From Rags To Riches: AI Company, Coca-Cola vs Pepsi & Life In Slums | Shekhar | FO471 Raj Shamani

0:00You worked with Coca-Cola, Walmart, American Eagle, American Eagle this is my education. When you go to school, you get a degree. When you get intelligence when you basically struggle. Nvidia is like,

0:43I feel like they may go through a stronger downturn. Why? Because it's very inflated. It's a circular money loop. Look at all the deals that Nvidia is making. Nvidia is buying companies and asking those companies to buy the GPU. Nvidia is buying like shares into open ai and open ai is pumping back and using those chips and everything is rotating around like a gpu unit but the world has never asked why do you need gpus in the first case so they're pumping money into the wrong infrastructure probably and this is all circular i think this is what is very dangerous but do you think the state that we are in do you think digital colonies 100 who do you think are the companies which will rule the world right now i think it is going to be open ai nvidia google so whoever is in the infrastructure game will win And these are the guys who are in the infrastructure game.

1:31Do you think Disney will save you? No, it will survive as a big company and it will grow. It will grow. Why? See, entertainment business is one business which is at risk. Theme parks will be generationally growing. In fact, very few people know this. Disney puts like every 30 meter on a dustbin. Because they don't even want the friction of like dirt in the experience. So they think about minute details so precisely. They are selling emotions. There are 28 lines of businesses in Disney. Tell me. What do you think of theme park, entertainment and consumer products? What is the consumer products?

2:02If you have any mug that will be put in Disney's character, you can take 10 pieces of it. Just to bite. If somebody who is in their 20s and is watching this, and he has to have opportunity to see where he or she could learn and where can they build. You have to be digitally very very sound. How to not only acquire but how to use it properly. How to harness it. The other thing is, don't outsource your cognitive capability. It's very important. Put yourself in mind. Third, check your intentions correctly. If your intentions are great, the path will come from itself. Which problem is currently in your life which you will solve for solving?

2:49Today's guest is a global titan titan who has reached Walmart's growth of$30 million to$5 billion. He was born in the slums and for his education, he had to buy his mother's jewelry. And today, he is recognized as one of the pioneers who helped develop modern package delivery systems. Today, our guest is Shekhar Natarajan, founder and CEO of Orchestro AI. And in this episode, we will know why Nvidia can see Downton like a giant company coming in a time. Angelic Intelligence, what is this? And what will this change the world of AI? And how can your personal life actually become billion-dollar business ideas?

3:38Watch this episode to the end. And to know more about Orchestro AI, click on the link in the description below.

3:51You know, I was reading about you and I was excited about you. I was excited about you. Like so many exciting things. But before we go there, you worked with Coca-Cola, you worked with Walmart, you worked with American Eagle, you worked with a lot of companies and now you're pioneering in AI. so you have you have done a lot of work employee wise then innovator wise and now as an entrepreneur wise right but what exciting is that when you started you started with poverty you didn't have anything so tell me about that story where did you start where did you start what was the house where did you get started how many money how many people had how many money like what I'm trying to understand is what you are doing today what do you know about me and my audience what do you know about what incident or what background you have shaped to do what you are doing today it's a good question so I was born in slums in sekandrabad literal slums my dad was delivered telegrams deliver okay okay so logistics is my in the in the in the in the everywhere so and so he he's a he's a he's a great guy and he was basically monthly 175 rupees and my mother is not as educated she's not at all educated in fact so and I have three brothers three siblings the three of us my eldest brother has bipolarity and my second brother like you know he's a Jugadu guy and I was the youngest in the family okay and besides that like we had two aunts like my mother's cousins who were uneducated and they lost their parents and my father married my mother because he wanted to take care of my aunts okay because they were very young at the time okay my mother was 18 and these kids were like basically like 5, 9 and 13 right like and so like so he wanted to matter at that time society it was not allowed to actually like adopt kids and other things like you know particularly female kids and my grandmother used to live with us so this is our family, 8 people, 1 room right and so like now if you if you think about like all the challenges like that you have to go through at that time you are trying to prioritize between rent and electricity education or food so basically your mentality that is not like you are not trying to optimize for growth you are only optimizing for survival right so that is where my father all of the decisioning he used to like you know like he used to put money and he used to like you know like this is so much what do we do right and so over time basically like you know like it used to be such a celebration for us that we got clothes in Diwali and all people basically like the way over time it was like retail retail so you go get like a cloth a piece of cloth from like you know some and then you go stitch like the same shirt and same parent for everyone the three kids

7:40and we used to be so happy that we used to get like one pair for Diwali right so that used to be the family even though my father only made 175 rupees he was the nicest man in the neighborhood so if someone's like oh time peh toh like if you're delivering telegrams you're delivering telegrams only for two reasons like bad news or money money order you need general information then you send letter based and letter reaches 5-6 days right so and most of his co-workers they used to be reckless PK died, accident died and some of these people like their families were also illiterate so he would go you know file for cases so that their kids are eligible for pension, PF, job, government support, this is all.

8:39So, we thought, what is this man? We don't work on ourselves. We are optimizing right now. And this is the way that we are doing and my father and my brother always used to fight about this topic. He would think that charity begins from home. My father would think that karma is very important right so this was always a fight for both and my mother is like she is like the you know symbol of persistence okay right there is no study but she has a lot of intelligence when you go to school then you get a degree when you get a degree when you get intelligence when you basically struggle right so she all her life she struggled growing up so she is like a like maha jugadu person so my two brothers like you know they went to St.

9:42Patrick's that time like you know she she used to help in the newspaper company Tech and Chronicle so the reporter like reporters uncle used to be the head minister of like or the principal of St. Patrick's okay so that's how my both brothers got in so my brother so before I failed ho gaya people have asked what color is so I said blue it's grey grey and blue I didn't know about it and one year I left because they didn't want me in the house okay so like my parents always wanted to you know give us the escape velocity to get out they didn't want us to be always stuck in poverty right for them like you know in the context it's origin story it is not your identity identity all of them was different but they were there right so if we will work then we can change identity so we always say that wherever the opportunity is there is no choice to go and you become bigger and you believe in the family that you become bigger like believe this is because basically like you know they felt like if we will teach children good and they will give good sanskar deenge to kudh kudh akhe man jayenge jahe jitna bhi ganda context ho around okay to wo time pe to slums me like aapko paisa mil gaya to aap ja ke nashay kar le to wo to kisih ne kiya nae humare family me right to so we we were always like protected in a shell but also the way they behaved like you know formed us it forged us the way we are right so that was very important so my mother went and stood in front of the head minister's office for a year and she would not protest she wouldn't do anything but they basically went there she used to drop the two brothers and she used to go stand in front of the head minister principal's office and she stood there for a year till i got the admission right that persistence that was second to none and when we did not have like you know even the money to pay for my tuition like my education so she simply took out her touring so it's a symbol of marriage and she sold it 30 rupees 30 rupees okay so i could get education so she was able to sacrifice her identity and her dignity for my education so so when you when you grow up in that context raj what tends to happen is you never want to let the sacrifices down so that's a responsibility that's a responsibility that my mom did this for me my dad did this for me so how can I let them down in any context in any circumstance I have been in many papers I slept in a car for two weeks because I didn't have money and I didn't have a place to stay and this is in America how did America get it?

12:48so basically basically like see like when we were growing up my brother who was bipolar clinically diagnosed he was not so what happened in that time if you think about the society at that time like late 80s and 90s like it's a taboo to even talk about like mental illness so in that we had so much problem in our family everyone used to think my brother is like lunatic okay so my mother and father always were concerned about him because he eldest and parents ka ye ho ta hai ki they always don't support the eldest by the way they support the weakest unnloge ke dimaag me rehta hai ki baqi ke doh kuch na kuch jugada karke nikal jayenge but jo bhi weak hai usko support karna hai lifelong to humayasha wo indian parents ka mentality ho ta hai so most most kids like misunderstand their kids or vice versa kids misunderstand their parents too for the same reason kids always think why do they support me they keep working but why do they support me like they are so partial we both think but if you step back and think about it and if I reflect on my life the reason why my parents behaved the way they did is because he was the weakest right so they had to do something and they will reach the good place to the place if you get him to a good place his problems will get settled okay so they kept like trying trying trying and like my dad who is a friend he became a doctor he was a self-made guy and he went to Germany and his name was Dr.

14:37Vithal Rao so he told me once again my dad to the other day that I will help your son. My dad got very excited about it. And so he asked how do I do this. So he said that you know, let him study German, send him to Germany. So we had Max Müller-Bauwan, where they teach German. And so he went and joined there. And he was like, Where did Germany join all the money? It was all money. All money is in our house. We don't have anything to do with our house. My mom had 5.30 My dad used to wear such clothes You can find my father always in a pajama Same thing So we were very privileged that we used to have at least one new clothes like this thing that we can wear Got it Then he went to Germany He didn't go He didn't go So he learned language but the guy who invited passed away Okay And then so his depression got worse and it became like very very like almost like you know overbearing overwhelming so the house was always overwhelmed with grief so my mom like you know she used to work for Deccan Chronicle and she got hold of people over time like you know there used to be all these consultants like Vissu consultant they used to get like F1 visas for kids okay right and someone said that basically we will give him admission in Fairleigh Dickinson University in New Jersey you will give him a thousand rupiah so go and send everything whatever he is in the house we give him a thousand rupiah and we have to give him a F1 so he went in 2000 and he went in and basically he went in and then he broke his left arm he like you know he slid on the slit of ice and he was not prepared for snow or anything like that so he went there he fell down he broke his left arm 21 22 stitches and he started in new jersey like his friends all scared him he said that you have come from this time basically you have done this all whatever like you know resources like we had at that time which was also a lot of money for the fees we took around 2.5 lakhs which we know people always used to come knock our door saying where are they?

17:19right? and not for the ticket so someone gave it scholarship so he had this like you know he was scared in his heart that the whole family is going to be destroyed and before that he is a depression so that he called me in October and in the middle of the week when I was a kid like at age 11 I used to play around in slums and I used to watch

17:53so I used to be very fascinated and I used to hate going to people and ask money so I said I would have to cut all the mechanical parts .

18:30100 kuch rang aya ta o time pe marine engineering kuch to milne wala ta mucche mire gar mein bula ki mati kar karna hai toh mechanical engineering aisa kuch karo kyunki aapka mechanical engineering aapke liye suit hooga to and I was not into computer science or anything so like you know I did not even aspire so first time I wrote it second time I also got a similar rank and so like my father said ki at least local engineering exam lik de bhai okay agar aya nahin aya dekhte ha to a gaya tukka lag gaya I was doing mechanical engineering. So then I started writing an exam. GRE, TOEFL, that was the last moment.

19:08Some admissions, basically everything that I applied, they ended up like without any kind of assistantship. Because I've already passed the deadline for all the scholarships. So my admission was in Georgia Tech. And I also had admission from MIT. Because during those four years, I was trying to also lose my identity as a choker. Choker means? Meaning that it keeps me scared. Always. Like when you're in poverty, right? People think poverty, you're trying to, it's about like stomach and growing stomach. But poverty is not that. Poverty is being invisible to people. someone sees you but you don't even see it that's poverty he's like literally scanning through you as though you don't exist you're a ghost in your own life that's how you feel when you're actually in a slum and when you're in poverty right and poverty also teaches you a lot of things it teaches you hopelessness it also gives you hunger Fear Fire Fire Fire Unbreakable And You have Empathy You have Bitterness You have One time You are Bitter Because You are Seeing Someone You can Empathize Because You are Living In That Context Right So This Curriculum You Can You Know You Can You Have Have Have Empathy these three things which I like is empathy let me leave fear and let me fire and let me stay in my heart so I learned those three things and I said that this is my education this is poverty I will learn this I will not learn anything the rest of it you will learn so I have to go from here so I basically wanted to get out of that context and I wanted to help him out and I started taking all the exams and they said something to do I will do something so then our admission so after admission during that 4 years what I was doing is because every time there was a weight of I have to prove myself to people and people used to ridicule me and when I went and applied I got into Georgia Tech so I reached US so we wanted to reach 1 ,000 ,000 so my brother was working at the gas station he basically he said I want you to pay 1 lakh so you can use that as a collateral because we had to show a check for 10 ,000 dollars so no check will give you a check they will not simply write a check so we had to put like 1 lakh rupees and then we had to basically get someone to put some money into the bank right so that that money looks like as though it's in our bank and we can create like a a check that I can take but there is no money yeah I get it right so this is not our money it's our money so it's just showing that we have a bank balance right so for that we wanted 1 ,000 ,000 so I reached US so that has been like truly the change in your life.

22:47I was reading a story where you joined Coca-Cola. How did you join Coca-Cola? What was that? Coca-Cola actually got a job. How did you apply? Yes, that's the story. So, all coincidences right? So, I graduated in 2003 in May. right so after 2001 the vetting process for getting a job became very very complicated and irrespective of whether you are in industrial engineering or any subject like there were only a few companies which would hire you like capital one who do business analytics for credit cuts how extra-baged you so your debt will increase in that such jobs so those jobs those are the types of companies which would come and if you are born and if you are a citizen of US you can get into Raytheon and you can get into basically Boeing and other things because you are coming from top schools so if you are not a citizen of US then Boeing didn't have a job in Boeing because you need clearance say ye na defense ka hai machha right to yeh bhoot mushkil wa jata like joh passenger flight does me bhi us division me bhi nai ho because like it's like after the incident where they crashed all the planes into the into the buildings it became very difficult for people without any clearance to get into all these like secured jobs right so and the jobs were very far and few in between like because see dot com burst just like it is coming out so many people basically the lay off are going back in the economy so it's problematic for new students these restrictions are coming up so I basically like I started I didn't want to move out of the domain I said I did industrial engineering and I could have been okay with taking a job in probably something like AMD right but you should also make hardcore electronics or you should not make industrial engineering process engineering so whatever was going on I said what I'm going to do my friends they were all taking the shortest cut possible they were going and applying for capital one jobs and they all figured out a way to crack that interview also so I didn't get a job so I said office of information technology Georgia Tech what is in the office of information technology what is in the office of information technology so they said that there are two work one is to wire you new computers to wire cable another job is to do multimedia so in multimedia basically you tell the kids how to use the illustrator how to use the after effects how to use the after effects what do you come to do I said yes I said so I said I'll go and learn and learn how to go and how to go so that's right so when I work in multimedia lab so the multimedia manager he said that you why not make a multimedia resume because the multimedia people basically they all show off their creativity through some sort of like you know after effects movie or whatever it is so she said you're sitting and doing something here and you're getting proficient in it you're teaching people how to use it so why don't you actually create a multimedia movie I said who will listen to my accent so strong and I've never walked away from keeping my identity like a lot of people try to change me you say why do you wear a pajama when you're in a seminar or conference or why do I go to Nangaypear I go to Nangaypear and give conferences right so and I thought that is not interesting so what if I created an animated movie of all the credentials I have and then I can showcase what I can do for the company so I made the movie and I put it to a small business card size in a disc in those days you used to get like disc this size literally like size of a business card so I made everything and while I was doing that I went to also the university like the Georgia Tech School of Industrial Engineering and went to the professional series course director Harvey Donaldson and I told him I can do anything for you and provided you let me sit on the professional series courses you said that there is a state of Georgia to plan a water system in and around Georgia like Atlanta how to draw water and where to draw water from as a supply chain this is a supply chain problem logistics distributing water into Atlanta so I said it's a very interesting problem I'll work in poker but I'll put it in poker so that is like$40 ,000 if you have to go get a professional certificate from there because they like they put you through 12 courses before you start so they have sent me so I started engaging with all the professionals who come and supply chain was very new in early 2000 because what happened the global economy split between production economy and consumption economy production in China consumption in United States so the pipeline inventory what happens to be right manage so

29:03all of supply chain was all about this only procurement and managing the planning right and it was becoming very hot because the world was getting globalized right so I got the car okay and the car I was stuck and I didn't think that I had to get on the first stop. Because my friends had a mistake. They thought that the car is going on. But the car is not going on. I don't know if I'm going on. So they all went into Capital One. I was sitting in the car. So they thought that the car is going on. That is also God gifted. I cannot take credit for that. how did he get into the mind? I don't know he came right so then I ended up getting the first job which is not coke a company was Alliance rubber so the band was there logistics that was there he was in the course so he said you come here you give a job you give a corporate development specialist you will teach a whole business because you will be working directly with the managing director of the company it's a very small company they make like rubber bands and packaging products right so you can come help us out on all special projects so I said let's go so I went to Hot Springs Arkansas there and this is a family company and that's the man who is manic depresent so let me ask what's the bipolarity I'm still getting excited so so the entire management toppled in 3 months and that guy Richard Spencer he used to be very erratic so he would give everyone and next day he would give everyone so he was very erratic so I was crazy I was crazy in my house now I would have been crazy so I wouldn't have been crazy so then I said like you know H1 went to BHAD studies went to BHAD I was going to India So I was mentally prepared So I said I'll go out here So I'll go out here So I left the job I said I'm going to quit the alliance rubber job And let me start Planning to go back So I'm going to my brother's couch So I'm going to my brother's couch So I'm going to my brother's job Why do you apply to another one So I'm going to get you Where do you get me?

31:43no, I don't have a chance. July has been gone. August and September has been a H1 sponsor. So, you have to leave. So, I said, no one will not give me. Like, you are like, you know, thinking about a miracle that is never gonna happen. This is December, 25th is Santa Claus in your bag. That's not. So, I'm sleeping. So, she said, no, no. I think you should keep trying. You should never give up. So, I said, let me i know i did this movie resume let me go send it and i sit because i worked in the library i used to have and library and multimedia lab is the same in georgia tech like we lab there's a corner for multimedia right so i had access to lexis nexus so lexis lexis I put Coke so all the executives were named Ron Hammond and I typed C-O-K-E and Coca-Cola North America Coca-Cola the brand company is K-A that is how they are traded and Coke is the bottling side of the house so I put Coke I thought Coke is Coke so I put Coke so Coke came so it's Ron Hammond wrote his name so I said that 4100 Coca-Cola Plaza Charlotte at North Carolina send those

33:07like you know a letter like you know a letter we sent them Ron is actually my chief operating officer in my new company so before 25 so before 22 so they saw that resume and like think about like miracles again right so usually no executive he was a SVP of the company like he ran all operations of all bottling for North America right the most powerful guy meaning that if you have in North America coke comes right he's responsible for that and coke worldwide serves 1.9 billion servings there are 8 billion people meaning that 25 % of the world consumes a coke everyday everyday day and this guy is like responsible for the biggest market right and to unko cd mila hai security risk hai na cd dal ke you will see that someone's virus can remain in it usually his admin filters everything before you get it admin not even came that day they took that letter opened it and put it and she started playing the resume there is a song behind Matrix Revolutions the song behind Navras and there is a 6 minute video they have seen this so it seems like a creative and I am trying to transform coke and I don't need similar thinkers because similar thinkers will produce similar results so his thinking was he wanted someone very unorthodox so unorthodox I saw them so they said that you contact these people so I gave HR I told them I have two months I need H1 and I that's the only way I can come join so then Ron actually sent a guy called Rich Clark who was the HR director he used to run all the operations he put him on that thing saying go figure out how to get H1 done right and then he flies me in and then i meet him and you know he was fascinated i don't know why he took a he took a very like amazing liking for me like and even today he's like my father figure kuch bhi ho jaya na mein unko hi call karta hon oh oh bais saal I am doing it now I am doing it now I am a company but I am running it and then what was the problem with coke that you solved cool lift system yes so so context always comes to the business so basically when coke started in 60s and 70s like you know coke obviously started long time ago but the product portfolio of coke was very limited meaning that you were staying in a can or basically after some time it became bottles and even in the bottle and like Ron is actually the inventor of like the fridge pack like the bottling system like you know how do you keep the pressure how do you actually like put the liquid and get the get the filling right what is his pressure what is his speed what is his like he's one of the he's like he's the foremost leader in that so before like I joined Coke he's already like spent 30 years in Pepsi and Coke okay like 50 years of experience so far right now right engineering he's a brilliant mind and so the coke what like in 2000s there was a big shift happening the shift was people started moving in US from carbonated beverages to what is healthy for you and different flavors and choices so what happened in that basically if you had 50 products then now it became 3000 so 30000 doesn't look like a big number but now 3000 times 550 distribution centers times like 200 ,000 stores of Walmart like and like and Kroger's and everyone and all the small bodega stores and like you know like pizza shops and all the number of what they call demand forecast unions which is like the discrete unit where you have to plant a unit just skyrocketed right and so the small warehouse which was carrying like which is 5000 square feet is now carrying 2000 products when it was designed for 100 products so you can't put 10 pound 5 pound in the bank so you have to rethink something so what can you rethink so all they were all carrying 16 days of inventory every distribution center we said if you carry 16 days of inventory then you will never have a other answer because you are expecting different results so the business context has changed but the operating reality is old reality so now you have to change the operating reality of the flow of the product we said what is fundamentally flawed here what if we carry one day of supply in all the smaller facilities so the price comes from there cross dock but we have to send it so all of the work we did in manufacturing has to get replicated in the fulfillment operation so everything comes in and gets out immediately and the reason why you want those 5 ,000 500 distribution points is because that's where people live so the cost of last mile will be less how will it happen?

39:03If you are from the factory, it is a very long distance. The long time is the long time, the last mile cost is the last mile cost. Right? And you don't want to pay the driver for the last mile cost. You much rather get inventory closer. So that's the theory. And all of the work which was happening on the road also needed like rethinking. That a person is now buying 200 products. They are a little old, a little small. same truck same truck same truck same truck same truck same truck same truck same truck same truck same truck same truck So now instead of going around the truck which is like a warehouse we had to build whatever goes directly into the store So now the entire design has changed 17 days inventory and the work in the warehouse basically truck that has to be also ready for the store delivery so we have to completely rethink the entire infrastructure the topology its network design its automation facilities its truck design what's the design of the pallet that pallet basically if you think this is a door basically you cannot put like a 4 feet pallet in it has to be a smaller footprint now the footprint changed now there is a capital cost for the footprint if you are building which is ready for the store because you don't want to hire so many people working who are very obese like you know you need a guy who is running who is like 250 pounds to go pull the product down and assemble it on the road if we think of that work then even a even a we make it gender agnostic even a girl can run it like who is only like you know if someone who is like 140 pounds 60-70 kgs even she should be able to run the route and we should not have to hire someone who is 120 kgs right because it's not manual anymore so that was the thinking so we said let's redivine the entire damn thing and make it future proof so this is what we have nice and then then you worked with PepsiCo I became a dog

41:25so this happened that basically the idea of yeah what was it that my father went through in 2005 and it's a very painful story what happened so I came like I went to United States before like you know I spent $34 $50 then I came back to$50 because when I had to unplug my father and and basically when I went back after two months I had to take a family leave of absence from coke and to that time was difficult to get a visa because my mother had no passport and she had to take me to go with me we tried a lot and so I had to stay back for two months so when I went back I didn't have a house to live in US because I didn't pay for two months so why will he keep me so he took the whole and took me out so I went with my hand and took me back and I didn't have to live so I completely broke down like the grief of me losing the father didn't hit me as hard when I was cremating him but the fact that I did not have a place to live broke me right so that didn't mean anything right and I was like I was so bitter with God why are you punishing me so much time after again right so that was my breakdown so that was that was one time in my mind that was one thing that I don't want to get into this situation ever in my life what is it 50 dollar then again 50 dollar 5 years then 50 dollar will be when will it go so I need to get out of this so I started thinking about like how do I become much more like valuable and which I work so that is valuable so Pepsi looks at the outside that this transformation is happening and they are written that basically transformation is helping them so Pepsi basically said their teeth are broken they said basically they have this strong bias Pepsi always thinks the guys from Coke are morons they think Coke is a very good marketing company and Pepsi wins despite not having the marketing prowess that coke has coke, everyone knows 96 % of the world recognizes coke right so their market is unfair advantage but what is Pepsi?

44:08hunger they have number 2 is always they have to become number 1 so people think that they don't even get to play this person they do something so then Ron said why don't you try because Ron went off to start a brewery himself so I said Ron I don't have fun if you don't have a cold you don't have a cold so this is like I'm getting very nervous I also want money I'm giving 60-70 thousand dollars here I'm giving a lot of money in that time I said I want more money I need to take care of my family he said why don't you apply for Pepsi it's a good culture you'll go learn ropes of leadership there and operations really well.

44:54So, go there. So, Pepsi has a different way of attacking the problem for a similar context of the problem. It's a different solution altogether. Because Pepsi had more variety including Frito-Lay chips. So, instead of selling Frito-Lay products and Pepsi products Frito-Lay's Lays Lays and also water and these are all three different divisions. So, Quaker, Tropicana, Gatorade, Egg division Frito-Lay a division and Pepsi a division so we said why would you want to go to a Walmart and sell three different portfolios Walmart should have one Pepsi unified experience of all products and we should be able to create a soccer mom pack we should be able to like Pepsi also water also Gatorade also chips so make a pack and send and upsell karo right so how do we do that across multiple companies little division to rethink it again so how do we make it like almost six years I spent doing that in Pepsi and so all of the learnings I got working for coke I simply did not translate it into Pepsi the first mistake that people do when everyone goes and goes into a similar industry they think ki culture same hai operation same rahe ga uske metrics same rahe ga uska behavior same rahe ga woh mentality se jau gay to ab barbad ho jau gay kyunki haray company alag hota hai every company is as unique as your finger printers because what makes a company a company is the cultural values of that company and the cultural values of that company and the people that make that culture are uniquely different so you have to take the time to understand the culture and what makes that company what it is and the context before you understand the context if you start assuming that you will make this place and you will give it to this that is going to be a problem then you you held Disney yes with magic band yes what's the story so that's a long story in short I'll tell you so I like I used to be with Obama you know disaster recovery council so Katrina had happened and so they assembled public and private parties companies together and because PepsiCo like can be a dominant water supplier along with Nisle when disasters water is important so they said we'll collect all the big companies and we'll create a public private entity and we'll form something so that's what happened so I went and basically me and my wife went to Walt Disney Company we were on the theme park in 2009 so I was in PepsiCo at that time so what happened that on the 31st December I lost my wallet in Walt Disney company.

48:16So, I called Jay Razulo who basically he was a CFO. Prior to that, he was a theme parks owner. So, they just switched and he was in the running for the CEO job. Of Disney? Of Disney. Along with Tom Stacks. Both of them. So, how do you know? Because we were all part of the same council. So, after Katrina, this council was created where all the top all these guys were there. Along with like another guy called Phil Palin and he was the coordinator. So they were using my methodology to simulate disasters. Got it. And I got trained by a guy called Richard Muthar. So he was the founding father of industrial engineering.

48:55So I used that methodology and that is the methodology even FEMA uses today. Okay. So he rescued me out of the Disney theme park. And then we met again. And he asked how was your Disney experience? It's the world's supposed to be the world's happiest place. I had a shitty experience in the world's happiest place it was a bad idea it was a bad idea my wallet went to the house what do I do you can't go out there once you lose your wallet you don't even know where your car is let alone how big it is so they said how do you solve losing the wallet problem smartass tell this so I said I didn't see anything but I used to work in this PRC lab and we used to think about wearables a lot and I was where I was putting a chair I could see RF terminals everywhere and I was a costume that was going to wear a costume I asked him how do you keep track of all of this he said we have like you know like we are monitored he said somehow you are monitoring what costumes people are wearing and like there are RF terminals all over why don't you create like some sort of wearable device that you can give to every guest who's coming in and you never have to pull out your wallet.

50:16Brilliant idea. Let's patent it. I said I'm going to patent it before. I have patent filed on it. My patent is like the triangulation technique for a wearable device using phone as a gateway. Right? So you can take an RF terminal. You can have a wearable device. Your phone is approximately committee you will do in one eighth of an inch you will do where is it right so that is what you need and you can solve that problem for child safety you can plan your themes you can get into a room because it is magnetic NFC card right so this whole problem will solve how many people how many people how many people how many people how many people how many people you have to go to this team or go to another team or go to another team this ride wait time management can be able to go to many things many things they can unlock when you try you don't think you had to solve how to solve the wallet that was the only thing we were trying to solve and then many things came out of it like child safety you can have paired bands so I gave people so they went and they brought in Accenture Accenture made 300 million dollar nothing happened so one day I call this person he says what are you doing I said I am like living life king size in Pepsi

51:48so I am running I am running my car and I was already a VP in PepsiCo so he said I will give you a job of CTO supply chain management and I am creating like a centralized function because like you know Disney is largely a divisional structure and what happens in Disney that every division has autonomy that they go and take their decision just like if you have a phone a procurement like you know if you're trying to buy Cisco phone the theme parks will buy it differently and then like like you know consumer products will be different procurement so different people do this so what happens in that that the vendor knows these guys are all buying like you know independently so they jack up the rates depending on the negotiating capability hotels ka business is different all the same 28 lines of businesses there are 28 lines of businesses in Disney from you know food and beverage to fireworks or like print and publishing top 3 with them theme park entertainment and consumer products consumer products is a huge consumer products is a huge is that basically if you have any mug that has a Disney character you take 10 boxes just for the chaping

53:16basically you have this logo or Mickey's character to get that intellectual property and apply it they will charge you 10-15 % just to apply the intellectual property forget making this making is your problem so that consumer product business is like a 65 billion dollar retail business and disney makes like 6 billion dollars sitting and just collecting cash on intellectual property so you have made micky and mini 1960 now that is a model so there is also risk in that the risk in all of that is the intellectual property is assumed to be made only in 25 ,000 factories but they could be made in 175 ,000 factories.

54:09There is no way to regulate it. So that is a problem. So Disney's intellectual property if it was in the wrong hands which is what happened during Tazareen fires they found Disney intellectual property and Disney lost its value by 10 % because they could not go and tell that this person was not even supposed to be having my intellectual property and he had it and that was child labor in the factory that factory fell and the kids died Disney was in the headline so they wanted to get around the fact that how did intellectual property save the property they made it so if they made it $6 billion so they lost it but see that's where great companies think very differently they said we need to get ahead of this game and we need to protect our intellectual property and also make profits so let's build technology to figure out how to actually source the factories and how to manage the factories without having to put labor so we started building technology for that through supply chain so and you became a CTO yes I became a head of technology so there are like supply chain and finance then there is a corporate CTO and then like every division has a CTO okay right so I became the CTO for all of the supply chain management across all the divisions nice 28 lines of businesses so I left Walmart do you think Disney will now that the downfall started Disney will survive as a big company and it will be bigger it will be bigger it will be bigger why it will be bigger data data it is intellectual property it is good see entertainment business is one business which is at risk right theme parks so generationally you will study like the way disney works is you grow up with a disney character so the mom who takes the daughter to disney relives the daughter feeling all over again when she goes to disney they feel like they teleport you literally so when you were 8 years old and you went to disney ride you did your mother-in-law so they try to not change a lot of these experiences that you feel in fact a lot of very few people know this Disney puts like every 30 meter peh ek dustbin rahega kyunki they don't even want the friction of like dirt in the experience so they think about minute details so precisely but when you think about like kya bej rahe ho log they are selling emotions ko kya bej rahe hai emotion bej rahe hai feature not bade rye right coke joh hai here's the math aapko coke a can baneana hai aapko sara joh cost hai 30 cents hai lekiin coke bittah hai 3 dollars yarni ki 270 rupay mein badez tate hai lekiin baneane ke liye aapko sif 10 rupayah lagtata hai

57:23so ye hai economics ye loka Disney's ride is total cost $32 but if you sell $200 and then when you sign up for annual passes then that is like $1000 now how much are you going to go? but why do people do annual passes? because like you know if you're living in California if you're living in like Florida you want to keep going back and back and back and take the kids every month same thing every time It's different. There's a theme park. There's Epcot, Magic Kingdom, Disney. So, you can make it different. There's Disneyland. Right? It's like a... See, you assume and the beauty of the model is, character can come from anywhere.

58:11But they are in all places. You made Disney products and sold in retail. You made consumer products and sold in consumer products. If you have a character, you put it in theme park. in the theme park it will grow that's one side entertainment be like you know marvel is like amazing run like imagine like the marvel movies and the avenger movies or whatever that's blockbuster success but do you think that will grow because in recent times it's not been very successful consumption is still like great in all of this and I think like you know they are a company which has like yet to figure out like the balance between centralized structure and decentralized structure and once they get the hang of like centralization and decentralization I think they will make like a lot of money data toh sab jagah mein padha hai but data se kya matlab stock market stock price is not done really well right it's struggling since so see the there are like obviously Netflix ka like you know is eating their like you know entertainment business a big business a big part of their business it was like it was 18 billion dollars for crying out loud right toh theme park was actually second biggest after that right so once you start eroding into that like you know what do you get into like they also got into streaming they got into Disney plus but they were all running they were all subscriptions like you know over a period of time the subscriptions have gone up but they they exited out of India for sure so see I think like fundamentally these big companies have a way to acquire and grow and or continue to figure out the right business model this business model it is all fragmented across all the different divisions so this is the Iger problem when Iger is gone someone will come so when that person will come that person will say look here there are synergies in the area and we are not harnessing it from a data perspective and data is the king because data basically begins to connect like that mom who was feeling very emotional to what content it needs to be showing her so that is where some of this magic will come do you think that they become too big to fail well obviously that they don't fail they don't fail they don't fail yes it was very big in a time so now it is not as vibrant as it used to be so companies will go through those cycles and redefine themselves and emerge out but some companies like now Nvidia I feel like like you know they may go through a stronger downturn why?

1:01:02because it's very inflated it's a circular money loop what do you mean? like look at all the deals that Nvidia is making Nvidia is buying companies and asking those companies to buy the GPU right Nvidia is buying like shares into open AI and open AI is pumping back into like using those chips and telling everyone use like GPU chip this is better right Microsoft you know has 20 % ownership in open AI and open AI basically is like now like 500 billion Microsoft made 125 billion right so they have a commercial agreement with open AI so this is all and everything is rotating around like a GPU unit but like the world has never asked why do you need GPUs in the first place because not all decisions are so probabilistic in nature neither they are real time in nature so they are pumping money into the wrong infrastructure problem and this is all circular use case never came to like there is not a real use case which has said right

1:02:13so I have not seen that I don't understand that but i'm just putting taking that on the surface value because like imagine no microsoft you know invested in open ai open ai like is getting invested back like through nvidia nvidia is like i'm trying to understand job but you don't know gpus at first place i'm not a tech geek maybe maybe i have no idea see hardware like you know is i'll give you a very small example right

1:02:51now if you say the ETF for this cup is tomorrow you will fly the cup right but if you said like I can get the cup like in 4 days then what will you do you will put it in the ground the ground is cheaper than sending it in air right so in today's rate whenever they are sending the data they are assuming that every data packet needs to go in the air structure right so not all decisions are like that interesting so you need to have everything as a speed of light because some decisions are not meant that way real time execution decisions are what I call symbolic problems or rule based problems binary 0-1 and all these LLM models reasoning models are all probabilistic they hallucinate it's a Bayesian model so you cannot run a reasoning structure on an execution decision majority of the business decision is execution decisions right you have to take a truck or not to take a truck or not to give a truck or not to take a truck or not to take a truck or not is not to give up.

1:04:12Medical care is not to give up. Insurance is not to give up. This is binary. The probability is not to give up. The world was running without all of that. Here is the intelligence layer which we reason are like. This is not the reason for decision reasoning.

1:04:34where optionality is this, tell me, it's not the optionality. So this is where a lot of the hype is. See, there are some problems that this will definitely solve. AI will solve. Like alpha fold has been. So alpha fold is a great example. So it is able to predict the proteins. Okay. So protein biology, which is all things will change. Microbiology will change. Like, you evolutionary biology change crystallography change physics change and today so far 214 million protein predictions have been created because this model like the protein model the alpha fold protein model it is revolutionary because what used to take 50 years to predict now takes minutes to predict so now if you open source all of this there were 43 ,000 citations academic citations if you have to write an academic citation it takes like a PhD to write a citation children without any knowledge can write a research paper and publish it so children did it in Turkey 15 papers published research they have studied they have learned and they have created something revolutionary 15 citations there are 43 ,000 citations so imagine the world of medicine and open sourcing all of this data and having the computational speed to do it.

1:06:09Very interesting. But now you say that I have to make a movie. How interesting is that? So the plot and twist gives a good human. Do you think AI will not reach a point where the creativity of movie is so engaging. What plot twist will not be able to do it. That will not be able to do it. Whatever we do, humans will be needed. And that is the whole premise of what I'm trying to build. See, we shouldn't build technology that will forget humans. We should build technology that remembers humans and amplifies humans. What is amplifying human dignity? Money, knowledge, health. Not any movie. Right?

1:07:03so there are places where I think you can apply fundamentally this technology in a way which is very profound which is to solve cancer many people died my father basically he died because he fell down he hit his head on the pavement he never told us and he kept getting ear infection so we all thought that they have a ear infection so basically go to ENT so they have to go to ENT so then he started getting brain strokes and he had like a non malignant tumor not a malignant tumor so he could have survived had it been predicted properly and he could have you know we kind of got like what medication needs to be given to him but it was too late right so I had a similar problem recently like like I like my I have a heart condition called bicuspid and like every time I go to the doctors because I get this palpitations and my heart rate is not up to 40.

1:08:07How much is it? How much do you give me pressure? It goes to 40 but it won't go out to 40. How much do I get excited? I get excited. My heart doesn't get excited. Right? So if I take that I kept going to the hospital and they kept saying that you have bradycardia, bradycardia, bradycardia. but finally I know that I have bicuspid I mean that I have only two valves in one valve I don't have the third valve even when I was born right and people thought maybe I am athletic that's why I don't have it maybe this maybe that but prediction is wrong so this is where you lose human lives because though you you can solve that human problem we are not solving it and that makes a difference that makes a difference right but don't use it for solving nonsensical problems why are you trying to solve that problem right like solve the invisibility of poverty problem poverty how much is it now look Ambani who makes it in one hour average Indian feels like a guy who was making 25 ,000 rupees and less a month that guy takes 422 years for what Ambani makes in one hour right now this is a wrong thing inequality is a lot I don't say that Ambani has a lot of money and he doesn't have it I don't say that but can we not solve like the 25 ,000 rupees problem why we are not doing it how do we solve it change, literacy okay two three questions explain how you solve it you are saying angelic angelic intelligence artificial intelligence angelic intelligence what is it angelic intelligence simply is technology that mimics what good humans do who's a good human my mom my father who gave me money Ron who came to my life who did extraordinary things because that is what good humans do and if I'm able to capture all of the goodness of that and basically say let me apply it into a technological framework whatever I experienced in my lifetime I can unlock it for billions of people and that is what the role of the technology should be how do I make an invisible person visible so let me give you an example of how this will work so when I was in you know Walmart and I did the grocery home shopping business so that business was like 30 million dollars which we made 5 billion dollars in 18 months wow 5 billion dollars in 18 months in the market.