FEB 16, 2003
 Cover Story
 Editorial
 Features
 Trends
 At Work
 Personal Finance
 Managing
 Case Game
 Back of the Book
 Columns
 Careers
 People

Retail Learning Curve
The Indian retail revolution, experts said, would go faster-with the benefit of the West's experience already there to begin with. But more and more retailers are discovering that retail in India is not the same as retail anywhere else. This places a premium on being higher up the local learning curve.


The Fatty Fight
No, not about obese consumers waving fists at fat food marketers. But India's many bathers wondering whether their soaps have adequate 'total fatty matter'-an issue of the 1980s that has made a zombie reappearance. But bathers have choice, don't they… so what's the fuss all about?

More Net Specials

Business Today,  February 2, 2003
 
 
Reciprocal=Optimum
The full potential of IT can be realised only when there is two-way information flow.

Traditionally, information-like water-has flowed from higher levels to lower, from large reservoirs to millions of dispersed users. Almost all conventional technologies encouraged and facilitated this. Print, radio and television: each of these works on the model of a centralised 'source' disseminating information through a channel to a large number of 'recipients.' This conventional model of source-channel-recipient was monetised through the business paradigm in which multiple users (the receivers of information) are the source of revenue, either directly (through book sales, for example) or indirectly (through advertising revenues) or by a combination of the two (magazines and newspapers).

In using modern information technology, the business models have largely followed the conventional pattern. Web sites, for example, aim to attract millions of users and generate revenues either through a subscription fee, or by carrying advertisements and charging the advertiser, or both. In the fledging area of e-governance, a similar approach has been adopted, with a business model based on users often paying a fee for specific services.

  F--- You Money  
  The Soft Approach  

Looking at these models, one is struck by the fact that they use only minimally the two-way and anyone-to-anyone connectivity features of it networks. Thus, for example, in downloading information from the Internet, the return link is used only for queries. This gives rise to asymmetric information flows, with a large volume of data flowing in one direction (downloading) and very little data (a search or query) in the other. Also, revenue flows, if any, are entirely one-way with each user paying for information that is downloaded. Making better and fuller use of the potential of it requires a complete recast of this traditional information flow and of the conventional business model. In the new paradigm, the information would flow in both directions, giving rise to corresponding two-way revenue flows. Thus, a villager may not only download information from a local or global database, he would also upload information onto the Net.

The range of possibilities for this new model are truly vast, and constrained only by our imagination. Consider, as one example, packaged goods. The manufacturer needs to know regularly, as soon and as accurately as possible, the sales and stock positions of each product, in each size and of every brand. This is essential information for despatch, and also for inventory management and for manufacturing. It may also determine advertising and marketing strategy. A system whereby he gets near-instantaneous reports on sales from each of the tens of thousands of outlets would obviously be invaluable in optimising the efficiency of the supply chain.

Similarly, the government too needs and already collects data (somewhat inefficiently, and with questions about the authenticity) on all kinds of issues at the local level. In this situation, as also in the example of the packaged goods, a local information kiosk, accessible to all, supplemented by the data-gathering and local knowledge capability of an entrepreneur, can provide all the specific information required. This information can be uploaded to a company network server or to a government database, as the case may be. Since this information is of great value, both (corporates and the government) should be more than willing to pay for it.

This reverses the traditional source-receiver model, and brings in a new architecture. There is a now a two-way flow, and a two-way transaction. The village kiosk is no longer a mere receiver of information-often paid for-but also a generator of information that, in turn, is uploaded. This information will be paid for by the users. The concept is of a grid, with contributions (inputs) from any of the nodes. Thus, even remote villages are not to be seen as merely passive recipients of information that is provided by some all-knowing source; rather, each community is also a generator of information, and gets paid for all the relevant information that it puts out. In a sense, this stands the traditional information architecture on its head, as it does the business model. Water, it seems, can be made to flow uphill.

These are the personal views of author and not necessarily of NASSCOM. The author can be reached at kkarnik@nasscom.org

 

    HOME | EDITORIAL | COVER STORY | FEATURES | TRENDS | AT WORK | PERSONAL FINANCE
MANAGING | CASE GAME | BOOKS | COLUMN | JOBS TODAY | PEOPLE


 
   

Partners: BESTEMPLOYERSINDIA

INDIA TODAY | INDIA TODAY PLUS | SMART INC
ARCHIVESCARE TODAY | MUSIC TODAY | ART TODAY | SYNDICATIONS TODAY