The Power of Us

Summer in India brings not only juicy mangoes but also the prospect of frequent planned and unplanned power cuts. The euphemism “load shedding” tries to hide the fact that the grid is unable to shoulder the demand for electricity. This demand is rising with India’s rapid economic growth. This economic growth also means that fewer and fewer Indian citizens have the time to take their utility companies to task for failing to deliver a reliable power supply. However they do now have the means to have spent a reported US$ 22 Billion on power back-up equipment such as inverters that store power in a battery while there is supply, or generators.

This is my third summer on Twitter. Come summer time, my Twitter stream floods with persons complaining about power cuts in the middle of a workday stymieing productivity, or in the middle of the night interrupting resting hours. On May the 4th, after seeing a few tweets, I suggested: “May be you guys SHOULD tweet #powercut with location. The infographic will highlight the need for investment. To many people.” Within a few minutes, an enthusiastic techie, Ajay Kumar had created a site with an Ushahidi backend to track such reported powercuts. Within seconds we had our first report – from Gurgaon, a new, modish town which is in the national capital region but whose powercuts are legendary. It has not stopped since. These reports mainly came from Twitter users reporting power cuts with their locations  and a hashtag #powercutIndia. In the first 24 hours, the hashtag reached an audience of over 98000 people with over 157000 impressions. In the next couple of days, Ajay and I took the decision to move to a proper own domain – www.powercuts.in. On the website persons can also report anonymously; this allays privacy concerns and security risks that were highlighted to us early on by some Twitter users. Soon a design firm provided us with a logo and is now developing the website further. We set up a Facebook page and one of India’s leading dailies, Times Of India, wrote a piece on the project.

From idea to execution, to the actual build-up and success Power Cuts In India is a crowd-sourced, open data project. This means everything we do is out in the public domain. The Wiki details in one place all the work and credits. An open document collates ideas on how to improve the data collection and what possible uses it can be put to. At the time of writing, we are testing SMS based reporting and smart apps for smart phones are in development. Purely on voluntary basis from enthusiastic donors of their expertise and time, who believe in the project.

Naturally there has been curiosity as to why so many of us, including Ajay and I, would give so much of our time to collate this information. Typically I have been asked why such monitoring is needed, since everyone knows how bad the power situation is. The short answer is that situational awareness allows specific responses. Whether from government, from utility companies, from investors or from citizens themselves. One of the most recent examples in another – admittedly acute, not chronic like the power cut situation – setting was seen in Libya.

For me, the project is a beautiful example of how the power of social media can be harnessed to take a simple idea into execution and how web and social technologies can build a resilient backbone for a project. The rapid prototyping and release of the website by Ajay deserves a special mention too. And with rapid prototyping come iterations and incremental changes.

These are being made based on ideas suggested through our open document. Collective wisdom continues to shape and define the project. We are all aware that this should not become yet another urban India project but also rolled out to villages where issues related to linguistic diversity as well as lack of literacy may be a problem. This awareness is feeding into design and reporting protocol related to SMS reporting and smart apps in development. With mainstream media carving a narrative out of something happening on the web, more citizens in India are getting to hear about the project as evidenced by reports now coming in from more regions than just the metros or individual towns where some of the Twitter users are located. SMS reporting will enable even more persons.

What can a corporate firm learn from our experience so far?

First, social technologies can be unpredictable in their scope, reach and success. When the Power Cuts In India project was rolled out, a Twitter user pointed out she had suggested the idea three years ago. But it did not take off then. However when I mentioned it on May the 4th, it did take off and is now growing by leaps and bounds. This unpredictability of uptake can be unnerving for those, who like to predict both the trajectory and the time line of their “social” undertakings.

Second, when an idea gains traction, crowd-sourcing can be benevolent or damaging. In case of Power Cuts In India, it has been benevolent so far. HSBC’s experience from a few years ago was bracing and different.

Third, “social” is not concrete, fully formed. It is amorphous, iterative. Or in the words of Field Marshal Helmuth Graf von Moltke: “Planning is everything. Plans are nothing.” Before launching into “social” an organisation needs cultural readiness. And comfort with amorphousness, iteration and tweaking in response to feedback.

Regardless of where you are, you can contribute to the project by sharing your views here. Or on this post.

Further reading:

An old post on the use of Twitter in emergencies/ acute situations.

Power Cuts In India in media:

Times Of India

PC World

CIO Magazine

Yahoo News

LiveNewsIndia

One India (online in Tamil)

Trak.in

The Daily Dot notes that for all its resilience, the web still needs electricity.

WiredCPU

TechGoss

Paant.com

Geo-spatial World

Social Media Guru

BBC – on Social Media for Social Good in India – features PowerCutsIndia (video)

 

A Passage To India (2010 ed) and the other R-word

When EM Forster wrote A Passage To India, the Indo-British relationship was one of the ruler and the ruled, of imbalances in power. Things are different now in 2010. Britain lags behind and grapples with an economic crisis of monstrous proportions, while India’s economic growth gallops along at 8.5%.

Naturally, all eyes are on David Cameron and his 90-strong high-powered ministerial and CEO delegation to India, billed as a “jobs tour” to which Cameron is bringing a “spirit of humility“.  The delegation led by Mr Cameron confirms how India remains, despite all its frustrations, a potentially strategic customer, partner, supplier and sometimes a competitor to British businesses. As such India’s growth has direct implications for British business, as we in Britain seek growth markets and profits to deal with the continued chill in our home economy.

Earlier this week, the Financial Times, in its editorial, argues that India needs to go for stronger growth (registration required). Among other points, the FT argues for improved infrastructure and productivity, liberalisation in retail sector, furthering liberalisation in the banking sector, and investment in basic health and education.

All valid points indeed.

A fundamental requirement to enable such business is that businesspersons from both countries are able to travel to meet with each other, and not just on high profile trade delegations. Not least because both the UK and India  are nations thriving on the back of the SME sector and their chief executives rarely get to join ministerial trade delegations.

Travel between India and the UK is hamstrung: by the increasingly onerous requirements for an Indian to obtain a British visa in India, and by the sheer volume of visa applications being made by British persons in the UK for travel to India. One area ripe for quick and major reform in both countries is enablement of business travel.

In doing so, the other R-word – reciprocity – is as important as any reform. It would not be remiss of Mr Cameron’s and Dr Singh’s governments to take bold steps to make it easier for British and Indian businesses to travel, and then to trade and collaborate.

Starting with a mutually cooperative visa regime. One that makes it easier for British businesses to find their passage to India in the modern times.

Other links:

Nitin Pai writes: Cameron comes with a different mindset

BBC’s Economics editor Stephanie Flanders: Osborne in India

Dean Nelson on the whys and the what-fors of Indo-British links

Satyam, corporate governance and emerging markets

Perhaps the most tragic thing about the Satyam saga is the name of the company.

Satyam means ‘the truth’ and the company’s fortunes have fallen on the sword of anything-but-the-truth. India’s first IT company to list on the NASDAQ and also trading on several Indian stock exchanges is being described as India’s Enron.

The Satyam saga is a complex case that raises many questions. On the one hand, these questions are about the role of board directors, the possible complicity of auditors, and the efficacy of regulator oversight. On the other hand, the case raises profound doubts about the basis of growth in emerging markets. On yet another level, one has to wonder if companies from countries with less advanced corporate governance frameworks should really engage in the masochistic exercise of going public and raising money in markets which hold them to tougher standards of growth and profitability, and then watch them like hawks to ensure those expectations are delivered upon.

There is inevitable collateral damage within India. Institutional investors are hardly likely to be happy about the lead-balloon like drop in the share price although some, like Sundaram BNP Paribas, offloaded their stake, ‘before the event’ as they naively point out. I say ‘naively’ because the timing appears highly suspicious to onlookers and the offloading will hardly spare them possible enquiries about alleged charges of insider dealing, for instance. The auditors, PwC, may also find themselves in some hot water.

But there is a silver lining in all this.

Corruption and infrastructure are often cited as India’s twin Achilles’ heels. But the Satyam case is not about systemic corruption and bribery which concern institutional investors aiming to invest in India. It is a more contained crisis, a failure of governance within a company.

That is where the silver lining ends.

Because one wonders if there are other such ‘contained crises’ brewing elsewhere. Because this failure of corporate governance raises a red flag for businesses seeking partnerships and joint ventures in India. There is a systemic angle to it, of course, in terms of regulatory oversight or the role of auditors as I mention earlier. But that can happen in the best regulated, stable, ‘developed’ economies as evidenced by the CDO crisis, the Madoff crisis and of course, Enron. The solutions will have to take into account all the various possible weak links.

Meanwhile, what do you do, if you are a business seeking to enter India or another emerging market, with a strategic partnership or alliance?

Of course, you persist with robust due diligence on companies, which are potential partners. Then there are the wrongly-described ‘soft’ aspects of a deal.

An outstanding strategy consultant will not just deliver the numbers, the hard due diligence, but also guide you on the major issue of executive reputation and articulate the tacit knowledge essential to your success in your target emerging market. Choosing the right person to be on your side in your global growth plans therefore is your first step in partnership, and in your quest for success in emerging markets.

Related readings:

Corruption is the greatest stumbling block to infrastructure development in India, says Nita Kulkarni

Language: a challenge in becoming a global business

In recent discussions with a business prospect about their India entry, the issue of language came up. In particular, the prospect wanted to know if they will need to adapt their product in several Indian languages, and whether a British or an American accent will be preferable in their automated self-service system.

Brief and interesting questions indeed! So, what’s the answer? Well, nothing so brief.

My observations on personal linguistic preferences have evolved over the years of living amongst polyglot Europeans, largely monoglot British and American people, and English-aspiring urban Indians in 4 of India’s metros, as well as having grown up in India’s Hindi belt where ‘tatsam*-ism’ is alive and thriving. I speak a few Indian and European languages from the Indo-Germanic family so I have also been observing my own behaviour in picking a language to interact in a context.

A person’s linguistic preference in an interaction is shaped by several factors such as those below.

One’s own linguistic adeptness: Even with their mother tongue, different people have different abilities in comprehending, reading, writing and above all, thinking instinctively in the language. It is easier to use a foreign language, if one is not constantly translating but is able to think in that language. Many Indians I know, for instance, instinctively think in English and can carry on a fluid conversation on complex topics without resorting to their mother tongue.

Aspirations to linguistic fluency: This is an interesting latent factor requiring both empirical observation and good deduction from those observations.

For instance, my Bulgarian housekeeper speaks with me in English and is glad when I correct her or add to her vocabulary. At home, however, she tells me she is keen to preserve her son’s ability to speak Bulgarian by watching only Bulgarian TV, never mind how it will influence the son’s fluency in English! She argues he is learning English in his school anyway.

Inclusion/ exclusion: Language is a powerful tool to signal inclusion or exclusion. Living outside India, I am now quite conscious of how Indians from some regions switch to their own language, even amongst a diverse group, more quickly than Indians from some other regions.

Another example can be seen in ethnicity based sub-groups in larger groups e.g. a Dutch students’ group at Harvard Business School, to which a friend of mine belongs, posts pictures on FB and the following conversation is almost entirely in Dutch because it suits the context. In any case, anybody who is not Dutch at HBS does not belong in the group but the signalling is clear and reinforced with the help of a language.

Choice of languages available in a context: This external factor is more influential than we realise. For instance, years ago, when I lived in Bangalore, asking for water in restaurants serving South Indian fare was easier in Tamil rather than in Kannada, the default language of the state of Karnataka. The serving staff, I imagine, were largely Tamil-speaking.

Back in London, however, it won’t help me much if I insist on speaking, say, German in a restaurant in Britain. However with the growing number of Polish and other East European serving staff, it may well become a distinct advantage in the near future! More recently, when I visited Prague, it was simpler for me to get by in German than struggle with inadequate comprehension of English on offer in the City’s less ‘touristy’ establishments.

Interest in consuming versus creating content: This may seem like ‘internet-ese’ but it is not. In the real world, we could rephrase this as ‘interest in listening versus speaking’. My French is not fluent enough to comprehend slang well but that does not prevent me from having music from the French band Zebda on my iPod. Likewise I am keen on Hindi poetry and cannot always find good anthologies in print. But there are encyclopedic sites on the web where I can read this content.

As a blogger, however, I find the idea of typing in Hindi with its ‘shirorekha**‘ (lit. header line), the several ‘matra***‘ and conjuncts such as ‘ksh‘ quite cumbersome. My interest in creating content is defeated roundly by the disproportionate effort required by my mother tongue.

So far, this was all about the consumer. What are the choices for a business if it wishes to serve its consumers without forcing them away from their preferences to its own?

In its simplest form, the answer lies in two Cs – consumer and commitment.

Über alles, the business needs an intimate knowledge of one’s consumer. Given all the above – and some factors I may not have listed – such knowledge is not simple or easy, but it is a non-negotiable essential. There is no substitute for good consumer research, especially if the culture of a target market is unfamiliar to you. A consumer does not always want or benefit from a huge range of choices; which means getting it right in the very first moment of interaction is critical. Language can be used to include or exclude, and surely a business wants a consumer to feel welcome.

Further, the business needs the commitment to the market, which means the willingness and ability to invest in linguistic adaptation, as required. From my experience, the benefits are easy to demonstrate to and convince most businesses, but negotiating budgets can often be a bottleneck.

A business would be wise in not presuming to impose its own preferences on the consumer. When a business speaks its consumers’ language, it is privy to the chatter, the informal conversations about its business both in the real world and on the web. A willing business knows how to capitalise on these conversations to develop greater consumer satisfaction and make better profits.

Surely it is worth it, n’est-ce pas?

Explaining asterisked words:

* tatsam: Sanskrit, lit. same as that; Tatsam words are those that have been taken as-is from Sanskrit into Hindi.

** shiro rekha: Sanskrit, lit. header line; Hindi is written in the Devanagri script; the letters in a single word are joined together with a line on top like in this word here - हिंदी. Letters hanging from a clothesline. There, I said it.

*** matra: in Hindi, consonant sounds are made by combining a vowel with a consonant root. The vowel when used with a consonant is referred to as a ‘matra’. For instance, the consonant ‘k’ can be combined differently to make sounds ‘ko’ and ‘kau’ with vowels ‘o’ and ‘au’ respectively.

Related reading:

Manuscrypts’s excellent post on Minding Languages

My old post on linguistic apartheid and inclusion in democracy: Citizenship and apartheid

A broad, conceptual post on cross-disciplinary communication: Lost in Translation

Healthcare Services Outsourcing to India?

This post emerged from a question asked by a friend on LinkedIn. The question was:

Are (sic) Healthcare services outsourcing from India the next big opportunity? Health-insurance companies based out of the US are giving the option to customers, to get their surgeries / medical procedures done from Indian hospitals. Is it now time to give healthcare outsourcing its due?

The question fascinates me on several fronts. I work with India investors interested in several sectors, including Outsourcing. I also work with investors keen on biotechnology and pharmaceutical sectors. In addition, I work in comparative health policy which, with my strategy hat on, I cannot help but frame in the context of the comparative advantage of nations.

As an investment opportunity, Healthcare Services Outsourcing (HSO), which also goes by the names ‘medical tourism‘, ‘health tourism’, ‘medical travel’ etc, is a no-brainer. If an investor from Britain or America wishes to invest in facilities in India that cater exclusively to economically well-heeled but health-wise, down-at-heel patients from developed countries, the returns are easy to make. The case is not hard to make from the perspective of the 3Ps of healthcare – payer, provider and patient.

The economics stack up pretty easily from the payer’s perspective although I think there is a divide between private sector payers, such as insurance companies and public sector payers such as the UK’s National Health Service (NHS). Take it with a pinch of salt, if you will, but here is an interesting ‘ready reckoner‘ of relative costs and waiting times in the NHS with those in India. The comparison does not include the cost of poorly understood risks, of corrective action when things go wrong and the cost of any adverse impact on future healthcare premia.

At least to some providers, the risks are manifestly clear. In the recent days, the UK’s NHS, which is also a payer, is asking patients to pay for corrective surgery after elective surgeries abroad go awry. For an opposite perspective – how costs to NHS add up when un-entitled foreigners abuse its free-at-the-point-of-delivery health service – see this short video from Sky News.

From the patient’s perspective, the prospect of reduced waiting times is enhanced often by the possibility of an exotic holiday in a two-fer. Not just that, patients can often get treatments which are rationed or otherwise unavailable from their provider such as obesity operations not easily available on the NHS.

The business model “HSO as medical tourism” is therefore easily fundable. The question is – in Guy Kawasaki’s succinct words – here: it is fundable, but is it viable? From the perspective of comparative advantage of India as a nation, one needs to ask: is it sustainable? Let’s examine this a bit.

India has a sufficiency of factor conditions such as good, English speaking doctors and now good infrastructure to deliver advanced surgeries and treatments. That is an attractive proposition on its own for HSO providers and seekers. But as far as domestic demand conditions are concerned, Indians carry a disproportionate burden of diseases such as malaria on the one hand, and diabetes and heart disease on the other. So there is a need. But a considerable number, estimated between 15% and 25%, remain in extreme poverty, so the purchasing power is curtailed. “HSO as business model” focuses on the factor conditions but sustainable comparative advantage for India will arise from not its relatively smaller magnitude factor conditions but also its considerable demand conditions.

The experiences of doctors in India, working on the coalface are instructive – on the one hand, about the larger failures of public health policy and practice in India, and on the other, about their value as intensive learning or potential for ‘knowledge transfer’, if you will.

Much discussion was generated by a BMJ editorial, titled Poor Countries Make The Best Teachers. My response was:

“… a doctor in the United States, who had trained in India, told me an anecdote that shows the flipside of Byrne’s experience on elective as a medical student in India, a learning experience she described as second to none. In a lecture during my acquaintance’s residency, she noticed that her professor and other residents were puzzled by the x-ray film of a boy’s limbs. They could not identify what could possibly have been wrong with him. The doctor, who had seen much rickets in India, identified it correctly and to the amazement of her colleagues. Poor countries, sadly, still provide reasons to train Western doctors in diseases that may not afflict the West right now but, with mass scale migrations, could easily become a problem in the future.”

What does this mean for investment opportunities? Well, a lot, if we think differently about HSO.

* A better, scalable and sustainable investment would lie in raising the profile of the usefulness of training doctors from developed countries in India. This will enable doctors from developed countries to understand, diagnose and treat better those diseases, which were hitherto geographically confined or eliminated, but are now resurgent and truly ‘globalised’, thanks to travel and mass migration.

* In return, the doctors from developed countries could teach the Indian doctors about innovative methods such as advanced surgical techniques, give equipment and test kits, as well as help with public health programmes particularly expanding capacity and service delivery.

* Indian healthcare system, in turn, could invest some of the profits to provide essential preventative services and public health programmes to its poor populace. India’s main factor conditions, the doctors, could therefore become not just financially better off but also more influential stakeholders in this healthier future for all.

How is that for a model for healthcare services outsourcing?

Yes, I know this is not a fashionable view. But it certainly is the most sustainable way to go forward where good health and access to good healthcare is not the privilege of the few ‘haves’ but the fundamental right of the many ‘have nots’.

As for why I am arguing a case to reduce the primacy of the potential of “HSO as medical tourism” model, I prefer to let Cicero explain that.

“The man who can hold forth on every matter under debate in two contradictory ways of pleading, or can argue for and against every proposition that can be laid down – such a man is the true, the complete, and the only orator.”

Over to you, and Santé!

Related reading:

Credit crunch and public health

Health and the Indian Economy – one of my guest posts on the Indian Economy blog

The world’s front-office? – an old post examining India’s outsourcing industry

New York Times says Uninsured Put a Strain on Hospitals. How about ‘Poverty and inadequate access to healthcare puts a strain on human beings’ for a title?