Mismanaging global growth – QE3

US is pushing for devaluation of Dollar. It can announce QE 3. It means more dollars will flow in system. Major portion of world’s assets are in dollars. Printing money will fuel inflationary pressure in world assets. IMF has lost control on how much money a country can print. By manipulating currency, a country may think to grow and survive. Current China – US currency war is example of it. With no control in place, world economy is running in danger zone.
Technology is making people jobless. New products are not coming in markets which can radically transform the world. In establish products, technology is reducing human intervention. Subsequently, people are loosing jobs. So, overall population and jobless people are increasing at fast pace. Printing more money will fuel artificial inflation and jobless people will feel additional burden. On other hand, people in job should see sharp rise in wealth.
Another dimension is ASSETS. With population and money increasing, you will see sharp rise in asset valuation as assets are limited. In this scenario, all people may feel that they are getting richer as we all have some assets. However, in relative terms, people with higher assets will grow much faster.

So, if you have a job or have assets, you will grow quickly in this cheap money scenario. However, both populations (job and asset owners) will reduce with time as both are limited. Ultimately, large population will loose in this currency war. They will find tough to survive. This is not just US related phenomena but would impact the entire world.

Another angle in it is globalization. Globalization has boosted idea for few global brands only. With technology and supply chain benefits, global brands will take over local brands. Thumb rule is only 2-3 brands can survive in long run in a product. In long term, it will boost ownership of power to few people only.
We need control to get INCLUSIVE GROWTH in this world. It is only possible with distribution of Jobs and assets properly and controlled manner. It also needs control on rising population.

Productivity variance across the world

Productivity variance is very high in this world. Some people are working aggressively and while most of them are not so productive. If all people work simultaneously for creative purpose, we will make significant progress. We have to lot of work in case of medicine, transport, space, and other emerging science. However, very few people are working in these areas. There are various reasons for it-

  

Unemployment – People don’t have anything to do. They have good qualification or degrees still not able to use it because of limited available options. It is most unfortunate not to use the knowledge and skills.

 

Variance in resources: Huge variance in resource among peoples is also a reason of the productivity variation. People living below poverty live or near poverty line are still struggling for livelihood.  Very few people have luxury to live on their own or their parent’s wealth.

 

Female’s output: Despite major improvement in their situation, majority is still working on house hold work. We can’t say this is non-value added work. However, there is a scope of automation or innovation like community services. This should hidden productivity of female population in great extent. And, they could work on engineering or research work more aggressively.

 

Communication and infrastructure: Majority of population still lives in developing countries which require development of infrastructure. Access to information is needed to them through internet and media so that they can actively participate in global development.

 

NVA activities: People are wasting energy in luxury.  Buying luxury products, living in big houses, developing big armies, or discussing non value added items are major wastes. To enjoy each one of them, people are wasting valuable productivity which can be used in creating new products or business.

 

Conflicts: There are many conflicts all around like personal conflicts, emotional conflicts or religious conflicts. It takes lot of productive energy to solve these conflicts. If they were not there, we would have developed a lot. It also divert energy from real problems like poverty, HIV, cancer or pollution.

 

Resources and wastes are mainly happening through rich people and rich country. World has enough resources especially brain power. A strong change management wave is needed across the globe to reduce wastes. Strong awareness about lean principles about waste reduction should be transferred to each individual along with their responsibility to control it. 

 

Design Basis

Designing a function or process led to idea of design basis. It starts with product or process delivery expectations of customer. Designing a process, product, building, or system needs to be done for specific requirement. It also need some assumption and control parameters to perform certain action. Design basis should have As –IS to To-Be stage transformation expectations and assumptions.

Complex process & function may have standardization and modular structure as basis of designing. It may include expansion plan in mind.

Design basis of product may start with VOC (voice of customer) . House of quality (QFD) may help in identifying the critical inputs in designing the right products.

A system must deliver what is expected out of it. Designing a right product , process, and system needs detailing. New product development should also have case study and trial incorporated on sample population.

What I learned about business process optimization at Woodbine

 sounded like a great IT industry name, but I just couldn’t put my money down on “Redeploy,” one of horses competing at Woodbine Racetrack in Toronto last week. Instead, I kept looking for one that might be called “Virtual Machine.

was there with my company, which had rented out a tent as part of an employee social event. There was a group of tables set up just outside the tent, which sat right on the edge of the track where all the action took place. Inside the tent was the food, a booth to make our bets, and a handful of monitors that gave us updates on race times and the latest odds. On each table was a collection of racing forms, which offered even more background about the individual horses and their past performance. As a mix of paper and electronic steps, Woodbine’s races seem like they’re crying out for business process optimization, but an afternoon there convinced me they’re probably best to leave it alone.

In any other kind of organization, you could see plenty of opportunity for increased digitization of the betting process, for example. People tended to flip through the racing forms, scan the monitors, make up their minds, line up to place their bets and occasionally change their minds while they were up there. Sometimes people at the front of the line took so long that those at the end didn’t have a chance to place their bets. Then, when the races were over, there was a mad dash as people flocked back to the monitors to see the full results, including not only the winner but who “placed” and “showed.”

With the right mix of hardware and software, a lot of these cumbersome and unnecessary steps could be eliminated. The monitors could be placed outdoors, just near where we stood to watch. Better yet would be handhelds distributed to the audience where they could see updates and place bets in real-time, without ever having to leave their place (this would require e-payments, but that wouldn’t be hard to do). The racing forms seem almost entirely redundant – the type of thing best served up on a Web page that could be accessed through the handheld, and hyper-linked to the day’s roster of competing horses.

And yet . . . I looked around at my coworkers. The reason this whole thing was fun (and it really was) came down to the level of interactivity and collaboration the process encouraged. They were talking as they looked through those racing forms, and the paper format got them to make their decision more slowly than they might have by clicking through a series of pages, like search results. They kept the conversation up while they stood in line, and they were really buzzing by the time they were rushing to see who won what, and how much.

Woodbine’s desired outcome of this process, of course, is to maximize the amounts the audience bets on each race. Automation would allow for greater throughput (and no doubt does in off-track or online wagering) but the social networking that took place last week far outweighed what you could replicate on Facebook or similar Web sites. The process as it stands today creates a community which is assisted by IT but is not necessarily driven by it. The people are the horses that pull the processes along, like a cart filled with IT equipment. You have to be careful which one you put in front of the other.

Posted on August 18th, 2008 by Shane Schick itworldcanada.com/