyberica which manages portal projects for major SME sector associations like NSIC India, FISME, FICCI.Has made me realize how people in SME sector dont appreciate lack of knowledge. By this i dont mean they show disrespect to knowledge but they take technology and for guaranteed.Mainly they believe IT consulting is free only development comes at a charge.

Most of these organizations believe time spent in understanding their organization process and re-engineering it to suite IT enviornment and help increase productivity comes for free. Misconception due to the fact most of the people know developers which work for organizations like infosys,TCS,satyam etc. These people are developers,solutions architect based on business problem defined by business analyst sitting on-shore near to client. This has made them believe one-fit to all solutions exist and what companies need to get paid is for development of custom application. On oneside the call it custom application development but on other hand they talk about what will be the solution development cost.

So where do IT companies go wrong.

# Tendency to do process study for free before actual award of project

# Trying to map domain knowledge of one industry to others.

# No specific specialzied domain practises setup in organization to keep consulting charges to low for customers by following unified research for benefit to all customers.

Development Charges

If we have to add a new component to a clients website. Even if we spend lot of time thinking on usability aspect or making end objective more clearer through way of software. end of the day the pay scale doesnt tilt in favour of provider. On the other hand general conception is its taken for guaranteed to perform to higher level of satisfaction. Though competition in market is high but indian industries when dealing with IT companies still calculate pay worth on development charges based on following metrics

# Size of an organization

How good and complex your solution maybe. But lets say if you are <10 people organization according to client. You are not good enough to command high price.

# Benchmark on what others are paying in industry

When we goto colleges in delhi. We hear some colleges are paying 30,000 INR to get their sites up and others paying upto 3,00,000 Lakh. There is another lot which is just dependent on their computer science faculty standing up to take incharge. Ideally none of the colleges are trying to understand once they are engaging an IT consultant for even a website. Time has changed when it was just matter of pressence. With connectivity of more people day by day to internet it becomes more viable for them to view it as a tool to enhance productivity by means of better student interaction and collabration. On the side also look at cost reduction technique in administration departments. Generally clients we get are second-hand as in gone through hands of some other IT consultant before…mostly suffering from low delivery standards set and lack of consulting approach to solve problems at organizations. Lead them to negotiating with us for lower value to delivery.
For IT consulting to evolve people in the IT industry first need to start value their own expertises. This will help them to differentiate their organizations from the one being run by 2-3 designers/developers just out of NIIT

I am also interested to hear from people who believe in setting up joint research facility where both the organizations can contribute equal amount of resources and work together on commericalization strategy. This will lead to increase in technological innovation and help in solid IPR value creation.

Would wait on comments on this one.

Visaonnet.com – New Travel Business Model

Finally decided on a business model for visaonnet.com. The site has been in cyberspace since 2000. Has large fan following in form of travel and immigration agents. But what the site lacked was a business model. It was based on providing information to customers. It was doing its job right. But with 2.0 Dotcom bubble burst on the horizion dont want to do something just advertising or content based.

The way to go for visaonnet.com will be providing visa and immigration service. The business model is scalable which makes it attractive for giving it another shot. To begin with cae up with a new LOGO!!!

Here its for people to comment on ….Visaonnet.com Logo

Payroll Management Services for India Enterprises Part -I

We all know in West this concept has existed for a while where payroll management is a tedious accounting function and is generally preffered by enterprises to be outsourced. I know lot of firms as small as 10 people outsourcing their payroll function. In india we have recently seen spurt of lot of service providers taking on similar function sitting in india for companies in US. But none of them are targeting companies based in india. Reason lets look at the payroll development function in india.

Lets identify person responsible for payroll in india

Scenario 1

Company Size : Scenario 2

Company Size : 50-100 employees

function executed by : HR Executive

Cost : 10000-15000 per month

Now as most of the companies fall under the above 2 categories. Its important lets concentrate on this segment.

Time spent every month on payroll related activities

Scenario 1

10 days by accounts executive

Tasks

  • payslip generation
  • increment
  • PF management
  • loan management
  • Income Tax and other employee tax management
  • Attendance and Leave Management
  • temporary worker wages assignment

Scenario 2

H.R Executive

Tasks (other than one defined and carried out in scenario)

  • Employee Perfomance Metrics
  • New Employee Hiring and responsibilities assignment
  • employees training
  • secondary conflict resolution

For the first scenario the task can easily be outsourced as if starting of the yeay pay register has been created with account details and balances. Then on monthly basis only notification in increment has be adviced by enterprise to payroll company. Rest all the functions like accessiability of Payslips, PF Details, Loan details can be made online. Removing the burden on accounts department. The whole idea of carrying forward with these all excercise for making any organization more leaner and efficent.

For the scenario 2 tasks. With introduction of new performance and 360 HR System its possible for executing these tasks.But cost factor in implementing such systems is a big detterent.

Lets look at cost if any of the 2 scenario enterprise was to engage Payroll service provider

Cost for doing it inhouse every year = INR 130,000 (software cost,man power cost)

Per employee per year cost = INR 2600

Example if they engage outside service provider

Cost per employee per month charged = INR 100

Cost per year per employee = INR 1200

Savings per year = 2600-1200 = INR 1400 per employee

Saving organization wide = 1400 * 50 = 70,000 INR

As you can see saving starts to get reflected from first year itself.As organization size grows cost saving increases.

But biggest issue with indian organizations is they feel its something internal to organization which cannot be outsourced. Secondly this will make 60% of accounting task in an organization go away.

importantly i will get back with Part-II which talk more on objections/restrictions faced in enterprises.

Travel 2.0 India – What could be Next ?

We hear lot of websites comming up in the biggest 1.0 business model un-exploited till its maximum potential. Travel and online reservation. But with comming in of so many travel websites. Do we feel india is ready for a travel deal aggregator or a travelouge with facility for users to share their travel plans and experiences.

Though inital hesitation looking at indian business models will be first acceptability and growth of tavel e-commerce which is currently driven by online reservation system provided by No-Frill Low cost carriers like Airdeccan, Spicejet,go airlines etc. First of all acceptance of providers like makemytrip.com,flightraja.com,yatra.com etc has to increase for this first of all content has to start to flow based on indian mentality. Now travelmartindia.com i remember use to work on those lines back in 2002. Time when visaonnet.com was looking at forming an alliance with online travel reservation portal to provide flight and hotel reservations for outbound services.Even they have started working on flight reservation engine as core of their business model.

What is needed is approach of an offline travel company. Example reverse bidding something which horizontal players like indiatimes.com etc are offering. But more importantly these travel sites needs to engage more user experience and try to work on model like create your iteniary,publish and host it on like xyztravelsite.com link it with your own blog or website. This way people visiting your travel page get instant deal generated using the online booking engine combined with full hotel,airfare etc. The advantage will be people will act as word of mouth to publicize set to draw sales. Secondly the adapting NON-IATA travel agents market can take advantage onf such site to create cheap travel iteniaries based on their experience sending people abroad and also to offer their customers instant pricing. The whole idea is to derive the same give back commission kind of system to people helping you sell the deal at lower prices.

What conclusion i have drawn from all web 2.0 businesses comming online is that its all about generating revenue from content generated by other people using your application.

I have a nice existing portal which can surely take advantage of such revamp. Any person interested in collabrating on the business model side of the idea. More than glad to listern and partner to help do something different in Travel 2.0 E-commerce field.

Online DVD Rental Business in India

For past couple of days on any website which talk about venture capital deals and opportunities in india. We can see Online DVD Rental business as the next big thing. But with every passing day new company popping up in this sector. It makes one feel how how so many players survive in market.  Though every business in their pitch will give only one answer. That Market is huge. Few people have actually sat down and looked at market in terms of practical problems to be faced.

Fact 1# Most of the companies looking at this model at time of quoting numbers talk about total customer base opportunity in india.

Problem#1 Most of these firms are starting from a regional base servicing one or maximum 2 cities at one go.As reason being most of these firms business model rely on having own supply chain or pickup and drop service to customers location. Which to service far flung requires manpower. Hence shrinked market to begin the model with. Here again lot of people will talk abt scalibilty after showing proof of concept in one city. We will talk about this in detail in are comming problems.

Fact 2# The Model is dependent on aggregation of new content.Quoted numbers talk about availability of upto 900 new releases every year.

Problem2# With advent of new technologies like IPTV or Dish-TV more latest movies will become accessiable on demand at the same cost which these rental companies are charging to customers. Secondly as soon as movies are released their TV Premiere rights are sold out and you can see it hitting channel near you with in 9-12 Months. With all of these mediums fighting for consumers attention and with a Windows Media Centric PC record the movie or as Ad’s show pause and start the movie from where you left.

Fact3# Market exist as people are happy to rent Pirated DVD’s/VCD’s

Problem3# People renting Pirated DVd/VCD are mostly the people who miss the movie in theater and just would like to watch the movie in the same month of movie launch. After that once a movie is miss….you will probably wait for your local cable tv or some channel to show it.Secondly when a person can buy a copy for 35INR for one time watch why will he pay so late as in india peoples concentration is not on quality but price.

Fact4# People are spending 1000 bucx to watch a movie at theatre

Problem4# With dearths of parks and family outings available. Movie theatre is one decent experience(wont comment on type of movies releasing every year) left for family to visit. So it looks like very irreplacable keeping in mind indian liking to catch first day first show of latest release.

Fact5# Scalibility available

Problem# most of these companies being regional lack of knowledge on movie preference of other language will still be a killer in pushing content.

My favourite

Answer which all of these companies have to answer in western countries from where they are tying to ape the model their exist a successful offline brick mortar model for the business. In india since advent of cable TV rental businesses pretty much died. If you look in west cable tv is still an item of luxury or expensive which in india is very cheap on Mc Index. Hence this model hasnt proven its worth offline with consumers it will be very hard to compete on online front.

Couple of comming up Online DVD Rental Stores in India

Madhouse.in

Seventymm.com

i have seen others but these are the ones most talked in VC Blogs in india.

Will ask people funding these organizations to shed more light on problem forseen from outside or past b2c  experience

E-Services Management

As CEO’s of today’s enterprises are looking at reducing the bottom line of the organization. More pressure is on the CIO and CTO of today to justify the cost associated in managing the growing IT infrastructure demand. Though we have seen a traditional switch in acceptability of outsourcing non-core processes. There is still room for reduction of cost associated with management of core-business processes.

 

As more and more organization starts to derive value from e-enabled business processes of other organizations off course available in public domain. They can forsee a significant cost reduction in total operation cost to manage such e-enabled core business processes.

 

E-Services as defined is the value derived from a business process. Being a service provider to B2C sector its very important as a developer to reduce development time for commercialization of business ideas as many of them are dependent on first movers advantage.

 

If we look at the specific vertical of E-Retailing things like Shopping Cart, Newsletter management, Ad Management has been done over again by many service providers. The Latest example being Google Ads using their Ad Management Program to publishing industry for selling of newspaper ads.But even today if you would like to come up with a good e-store with management control customized to your requirement. It will still cost 2000$ to setup and another 5-7K to manage it. Though in comparison to previous years the cost has come down to 70% of what it exist. But learning from experience complexity of business has also increased by at least 60-70%.

 

This brings us to our topic Why E-Services Management

 

  • With increasing number of software provider turning into service providers. The enterprises have to align their management plans accordingly. As the ASP model provides the necessary cost savings and opportunity for scaliblit.y. It makes more sense for CTO of today to take advantage of Pay as use or on-demand format.
  • Secondly With new communication interfaces and devices coming into the enterprises. Its becoming the responsibility of the CIO to make available information wherever the business is being conducted from.
  • Amazon Elastic Cloud gives an opportunity to enterprises to bring scalability in organization  with adding up  investment on IT Infrastructure or computing power  for applications
  • Just like before hiring an employee you would like to do a reference check on how he worked and does his/her way of working would suite your organization. There is no common mechanism available to evaluate e-services external to you I n use.

BPM and E-Services Management

 As BPM or Business Process Management is the latest buzword at any enterprise forum. We need to understand that are core of any BPM lays the basics of e-services management. As BPM’s role is to model,execute and manage sequence of activities in a business process keeping the tasks separate from business logic in backend application.

 

But important thing to look in here is with e-services management people are concentrating more on process logic than decision logic. For example, in loan origination, the activities described by process logic might include receiving the loan application, ensuring completion, gathering supplementary information, underwriting and approval, document generation, updating the transaction systems, archiving for compliance and notifying the customer. Decision logic in that process might determine whether the supplied information is complete, handle credit scoring and other risk assessment, execute the required level of approval and ensure regulatory compliance. You could implement that decision logic using BPM process logic or by embedding it in process tasks, but doing it with a Business Rules Management or Information dependent makes decision logic more visible to business managers, more consistent across the enterprise and easier to change as required.  

 
 QoS Variables

 

This is generally my way of putting things when we discuss with enterprises there needs. Generally in SME sector CIO/CEO roles are carried out by same individual. But with IT infrastructure converting into a cost unit. Its important that selection of service should not be a one time management decision but based on management decision logic and scalbility of organization the IT infrastructure meet the demand.

 

From CTO Perspective important factors are

 

  • Throughput
  • Response Time
  • Availability
  • Security

 

Though these attributes were focusing more on selection of service on the basis of Efficiency and Reliability, we believe they are still not a perfect measure keeping in mind enterprise IT computing requirement.

 

From CIO perspective

 

*      Time  - Waiting Time + execution Time

*      Cost   -  Financial charge per transaction + cost to run the service

*      Reliability – . It can be termed as number of jobs successfully executed/ number of scheduled executions.

*      Fidelity –  Measure of satisfaction of service

*      Recoverability – . A source consideration as to be reliable could also be added with constraint of recoverability. That in case of a failure does service has a method for recoverability. This can only be weighted for a service based on experiences with it or if the QoS attributes advertised with the service also has details on recoverability settings or methods implemented

*      Information – At time of selection of service has the domain of implementation being analyzed hence need for decision logic. As same service can be required for different functions in an organization. Example in case of Location based services – Maps as content is an important public service included in process workflow. But based on location of service requestor in an enterprise the service selection criteria can be different. Example when Routing function invokes the server different kind of map service is required. But when finding a service like the nearest florist different kind of detailed map service is required.

 
Hence there is a need for Domain knowledge based selection criteria. As it helps in Implementation of Organization Goal and objectives for evaluation of services

 

So what kind of Implementation will suite an organization of today.

 With content becoming an integral part of services delivered by software for decision making in business process logic. We believe that an Information Dependent QoS Model for selection of web services and their management will be better suited for an organization.

E-Services management is here to stay as more organizations starts to consume each others enterprise services for collabratve public workflow creation. Though we need more consensus on frameworks for such interopability.

Why another Blog

Hi guys,

most of you who have reached here must have been through the link to this blog as part of my email signature. Though you may wonder when i already had a blog Study Abroad why a need for another blog.

To answer this question is very simple. As you know my interest and specialization spans across various domains and verticals. It was not fair enough to just keep blogging on one topic and not share my thoughts on others. Though my blogspot blog is focus on providing information to students who wish to study in australia. This blog is more going to be from my venture and technology perspective. Hopefully by my next post. My vision on what i wish to cover in this blog will be more clearer. Though i must say the neat dashboard and easy to use interface of wordpress has really impressed me from word go!.

Will be back soon with more to compute

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Contact Details

E-mail:siddharthpuri@gmail.com Call Me :+91-9910444460

 

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