Last two weeks or so have been really watershed times for the Global Tech industry and in India also we had had debilitating effects on our economy ,particularly related to external sector.The rupee has slided to all time low and right now there seems to be the race to bottom.Steepest Petrol price hike and almost record defeicit on union fiscal front as well as Balance of Payment side.This is even more disappointing as we see no favorable clue either from Global Financial System or from Policy Makers at home!
Globally the tech business is turning out new successes on the public money.Facebook consolidated position by first day success of IPO to a $100 B mcap company,although many people questioning its Business Model sustainability,as the DotCom bust haunts the Silicon Valley.There is high speculation on the viability of a typical "eye ball to ad revenue" model which could lead to a possible 1 Trillion $ company, or nightmare to the valley mandarins and investors.
The past weeks also saw Google transitioning from pure play Search Companies to Product Innovation company after acquisition of Motorola Mobility and this is really we have pieces of Learning! How come a successful company like Google is not "sticking to the knitting" and venturing into reviving a failed business of ex Motorola branded phones-sinking lot of Good Money into developing hardware.......
We need to understand dilemma of tech innovators,the pure hardware companies here.Every company goes through a cycle of Product-Service-Productised service-New Product cycle.So if you are a hardware company,you have to and you must diversify into service elements related to that hardware to retain customers and remain viable.Once we have milched the services triggered margins enough,new growth can happen by only Products-new Products!
I think T&M industry in India has to understand clearly that we cannot continue to sell Instruments in the Domestic Market through Global Brand Power alone,and retain big margins and share.We need to have service envelope to get close to our customers and once reached a saturation level-reinvent with block buster New Products.Creating series of new Growth Engines is key to Long Term survivability!
Globally the tech business is turning out new successes on the public money.Facebook consolidated position by first day success of IPO to a $100 B mcap company,although many people questioning its Business Model sustainability,as the DotCom bust haunts the Silicon Valley.There is high speculation on the viability of a typical "eye ball to ad revenue" model which could lead to a possible 1 Trillion $ company, or nightmare to the valley mandarins and investors.
The past weeks also saw Google transitioning from pure play Search Companies to Product Innovation company after acquisition of Motorola Mobility and this is really we have pieces of Learning! How come a successful company like Google is not "sticking to the knitting" and venturing into reviving a failed business of ex Motorola branded phones-sinking lot of Good Money into developing hardware.......
We need to understand dilemma of tech innovators,the pure hardware companies here.Every company goes through a cycle of Product-Service-Productised service-New Product cycle.So if you are a hardware company,you have to and you must diversify into service elements related to that hardware to retain customers and remain viable.Once we have milched the services triggered margins enough,new growth can happen by only Products-new Products!
I think T&M industry in India has to understand clearly that we cannot continue to sell Instruments in the Domestic Market through Global Brand Power alone,and retain big margins and share.We need to have service envelope to get close to our customers and once reached a saturation level-reinvent with block buster New Products.Creating series of new Growth Engines is key to Long Term survivability!
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