Wednesday, October 22, 2008

The Internet was like paradise found in the final years of the previous century. But a poor understanding of it proved fatal for many start ups


IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

Get big fast! Well, this was perhaps the motto of every Internet company towards the end of the twentieth century. And why not, anyone and everyone who had an idea were making their website and hence were epitomising their great American dream of becoming billionaires like Bill Gates. Even the roadmap seemed quite clear and easy!

Venture capitalists were pouring in millions of dollars in a young acne ridden industry that was showing unparalleled growth and most importantly, showing no visible signs of fatigue. Interestingly, the novelty factor of the Internet industry played a big role in getting investments from the venture capitalists and PE firms as they were struck by a fear of getting left behind in the global technology race. This obsession with the online El Dorado became a pandemic of sorts across global economies. For it was time to pop the bubbly and beat all the odds.

However, what ultimately did pop was not the bubbly, but the dotcom bubble, for the odds became too hard to beat. This joyous ride of exuberant of geeks & irrational investors came to a screeching halt. The fateful day of March 10, 2000 marked the beginning of the end of the dot com era. It was the day when NASDAQ’s tech stock index reached its all time high of 5,048.62 for the last time. Suddenly, the markets started crashing and most of the Internet companies lost billions of dollars in the market value, badly denting the global tech economy. As one analyst comments, “The greatest amount of wealth was created and destroyed in 2000, it was more than during any other period in the market’s history.” But what was it that led to the sudden downfall of the global tech economy?

Part of the reason was over inflated expectations about what the web could achieve for consumers as well as for businesses. “We were told that you’d be buying sandwiches over the Internet and having them delivered the next day by FedEx. Everything was about “eyeballs” and finding ways to attract customers, whether they bought anything or not. Every article in every newspaper in the country parroted the litany as to how you’d be out of business in a year or two if you were not present on the Web in a big way,” says leading technology analyst John C Dvorak.

Well, though industry watchers cite many reasons for this sudden dot com debacle, there is no consensus as to which was the sole reason for the dot com burst. Analysts have been trying to figure out a reason for the startling way in which the valuations of the IT firms reached at unprecedented levels and the way in which they fell flat post 2000. Why, indeed, were investors buying into companies at unprecedented valuations. What were they hoping for?

Interestingly, one reason that is being supported by most is the fact that the dotcom burst was a direct consequence of the emergence of a many radical Internet based models in the mid 1990s, which focused on attributes like networking and brand building before considering profits into account. This strange strategy followed by the Internet start ups lead to a situation, which made it difficult to evaluate these firms. Due to this, the firms were being highly overvalued considering their strong branding initiatives and web presence, which ultimately brought about irrational enthusiasm in the investors to buy these stocks.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
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Friday, October 17, 2008

PREETHA REDDY: Gentle healer


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PREETHA REDDY
Gentle healer

Born in Hyderabad, Preetha Reddy spent most of her growing years in Chennai. Unknown to many, she graduated from Kalakshetra under the renowned Rukmini Devi Arundale. While dancing remains her passion to this day, she pursued chemistry as her educational calling. Apollo Hospitals happened to her both by accident and design. When her younger sister Sangeeta decided to get married and move to Hyderabad, Preetha had to step into her shoes. Though she had grown up seeing her father work at HM Hospital, observing a healthcare business and running one are two entirely polarised propositions. Yet, Preetha, proud of the absence of B-School background, adopted a hands-on approach to the business. In 1989, the group had a turnover of Rs.1 billion. Today, its turnover well exceeds Rs.11 billion, with 44 hospitals, 60 clinics and 600 pharmacies in India and Asia. The group employs over 30,000 people.

Preetha introduced the concept of Tender Loving Care (TLC), which integrated service delivery with clinical outcomes resulting in exceptional patient experiences. She stewarded the JCI accreditation process in four Group Hospitals (Delhi, Chennai, Hyderabad, Ludhiana, Dhaka). She is largely instrumental in Apollo Hospitals, Chennai being rated “Grade A” by CRISIL and being one among the two hospitals in India to be awarded a “Grade A” for service and business excellence. She has also redefined hospital networking, telemedicine, hospital management, Day Care Clinics, staff training colleges, hospital BPO and pharmacy retailing. However, what remains closest to her heart is the Group’s CSR initiative: SACH (Save a Child’s Heart) meant for children from economically underprivileged sections of society. SACH has performed over 2000 free/concessional cardiac surgeries and screened over 10,000 children from India & several parts of Africa.

Yet despite all that she has accomplished, her greatest ability has been her unabating humility. They say an ordinary leader looks into a mirror at times of success and sees himself as the one responsible for that achievement. An extraordinary leader, on the other hand, opens a window to point out at all the others responsible for that achievement. Preetha is the latter. The business of family is equally precious to her. Her husband chairs the Board of Trustees at the Kapaleeshwarar Temple while her two sons are waiting in the wings, ready to take their spot under the sun.

For More IIPM Info, Visit below mentioned IIPM articles.
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Monday, October 6, 2008

The terrorists we should fear most are self-recruited wannabes who find purpose in terror and comrades on the Web


IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA

The fluidity of the Hofstad Netwerk has created problems for Dutch prosecutors. The first few trials succeeded in convicting some members as belonging to a terrorist organisation as they met regularly. But at later trials, when defendants faced more serious charges, problems emerged. In January, a Dutch appeals court threw out the convictions of seven men for being part of the Hofstad since “no structured cooperation (had) been established.” It’s hard to convict suspects who rarely meet face to face and whose cause has no formal organisation.

The perpetrators of the Madrid bombings in March 2004 are another example. They were an unlikely network of young immigrants who came together in haphazard ways. Some had been lifelong friends from their barrio in Tetouan, Morocco, and eventually came to run one of the most successful drug networks in Madrid, selling hashish and ecstasy. Their informal leader, Jamal Ahmidan, a 33-year-old high school dropout who liked to chase women, wavered between pointless criminality and redemptive religion. When he was released from a Moroccan jail in 2003 after serving three years for an alleged homicide, he became increasingly obsessed with the war in Iraq. He linked up with Tunisian-born Sarhane Ben Abdelmajid Fakhet, who had moved to Madrid to get his doctorate in economics. They were part of a loose network of foreign Muslims in Spain who spent time together after soccer games and mosque prayers. They later masterminded the Madrid bombings, the deadliest Islamist terror attack on European soil. As Spanish authorities closed in on them several weeks later, Fakhet, Ahmidan, and several accomplices blew themselves up. Try as they may, Spanish authorities have never found any direct connection between the Madrid bombers and international al Qaeda networks. The 2007 trials concluded that the bombings were inspired by al Qaeda, but not directed by it.

In June 2006, Canadian security forces conducted a series of raids against two clusters of young people in and around Toronto. The youths they apprehended were mostly second-generation Canadians in their late teens or early 20s and from secular, middle-class households. They were accused of planning large-scale terrorist attacks in Toronto and Ottawa, and when arrested, they had already purchased vast quantities of bomb-making materials. The core members were close friends from early high school years, when they had formed a “Religious Awareness Club,” which met during lunch hours at school. They also created an online forum to share their views.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM - Admission Procedure
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