Monday, February 16, 2009

Interesting Business Model

I entered the class and first noticeable thing was Doug's shirt. It reminded me of urban camouflage article which i had read recently.
Link: http://weburbanist.com/2009/02/09/the-uninvisible-art-of-amazing-urban-camouflage/

Coming to details of lecture, i found many similarities in way large software are designed and implemented and large businesses are handled. Both presently a fairly modular, compartmentalized architecture which enables them to be flexible, extensible blah blah blah....
The idea of value chain to value net reminded me of an interesting business which my Uncle started. He had contract with a coal miner and used to buy coal from them. This coal was supplied to brick furnaces and instead of taking money he used to buy bricks from them. These bricks were cheaper than the actual market price. These bricks were supplied to construction companies and instead of taking money back, he used to take some part of real estate like flats or apartments or piece of land. Again he used to get the real estate at a lower price from actual market value. Sometimes piece of land was used to construct apartments or shopping mall etc or sometime it was sold whenever a suitable price was offered for it.
His business spanned over coal mines to brick furnace to construction to real estate. He was not producer for any of this but re branded things from one to another and earned a lot of money. Unfortunately the coal mines were closed due to some reason and it disturbed his whole But had Coal mines continued over time, he would have earned more money.

This model shows the potential of benefit in a service based business model but also depicts risk factor involved due to dependency of service providers and no in-house expertise.
Class discussion was interesting. Though lecture got bit boring in middle but Q&A session rejuvenated class again.

Okie, lets start with the article now.
See ya then ...

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