The Dangers of Thin Value


Umaiar defines thin value as a mirage that will eventually evaporate. it is value that has no point nor reason, other than generate revenue for the corporation. The landmark example he offers is ARPU, or Average Rrevenue per Customer in the telco business. The 15 second instructional wait time in front of every voice mail is worth $620 million to one telco is one example he offers. The sole purpose of the 15 seconds is to generate revenue, notwithstanding claims that it is for the benefit of the user. The Value Every Business Needs to Create Now| Harvard: Umair Haque … Continue reading The Dangers of Thin Value

“Instead of extracting value, they create it” | Haque


Umair continually presses us to think about new types of corporations that are creating genuine value.  The definition is evolving, and you can check back with his earlier posts about the companies mentioned, but the final sentence in this paragraph is a great objective. An Open Letter to 20th Century Business | Umair Haque Who are some of those innovators? We’ve discussed lots of them – Apple, Google, Tata, Threadless. What makes them different is simple. They are more profitable and valuable than rivals because, well, they do stuff that counts. Instead of extracting value, they create it. Continue reading “Instead of extracting value, they create it” | Haque

Bailout or buy some time while industrial disruption occurs for auto, banks and telco sectors


I have found myself reading more economics blogs over the last couple of years, trying to understand better what is going on and the impacts of the banking crisis. This blog, StumblingandMumbling is worth the subscription. It is insightful, and contrary enough to provoke thinking. It also happens to articulate things that I cannot help thinking about. Recession or Inflation targeting 2. The cost of recession isn’t just unemployment hitting a few hundred thousand, but the fear of unemployment hitting millions. But this fear exists even in normal times, because the job destruction rate is so high. The 25,000 jobs … Continue reading Bailout or buy some time while industrial disruption occurs for auto, banks and telco sectors