Sudhir Ahluwalia's Blog, page 10

Medicinal plants with anticancer properties

The group of Annona spp., including A. squamosa, A. muricata, and A. cherimola contain acetogenin alkaloid compounds that are said to have anticancer properties.

One such alkaloid, bulatacin, was shown to possess antitumor potential against cancerous liver tumors (Chih et al., 2003). Annona muricata leaves are said to destroy colon cancer cells (Moghadamtousi et al., 2014). Acetogenins were also reported to destroy human hepatoma cell lines (Liaw et al., 2002).

The fruit is said to contain small amounts of neurotoxic alkaloids, and consuming large quantities of the fruit could cause Parkinson-like symptoms (Memorial Sloan-Kettering Cancer Center, 2011; Champy et al., 2005).

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How to achieve business growth during downturns?

A declining market sees the available market shrink. Initially, competition rises, and a decline in margins ensues. Overall margin decline is observed. Companies with a higher operational efficiency level can ride through this downturn phase.
Soon you find competitors drop off the market. These are companies with stressed balance sheets. Dropouts occur from lesser-known brands and small companies that cannot operate under stressed conditions.
The balance companies with strong balance sheets and efficient business processes remain. When the declining market reaches its bottom, the performing organizations with good quality, the best strategies, and high operational efficiency start investing in marketing.
These companies now target customer segments for the products and services of their choice and preference. You now begin to see these companies show higher profits. These companies now offer above-average returns.
The scenario that I have painted above is repeated again and again during each downturn and recession. For entrepreneurs, the advice is the following;
Conserve cash and invest in operational efficiency improvement when the market is declining. Reduce marketing spend during this phase. Do not try to catch the falling knife. You will get hurt.
When the bottom is reached, and competition from the small and poorly managed companies drops, start marketing operations. You will now see a rise in both sales and profits.

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How can you create a sustainable competitive advantage for a startup?

A company should periodically calibrate its business and operational strategy to sustain competitive advantage. It is a recommendation for already established companies.
In the case of a startup, the company is just entering the market. Therefore, the relevant question in the context of a company entering the market is how to secure a competitive advantage over companies already providing goods and services.
A startup seeks to secure a competitive advantage by comparing its market positioning and value chain with incumbent companies. A startup is at the edge here. It has the opportunity to design the value chain that will enable it to be not just operationally more efficient but enable the company to build the value chain that will help it secure a competitive advantage.
As a startup, you will be approached by consultants selling you six Sigma, IT software, and business process design capability, all sold in the name of transformation. All these are great offers, but they only lead to operational efficiency. Competitive advantage is secured by designing a value chain that will take your company one step higher than your competitors.
Please undertake a value chain mapping exercise, and test each value chain component for optimal performance. Such an exercise can be facilitated by a business strategist who is experienced in mapping, comparing,

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Andrographis paniculata (common name) Kalmegh

Kalmegh is one of the bitterest plants used in medicine. The #anticancer potential of andrographolide molecules found in Kalmegh has been verified by experiments conducted by Rajagopal et al. (2003) and Chavhan (2010).

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What are some strategies that will help reduce carbon footprint of a business?

Carbon footprint reduction strategies would vary with the nature of the business.
Glencore- the mining giant, has achieved the most CO2 reductions by switching to electric vehicle transport, electric-powered mining, and other equipment. Renewable energy-sourced electric power is now the first choice. Smelters which are energy guzzlers, will use renewables-based electricity in smelting operations. The transition to a lower CO2 emission regime is planned in areas where it does not increase costs, and environmental benefits increase operational efficiency.
Cargill is the world’s largest agricultural commodities company, with annual revenues of $134.4 billion. Its business is organized around four segments:
1. It buys, processes, and distributes grain, oilseeds, and other commodities to makers of food and animal nutrition products.
2. The company provides crop and livestock producers with products and services
3. Cargill also provides food and beverage manufacturers, food service companies, and retailers with ingredients, meat and poultry products, and health-promoting ingredients and ingredient systems.
4. The company provides its customers with risk management and financial solutions
5. Cargill serves industrial users of energy, salt, starch, and steel products. It also develops and markets sustainable products made from agricultural feedstocks.
Its carbon footprint reduction entails reducing emissions in its supply chain, eliminating deforestation in supply chains, and achieving sustainable water management in all its priority watersheds.
Therefore, I recommend that you look at your company’s operations closely, identify carbon consumption areas, and look at alternatives that will help reduce carbon usage. For instance, if your operations’ power source is a fossil fuel, you could seek to replace these with renewable energy.

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How can you mobilize the resources of the internal environment and develop a greater competitive advantage for your organization?

Let us begin by listing out the internal resources available to any organization. Resources are not just people but processes, organizational culture, and operating model, which includes value chains, strategy, and technology.
A competitive advantage is secured when all the above resources are aligned to benefit your customers and external stakeholders.
An organization can have the best-skilled people, but if the business processes, strategy, and business model are not designed to utilize the skills of your people, organizational growth and customer delight are both impaired.
The scenario I have outlined in the above paragraph was playing itself out in a company I had been advising for a few years. The company had a strong Human resources team that devised innovative team building and skill degradation programs. Still, the company was struggling to compete with its peers. On analysis, I found that the problem lay in the corporation’s value chains. These were not structured to leverage and synergize the company’s internal skills. The CEO was well-meaning, diligent, receptive, and accessible, but performance lags because of value chain-related issues.
A company or any organization is a living entity. You have to ensure that all organs are healthy and that the coordination mechanism is fully aligned to leverage the capability of each part of the body.
Begin by analyzing the organization’s value chain and tweak it to improve operational efficiency and restructure it to achieve a competitive advantage. All this takes place within the internal organization.

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What is the difference between natural and organic food?

Let me explain the difference between natural and organic products and the confusion will clear itself out.

The food industry’s labels — natural, all-natural, free-range, or hormone-free — should not be confused with organic; the two are not synonymous. The use of natural, free-range, hormone-free is simply a statement describing the property of the food item. The natural label will mean minimally processed and could include the non-use of artificial flavors and colors, preservatives, and other artificial ingredients.

In the case of meat, animals may continue to be given growth-enhancing chemicals or hormones, and the labels could describe the meat as naturally raised, free-ranging, grass-fed, pasture-raised, hormone-free, and the likes: all describing one property or the other of the dairy, meat, or other food product. It is important to distinguish between such labels and the ones certified as organic.

Organic food production prohibits the use of sewage sludge, genetically engineered or genetically modified organisms, ionizing radiation, most synthetic pesticides, and fertilizers. Organic meat, poultry, eggs, dairy, and dairy products must be free of antibiotics and growth hormones. Animals must be fed on organic feed only. Organic regulation prescribes specific requirements for feeding, housing, and breeding. Animals need to be raised in natural, humane conditions.

The focus is on the sustainable use of resources and the adoption of environmentally sustainable practices. Organic agriculture and farming practices require integrated pest management practices, protection, and promotion of biodiversity, as well as maintaining native ecosystems. Organic crops must be free from any contamination from genetically modified organism crops.

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What are some ways a business can stay relevant in the face rapid technology change?

The pace of technological change today is much more rapid than in the last century. Technology innovation helps improve productivity and operational efficiency. Companies need to leverage the advantages that can accrue from technological change. Businesses that understand this simple fact maintain a competitive advantage over their peers. Those unable to do so get left behind, lose market share, and slowly disappear. Kodak is a classic and oft-quoted company that got disrupted by technology.
New technology has a direct impact on the workforce. Workers must learn and adopt new technology and innovation, or companies will be forced to replace them with people comfortable with new skills. The pace of change, as rapid as it is today, has directly impacted the availability of skilled people. Joblessness and skill shortage is a phenomenon that society will be forced to endure.
Even though large parts of the world are under an economic slowdown, skill shortages continue to endure. I do not see this situation improving anytime in the future. Skill shortages are there to stay with us.
Companies, therefore, will have to learn to adapt to this new reality. Internal re-training and education systems and processes must be set up within each company. Such systems will help a company cope with skilled human resources shortages.
Technology is also likely to require changes to business strategies. New products and services will become available with each technology and innovation adoption. Strategies to make these new products and services available to customers efficiently and seamlessly is another imperative that companies will require to incorporate.

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What is more productive organic or non-organic marketing?

Organic marketing takes time to show results. The results, though, last longer and are more sustainable. Paid marketing yields immediate results. It helps take the ads rapidly in front of potential customers. We get the best results, and customer profiling is accurate when marketing goals are enunciated. The ads should then be directed to the targeted customer segment.
You will start seeing conversions rise with the help of well-directed paid ads. But the best results will come when the ads have been subjected to A/B testing. A/B test results require a month to give you enough data for the digital marketer to get a clear verdict to arrive at the optimum ad that will provide you with the highest conversion rate.
The digital marketer must begin a paid ad campaign only after a detailed google analytics data review. All tools available on Explorations and data studio should be used in the analysis. As this is a pre-campaign exercise, data will have to be of organic marketing origin.
The most productive results, therefore, will accrue when marketing begins using organic tools. Enough data should accumulate to undertake a thorough Google analytics-based analysis that will give you insights into the target market, optimal time, days, and marketing demographics.
Businesses looking for results from a marketing campaign will have to be patient if they are to get the full benefits from their marketing investments. Hire the right digital marketing expert for your campaigns, and prepare and plan for a long-term plan. You will be able to get the best from the marketer only when you educate yourself on the various aspects of marketing as a business leader. You should at least learn enough to pose the right questions to the digital marketer. And don’t use past performance data that a marketer will provide you to get your marketing deal.
Marketing is both an art and a science. Marketing sits on the foundation of strategy. It is not a purely technical job. Good luck!

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What are some things to consider in business planning for SAAS companies?

Software as a service is a business concept with multiple business offerings. Each business offer will have various use cases. Clearly defining the offerings and related use cases should be the first task. Thinking these basic concepts through is a job that the Founders best do, for they are in the best position to understand the intricacies of the SAAS concept they are bringing to the market.
This done, ask yourself what objective of the planning exercise you seek to undertake. Is it to convince an investor that your company will be a great investment destination? If that is the objective, the entire subsequent exercise will be aimed at presenting facts and arguments that support this goal. A business plan in such cases will not be very different from a lawyer’s statement in support of your company.
Most business units of established companies conduct an annual business planning exercise routinely. The task for a SAAS company will be no different. The annual business plan has to be an operational plan in which you look at what you have achieved in the past, what objectives and milestones you plan for the year, and how you would achieve these objectives. Annual business plans are taken very seriously in mature companies. It is a demanding exercise for leaders. Facts are gathered, resources are required to implement the program, and revenues, prospects, deals, wins, and losses are tabulated. An annual business plan should be done with a lot of care, and the projections should be conservative. Often, you and your team use business plans for target allocation, goal setting, and performance appraisal. I have goofed up once by preparing an ambitious business plan for your business unit. My boss hugely appreciated the project. The quarterly reviews were a nightmare that I wanted to avoid but couldn’t. In SAAS companies, it will be no different.

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