Can you innovate your way out of a box? New Zealand certainly can!

Posted on October 30, 2018Categories General   Leave a comment on Can you innovate your way out of a box? New Zealand certainly can!

Innovation can happen anytime, anyplace, anywhere and in any industry. According to the Innovation and Productivity report published by ANZ bank, companies who invest in research and development, can have significant productivity gains over those that don’t.

The research studied companies that received funding from the Government of New Zealand for research and development. Over 500 companies working in the same sector were studied for this project.

It is important to be clear about the difference between invention and innovation. Invention is a new idea, while innovation is the commercial application and successful exploitation of the idea.

Fundamentally, innovation means introducing something new into your business.

Innovation is of 2 types:

  1. Product innovation: A new product/ service that is developed with the aim of solving a certain problem or making something simpler.
  2. Management innovation: A new way/ process of doing something. This could be distribution, finance, sales or marketing. Any new strategy that can help a business get a significant advantage over its competitors is classified as a management innovation.

Whatever form it takes, innovation is a creative process. The ideas may come from within the business, i.e. from employees, managers or in-house research or from those external to the business, ex: suppliers, customers, universities, etc.

The research found that 49 firms that invested in research, generated a return of 14.1% over 4 years, compared to 10.9% for the entire group of 504 companies. Sales revenue of these 49 companies also grew at a faster rate of 9.3% per annum compared to the entire group, whose growth rate was 6.4%.

Research data shows that the companies who invested in research and development for innovation get rewarded with gains in productivity. Innovation can seem risky and sometimes beyond the reach of smaller companies, but it is still something which must be encouraged.

One of the best examples for the study cited above is Fintech. Many start-ups in New Zealand have worked towards developing unique payment, banking and fintech solutions for consumers. The results are here for all to see. New Zealand banks had started adopting fintech much earlier when compared to their global peers.

They are in a better position to expand their global footprint due to their access to superior technology. This new technology is very easy to use and can be easily adopted by banks and customers. New Zealand is already said to have a great financial network that caters to its entire population. With this new technology, banks predict an uptick in the amount being spent by the consumers, using their payment options – thus, helping many retailers and other businesses.

Financial service companies have always been some of the best recruiters and provide substantial remuneration in New Zealand. It is their desire to be on top of their game, which has pushed them to invest in new technology and enjoy better returns than their global counterparts. With new innovation and adoption of technology, New Zealand banks have prepared a great launchpad for themselves.

Other major Kiwi companies, which focus on manufacturing and have invested in innovation, have seen their productivity improve significantly. New Zealand is a great destination for any individual who hopes to work on product/ management innovation. As a nation that is steeped in promoting innovative technology and business, New Zealand is a great place for anyone willing to work towards promoting these two ideals.

Now you can learn in an atmosphere that promotes innovation. Learn at one of the best Universities of New Zealand, the University of Otago, with BSE Institute’s Masters of Business Administration Program. Students get to interact and learn in an environment similar to that the corporate world has. It is truly one of the best experiences that a student can get, to build an international career.

There are very few developed countries in the World, which support innovation and research as aggressively as New Zealand. It is surely the best place for those wanting to build a new business and tech from scratch. It is only with innovation, does the human race progress and only with innovation that we are able to lead a better life.

India moves to the top of the food chain!

Posted on October 30, 2018Categories Short term programmes   Leave a comment on India moves to the top of the food chain!

India is ranked as 58th most competitive economy in the World, as per the World Economic Forum’s (WEF) Global Competitiveness Index 2018. If we compare this to the previous ranking, India rose five spots, which is the largest gain among G20 countries. USA occupied the top position followed by Singapore and Germany in the list of 140 economies.

India is a developing country and also the world’s fastest-growing economy. It is the world’s 3rd largest economy by purchasing power parity (PPP) and 6th largest economy by nominal the gross domestic product (GDP). We are on track to become the 3rd largest economy in the World by 2030 and the world’s largest economy by 2050.

The growth story began when India was rated as the fastest growing economy for the first time in the fiscal year 2015-16. During this period, the economy grew by over 7.6%. This is largely due to a few key sectors. India is a major exporter of IT, BPO and software services. Also, as a nation, India has attracted a lot of capital and talent in its burgeoning start-up space.

There are many start-ups which are valued over a $1 Billion today. With companies such as Ola, Oyo, Zomato, and so on, fighting turf wars with large global corporates in India and abroad, Indian start-ups have shown that they are proven businesses and not a flash in the pan. A key reason for their success has been the strong support received from the government, with it its Start-up India program.

With the sale of Flipkart to Walmart, the largest retailer in the World, India has cemented its place as a true fountainhead of technology and business.

A key reason for many young professionals building their own business is the positivity that they have and the abundance of a skilled young population. One of the best examples of these is Ritesh Agarwal of Oyo Rooms. He founded OYO rooms in 2013, when he was just 19 years old. OYO rooms is a hospitality company which has a network of over 8500 hotels in 230+ cities of India and few other countries.

The catch here is that OYO doesn’t own any of these hotels. They have partnered with other hotels and they help them sell their inventory, with Oyo’s online platform. This business has been a wild success and has been valued over a $1 Billion. As of today, Oyo is one of those rare start-ups, which is now operationally profitable. OYO has a revenue of over Rs. 2400 crore/ $ 330 million.

The very fact that a company founded in 2013 by a teenager is today worth over $1 Billion, points to the vast number of opportunities that the Indian economy offers. In an economy where companies are growing at a rapid pace, one needs to have the right skills to keep up with this pace and be ready to work abroad at a moment’s notice.

Having entrepreneurial skills is an absolute must, even if you are working at a corporate. Many students face the challenge of identifying the right avenues to learn these skills.

BSE Institute offers a great opportunity to learn these with their International Capstone Program. It offers multiple subjects that trains students to work in an ever changing work place and helps them be recognized as leaders in any corporate or continent.

Despite the rosy picture, there are still many barriers that prevent India from achieving its true potential. However, there lies plenty of opportunity to think out of the box and arrive at innovative solutions for these problems. It is the eternal optimist who always forges ahead despite multiple challenges and wins. Best of luck – stay positive!

Education is the best investment!

Posted on October 30, 2018Categories General   Leave a comment on Education is the best investment!

Decision making is a tough cognitive process. It is a process of acquiring knowledge through our thoughts, experiences and senses. Cognitive processes or decision making involves the usage of existing knowledge to generate new knowledge.

Recent studies have found that education can improve an individual’s decision-making skills. It is a subject of interest across various fields of behavioral and social sciences which includes psychology and economics. What has intrigued many business, political and thought leaders is whether people are born with rational decision making skills or is rationality a skill that some people get through education.

The study that was done by the Cornell University, USA, found that education is a key characteristic which helps enhance the economic decision making ability and economic rationality of an individual. The study was done with a controlled trial of education support and laboratory experiments that resemble real-life examples.

These researchers tested their hypothesis through a controlled trial of education support of nearly 3000 students in Malawi. An NGO provided financial support to the students of ninth and tenth grades. The results proved that the students who participated in related courses took many sound rational decisions when placed in a business environment. This result suggests that education is a tool for enhancing an individual’s economic decision making ability.   

Quick decision making is an important factor for any company’s management and board of directors. Great leaders understand that they need to control their emotions to make better decisions, which need to have a positive impact on everyone including themselves, their employees and other stakeholders.  

A well educated and experienced leader can take better decisions and the lead the company during any tough situation. Ratan Tata, the chairman emeritus of the Tata group, is the best example for this. At a time when Tata Motors was about to launch its lakhtakia car, ‘Tata Nano’, it was known as the world’s cheapest car. There were many challenges that the company faced in building and designing a car in under Rs 1 lakh. The biggest challenges were faced while producing the car on a large scale.

Tata Motors initially acquired land in Singur district of West Bengal for manufacturing Nano. However, the plan could not take off, due to a strong opposition from local farmers and politicians. The movement against the plant, soon became a violent stir against the company and the Tata Motors had no choice but to scrap the plant in West Bengal. What is remarkable is about Mr. Tata was his ability to swiftly shift the manufacturing plant to Sanand in Gujarat. This decisive action allowed the Tata group to launch their car at the decided date, at the decided price, along with all the specifications that they had promised.

Shifting a manufacturing plant of the scale planned by the Tata group is no easy task. Investments are made considering the availability of raw materials and the ease of transporting manufactured cars. Getting skilled labour to come and work at the factory is another challenge.

It was due to his superior qualifications that Mr. Tata was able to assess all the risks and take quick decisions that protected Tata Motors from financial losses and helped them launch Tata Nano successfully.

With the proof that higher education plays a major role in better decision making, it is only a matter of time before senior managements set a requirement of having an executive degree to progress further.

Be one of the most sought after leader’s of your industry with BSE Institute. BSE Institute is a 100% subsidiary of BSE India, the world’s largest stock exchange. It focuses on providing the best education to working professionals who wish to get better opportunities with more learning. Learn to be a leader with our executive MBA program, the Advance Management Program and get a dual certification from IIM Lucknow and BSE Institute.

 

Australia is officially a better place to live than Switzerland!

Posted on October 29, 2018Categories General   Leave a comment on Australia is officially a better place to live than Switzerland!

As per the global wealth report 2018 by Credit Suisse, Australia has overtaken Switzerland to report the highest median wealth in the world with US $191,453. Australia’s average wealth is second highest in the world after Switzerland which has grown to US $411,060.

With an uninterrupted economic growth over the last 26 years, Australia continues to be one of the wealthiest countries in the world. This is due to its superannuation system, high real estate prices; the strength of the Australian dollar and the availability of natural resources. Australia has one of the best equitable distribution of income, when compared with other developed OECD nations. Just 6% of the entire population of Australia has a net worth below US $10,000. This fare much better than a highly developed nation like UK – 18% and the USA – 28%.

According to the report, the number of millionaires in Australia will increase by a whopping 41% over 5 subsequent years to 1.8 million people. This represents the third highest progress in the Asia Pacific region after China and New Zealand. To be a US dollar millionaire, an Australian actually needs Australian $1.4 million. This means that there are many more people who qualify as millionaires in the list of Australian dollar millionaires.

Switzerland, however, retains its dominance in the global rankings of mean wealth, although Australia remains a close second. Switzerland has been the top country in this category, since the inception of the survey.

Australia now ranks 10th for the number of ultra high net worth individuals. These individuals have a networth of more than US $50 million. There are 149,890 ultra HNIs in the world and Australia is home to 2910 of these.

One must wonder, how has all of this been possible for Australia? How has one country been able grow year after year for 26 years? How is one country home to so many HNIs and ultra HNIs, despite having a population less than the city of Mumbai! It has been possible due to an excellent partnership between the Industry, Academia and the Government.

Corporates have worked closely with the Government to ensure that all the laws made are the best in the world for attracting talent, investment and promoting exports. The Government has worked closely with the Academia to annually publish a Skill List, which describes the job roles and skills which are badly needed in the corporate sector. This allows Australian Universities to tailor make courses that can easily skill and re-skill the population for the current needs of the industry.

Thus, the people of Australia are always specially trained for any job that would be in demand. This has ensured that Australians are always some of the best paid citizens in the World. Any person studying and working in Australia would also be in a position to enjoy this advantage.

The strong partnership between the Industry, Academia and the Government has made Australia home to some of the best Universities in the World. It has been predicted that Australia will soon be the most prosperous country in the next 5-10 years. If it has to grow at the same pace, it will surly need the best minds in the World to handle its finances and other business aspects.

Study in Australia with BSE Institute and the Western Sydney University. The MBA program is considered to be one of the best in the world as it prepares you for a global career in finance, banking, fund management, property investment and an international corporate finance. The course has a record of placing students with an average salary of $50,000, immediately after course completion.

 

Growth of Artificial Intelligence

Posted on October 23, 2018Categories General   Leave a comment on Growth of Artificial Intelligence

“Artificial intelligence would be the ultimate version of Google.”

-Larry Page (Co-founder of Google)

The need for Artificial Intelligence (AI) systems is increasing day by day. Many of us have heard of Alexa, Siri and Cortana. These are the best examples of AI bots we use and interact with daily. AI is now considered to be extremely important for most consumer facing businesses. Various E-commerce websites are using AI to understand the needs of customers and tailoring their websites and products to suit their needs.

It is for these reasons that a leading Indian e-commerce business, Snapdeal, is planning to step in the AI market by hosting an ‘AI Hackathon’, in order to hire the best AI experts in the town.

What is Artificial Intelligence?

AI is nothing but the programmed softwares which are trained to perform certain tasks. These softwares are programmed with the ability to respond, learn and react like model human beings. The main characteristic of AI systems is their ability to think and analyze information, before taking a decision. This allows them to assess all possibilities and thereby get the best outcome, .i.e. a satisfied customer. The scope of AI is disputed. Many doyens of the industry criticize AI, as something that makes us inefficient and over dependant on machines. However, there are many advantages of AI.

The main advantage of AI, is that it can work for 24 hours a day; is faster than human beings and it helps you offer the best customer service.

It is for these reasons that almost all leading e-commerce businesses use AI to support their customer service teams, their marketing teams and many other internal functions necessary for bringing in sales. Snapdeal, one of India’s earliest and largest e-commerce firm is investing heavily in AI. Snapdeal plans to host an event, a hackathon, where the winner gets a cash prize and an opportunity to work with Snapdeal. The idea here is to hire the best possible AI talent.

In the ‘AI Hackathon’, participants have to beat an algorithm/ software built by the Snapdeal. The participant who successfully does that will get a cash prize of Rs 50,000 and an opportunity to join Snapdeal’s AI team.

Some of the key issues that Snapdeal is focusing on include the ability to personalize search results, improving a customer’s experience, time spent on the website and fraud prevention/ minimization on e-commerce platforms.

Snapdeal strongly believes that it can easily take on global e-commerce giants with a strong AI team which offers a great consumer experience.

Amazon’s founder Jeff Bezos has admitted that most of the searches on their website are handled by AI bots. According to him, this is the golden age for AI. This is the age where AI is developing at a rapid pace and is bound to make a huge impact in the development of the human race.

The AI industry is in line to witness exponential growth. With AI tools and bots having a direct impact on the sales, revenue, consumer loyalty and profitability; AI is bound to be the most consequential corporate division in the coming decade.

BSE Institute, a 100% subsidiary of BSE India, is one of India’s finest institute’s for pursuing financial education. In addition to this, it also offers excellent short-term online courses on its online platform, BSE Varsity. These courses help students and professionals stay up to date with the current industry trends.

A short term course on Artificial Intelligence will benefit young executives and students add valuable skills to their resume, which help them move up the corporate ladder.

For those wanting to build a career in this industry, BSE Institute is your best bet for the first step!

 

Forex Trading

Posted on October 22, 2018Categories General   Leave a comment on Forex Trading

An interesting line often quoted by one of the most successful investor, Warren Buffet, is, “Risk comes from not knowing what you’re doing.”. Similarly, not knowing when and where to invest your money is a risky proposition. It is like missing the bus and not knowing when it could be back.

Forex – a form of investing is usually associated with traders based out of New York, London, Hong Kong and other major financial capitals. However, the reality is that it happens in almost every country of the world!

This blog can help investors understand about one of the least known, yet most innovative, profitable and emerging trading market in current times. Forex markets don’t get as much attention as the stock and the bond markets, but the foreign exchange (Forex) market is considered to be one of the largest financial markets in the world. This is a market where international currencies & money are traded. According to CLS, a major settler of Forex trades, the average daily traded volume in February 2018 was $1.805 Trillion!

What is Forex

It is defined as a type of market that deals in international currencies. Forex is considered to be the most liquid and the largest market in the world. It includes all types of currencies in the world. This market is open 24 hours a day and 5 days a week except for holidays. The Forex market is also considered as the largest market in terms of the total funds traded. Anybody, from any country can participate in this market.

The global forex market is considered to be the largest market in the world, with average daily transactions in the range of trillions of dollars. These transactions take place on the spot or on a forward basis. There is no main center for forex markets as this market is always open round the clock. The largest forex markets are located in big financial capitals spread all over the world like New York, Tokyo, Singapore, Sydney and Hong Kong.

Trading in Forex :

Forex markets are open 24 hours a day & 5 days a week. You can practically buy or sell currencies at any time. When one is trading in the forex market, you buy or sell currencies of a particular country, but there is no physical exchange of cash, as its a trade that is done from one party to another. It is as good as buying a de-mat share of a company, in anticipation of its value increasing.

Forex Market in India :

In India, it is legal to carry out forex trading, but only on Indian exchanges like BSE, NSE, MCX-SX. According to RBI guidelines, you can trade in forex only in pairs. The main currency pairs are USD/INR, EUR/INR, GBP/INR & JPY/INR. Thus, you can trade only using the Indian Rupee and no other currency as your base currency.

This trade is legal only if you are trading with brokers & investors who have a membership of the above mentioned stock exchanges. If the trading takes place between an investor & an unregistered party directly or indirectly, it is considered to be an illegal transaction India.

Conclusion :

The Forex market is one of the most lucrative markets in the world and investors need to keep learning and reading all the time to stay on top of their game. In order to invest in the forex market, one needs to stay updated about the various new trends and instruments that the stock exchanges offer. One must keep their ears to the ground to be successful here.

BSE Institute is a wholly owned subsidiary of the BSE (Bombay Stock Exchange). It offers some of the best short-term investor training courses on its online platform, BSE Varsity. For all investors, traders and who wish to learn about Forex Trading, BSE Varsity offers a great short term Course on Forex Trading.

Start Investing Start Gaining!!

 

Candlestick charting – A sound way to analyze stocks

Posted on October 22, 2018Categories General   Leave a comment on Candlestick charting – A sound way to analyze stocks

Candlestick charts are the most ancient stock analysis charts used in the equity markets. However, many people find reading these charts a little tough. Let’s try to understand what makes candlestick charts more preferable than other charts used for stock analysis.

Candlestick charts are financial charts which help in tracking the movement of securities in the market. Candlestick charts are believed to have originated from old Japanese rice traders and investors, who used these to track their market prices. These charts are easier to understand, as compared to other bar charts and hence they are extremely popular among regular investors.

What is a Candlestick chart:

A candlestick is a type of a price chart that displays the low, high, open and closing prices of a security for a specific period. This system was invented in Japan when Japanese rice merchants and traders tracked market prices of their products. Although it was invented in Japan, it has been widely employed in other financial markets as well.

The wide part of the candlestick is called the “real body” and it guides investors whether the closing price was higher or lower than the opening price. It shows the results according to a specific color scheme, i.e if the stock closed lower it shows (Black or Red) and (White or Green) if the stocks closed higher.

The Candlestick is named as such, because it resembles a rectangle shape with lines on its ends, just like a candle with wicks. A candlestick shows a one-day data of the prices of a particular stock. Over the years, the candlestick patterns have changed drastically and most investors use candlestick charts for buying or investing in a good stock.

History of Candlestick charts :

Candlestick charts were invented centuries before the bar and point figure charts. These charts were first invented in Japan in the 1700s, when a Japanese man named Homma, discovered a connection between the supply and price of rice in the markets. The other investors and buyers were influenced by his thinking and started following this chart for determining the prices of their commodities. Candlesticks represent the prices of the stocks in a specific color scheme. Traders and investors started using candlestick charts on a regular basis to determine the prices of their products for a short-term basis.

Reading a Candlestick chart:

A Candlestick chart is easy to read and understand as compared to bar charts. Each candlestick shows a day’s worth of price data for a single stock. It gives information, determining the price of each stock in four parts – opening price, closing price, high price and the low price.

A candlestick chart explains everything with the help of colors. The color of the center rectangle of the candlestick explains the opening and closing price of the particular stock. For example – If the rectangle shows black color then the closing price of the stock was less than the opening price indicating pressure on the value of that particular stock. Whereas, if the color of the rectangle is white its shows that the closing price of the stock is higher than that of opening price.

Some of the basic Candlestick patterns commonly used in the markets :

  1. Bearish Engulfing pattern

This pattern is indicated when the number of sellers is more than the number of buyers. This is indicated with a long red body and a small green body.          

  1. Bullish Engulfing pattern

This pattern is indicated when the number of buyers is more than the number of sellers. This pattern is indicated with a long green body and a small red body.

  1. Bearish Evening Star

This pattern is also called a topping pattern. This pattern indicates buyers and sellers both getting control.

  1.  Bearish Harami

This pattern is referred to as a small real body in red color completely inside the previous day’s real body. These parts indicate indecision on the part of buyers.

  1. Bullish Harami

This pattern is a referred to as opposite of Bearish Harami. It indicates the trend of the technicians in the market.

Other known Candlesticks are

Bearish Harami Cross

Bullish Harami Cross

Bullish Rising Three

Bearish Falling Three

Conclusion :

Investors are opting for more candlestick charts as they provide an additional layer for understanding the fundamentals of a stock and the markets. This method has been used by investors since the early 1700s. It was earlier used to understand and determine the value of prices of particular commodities, but is now used for most stocks.

BSE Institute offers some of the best short-term online courses on BSE Varsity. For all those who wish to learn about Candlestick Charting, our high probability trading course with Candlesticks, is one of the best for learning about Candlestick Charts in just 4 days.

Why do mutual funds keep getting investments, despite of a market slump?

Posted on October 15, 2018Categories General   Leave a comment on Why do mutual funds keep getting investments, despite of a market slump?

The only thing more volatile than an unpredictable weather is the stock market. We are seeing a highly volatile stock market, which is worrying many established investors, hedge funds and investment banks. However, some investors still seem to be unaffected by bearish markets! Mutual Fund investors don’t seem to be hurt by the daily drop in prices on the markets – but why?

Most Mutual Fund Houses (MFHs) are managed by Fund Managers with decades of experience in stock market investing. They are thorough professionals who have seen many bull runs and know the right time to invest in the right stocks. At a time when most of the market is withdrawing its funds and trying to cut its losses, MF advisors are suggest that we stay invested.

The reason is simple – just because the stock prices of good companies are falling, it doesn’t mean that the companies themselves are toxic investments. A company’s stock price may fall, but it’s profitability, revenue, sales and market share are totally divorced from it. In fact, most financial advisors suggest that we buy as many cheap stocks as possible – which again is a sound investing strategy.

A lot of MFHs are discreetly increasing their stakes in stocks that are priced below their optimum value. Mutual Funds offer an opportunity to stay invested in a bearish market and increase the value of your portfolio.

These are rare opportunities which very few investors get. This is a major reason why one must stay invested in Mutual Funds. A highly qualified Fund Manager with a proven track record looks after your investments and ensures that you get the best out of the stock markets.

Despite the current fall in stock prices, the number of people buying SIPs/ investing in MFs is bound to climb up.

PayTM Money Ltd, a wholly owned subsidiary of PayTM, recently inaugurated their mutual fund venture. They launched a new app for mutual funds investments and claimed that over 8.5 lakh people have already registered on it. They aim to sell mutual funds to around 25 million people in India.

The mutual fund industry is growing rapidly in India and it is expected to have over 50 million investors in the next 3 to 5 years. PayTM is hoping to capture around 20 – 25 million mutual finds investors in the next 5 years.

PayTM will offer systematic investment plans (SIPs) at a starting price of just Rs. 100 in some of its schemes. This will help it target individual investors from tier 2/ 3 cities. These plans are meant for those who wish to invest directly to the fund houses or through third-party apps like PayTM money app.

BSE Institute’s BSE Varsity offers a short term course on mutual funds, which helps budding investors develop a strong understanding of mutual funds. Participants also learn to evaluate the risks and rewards of investing in markets through mutual funds.

Never before has the access to wealth creation been so easily available. Millions of people, who do not have the time to actively track their investments can easily invest in Mutual Funds and still get great returns. Mutual fund investments can make many investors rich!

 

This is how Artificial Intelligence is disrupting every established industry

Posted on October 15, 2018Categories General   Leave a comment on This is how Artificial Intelligence is disrupting every established industry

Not a day passes by when we don’t hear a tech guru raving about the benefits of artificial intelligence (AI). AI is a term we all are familiar with, but how many of us truly understand what it does? AI is replacing a human resource with a computer, for its critical thinking and logical reasoning ability, which is necessary for executing a certain job role.

There are many advantages of AI:

  1. It reduces the human error involved in these jobs.
  2. Computer algorithms/ softwares are much faster than human beings
  3. Is cost effective as softwares can work 24*7
  4. Easier to reach out to a larger market

It is because of these reasons that Artificial Intelligence (AI) is becoming extremely popular in a lot of industry sectors. AI is most popular for virtual customer assistance. We all have interacted with online assistants. Who are they? They are robots (bots) who have been programmed to answer in a certain way depending on the questions that they receive.

Many financial companies have invested in various AI systems, mainly to use robotic advisors and Chatbots that allow them to provide quick online services to their customers. A Chatbot is a robotic program which uses big data and machine learning to answer general questions and gives advice about the product concerned. Chatbots are still in their early stages of development but are used by a majority of banks to provide quick assistance.

AI powered investment advisors are replacing human advisors. With the use of AI, investors get accurate investment plans that are suitable for them according to their risk appetite. Robotic advisors collect all the available information about an investor and process it in an algorithm that they are programmed with.

Algorithms contain mathematical models, historical data and can do a large number of calculations using it. These investment advisors can easily predict the value of a portfolio a few years down the line, in just a few short seconds. A large majority of these advisors have an accuracy of over 85-90%. This is something which even established fund managers find hard to achieve.

For stock market investments, accurate predictions are also made using AI. This system can compare the past performance of any company and predict its future performance on the stock market better than any human wealth manager. Most established wealth managers use these tools for taking better decisions for their clients/ HNIs.

AI also plays a key role in fraud detection. It is difficult to keep a track on each and every activity in a large financial organization, where thousands of transactions are executed within seconds. AI can easily identify loopholes/ irregularities and bring fraudulent transactions to the notice of the concerned authorities. This helps in protecting customers and minimizing any security threats.  

AI also improves the operational efficiency by enhancing the decision-making process. By freeing managers from looking at routine managerial work, managers and executives can make a better plan for the future of the organization.

Due to the large number of AI applications, it has become imperative for any ambitious manager/ executive to have a fair understanding of AI.

BSE Institute offers a short introductory course on Artificial Intelligence, on its online platform BSE Varsity, which helps professionals understand how Artificial Intelligence (AI) is transforming the financial sector and help become part of this emerging technology at the workplace.

In the present scenario, a customer is likely to get attracted by services offered using AI, as a business can easily customize and offer better services faster than a its competitors relying only on a human workforce. The biggest advantage for most Indian businesses is the abundance of technical resources, who can easily be trained to develop AI products for their business. This is a great opportunity that can help businesses go global.

 

Can a new business fight entrenched interests, and win?

Posted on October 15, 2018Categories General   Leave a comment on Can a new business fight entrenched interests, and win?

What are entrenched interests? They are groups/ bodies of people/ business, wo aggressively fight to protect their vested interests. These people/ businesses are present in each and every economy of the World. Any established business/ industry will always try to fight off any competition/ innovation that could threaten their business interests. This is a natural reaction that any business usually has when it sees competition.

Today, Reliance Industries Limited (RIL) is well known conglomerate. It has interests in Oil refining, Retail, E-commerce, Telecom and many more. Jio, it’s telecom arm was founded in 2010 and it started its services in 2016. It has become one of the biggest telecom companies in India in just 2 years. Its had a huge impact on the industry with its value for money plans, high-speed internet and HD calling options. It has won the hearts of million of Indians.

RIL, in its 41st Annual General Meeting (AGM) announced the launch of Jio Giga-Fibre, which is a fixed line broadband service. Jio GigaFibre is expected to connect homes, offices and industries across 1100 cities with its high-speed internet. The roll-out of Jio Giga-Fibre was delayed as it stiff faced resistance from Local Cable Operators (LCO) in executing last mile connectivity. That is a cause for concern for RIL, as it has already invested heavily in setting up an infrastructure for the Giga-Fibre. What good is a service if it doesn’t reach the end consumer?

Cable operators feel threatened by Jio, which plans to offer high speed internet and television services with Giga-Fibre. Cable operators know that it will be tough to match the prices Jio offers for a combination of internet and TV services. This is a direct threat to their entire business model, which is why they are fighting back to prevent Jio from launching Giga-Fibre. A classic example of entrenched interest preventing a level playing field for competition.

Recently, it was reported that RIL was planning to acquire Hathway, which is India’s biggest cable TV network company. Hathway was the first cable TV operator to offer broadband internet service in homes and has a pan India internet service provider license. According to some media reports, this acquisition is expected to cost RIL Rs. 2,500 crore. RIL was also in talks to acquire Den networks, however, that deal did not go through.

The acquisition of Hathway will give Jio GigaFibre a great leg up as it brings more than 11 million cable TV users and 8 lakh broadband users from Hathway.

The acquisition will benefit both the companies. Hathway stock prices went up by 10% with the news of the acquisition. If the deal does happen, then Hathway may miss some short-term gains but for the long term, it shall be a good business decision. RIL will get access to a Multi System Operator (MSO) which will fast-track the delayed launch of its Jio Giga-Fibre.

It will be tough for existing cable operators and other marginal players to fight RIL in this manner. By buying an existing company, RIL has successfully killed its competition and any opposition that it is currently facing from entrenched interests.

What is noteworthy here, is the fact that Jio had other options to fall back on if one deal did not go through. Kudos, to the management for having multiple plans in place in case their strategy did not go ahead as planned. This is a great example of the senior management having the foresight to plan well in advance for multiple scenarios in case things don’t go ahead as planned.

Such insights and skills are learnt only with many years of experience and the right industry exposure.

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Facing entrenched interests is what every business faces on a daily basis, however, one must stay the course in the face of intense opposition – for that’s what legends are made of!