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Monday, November 10, 2008

Game Changers

In this post, i present three exciting and innovative companies that im associated with, in one way or the other. I believe these companies are real game changers in their respective sectors.


Cyber Ad World is an Israel-based digital media company that has developed a unique product CYBERAD™,  to address the burgeoning needs of online video marketplace. CYBERAD™ is a web-based ad-server for inserting video ads into streaming video content. Sounds familiar! - wait till you read more. CYBERAD™ adopts a patent-pending Dual-Stream Technology (DST), wherein content and advertising video streams are transmitted separately. DST significantly reduces bandwidth needs, and thus lowers the costs associated with online video streaming. In addition to regular features available with conventional ad-servers such as targeting and measurabilityCYBERAD™ provides additional flexibility for publishers to place ads at will at any time during a video stream content - thus an online video publisher can seamlessly port traditional broadcast-like content, and maximise revenue. Further, the low cost of video streaming enables the publisher to increase profitability.


Accelegrow is a US-based Agro-tech company that is revolutionising the agriculture industry. The company owns a patented product, which is essentially a 'Bio-Fertilizer Supplement'. This bio-fertilizer product utilizes a unique technology that delivers higher crop yield; is eco-friendly due to its ability to deliver higher carbon sequestering (and hence qualifies for carbon credits); and consumes significantly less water (ideal for water-starved areas). Accelegrow's wholly-owned subsidiary, Ecoverdance, is a carbon trading company that helps Accelegrow clients to monetize their accumulated carbon credits. Here's the best part - the product is distributed FREE to the farmers, and in return, accumulated carbon credits are traded (exchanged). Typically, the company shares part of its carbon revenue with farmers! Thus, all water-starved poor countries are huge target markets. Can anyone compete with a FREE product? Click on the link to watch an interview with the cofounder  http://video.google.com/videosearchq=ecoverdance&hl=en&emb=0&aq=f#q=ecoverdance&hl=en&emb=0&aq=f&start=20 

www.neutron-systems.com

Neutron Systems is a California-based company in the telecom-software space. The company has developed a path-breaking product that is likely to re-define digital convergence in a way never seen before. Neutron Domestic Data Gateway is a product aimed at the digital convergence home segment. The home service system is a secure access point device that will consolidate all existing services at a user level, and provides new generation multimedia services with carrier grade quality. For the first time, we can think about targeted advertising at a user level among multiple-media platforms. Neutron gateway integrates secure-internet access with Voip and traditional POT voice services, and standard or high-definition TV channels' video services. The product, in the form of a console, will allow tracking of consumer media consumption across the Internet-Mobile-TV-VOD. This will enable advertisers to target household consumers through integrated multi-media campaigns - truly game changing.

Wednesday, November 5, 2008

An American Revolution '08

Barack Obama’s victory has in many ways reinforced my belief that disenfranchised workers, particularly in the services sector, are waging a silent revolution against free-style capitalists. However, this American Revolution has been waged by exercise of franchise. Average American worker has indeed used her ballot to bring about change.

Industrial revolution ensued an era of high productivity in the manufacturing sector in Europe, which led to a phenomenal growth in real wages for workers. Thus, the increasingly wealthy proletarian got disenfranchised with the socialist movement, and ultimately led the demise of socialism.

The Services sector contributes close to 50% of US GDP, and employs two-thirds of total workers. While technology has played a major role in the overall productivity of the services sector, average wage in the services sector has not risen. This implies that while the services industry has become wealthy, the major factor of input (labor) in the services sector has remained poor – as indicated by stagnation of real wages in services sector since 1973. Further, wealth inequality between executives and average workers has increasingly widened. Roughly one third, 32.5%, of all income in the US was earned by those households with an income over $150,000, approximately the top five percent.

According to 2007 annual survey of executive compensation from the Institute of Policy Studies, the CEO of a large company pulls down an average $10.8 million per year in salary and bonuses. That doesn't count the value of perks and some stock options, whose value can run to many millions more. But the average worker makes only $29,544 —only about 1.6 times of the poverty level for a family of four. Even the highest paid government employee—the President of the United States—makes $400,000 a year, far less than the average salary of a CEO of large corporation.

Despite an increase this year to $5.85 per hour, the real value of the minimum wage has declined 7% over the past decade and real wages have risen only a little over the same period. During this time, executive pay has soared by 450%. The twenty highest paid executives at publicly traded companies took home thirty eight times the income of the 20 top paid leaders from the nonprofit sector: $36 million vs. $965,000. A Financial Times/Harris poll found that 77% of Americans think CEOs "earn too much" and almost two-thirds think the wealthy should pay more taxes. According to data from the Pew Charitable Trust’s Economic Mobility project, a generation ago, American men in their 30s had median annual incomes of about US$40,000. Today, men of the same age, make about US$35,000 a year, adjusted for inflation. That’s a 12.5% drop over the last 30 years.

The ongoing financial crisis was the last nail in the coffin for free-style capitalism. I’m not suggesting the end of capitalism; but most definitely, old rules will be re-written to accommodate larger interest groups – in this case, the average American worker. I will not be surprised if we see some semblance of equity in pay – between the executives and workers. This is not to be misconstrued as socialism; but this is just neo-capitalism. As data indicates, despite a productivity boom, free-style capitalism has failed to create wealth for the average American worker, and instead, has enabled a handful of crony capitalists to amass humongous wealth. 2008 US Election will go down in history as one in which the average American worker revolted against injustice in a uniquely American way – by exercising her ballot. Ultimately, it’s a victory for Democracy.