Innovations – simple, obtuse and far-reaching – II

Innovations – simple, obtuse and far-reaching – II

Happy Diwali ,

Innovation is the coming together of all knowledge that one possesses in order that many problems may be surmounted at one go.

Today’s innovation falls in the category between obtuse and far-reaching.

The idea or dream concerns a machine and is very simple –

1.      “I would like to be able to walk into a kiosk which when operated by a card like an ATM will give a  neatly packed wholesome South Indian Breakfast (hereinafter referred to as a SIB), while allowing me a glimpse of the entire process by which it is made”

2.      “The ingredients should consist of direct raw materials like rice, udad dal (peeled black gram) etc., and not intermediates like Medu Vada batter, Idli batter, etc.”

3.      “The entire manufacturing process must be clearly visible and each package must contain the time of preparation of the individual item. Example : Medu Vada- 14:25 hrs; Idli – 13:30 hrs; Pongal 07:30 ; all items made on 10 Nov 2012.”

4.      “Options for “Fresh” and “Ready to Go” must be available, where “Fresh” means that the whole meal will be freshly cooked , that is the vada fried, the idli steamed and the pongal mixed and steamed, within a reasonable preparation time of 10 minutes. “Ready to Go” means packed from storage and delivered like a Coke Can. Indication is preferred if there isn’t any difference in time between the two options. The idea being to serve the freshest SIB with the shortest waiting time.”

Background for the idea

Perchance you think that this dream is for the purposes of bringing forth any strikingly new concept, let me assure you that it is not! This dream is inspired by the blog of ALV where he urged us to spare a thought for the millions that go without a meal. Hence it has been detailed to as great an extent as possible in a few hours.

In the next few paragraphs, I will detail all the mechanics of this dream and hope and pray that this Diwali, as we enjoy our share of hot idlis, there are takers for such ideas.

Economics of the idea

It has been my experience that economics of any proposition is the easiest part of the whole problem. The table below should give you some idea of how this can be a 1 billion US Dollar idea, no different from the way the “Nikes” and the “Reeboks” of the world do, but with a huge difference in the intent  –

For the sake of the millions who have no meal, I hope I am not wrong in my calculations and yes, the reason for mentioning the “Aadhar” card is both relevant and important to the mechanics of the delivery of this idea. Also, reducing the no. of machines by a seventh doesn’t alter results significantly but changes initial investment substantially.

A word or two about the machine, its target cost, and manufacture

If you have doubts as to whether a Medu Vada can be made in a machine, then watch this video. http://www.youtube.com/watch?v=V7-CcIrWMT8 ; the dough nut is similar to the Medu Vada and other aspects are well known already.

The target cost is inspired by the story of Nano, the Indian small car, and to avoid the problems that were faced in its manufacture initially, I strongly feel that this can be made in US, China or for that matter designed in Italy or Germany and made in Greece given the condition of the economy there.

Irrespective, of who does this task, the key for this machine is going to be a challenge in “design for maintenance”

Who are the customers?

The economic model presumes a 100 million customers each day; 10 crores is not even the population of Chennai, remember the cost of a unit of breakfast presumed to contain one Vada, two idlis , a measure of pongal and a cup of tea is pegged at Rs. 30. It is hoped that the Aadhar card for which the machine shall have provision, will be credited for this amount on a daily basis so that the idea of disbursing money directly to the BPL families is synergized with providing them a square, hygienic, transparent meal which any citizen is proud to partake of too.

Who shall run the machines?

Chennai is famous for its street-cart stores that dish out a similar fare – in local parlance the Kai Yendi Bhavans(KYB).  Just as the Nano was a dream inspired by a family of four on a scooter in a rainy day, you may imagine that this machine shall be run by the same owners of KYBs, all of whom no doubt qualify for a BPL (Below Poverty Line) Status.

Modus Operandi

The BPL family which is given the machine to run shall enter into an agreement with the state based on which all activities related to the SIB Machine (SIBM) shall be transacted thru the “Aadhar” card. Software capability to integrate the card as a credit card for purposes of purchase of raw materials & spares and the ability to print out an income-expenditure statement at any point in time should be provisioned before commissioning. No Cash exchange should be possible. Proceeds of earnings should be credited to the account of the BPL family as is envisaged for the Aadhar scheme. This can be monitored automatically on a daily basis through a reconciliation of sales and input of raw materials after providing for a small amount as wastage.

Who will administer and how to sustain?

Well, the initiation and administration can be from any entity which has a billion US dollars and intends that it be spent in such a manner that many are employed. That millions have at least a meal each day and who do not expect to erode the billion dollars spent in the bargain. The Govt. of India can easily foot this bill including another half a billion for initial working capital from its various schemes for the downtrodden. Remember the economic model suggests a healthy increase in tax paying individuals. (Unlike others, they can’t evade as their income is pre-computed in Aadhar).  This would also be a good way to run Akshay Patra like schemes in future.

The far-reaching thought

Why should economies focus on making more cars when faced with a fiscal cliff? Don’t such avenues exist all over the world, perhaps in places less fortunate than India where similar thought can be applied possibly on a different scale. Let us say that France makes such machines for Somalia or Germany for Bangladesh. Wouldn’t it be better than churning out fuel guzzling automobiles? Is the UAW bothered about making automobiles or ensuring that its members are gainfully employed? If it the latter, there is still hope for the hungry of the world.