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Global Mind Leaders (15 Jun 2016) - "Engineering Reverse Innovations"
Article
Title
" Engineering Reverse Innovations "
Description
Principles for creating successful products for emerging markets.
by Amos Winter and Vijay Govindarajan
( Harvard Business Review ).
Idea In Brief
The Problems
Multinational companies are starting to realize that developing new products in and for emerging markets will allow them to outperform local rivals and undercut them on price—and even disrupt Western markets. However, most struggle to create those products and then sell them in the developed world.
Multinational companies are starting to realize that developing new products in and for emerging markets will allow them to outperform local rivals and undercut them on price—and even disrupt Western markets. However, most struggle to create those products and then sell them in the developed world.
The Analysis
A three-year study suggests that Western companies often fail to grasp the economic, social, and technical contexts of emerging markets. Most Western product engineers find it tough to overcome these markets’ constraints and leverage their fexibility. They tend to fall into one or more traps that thwart their innovation efforts.
A three-year study suggests that Western companies often fail to grasp the economic, social, and technical contexts of emerging markets. Most Western product engineers find it tough to overcome these markets’ constraints and leverage their fexibility. They tend to fall into one or more traps that thwart their innovation efforts.
The Takeaways
Companies can avoid these traps if they:
1. Define the problem independent of solutions.
2. Create the optimal solution using the design fexibility available.
3. Understand the technical landscape behind the problem
4. Test products with as many stakeholders as possible.
5. Use constraints to create global winners.
Companies can avoid these traps if they:
1. Define the problem independent of solutions.
2. Create the optimal solution using the design fexibility available.
3. Understand the technical landscape behind the problem
4. Test products with as many stakeholders as possible.
5. Use constraints to create global winners.
