question hour. The money-creation circle

The money-creation circle

NR Narayana Murthy has invested in a soft drink company? Why?

New Delhi

Bansi, you need to ask NRN this question.

My take, however, is a simple one. I like it. This represents my new adage that old money creates new money, and then new money helps create old money.

NRN’s funding of Paper Boat is a possible example. In the beginning all businesses are brick-and-mortar businesses. Later, as these businesses grow, they need technology and the support of ‘virtual’ business practices to thrive. This then makes new money. And finally, new money goes to fund a sector that is as old as the stomach.

Paper Boat is a company with a business model that is simple and old-world. It makes and packs and markets ethnic tastes that are slowly getting forgotten. As recipes of homemade beverages vanish, in comes Paper Boat to offer it in a packaged format that is exciting, underplayed and real. Nice! I like this play. So does NRN, it seems.

Kapil Sharma from Comedy Nights is an advertising brand endorser now? How does this happen?

Mumbai

Mohan, why not? Kapil Sharma is as much of a celebrity as any. Kapil is the boy next door. Only thing, a very comic version. His charm is in his simplicity and his weapon is his spontaneity. Please note, he is not always comic. His persona and expression is enough. At no point of time does the audience say it is a PJ. The tolerance level you are willing to give Kapil is his armour as a brand endorser.

Check out the OLX campaign. That was a nice campaign. It has the quintessential Kapil. The tone, tenor and decibel of the creative execution was excellent and fit Kapil to the T. I cannot, however, think of too many campaigns that will fit him forever.

There is big talk of big data and retail. What’s ahead?

Indore

Badal-ji, big data is the immediate and distant future. I am an evangelist of this space. The inter-operability of Big Data and IoT will deliver a seamless and intelligent retail experience. This is going to touch both physical and e-retailers equally.

When Big Data marries IoT, the customer can stop thinking altogether. Your one purchase will guide your every other purchase. Once the inter-operability platforms have understood your needs, wants and aspirations, they will map it seamlessly to intelligent and broad-spectrum decision-making tools that help you buy the best quality at the best price. To an extent, this will kill spontaneity and un-intelligent buys even. In many ways, it will kill thinking even.

Predictive analysis is the tool at hand. Everything will get predictive. When you will need to replace some item, you will be dictated by the software that will govern your shopping. Everything will eventually be predicated and predicted. Your purchase behaviour will be stored on the cloud, and will dictate the next buy, and the very small chip in your iPad that talks to its manufacturing base in China will tell the factory when you need to replace what, if not the entire iPad itself.

Expect a lot from Big Data. Expect even more when Big Data marries the physicality of a sensor-led future with IoT.

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