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“NEW DISRUPTIVE BUSINESS MODELS MAY ENTER E-MARKET” “FLIPKART WALMART DEAL MAY BREED NEW GENERATION ENTREPRENEURS”

 
 
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“NEW DISRUPTIVE BUSINESS MODELS MAY ENTER E-MARKET” “FLIPKART WALMART DEAL MAY BREED NEW GENERATION ENTREPRENEURS”
by System Administrator - Saturday, 11 August 2018, 10:32 PM
 

By: M.S.Yatnatti: Editor and Video Journalist Bengaluru: Era of disruptions or get disrupted. It is evident that the Walmart- Flipkart deal will re-energize the startup ecosystem in India even as global investors will likely gain confidence after seeing the first such liquidity event take place locally. Investors who have ploughed billions of dollars in local startups, especially post 2014, but haven't witnessed many exits, will now want to take new bets, several local startups are reportedly coming with new disruptive business models whvh will take on Amazon and Wallmart in E-Commerce Platform . Elaborating on what the Walmart partnership offers Flipkart, reportedly Binny said the company will take more long term decisions that weren't possible to take as a VC-driven company. Flipkart will make more and bigger acquisitions in future, especially those that add to the capabilities that the company wants to build to grow. Kalyan Krishnamurthy, CEO ofFlipkart, said the company will look to correct the 'bias' in the ecommerce growth in India which has been primarily driven by electronics and fashion. He expects groceries and furniture to be among the new growth drivers for Flipkart. Binny emphasised the importance of the Walmart deal for India's startup ecosystem. "It's a huge win for the ecosystem. Flipkart had the best of VCs and private equity; now we have the best partner. The deal will act like a flywheel for the country's startup environment,” he said.In today's world, multiple qualifications sometimes do not fetch you a dream job, but skill-based courses can. However, the dilemma over skills versus degrees happens all over the world as companies prefer skill certifications over degrees. Nasscom instead of predictingthat automation would result in a 20%-25% reduction in IT jobs in three years should spend time and money on predicting new jobs and new skill sets arecreated byAutomation and the growth of technologies like artificial intelligence (AI) .Reportedly IT Services companies will lay off 6 lakhs jobs in coming 3 years and few experts predict worse situation .but few experts opine that any amount of automation machination and artificial intelligence and e-commerce cannot replace humans . However, this environment is providing a big opportunity for lakhs of white-collared professionals to move out of their comfort zones and up skill themselves to remain employable .Automation and digital transformation has created an adapt-or-perish scenario. It's an alarming reminder that re-skilling is the only way out to be relevant.The situations will be created such way that new job descriptions will emerge in new situations ill create new jobs .Few skill sets become obsolete but new skill sets replace them to fill the gaps.In news papers both types of news reports appear .one news is about "bemoaning the lack of job creation in the IT industry” and news is an advertisement looking for UX/UI designers, full stack web developers, data scientists, data visualisers and Java coders .Automation and the growth of technologies like artificial intelligence (AI) are resulting in a better, safer and more efficient world. Investments in automation are pouring in. McKinsey estimates that tech giants worldwide spent anywhere between $20-30 billion on AI in 2016..Interestingly, one of the key drivers of these spends is the falling cost of capital. The unit cost of capital has dropped to less than 0.6 times the unit cost of labour. This amounts to a 16x drop from the unit cost of labour in the early 1980s. This imbalance is flooding research in AI and robotics with money. These technologies will rewrite global competition, wealth generation and employment. Already the warning bells in job markets are ringing. By 2033, says one World Bank Development Report, automation will put 47% of current US jobs at risk. Corresponding figures for other nations are 77% for China, 69% for India and 65% for Argentina.These estimates are for direct job loss. The real numbers will be several times larger. For example, autonomous cars will result in direct job losses for drivers of taxis, trucks and buses. But autonomous cars will be programmed to adhere to local laws, and the size of the traffic police force can shrink substantially. In India, we must brace for the impact of these trends. Amongst the most severely affected will be the IT industry. Nasscom predicted that automation would result in a 20%-25% reduction in IT jobs in three years. The impact will be serious across sectors from e-commerce to manufacturing, security services, banking and agriculture. Labour intensive industries will become the first targets of automation.