Business process

Summary

• Business process outsourcing (BPO)


• Global sourcing ("The world is flat")


• With the confluence of global events colliding as they are, Dali's art seems quite prescient.

Imagine building a structure. Now think of your net worth as a pile of bricks. You've got big bricks on the bottom that make a foundation and successively smaller bricks stacked on top. In our analogy, the smaller each successive brick gets. Business process outsoursing (BPO) versus Application service provider (ASP), as parts of Global sourcing appear as false dilemmas!

Ancient Greek philosophers Leucipus and Democritus bring us the term "atom".
"The World is Flat" author and NY Times columnist Thomas Friedman has discovered nanotech as a key contributor to his thesis and as noted below, wrote: ""The eleventh flattener will be nanotechnology. We're going from large to medium to small to nano." Anyone watching global current events rise to a boil might feel more dramatically like the "World Is about to be Flattened".
And speaking of flat, remember those flat melting clocks of Salvador Dali? You see Einstein once said, "The only reason for time is so that everything doesn't happen at once." With the confluence of global events colliding as they are, Dali's art seems quite prescient.

Speaking of overestimating the value of money: there's a good reason why we have loss aversion-that is, why we hate losses more than we like gains (roughly twice as much hatred for that love). Let's use basic structural physics as an analogy. Forgive the pun, but I think visualizing this helps cement the concept. Imagine building a structure. Now think of your net worth as a pile of bricks. You've got big bricks on the bottom that make a foundation and successively smaller bricks stacked on top. The more you are worth, the less valuable each marginal dollar might be. In our analogy, the smaller each successive brick gets. Well now if you had to remove a brick from the top of the structure, it would be a larger brick than whatever the next brick you would add to it. Thus the pain from loss is greater than gain.

Business process outsoursing (BPO) versus Application service provider (ASP), as parts of Global sourcing appear as false dilemmas! BPO brings other people and their machines on to the business.

Starting a company is by its very nature a Herculean task. The odds are very much against you. As a general matter, people don't like working for startups, companies don't like buying from startups, building owners don't like renting to startups, banks don't like lending to startups, press don't like talking with startups, integrators don't like partnering with startups, lawyers don't like representing startups, and investors don't like funding startups. In Europe, each of these is more than a little true.

As Buffett has said, "In looking for people to hire, you look for three qualities: integrity, intelligence, and energy. And if they don't have the first, the other two will kill you." That means simply: I share my risk with others like me!