Showing posts with label data analytics. Show all posts
Showing posts with label data analytics. Show all posts

Thursday, August 6, 2015

The Networked Economy and Make In India


The article describes a business and consumer eco-system that is more connected today than ever before. Product development times have shrunk and so have the inventory cycle times. With the advent of IoT, the inventory in the refrigerator may begin to get replenished just-in-time.

The networked economy is giving businesses more opportunities to engage with customers.  Airbnb, Google Waze and eBay are some of the companies that are leveraging this networked economy to the fullest. A company today can shop from an entire gamut of suppliers listed on eBay rather than limiting itself to a traditional set. Airbnb allows you to list a room you have in your home as available for rent and share it with tourists visiting your city. Marissa Mayer highlighted the new sharing economy at DAVOS 2014 when she said "150,000 people let strangers stay at their home last year through Airbnb; 1.5 million people assigned tasks to strangers through TaskRabbit; 56 percent would consider renting out their cars to strangers." Google Waze allows drivers to share local real time traffic and road information.

Earning customer loyalty, enabling open innovation and enhancing resource optimization are 3 key pillars of success in the networked economy. For existing business models, the immediate challenges include preparing for the new workforce and identifying exactly which projects for improving customer experiences or optimizing capacity are most likely to yield fastest return on investment. Vivek Bapat, SAP's global vice president for portfolio and strategic marketing advises thus "Look for areas of quick wins - such as supply chain, procurement, or asset utilization - that may not even be noticeable to customers at first, but that will bring gains in efficiency and drive cost reduction."

This advice becomes particularly important as we are in the midst of major campaigns by the Modi government on Make In India, Digital India and Smart Cities.  We need to be careful about what projects we choose to fund under these initiatives. We should look for sustainability and a good return on investment in projects that the government invests in. Well selected projects will give a positive return in the long run and poorly selected ones will produce a one time growth event in the economy.

We should be careful what we choose to spend on.

Wednesday, August 5, 2015

How to build smart cities?

The smart cities initiative of the Modi Government is now entering the bidding stage where individual entries from different states will vie to be on the list of 100 cities short listed by the central government.

What could be specific initiatives to fund under the smart cities project? Here are few that I can think of:

1. Solar powered LED street lights that function without being connected to the grid - generating just enough power to light the lamp for the night.
2. Storm water drainage systems and rain water harvesting systems that re-plenish ground water  implemented at the city or corporation level.
3. Distributed power grids based on roof top solar where in households can supply excess power back to the grid. Adaptive load balancing schemes could be incorporated here to factor the variable supply of power.
4.Adaptive traffic lights that can manage traffic based on congestion levels. This could include signs for re-routing of traffic along alternate paths when roads are closed for maintenance or are otherwise 
   congested.
5. Metro rail services in cities with high populations and that are growing rapidly. 
6. Green zones with large number of trees and vegetation to replenish the oxygen levels from high pollution.
7. Dedicated pathways for buses the way they are implemented in Ahmedabad, so as to reduce congestion on the roads.

What ails TATA STEEL?


Made a contributory weekend post for OPENINGBELL.IN here: WHAT AILS TATA STEEL? Let me know what your thoughts are.

What's the plan for Make In India?

So Prime Minister Narendra Modi has flagged off the "Make In India" campaign and we are hearing of increasing levels of defense spending under this policy.

Big businesses from TATAs to Reliance have lined up to help the government make defense equipment in India. The Reliance dockyard in Gujarat at Pipavav has been chosen by Russia to build some of the largest naval warships  Biggest warship project: Russia selects Anil Ambani's Pipavav to make frigates for Indian Navy  Boeing and TATAs have tied up to make defense equipment in India  Boeing, Tatas to make defence gear in India

Whilst these are great developments and will lead to more jobs and technology development in India, I think these are not sustainable means of developing "Make In India." After all, defense spending comes from the government and government spending comes from taxes on businesses and individuals. The logical conclusion of such high defense spending would be that the taxes are going up sometime in the future.

I think we need to develop a sustainable model for "Make In India" that leads to overall growth without high debt levels. One of the core focuses of the government in this regard has been electronics and semiconductor manufacturing. The government has been giving various degrees of benefits to the electronic manufacturing industry since after oil and gas, electronics are our next biggest import.

The electronics industry in India focuses on consumer electronics such as smart phones and tablets. To build a stronger industry in this sector, we need stronger products that the people would like to adopt into their lives.

One such product could be electric cars. Tesla Motors' Roadster, Toyota Prius Hybrid, Nissan Leaf and Chevrolet Volt Hybrid are some of the cars that have been developed to cater to the electric and hybrid car markets.  What holds back the adoption of such cars is the availability of charging stations. The government could invest in the development of electric car charging stations in India and this could hasten the adoption of electric cars such as Mahindra's e20;. Government could encourage the industry participants to make more cars on similar lines and that could lead to the development of a  new sector of automobile manufacturing industry in India.

On similar lines, the government could invest in high speed electric rail systems that transport goods and people in the most efficient manner at speeds and comfort levels that are unmatched across other categories, including air travel (if we include wait times at airports.) The strategic importance of such high speed rail systems would be priceless.

The government could further spend money on manufacturing high efficiency solar cells and panels in India and these could be deployed in roof top solar configurations that lead to distributed power generation models with revenue generation for small households.

I think these measures would lead to a sustainable "Make In India" movement that would pay for itself and give a positive Return on Investment in the long run.

What are your thoughts?

Risk Analysis for different crops grown in India

Here an attempt is made to study correlations between yields of different crops in India with data collected over a period of 10 years up to 2004. A high variation in yield is taken as a high risk and consistent yield is taken as a low risk measure. There are strong correlations between the risk of growing wheat and rice. Wheat and sugar cane risks have very little correlation, indicating that sugar cane can be cultivated in most climates, even when wheat crop yields are not consistent. This makes sense because sugar cane is a hardy crop and grows in most weather conditions. An inverse correlation between the risks of wheat and mustard crops is seen but cannot be explained clearly. Going by the statistical nature of the analysis, it might be advisable to say that states having low risks on growing wheat should not try mustard and rape seed cultivation and vice versa.

Presentation has been prepared in SAP LUMIRA. Reference paper by: S.S. Raju and Ramesh Chand at National Center for Agricultural Economics and Policy Research titled "Agricultural Insurance in India: Problems and Prospects"


Trends in the Energy Industry in India


Presentation prepared on SAP LUMIRA with data from Government report on the Energy Industry in India which can be found here: Energy Statistics 2013

Performance Linked Pay for Public Service Officers?

Whilst the "One Rank, One Pension" scheme supported by Anna Hazare was making the news last week, I feel that pay for public service officers should be linked to performance. There should be yearly performance appraisals for all public service officers and they should get an increment proportional to their performance. This would incentivise the government officers to improve the performance of their offices and divisions.

There are many officers who are corrupt and don't deliver the results, making money the wrong way. On the other side there are many who work hard at implementing new policies that make a big difference. They should be rewarded for their efforts. Their efforts should not go unnoticed and they should receive a pay linked to their performance. Yearly performance appraisals are carried out in most MNCs and performance linked bonuses are the norm in investment banking jobs which are heavily sought after.

Yearly performance appraisals by an independent body could be very effective in motivating the public service officers from the ranks of constables in police stations to senior IAS officers in the bureaucracy. The performance appraisals could be made publicly known under the Right to Information Act and this would add a degree of accountability to the performance linked salary system.

What are your thoughts?

Link to the "One Rank One Pension" story: Anna Hazare supports "One Rank One Pension."

Porter's Value Chain Analysis for the Food Retail Industry

Information Security Issues in India

This paper was prepared as a part of the course work for the Information Security Management course taught by Prof. Ashok Pattar at SICSR

The 3 key features of Information Security are: integrity, confidentiality and availability. The breach of any of these 3 aspects of Information Security could prove devastating for the Information Systems.

Person XYZ uses the identity of a dead person to get an Aadhar card for himself. The person registers a Rupay card on the same Aadhar account and becomes eligible for direct cash transfer schemes of the government meant for the people below the poverty line. Such ghost identities can siphon off lakhs of Rupees from the government without the government noticing it. ---- An individual PQR gets a call from a person representing his / her bank requesting their credit card information and willingly divulges the information over the phone. The hacker in this case gets other relevant information such as birth date and address from the individual’s social network profiles such as Facebook

There have been real world cases such as WikiLeaks where in sensitive and secret government documents have been leaked by insiders such as Julian Assange, who was in the US Army at that point of time. The Oil Ministry documents containing results of oil and gas surveys have been leaked by government officials of the present Modi government. The US Government used the StuxNet worm to disable the centrifuges in Iran that were enriching uranium to weapons grade. Sony Corp. servers in Tokyo, Japan were hacked and the pre-release copies of their movie featuring Kin Jong Un, the autocratic leader of North Korea, released online before the release date. Credit card information of thousands of customers of J. P. Morgan and Chase bank was stolen by hackers. The US retail store TARGET saw its customer information databases compromised by the HeartBleed bug which was discovered at Google. These stories highlight the vulnerabilities of the existing systems and the severity of impact that is possible if the security of Information Systems is breached.

The goal of this paper is to study the Information Security landscape in India. For this purpose, an analysis of the Information Security aspects of the Information Systems in India will have to be carried out at 3 levels: government, corporate and individual. Also the security will have to be studied in terms of the 3 key aspects of confidentiality, integrity and availability. The risks will be identified and possible mitigation measures suggested.

Confidentiality requires that only the authorized individuals have access to the information. The authorization could be through the means of passwords to computers and hard drives with sensitive data. Passwords protect most of the information in our systems today and we can secure our systems by changing our passwords often. The passwords have to be strong and cannot be names of users, their birth dates, addresses or a combination thereof. However, passwords are susceptible to brute force attacks. Unless the passwords are changed regularly such as a daily basis and unless they are reasonably complicated, a hacker with a powerful enough system could crack them eventually. Systems that use passwords could store them in a hashed form so that they cannot be stolen.

Confidentiality of communications and data requires that data and communications be encrypted. There are techniques such as RSA and SHA that have been developed from principles of elliptic curve cryptography to ensure confidentiality of communicated data. The communication link also needs to be secure in order to ensure that eavesdroppers cannot intercept the communications. For this purpose, secure communication means such as secret frequencies, frequency hopped spread spectrum wireless communication and fiber optic communication can be used. The Defense Department uses a range of wireless frequencies not allowed to civilians. The DRDO network is not connected to the commercial internet at any of its nodes. This makes the DRDO network secure from hackers. [This article from ExtremeTech highlights the cyber war going on between the American and Chinese hackers: ]

Availability states that the information should be available to all the authorized people. The means of authorization would best be technologies such as biometric identification of finger prints and retinal scans, which cannot be copied or duplicated. This also means that the information is in an accessible form to the concerned users. If the data is being stored in an encrypted form, the authorized user should be able to decrypt the data using his biometrics as the decryption key. Company networks connected to the internet should be blocked from outside access through the use of firewalls. Intrusion detection systems should be setup to ensure unauthorized access from outside of the company network does not happen.

Integrity of the data requires that the data is not lost or corrupted at any point of time. This requires backup systems such as RAID 3 and RAID 4 to ensure that the data is stored in a stable and reproducible manner. Robust recovery algorithms such as ARIES are needed for recovery of systems from system failures.

The techniques discussed so far are implementation level steps that could be carried out to ensure that information security is maintained. From a governance stand point, policies and frameworks such as ISO 27001:2013 should be followed to ensure that systems and processes are in place to ensure security of information. It provides a framework for the management of information security risks, which ensures you take into account your legal and regulatory requirements. It requires you to identify risks to your information and put in place security measures to manage or reduce them. It ensures you implement procedures to enable prompt detection of security breaches. It is based around continual improvement, and requires you to regularly review the effectiveness of your information security management system (ISMS) and take action to address new and emerging security risks.

From a legal standpoint, the Information Technology Act 2008 in India was a landmark legislation, which brought the rules and policy framework for Information Technology related businesses in line with the other countries of the world. Section 66A of the IT Act gave Indians the freedom of expression on the Internet, as long as they don’t hurt the sentiments of others. Digital signatures have been introduced in India, through the IT Act and these help with online verification of documents such as patents. Government contracts can now be signed digitally through these digital signatures. Extensive e-Governance systems have been setup in India over the last 5-6 years and all of the government documents are now available online under the Right to Information Act.

The government runs multiple databases for its citizens such as Aadhar, Rupay, PAN card and Ration card. Apart from these, the government runs a census once every 4 years. There is a big scope for consolidation of all these databases into a single centrally maintained secure database with all the information consolidated into a single record. This would produce better efficiencies in the system with single point access and management of all the data and also make the data stored more secure. Private contractors entrusted with the job of collecting Aadhar information should be mandated to give up all the information collected to the government in a stipulated time frame and not hold on to any of the data that they collect. A central database of biometrics such as finger prints and retina scans of citizens would help to identify people during acts of crime and identify the guilty. Biometrics based identification could replace all forms of card based identifications such as Aadhar card, Rupay card and passports. With this, all the individuals could be identified through their biometrics with almost 0 chances of fraud and duplication.

Power transmission utilities are also being connected to the internet and are becoming increasingly susceptible to terrorist hack attacks. Collecting power transmission systems to a network allows rapid load balancing through systems such as SCADA. With the increasing use of solar and wind power, whose output is variable as sun rays and wind speeds vary, load balancing on the grid has become increasingly important.

The US Department of Defense uses its own satellite network to control the drones that attack the terrorists of Al Qaeda and Taliban in Afghanistan. This is much like the DRDO’s network that is not connected to the Internet on any of its nodes. In a dooms day scenario, a military drone network could be hacked into by a terrorist group and the drone turned onto the government itself. Such risks can be averted only when people in the network can be trusted. People become the strongest asset and also the weakest link of any such secret network. High levels of trust and multiple levels of authorization should be put in place in security systems that are critical to a nation’s security. A risk aware culture should be built where in all the stakeholders are aware of all of the risks and also the steps to mitigate the risks in case of emergencies. Information Security awareness is needed at all levels of governance as it can affect anyone in this country and the weakest link in the human chain remains its biggest vulnerability.

To conclude, effective security measures are needed at government, corporate and individual levels to ensure that the confidentiality, integrity and availability of information are maintained. Information Security Management Systems and governance frameworks need to be setup to ensure humans do not become a vulnerability in the information systems. Information Technology holds a great promise and thus becomes a prime target for terrorists and other hackers. We need to be vigilant of these risks and make sure information systems run in a secure manner.

BUSINESS MODEL CANVAS FOR TESLA MOTORS


After learning the business model of TESLA motors, I felt the government should start making electric cars in India on this model. It would go a long way in reducing our dependence on oil imports. What are your thoughts?

Key Partners

  • Tesla has more than 150 suppliers all over the world who supply more than 2000 different parts.
  • Chei Mei OptoElectronics Displays in car, GARMIN navigation systems, Google Earth map overlays, NVIDIA TEGRA 3 processor to run the electronics on the car, 3G modems from Sierra Wireless that runs broadband on the AT & T network. Panasonic is a strategic partner for developing battery packs.

Key Activities

  • Electronic manufacturing services model of production. Central infotainment system and instrument cluster outsourced to leading technology companies. Rest of the hardware and software development is internalized.
  • Tesla designs and builds bulk of the PCB assemblies in the car. 10 modular PCBs are used in the car
  • Manufacturing electric sports cars and all the components there of.
  • Manage it’s own chain of car dealerships all throughout the world.
  • Tesla has made a significant investment developing charging stations in the US (112 to date, according to the Tesla website), Europe (63), and Asia (17). These supercharger stations can swap out the battery in less time than it takes to fill a tank of gas.
  • Tesla recently announced a new $5 billion “gigafactory” battery plant in Nevada in partnership with Panasonic. It will reportedly handle all elements of battery cell production, from raw material to battery pack, rather than only battery pack assembly.

Key Resources

  • In June 2014, open sourced it’s patent holding, claiming open source innovation is more powerful than anything one company could do.
  • Co-located with Apple, Google, NVIDIA, ORACLE, CISCO and HP in the San Francisco – San Jose technology corridor, which speeds up the pace of innovation.
  • Excellent top management team hired from top auto manufacturing and technology companies, led by CEO Elon Musk.

Value Proposition

  • Sports and high end luxury electric vehicles with the highest environment friendliness ratings and also highest safety ratings.
  • Longest driving range of over 200 miles in the electric vehicle segment. Lithium ion polymer battery pack design is unique and patented.
  • The company innovated powertrain design, which has proven both robust and viable for everyday use. And it has received plenty of accolades for aesthetic design from the automotive media.

Unique Car Features

  • The heart of Tesla’s Model S is its electric propulsion system, which includes a battery, motor, drive inverter, and gearbox. The battery is a microprocessor-controlled lithium-ion unit available in two sizes; spending more buys more range and more power.
  • The induction motor is a three-phase, four-pole AC unit with copper rotor. The drive inverter has variable-frequency drive and regenerative braking system, while the gearbox is a single-speed fixed gear with a 9.73:1 reduction ratio.
  • The battery of each Model S is charged with a high-current power inlet, and each vehicle comes with a single 10kW charger and mobile connector with adapters for 110-volt and 240-volt outlets as well as a public charging station adapter.

Customer Relationships

  • Over The Air software updates for vehicle recalls, which is free and standard for all Model S owners.
  • Set up charging stations all over the world for customers having a concern of range on the battery.

Customer Channels

  • Direct sales through Tesla’s network of self-owned car dealerships all over the world.

Customer Segments

  • High end, environment conscious, luxury and sports car segment is the primary target of Tesla.
  • Tesla also plans to sell battery packs independently to home users for domestic use.
  • The customers are primarily from the upper middle class at this point of time. Tesla has a plan to introduce low priced cars at around $30,000 in the next 5 years to target the lower income segments as well.

Cost Structure

  • Manufacturing plant costs are the largest overhead for Tesla.
  • Federal Loans for environmentally friendly designs help fund significant part of the operations. $189 million in Federal loans were outstanding in February 2012.
  • Governments in most countries give subsidies to electric car manufacturers as their environmental foot print is very low or 0.
  • Batteries are significant part of the cost of the car.
  • Tesla was founded in 2003 and saw first operating profit in 2013.

Revenue Streams

  • Licensing agreements with Toyota and Mercedes for Electric Power Train Designs.
  • Sales of electric sports utility vehicles and luxury cars through its dealership network.
  • Tesla intends to sell its OEM batteries for non-automotive applications, which will enable it to increase production volume and reduce unit cost.
  • Electric car makers such as Nissan Leaf are the main competitors of Tesla Motors.
  • Hybrid electric cars such as Toyota Prius and Chevrolet Volt are eating into the eco-friendly vehicle market share of Tesla Motors

Are emerging market economies becoming a drag to global growth?

I read this article titled "Emerging markets: Trading blow" in The Financial Times last week. The article describes how a drop in Chinese demand has reduced the GDP growth in emerging market economies - Brazil, Russia, India and China. The article states that GDP growth for 2015 in the emerging markets is going to be close to 0%. This is a very significant fact because emerging markets today account for 35% of global GDP in nominal terms and 52% of global GDP in purchasing power terms. The last time emerging markets slowed down to this level was in 1999 when they accounted for 23% of global GDP in nominal terms and 35% in purchasing power terms.

Brazil recently unveiled a $35 billion infrastructure stimulus plan to support an economy which shrank in 1Q 2015. Much of the growth in the last decade was the result of heavy infrastructure spending in China, which built more high speed rail in the last 10 years than the rest of the world combined. Being the most efficient means of transportation known to man today, the strategic value of China's High Speed Rail today is priceless.

India today is at rank 44 in IMD world competitiveness rankings Amongst the other factors, infrastructure development has been stated as an important challenge for India. In light of these facts, Prime Minister Narendra Modi has been working on the Smart Cities development theme and will be announcing funding of 98000 crores for 100 smart cities and a new urban renewal mission for 500 cities. Questions have been asked whether having 100 smart cities will dilute the scope of individual projects since a single phase of the Delhi Metro (Phase 2) cost up to Rs. 19000 crores.

This project dwarfs in comparison to what China has done with its high speed rail but the steps of the government are in the right direction nonetheless. This leads to an important question - "Does a strong Rupee lead to lower costs of commodities such as iron ore and copper and thus could it lead to larger scope on infrastructure projects?" It also leads to a questions - "Can India produce a commodities boom the way China produced it for the last 10 years and build infrastructure which is at par with the developed world?" India ranks at 54 in the 2014 World Bank Logistics Performance Index Infrastructure Rankings. This ranking would be a big obstacle to PM Narendra Modi's Make in India campaign.

A Note on the updated GDP Figures

The recently released GDP growth figures at 7.5% have put India's growth ahead of China. But they have become a subject matter of lot of controversy.

This story from The Economic Times states the industry is not seeing significant IIP growth despite the strong GDP figures. Link to the story

A part of this controversy is arising from the revision of the GDP calculation formula in January this year. Earlier the GDP used to be calculated as sum total of goods and services produced + sum total of goods and services consumed + sum total value of infrastructure capacity built (such as high speed rail, free ways and bridges.) The revised formula calculates the GDP using corporate income as has been highlighted in this story from The Hindustan Times: Link to the story

Excerpt - “In January the Central Statistics Office (CSO), using a new method, said that India’s real or “inflation adjusted” GDP in 2013-14 grew 6.9% instead of the earlier 4.7% and by 5.1% in the year before compared to 4.5% in the earlier system.

Advance estimates for 2014-15 released in February projected India’s GDP during the year to grow at 7.4%, making it the world’s fastest growing economy surpassing China.

This has stumped both experts and the non-initiated.

Data from other sources such as household spending, corporate earnings and tax collections and sales of goods and services are weak and do not mirror the revival trends seen in the GDP numbers.”

Many of the banks are also sceptical of the new GDP figures as is highlighted in this story from DNA: Excerpt: "Pranjul Bhandari, chief India economist, HSBC, said in a note, “Is growth picking up? The common answer is: depends. Depends on who you ask, what indicators you look at and, more recently, how much you buy into the new GDP series.” “Here is a quick stab at the question. Relying on the more trusted indicators, 60% of GDP is still in the woods. Agriculture, construction, banking and public administration are not showing signs of improvement. On the other hand, the remaining 40% of GDP, comprising of manufacturing, utilities and trade/transportation, has inched up from depressed levels, though upticks are gradual at best,” Bhandari added." Link to the full story

While GDP numbers may not matter so much to the viewers, the RBI sets its benchmark rate based on the GDP figures. This bench mark rate affects the rates in the savings accounts of banks and is designed to either spur spending or incentivize saving. A rate above the nominal rate would incentivize saving and such a policy would be termed "contractionary" and a rate below the nominal rate would be termed "expansionary" as it would spur spending. The nominal rate is the rate at which saving = spending. This is the rate that the RBI tries to target.

If the GDP does not reflect the household income anymore, how is the RBI going to set the benchmark rate? This is the million Rupee question puzzling Raghuram Rajan right now who made a statement - "We moved a little forward by saying that we are going to cut rates despite these risks.. based on how these risks evolve we will take a view. It's not a shut door, its a contingent statement"

10 Ideas for e-Governance


Here are 10 ideas for e-Governance that I think would be beneficial to the Government of India today: 

1.Tendering system of the government that is used to allocate tenders for construction and procurement. Incorporate an open bidding platform for interested parties for government contracts on the lines of Fed Biz Opps in USA: https://www.fbo.gov/ Incorporate business ranking and evaluation methodologies such as CMM to ensure quality is not compromised for cost in government contracts.

2.Public Distribution System (PDS) for the distribution of food grains, vegetables and fruits could be augmented with a supply chain management system that tracks inventories and prices at various points in the supply chain and identifies wastage from unused food, hoarding at various points in the supply chain and sources for sudden spikes in food prices at various points of time.

3.Infrastructure Monitoring System that monitors the utilization and safety of critical national resources such as highways, airways, railways, power grids, etc. The goal here will be to identify supply bottle necks and eliminate them by adding more capacity where bottlenecks happen.

4.Build a network of government suppliers and agencies (consumers) that can interact in real time to understand the needs of the government through shared access to critical information on operations of various government agencies. Eg DELL COMPUTERS builds strong supplier relationships through a web portal called valuechain.dell.com. This leads to an agile supply chain that can respond in real time to the customer and business requirements.

5.Micro-finance portal for farmers and women: Build a web portal that makes micro-finance loan applications accessible to all farmers and women through web based services on smart phones and Aakash tablets. The scope of this portal could include other financial services such as farmer’s insurance, pension schemes, etc.

6.Health services portal: Build a web portal to deliver health services to the citizens over the internet to remote and inaccessible areas. This could include consultations, health check-ups and also prescriptions for good health practises.

7.Online payment of fines for violations of rules: Violations of traffic rules, cleanliness rules and other civic rules that are liable to a fine should be recorded online instantly and fines collected should be recorded instantly. There should be an option to pay the fines online through a central fine collection portal.

8.Bio-metrics based database of criminals in the country: Every person who has a crime recorded against him / her should have his bio-metrics such as finger prints and eye scans recorded in a central database along with the criminal and personal histories.

9.Web portal for exercising the Right To Information (RTI) Act: Instead of going through a labyrinth of government offices to get an RTI filed, validated and exercised, there should be a single web portal where citizens can exercise their RTI privileges.

10.Web portal for tracking government projects: A web portal should be built to find status of all government projects in execution, their funding status, funds used, expected ROI (Return On Investment) and the constituencies benefiting by the project. The portal should also state timelines for completion of the projects and whether the execution is on time or behind schedule. Reasons for delays should be made available. This portal could be used as a project management tool by the government agencies as well.
Technology enablers: Cloud computing, access to high speed internet, smart phones, tablet PCs and other computing technology. Enterprise Architecture models such as TOGAF and DODAF could be used to develop such e-Governance systems.

Think Pune

The term business cluster, also known as an industry cluster, competitive cluster, or Porterian cluster, was introduced and popularized by Michael Porter in The Competitive Advantage of Nations (1990). The importance of economic geography, or more correctly geographical economics, was also brought to attention by Paul Krugman in Geography and Trade (1991). Cluster development has since become a focus for many government programs. The underlying concept, which economists have referred to as agglomeration economies, dates back to 1890, and the work of Alfred Marshall.

Michael Porter claims that clusters have the potential to affect competition in three ways: by increasing the productivity of the companies in the cluster, by driving innovation in the field, and by stimulating new businesses in the field. According to Porter, in the modern global economy, comparative advantage—how certain locations have special endowments (i.e., harbor, cheap labor) to overcome heavy input costs—is less relevant. Now, competitive advantage—how companies make productive use of inputs, requiring continual innovation—is more important. Porter argues that economic activities are embedded in social activities; that 'social glue binds clusters together'. This is supported by recent research showing that particularly in regional and rural areas, significantly more innovation takes place in communities which have stronger inter-personal networks.

Put in another way, a business cluster is a geographical location where enough resources and competences amass to reach a critical threshold, giving it a key position in a given economic branch of activity, and with a decisive sustainable competitive advantage over other places, or even a world supremacy in that field (e.g. Silicon Valley and Hollywood).

Wikipedia Article: Business Clusters

Pune today has become a technology start up cluster in the true sense of the word. IIM Ahmedabad's Center for Innovation, Incubation and Entrepreneurship has taken the lead in preparing a report on how the eco system in Pune has come up to foster such business clusters. Pune has become a hot-bed for product companies across sectors including Financial Technologies, Payments, Security, PLM, Big Data/Analytics, Gaming, EdTech, Internet of Things, etc. [Reference: THiNK PUNE]

Read the report at CIIE website on what ingredients have made Pune into the <b>"START UP CITY OF INDIA"</b>.

THiNK PUNE: Download the full report here



Cloud as an enabler for Enterprise Architecture

Enterprise Architecture is needed to transform today's businesses and corporations into enterprises that have good data management programmes with real time insights into all of their processes. Enterprise Architecture envisages integration across business functions with long term strategy in mind. This is a top down approach.

Cloud computing with virtualization of shared resources has become an effective means for service integration across applications. This is more of a bottom-up approach.

Enterprise Architecture based designs could now be applied to enterprise level application integration using the cloud. This would bring about a convergence of 2 different philosophies of top-down design thinking with a vision and a bottom-up design thinking keeping in mind short term tactical advantages and necessities.

In effect, cloud would become an enabler for Enterprise Architecture.

Here is a related blog for reference: David Linthicum: Enterprise Application Integration and Cloud

Image from Wikipedia

Union Budget 2015: Outlays



Important Tax Exemptions in UNION BUDGET 2015:
Transport allowance exemption 1600 per month
Tax deduction for disabled persons 25000
Tax deduction for pension fund payments 50000
Tax deduction for health insurance premium 25000 30000 for seniors
Contribution to Swachh Bharat and Clean Ganga 100% deduction
Spending on renewables:
Solar 100 GW
Biomass 10 GW
Windpower 60 GW
Small hydro 5 GW

Highlights: Union Budget 2015

Union Budget 2015
Finance Minister Arun Jaitley presented the Union Budget 2015 in the Parliament.
Being termed as 'make or break', this is Arun Jaitley and the government's first full-year Budget.
Finance Minister Arun Jaitley stated:
- States will be equal partners in economic growth
- Initiative to making India cashless society
- Social sector programmes will continue.
Challenges
- Poor agricultural income
- Decline in manufacturing
- The need for fiscal discipline.

By: Amol Samel