Archive for the ‘opportunity’ Category

Are online learning platforms hurting colleges?

November 20, 2012 Leave a comment

This is not the first time I introduce the huge success that e-learning platforms as Coursera, Udacity or Venture Lab are achieving. The point is whether colleges already consider these platforms as actual threatens for their business model. I’ve just enrolled in my second course on Udacity. After a warm up with the Web Applications Engineering course, I felt like retaking programming. But this time I had a goal I didn’t bear in mind by the time I was at University: deploying a real (and useful) online website. That’s the reason I’m taking the Design of Computer Programs course right now.

Going back to the point, a few colleges decided to join Coursera as a shift to avoid losing competition from the very beginning. The problem is they can charge nothing for the course, and Coursera had 1.75 million users by October 2012. The whole number were not potential customers, but maybe a certain fraction was. As Coursera states on its website, you will find a course “whether you’re looking to improve your resume, advance your career, or just learn more and expand your knowledge”. Here we are, a real competitor for BSc, MSc and short-term studies.

Coursera website snapshotUdacity website snapshot

From my personal experience with Udacity, I’d point the following as advantages with respect to regular universities:

Flexibility. Classes are conducted by short videos and sorted out by units, so you can set your own pace depending on your time resources and knowledge. In a regular class, the flow depends on different factors that might have an adverse effect on advanced students.

Professors. Some of the most recognized professionals from high-ranked universities as Stanford, Harvard or MIT have joined this non-profit initiative. That means you can learn how to program your own self-driven car from highly motivated people as Sebastian Thrun, Google project’s fellow, or build your first blog with Steve Huffman, Reddit co-founder. This is miles away from the non-motivated, non-real-world professors you will find at Spanish Universities for instance.

Price. It’s free, that is, $0 down. While the US is facing a new financial crisis created by plenty of defaults on student loans (have a look on this NYT report), e-learning arises as a suitable solution for those  with limited resources who are not willing to go into debt, moreover with a scarce of jobs around. Perhaps this explosion might contribute to cut down prices and get a more affordable college education.

What do you think? Are e-learning platforms a real alternative for colleges, or just incidental tools?


Boston start-up school

August 28, 2012 Leave a comment

I often say students are not ready to meet the proffessional market when finishing university due to different reasons: the lack of practical contents, out of date proffesors, non-vocational degrees… The Boston Start-up School came up with the same conclusion, even though American education tends to be considered as a better aproach to the marketplace than the European.

As the article reads, this school offers an intensive 6-weeks course for young people seeking jobs in the city, focusing on marketing, software development, product design, and sales and business development. Moreover, classes are free since different start-ups are providing funds to have an early access to these students.

It’s likely that similar schools arise in other hi-tech cities as San Francisco, New York or Chicago, and might be a nice initiative to be held here in Europe too.

Read the original article on A Start-Up Tries to Prepare Students to Work in Start-Ups

New laws to enforce purchasing renewable energy in Japan

Since the nuclear disaster happened last year in Fukushima almost devastated part of the country, Japan government and population are dealing with new ways to meet their energy necessities. Last Sunday July 1st a new regulation enforces companies to purchase renewable energy at a fixed price.

Initiatives like this might lead Japan to a notable position among the countries which invest most in renewables technologies. While Chinese manufacturers’ are capturing the worldwide market, Japanese policies might arise as a salvation to those American and German companies struggling to survive. The catastrophe has left a sense of insecurity in the population that may let these manufacturers to compete the Chinese by offering high quality products and a wide range of services at higher prices than current utilities assume.

It is an opportunity they can’t overlook, and surely Barack Obama and Angela Merkel have already included this issue in their agendas.

More info about Japan opens solar energy parks on Yahoo News

Some California’s PV figures

California is one of the most promising markets for photovoltaics’ investors due to its sunny days and large feed-in tariffs. In order to understand how it works, Naïm Darghouth, Galen Barbose and Ryan Wiser from the Ernest Orlando Lawrence Berkeley National Laboratory wrote an interesting analysis about the “Impact of rate design and net metering on the bill savings from distributed PV for residential customers in California” (full paper here).

Net metering allows customers to reduce their electric bill by offsetting their consumption with PV generation, independently of the timing of generation and consumption. The two larger utilities, Pacific Gas and Electric and Southern California Edison, bill the energy consumption by means of two different tariffs, an inclining block rate with five usage tiers or a Time-of-use rate (TOU) which includes usage tiers too.

The California’s small renewable generator feed-in tariff program is available to certain solar and other renewable generation projects smaller and provides an alternative to net metering, provides customers with the option to either sell all electricity generated by their system under an MPR-based feed-in tariff, or to use their renewable generator to first meet on-site load and sell only the excess generation to the utility under the feed-in tariff. The Market Price Referement (MPR) is a price established by the California Public Utilities Commission that is updated annually and is intended to represent the long-term market price of electricity.

The MPR is used as a benchmark for assessing the above-market costs of contracts with renewable generators signed by the state’s investor-owned utilities for complying with California’s renewables portfolio standard (RPS). More recently, it has also become the basis for setting the contract price under California’s small renewable generator feed-in tariff program. To establish the MPR price for a specific renewable energy generator or contract, the MPR price is adjusted according to the time-of-delivery (TOD) period within which electricity is produced and the corresponding, utility-specific TOD adjustment factor.

The key points erased from the analysis are which follow:

  1. Bill savings under net metering are significantly greater for high-usage customers than for low-usage customers. This variation is attributable primarily to differences in customer usage level – where bill savings are greatest for high-usage customers who are able to offset consumption in high-priced usage tiers.
  2. Under net metering, the bill savings per kWh produced by the PV system decline with PV system size. This phenomenon is also a consequence of the inclining usage tiers used within the utilities’ residential retail tariffs; as PV generation increases, the customer faces a progressively lower marginal price for its net consumption, and thus receives progressively lower incremental bill savings. The drop in per-kWh bill savings with increasing PV system size is greater for high-usage customers – especially for high-usage PG&E customers.
  3. The utilities’ time-of-use rates become increasingly more attractive for net metered PV customers as the size of the PV system increases. With an increasing PV-to-load ratio, the increased PV generation disproportionately displaces consumption during the summer peak TOU period, causing the TOU rate to become progressively more attractive.
  4. Sub-optimal rate selection by customers generally leads to a reduction in bill savings of less than 10%, but can have a much greater impact for some customers at a low PV-to-load ratio.
  5. The per-kWh value of bill savings generally varies by less than 5% across the range of PV panel orientations considered, while the amount of electricity generated varies by 10-11%. Assuming that PV systems are oriented south-facing at a 25° tilt, In the median case, the west-southwest orientation results in 11% less PV electricity production than the base south-facing orientation, and the flat PV orientation results in 10% less electricity production.
  6. Under existing net metering rules and retail rate options, most customers would exhaust their annual bill savings with a PV system sized to meet less than 100% of their annual load. Under existing net metering rules, customers are able to roll-over any excess bill credits from one month to the next, but at the end of the year, any remaining bill credits are forfeited by the customer. Within our sample, 86% of PG&E customers and 97% of SCE customers would exhaust their bill savings with PV systems sized to meet less than 100% of their annual usage. In the median case, the PG&E customers exhaust their bill savings at a PV-to-load ratio of 93%, and the SCE customers do so at a PV-to-load ratio of 92%.
  7. Bill savings for PV customers would be substantially lower under the MPR-based feed-in tariff than under net metering. Under the full MPR-based feed-in tariff considered in our analysis, the median pre-tax bill savings is approximately $0.12/kWh for the PG&E customers in the sample, and $0.13/kWh for the SCE customers.  Across the PV-to-load ratios examined, this equates to a median reduction in bill savings, relative to net metering, of $0.08-$0.13/kWh (or 40%-54%) for the PG&E customers in the sample, and $0.07- $0.11/kWh (34%-46%) for the SCE.
  8. Bill savings under the MPR-based hourly netting option would be modestly less than under net metering. Under the hourly netting option, in which PV production can offset up to 100% of customer usage within each hour, but any excess hourly production is credited at the applicable MPR rate, customers of both utilities would also generally experience a reduction in bill savings relative to net metering.
  9. Bill savings under the monthly netting option would be effectively indistinguishable from the savings under net metering.
  10. Incorporating avoided T&D costs and reduced line losses into the alternative compensation mechanisms would increase the value of the bill savings, though the bill savings would still likely be less than under net metering.

Many California-based companies can help commercial and residential customers to reduce their electric bill by installing solar panels, offering a wide range of products and solutions including credit facilities for no upfront costs. Soltec America is one of them, you can visit its web and get a personal quote for free.

Soltec-Energies America sample

Brief overview for German approximation to the solar power

Germany has probably become the world’s leader in solar technologies. How have they outperformed the concurrency?

First, they pledged for developing a whole value chain in order to maximize the benefit to the German population, instead of just promoting an electrical production. This chain initiates with raw material (most used is Silicon) treatment and transformation into wafers, cells and eventually modules, which will be later sold internally or overseas and installed by partners or third parties. Thus the revenues generated by incentives can be partially retained in the country while new jobs and investments are sustained even by non-German investors, which additionally bring capital, R&D and some other benefits. PV Silicon AG, Wacker-Chemie AG or QCells are some examples of German companies which can cope with not only the commercialization of PV modules but also the primary activities where investments and technical knowledge is essential.

In order to achieve the previous goals, by 2000 Germany deployed a feed-in tariff which provides a 20-year-guaranteed 0.457-0.624 euro/kWh incentive with an annual reduction of 5% per new arrivals, to compensate the constant drop in costs. Besides tax credits and VAT exemptions to commercial PV providers, training support, wage subsidies and R&D incentives, and state-of-the-art infrastructures as roads and IT, Germany has become a leading country in Solars even though his environmental conditions are worse than other Mediterranean countries such as Spain, Italy or Greece. Universities and institutes of research do also play an important role in the system.

Huge investments are done every year in the Eastern regions as part of a larger plan to improve development and reduce the differences with respect to the Western. This process is supported by the many semiconductor’s companies present in this area which would likely provide key synergies at silicon manufacturing.

Differentiate yourself

February 1, 2012 Leave a comment

While thinking of running a new business, trendy behavior consists of improving something it is already done. We usually consider: ‘If offer a similar product but introduce some new improvements, such as better quality, service or price, for sure I will pick up some market share, and consequently my business will be profitable”. This argument is valid but a little detail has not been considered. After regarding your appearance, your competitors would initiate a response that will lead your business to a price-based contest, affecting operative margins and therefore profitability. This is what Porter defined as a “zero-sum competition”, where every improvement developed by the company was directly collected by the customer, the supplier or a different agent, but not by the creator instead. This situation erodes the market long-term profit and consequently their members. For instance, the whole benefit created by the store brands is collected by the customer, by means of a huge margin fall, but not by the market itself.

Fortunately, it is always an alternative for everything in life. The point is: Why do not take a business no one else is currently operating? Why do not consider a completely different way to meet a market’s demand? This argument is the base of the “Blue ocean” theory, created by W. Chan Kim and Renée Mauborgne, whose original article has been included in the HBR Must-Reads on Strategy collection.

They propose you to find an opportunity and deploy a new product/service to meet its demand to instantly collect a market share otherwise not possible to be reached by a start-up company. Furthermore, you will become the market-owner and consequently will shape the competitive forces yourself, instead of playing a game whose rules were already invented a long time ago. Besides the wide range of advantages to differentiate your brand when arriving first, you may define your prices without attending to your competitors and thus getting a profitability many times higher to a crowded scenario, as done by Apple or Facebook.

This idea is not only applicable worldwide but also from a local point of view, since Internet has come to stay and everything is possible. What are you waiting for? Brainstorm new opportunities, evaluate your resources and go after it!

It’s time for Africa

August 24, 2011 Leave a comment

When businessmen think about emerging markets, only a few countries usually come up to their minds. China, India or Brazil have been the “chosen ones” throughout last years, mainly due to a fast growth in the public and private consumption. Africa is often related to poverty, corruption and to a lack of safety, but this is not always true. There are some figures that we must take into account. (Source: The HBR Breakthrough Ideas for 2009)

Growth. The International Monetary Fund’s World Economic Outlook projected an economic growth of 6.3% for sub-Saharan Africa in 2009, with Uganda, Tanzania, and Nigeria exceeding 8% growth. Furthermore, the average annual return on capital of 954 companies studied in 2009 was 65% to 70% higher than that of comparable firms in China, India, Indonesia, and Vietnam. The median profit margin was 11%—better than the comparable figures for Asia and South America.

Stability. The periods of catastrophic government action that slowed growth in past decades have become much less frequent. Nigeria, for instance, has paid off its external debts, enacted prudent fiscal rules, and cleaned up its banking system. The entry of european and north-american companies forced governments to look after their laws to assure markets’ competition.

Opportunity. Construction companies, call centers, and IT services are among the region’s most successful businesses. The energy sector is also expected to be developed, in parallel to a regulation that allows new companies to invest, bringing new chances for existing solar and wind industries to expand.

The time is ripe for multinationals to rethink sub-Saharan opportunities and simultaneously to help the region achieving its promise by contributing much-needed capital, business skills, and global connections.

Categories: Africa, business, opportunity