Category: IIM

Arranged Scissors 5 – Finding the Right Exchange

If you look at my IIMB grade card, one subject stands out. It is one of the two Cs that I have on the card, and the other was in a “dead rubber” (5th/6th term where grades didn’t matter for placements). This C was in introductory marketing management. Where the major compoenent was a group project called the application exercise (ap-ex). I frequently crib that I did badly in that project because four out of six people in my group did no work, or even negative work (and this is true). Digging deeper, however, I think the more fundamental issue was that the two of us who worked didn’t really know what we were doing. We failed to understand the concept of STP till a few years after the project was over.

STP is one of the most fundamental concepts in marketing. It stands for Segmentation, Targeting and Positioning. I quickly appreciated Positioning, but took a long time in trying to figure out the difference between segmentation and targeting. In my defence, they are highly inter-related concepts, and unless you look at it from the point of view of social sciences (where each unique point fetches you one mark in the board exam) it is not intuitive that they are separate concepts.

So you segment the “population” based on various axes. Taking these axes in conjunction, you end up “segmenting” the population into a large number of hypercubes. Then you do the “targeting”. Find the set of hypercubes that you want to sell your product to (in the context this post is about, sell yourself to). And so once you have found your “target segment” or set of “target segments” you “position yourself” and go out to sell. And then you need to figure out the “4 Ps” of marketing. Product (fixed here – it’s you). Price (irrelevant if you don’t plan to take dowry). Forgot one P. The other is Place (where you will sell).

The arranged marriage market can be broadly be divided into two – OTC and exchanges. OTC (over the counter) is the case where you have a mutual acquaintance setting you up with a counterparty. The only difference here between arranged and normal scissors is that in the arranged case, it is your parents who are set up with the counterparty’s parents rather you getting set up directly. Since it is a mutual acquaintance doing the setting up, the counterparty is at max two degrees away, and this makes the due diligence process a lot easier. Also, you have one interested third party who will keep nudging you and pushing hte process back and forth and generally catalyzing it. So people in general prefer it. Historically, there were no formal exchanges (apart from say a few “well known village elders”). Most transactions were OTC.

One problem in financial OTC markets is counterparty risk (which is what has prompted the US government to prop up AIG) but this is not a unique problem with OTC arranged marriage market – counterparty risk will always be there irrespective of the method in which the relationship was formed. Apart from providing counterparty protection, one important role that financial exchanges play is to improve liquidity in the market. The number of transactions that happen in the exchange ensure that the market is efficient and prices are fair. Liquidity is an important asset in the arranged marriage exchanges also.

The problem that I’m trying to describe in this post is about segmenting the exchanges based on their most popular commodity types. I don’t have reall live examples of this, but then for each product you will want to go to a different exchange. For example (this example may not be factually correct) both the Chicago Board of Trade (CBoT) and Chicago Mercantile Exchange (CME) trade in both corn futures and cattle futures. However, the volume of corn futures that are traded on CBoT is significantly larger than the volume of corn futures traded on the CME. And the volume of cattle futures traded on the CME might be siginicantly larger than the corresponding volume in CBoT.

So if you want to buy cattle futures, you are better off going to the CME rather than the CBoT since the former has significantly greater liquidity in this product, and thus you are assured of getting a “fairer” price. Similarly, to buy corn you should rather go to CBoT than CME. I suppose you get the drift. Now, the same is true with the arranged marriage market also. If you want to get listed on an exchange, you will need to make sure that you get listed on the right exchange – the exchange where you are most likely to find people belonging to your target segment.

To take an example, if you think you want a Tamil-speaking spouse, you are significantly better off listing on tamilmatrimony.com rather than listing on telugumatrimony.com, right? Of course this is just a simplistic example which I have presented because the segmentation and difference in markets is clear. Things in the real world are not so easy.

There are various kinds of marriage exchanges around. In fact, this has been a flourishing profession for a large number of years, and even the recent boom in louvvu marriages has done nothing to stem the flow of this market. You will have every swamiji in every mutt who will want to perform social service by opening a marriage exchange. Then, you have a few offline for-profit exchanges. Some of them work on a per-deal basis. Others charge you for listing, since it is tough for them to track the relationships that they’ve managed to create. Then, this is one business which has clearly survived the dotcom bust of 2001-02. The fact that this business is flourishing can be seen on the left sidebar of this page where I suppose a large number of them will be advertising. In fact, I encourage you to click through them since that will result in precious adsense revenue for me.

There is nothing wrong in carpet bombing, but that comes at a price. Notwithstanding the listing fees (which are usually nominal), you will have to deal with a significantly large number of “obviously misfit” CVs and bump them off. Especially if you live far away from the exchanges and have someone else broking for you, you don’t want to burden them too much, right? So the problem is in doing your segmentation and targeting. And then researching the exchanges to find which exchange has most liquidity for products belonging to both your segment as well as your target segment. And get listed on them ratehr than wasting precious time, energy and money listing on exchanges that are unlikely to be useful.

Since I began this (extremely long) post with marketing fundaes, I should complete it with some more (which is irrelevant to the rest of this post). A standard process for advertising is AIDA (Awareness-Interest-Desire-Action). Typically for a relationship to “happen”, you need a minimum of D from at least one of the parties, and a minimum of I from the other party. The normal arranged marriage process, however, assumes that an I-I is a sufficient condition for a sufficient lifelong relationship, and don’t give enough time and space for people to check if D is there. Hence the disasters. Hence the tilt towards the CMPs.

Arranged Scissors 1 – The Common Minimum Programme

Arranged Scissors 2

Arranged Scissors 3 – Due Diligence

Arranged Scissors 4 – Dear Cesare

Fighterization

The story begins with this slightly old blog-post written by Ritesh Banglani, a guest faculty at IIMB. Banglani writes:

In the first class of my course at IIM, I asked students a simple question: What is strategy?. The most interesting response came from a rather cynical student: “Start with common sense, then add some jargon. What you get is strategy”.

I didn’t say so at the time, but that is precisely what strategy is not. If anything, strategy is uncommon sense – making choices that may not appear intuitive at the time.

The cynical student in question mentioned this during a conversation earlier today, and I thought the discussion that followed merited a blog post. I thank the cynical student for his contribution to this thought.

Innovation happens when someone gets an insight, which, by definition, is a stud process. The person innovating, naturally, is a stud. For a few years after the innovation, the idea is still in development, and it is still very tough for other people to do what the pioneer stud has done. The first wave of people to do what the pioneer has done will also naturally be studs.

However, after the idea has been established, the market for it grows. The pool of studs that are then involved in the idea won’t be able to service the entire market. Also, being studs, they are prone to get bored easily with whatever they are doing, and will want to move on. The increased size of the market as well as the gaps left by the leaving studs will attract fighters to this idea.

Now, fighters are not natural when it comes to generating insight. However, they are excellent at following processes. And once an idea has been developed beyond the initial stage, it makes itself amenable to processes. And thus, a set of processes get established. Soon enough, thanks to the processes, the fighters are able to do a much better job of implementing this idea as compared to the pioneering studs, and studs get driven out of the industry.

This generalized process that I have just described applies to all fields, or “domains” if you would like to call it that. Let us now leave the generalization and come to one specific profession – strategy consulting. Strategy consulting started off as an insight-driven process, a stud process. Industrialists would go to consultants in order to get insights, and out of the box ideas, in order to take forward their business. Soon, the business became profitable, and the consultants, like any good capitalists wanted to expand.

There was one problem, however – talent. It wasn’t easy for them to attract similarly insightful wannabe consultants to work for them. Similarly insightful people would either not want to work in strategy consulting, or they would start their own consulting shops. Thus, there was a need to bring in the fighters into the mix.

It was to facilitate the entry of the fighters that the various consulting models and frameworks came into being. A large set of processes were drafted, and all that the fighter consultants had to do was to identify the appropriate processes for the situation and then implement them along with the client. Insight and out-of-the-box thinking were thrown out of the window. Hourly billing became the industry standard.

Strategy consulting has come a full circle now. It has been “fighterized”. Clients nowadays don’t expect insight. They expect processes. They expect to be led down the “correct” path, and they want to make sure they don’t make obvious mistakes. And thus, the “strategy” that the consulting firms offer are mostly common sense which has been appropriately packaged. And this has percolated down to business schools. And so the cynical student’s cynicism is valid.

Snow White meets Gandalf

I don’t know how to describe it. “Writing club” or “literature club” makes it sound too serious, and if it were indeed one, then we need not have put “informal” when we put it in our CVs. “Slander club” makes it sound like we were all bitches, which we were not – though I must admit that once in a while we used to bitch a bit. We weren’t even doing campus journalism – we were hardly regular, and never came in print. And we weren’t storytellers, either, since most of what we wrote was based on what actually happened.

Twisted Shout began when Hunger tried to murder War. However, the defining moment for the group happened when Snow White Meets Gandalf (a trilogy in five parts) was released. I must say it was a fairly random story. So random that most of you won’t understand it. If you are not from IIMB, you can give up every hope of figuring it out. If you are from IIMB but not from our batch, you might understand one joke in the entire trilogy. If you are from IIMB and from my batch and not from my section, you might probably understand half the stuff.

SWG had so many characters that I won’t blame you if you would get confused. Most of these characters are based on people in my batch and the batch senior to mine at IIMB. And it’s not a one-to-one correspondence between real and fictional characters. Some people in my batch were so colourful that multiple characters were based on them. On the other hand, the entire commie half of Sumo Yet So Far (my quiz team) had gotten merged into one character called Swaadisht.

We drew inspiration from several sources, with the primary source being our first test in Economics, which had a certain Queen Shilpa taxing coconuts. A number of other characters, and scenes were built based on interactions in class in term 1. There was heavy punning on people’s names, and even seemingly random sentences like “I find Aishwarya Rai so hot that I want her as my wife” found their way into the stories.

If my memory serves me right (it usually does in the long term), the first three parts of the Trilogy were written by Disease, who then proceeded to put NED (this was a full three years before the term NED was coined, btw). Madness, the correspondent from H Base, joined the great institution when he wrote the fourth part. The fifth part, which involved a Great War, based on the Mahabharata, was appropriately penned by War. And he had ensured that he gave due footage to himself, as well as to the Footage Queen.

The beauty of the series was that characterization was not constant. People would change sides more frequently than Disease would change his shorts – which means that they didn’t change sides too often, but did it once in a long time. Characters would disappear from the plot, and occasionally reappear at a strategic time. There would be sudden updates in relationships between characters – to account for similar changes in the real world. Every event of note that took place on campus, and even some insignifcant ones, got due footage. It was a masterpiece of its times.

Looking back at these stories today, I’m feeling nostalgic, and at the same time proud to have been part of such an august institution. We were to come up with a few other masterpieces during our tenure, but SWG would remain our best known work.

Two months back, more than three years after we had first folded up, we thought we should make an attempt to recreate the magic, and thus started the Twisted Shout blog. I admit that we haven’t been too regular in updating it, but each of us has been managing an important transition in our lives, and thus haven’t really had the time to update it. We hope to fix this in the coming months, though I’m not sure how funny we will be since we will be writing for a general audience. In hindsight, it was really easy writing for a restricted audience that knew exactly who each character was based on. Making inside jokes, it seems, is much easier than making generalized jokes.

Using DBabble

DBabble is a popular tool used as an internal messenger in various companies and colleges. I know for a fact that both IIMB and IIMA use it. DBabble has this beautiful messaging feature, where messages are more like emails rather than chat messages. You send a message, and the other person replies to it in his/her own sweet time. There’s no chat window opened. And all such.

I don’t know why but in version 2.7 released sometime in 2004, DBabble introduced a “chat mode” which is similar to GTalk/Y!M. in that there is a chat window for every pair of users who are talking to each other. it’s actualy very similar to GTalk/Y!M.

Till our batch in IIMB, we used to use message mode extensively, and we still do (alumni have access to IIMB’s DBabble – called BRacket). However, from the batch junior to us onwards, the chat mode became popular. And thing is if one of the two people is using chat mode, it becomes very painful for the counterparty if he/she is using message mode. While talking to a first year student at IIMB (one of those people who doesn’t know any lingo and has never posted on arbit), I wrote the following treatise extolling the virtues of the message mode. I thought I should put it here in the larger interests of society.


basically bracket is supposed to be used in the “message mode” and not in the “chat mode“. for “chat mode” you always have things like GTalk. the beauty of the message mode is that it’s non-intrusive. you can take your own time to reply to each message, and you can still continue the conversation.

then, chat mode clutters up with your taskbar with too many windows. very tough to manage. again – it’s significantly inferior to GTalk in that sense. message mode, on the other hand, just flashes that nice red thing on the side bottom, and doesn’t clutter your comp.

another thing with message mode is that you can have N different conversations with the same person at the same time in parallel. BRacket message mode is the only uncluttering tool you have for this. you need to use this a few times to appreciate its beauty.

IIMB culture seems to be dying

On Saturday I had the opportunity to interact with a few not-so-young first year students (fachas) from IIMB. The interaction was, in general, good, but I came back disappointed. , disappointed that IIMB culture as we knew it was on their way out.

These people hardly use BRacket. Some of them don’t even know what is Arbit. It is reported that they hardly play tsepak nowadays. And it might be a biased sample that I met, but most of them hadn’t attended more than one or two L^2s in their first term (there are usually about five or six L^2s in a term). If people put NED for drunken partying, I dont’ know what they will put enthu for. The list is endless…

The more shocking bit was their absolute ignorance of IIMB lingo. One fachi kept saying “strong da” but that was about it. Great institutions that we had introduced – such as “are”, “K” and “NED” – didn’t seem to find a place in their vocabulary. In fact, when I happened to say K2U to one of them (the same fachi who kept saying “strong da..”) they all gave me strange looks.

In their defence, the fachas claimed that no one had taught them. That no one had taught them to use BRacket, to use IIMB lingo, to play Tsepak, or what arbit is. And I admit this is one problem with a two year course – every batch is a “cut vertex” in the cultural chain. One useless batch and the entire chain which had been painstakingly built up gets broken. And there is only so much that a handful of interested alumni can do. It is the responsibility of the incumbent senior batch to ensure that the essential knowledge is transferred to their juniors.

At a high-level meeting of representatives of batches of 06 and 07 held in Mumbai on Sunday, it ws decided that it is imperative to take urgent steps in order to resurrect the great IIMB culture. A resolution was unanimously passed to condemn certain practices and language followed by the current first year batch. A decision was taken that we need to start an education and training program for the current inhabitants of the institute. How far we will succeed, no one knows.

One last thing. The fact that the fachas didn’t know about K was bad enough. When I looked at the blank look on their faces and proceeded to explain the great concept, one bright fachi (no, not the one who kept saying “strong da…”) interjected “oh it’s just like saying something is ‘gay'”. And the rest of the fachas and fachis enthusiastically agreed.

Placements and the MSM

Earlier this afternoon, a member of the IIMB Media Cell found me jobless enough to to attend some placement press conference. Was attended by both print and TV media. After a short interaction with our director, and a report reading session by a placement committee member, four of us “successful candidates” (all 2nd years here are “successful” btw, we’ve had really rocking placements) were quizzed.

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Mass Weddings

In a month’s time from now, 200 girls from our tribe are going to be married. The weddings will start on the 10th of March and go on for a week, until all the brides have been married. Preparations have already begun in full swing and some girls have already been engaged – they won’t go through the process of finding a groom in those days.

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On cultural events and simulated annealling

As part of my “Artificial Intelligence” course three years ago, I had learnt about this search technique called “simulated annealling”. I learnt this again as part of an advanced course in Operations Research. It is used to solve problems where solving rigorously is not feasible as it would take too much time.

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