SlideShare a Scribd company logo
1 of 8
Download to read offline
Reverse Innovation
February 2010




      Sunnyvale                Beijing              Bangalore             Hyderabad                Pune      Gurgaon




This report is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated,
quoted, or reproduced for distribution outside the client organization without prior written approval from
Zinnov
MNCs are slowly shifting their focus from developed to emerging markets but
      Indian R&D subsidiaries are still not their primary agents for innovation
                                                                                                MNC Focus




                        Make products for                           Make products for                      Make products for local    Make products for local
                         global developed                        global markets. Localize                   markets. Innovate at      market needs and adapt
                             markets.                             for emerging markets                        home and near            to worldwide needs.
                        Innovate at home,                         innovate at home, and                     emerging markets.         Innovate near the local
                      distribute everywhere                      develop near emerging                      Develop near local               market.
                                                                         markets                                 markets.



                                  Global                                     GLocal                                  Local                   Reverse



                       Support mature and                            Lead localization                      Incubate products and               ?
                      declining products for                          support related                       services aimed at local
                       developed markets                              enhancements                                customers




                                                                                         R&D Subsidiary Play

                                                                                                                             None      Low      Medium     High   Very High

Source: Harvard Business Review Article by Jeffrey Immelt, Vijay Govindrajan, and Chris Trimble, Zinnov Analysis                             R&D Globalization Council
                                                                                                                                                                              1
India centers follow a multitude of models to tap new product and technology
innovations

3                                                                                          1
    • MNCs have set up venture capitalist                                                  • Dedicated teams responsible for
      arms that fund companies with                                                          innovation and productization of
      products/services that fit their own                                                   ideas, i.e., teams of technical
      portfolio.                                                                             architects and a few innovative
                                                                                             engineers.
    • Companies also tie up with VC firms /
      carry out independent research to                                                    • Part time resources – Top level talent
      help them fund and then acquire the                                                    of different teams brought together
      right kind of startups.                                                                to work on innovative ideas and
                                                                                             product prototypes.




                                                                     Partnership
                                                                      University
                                              2
                                              • There are different collaboration models
                                                between industries and universities to
                                                help foster innovation. The most
                                                commonly followed models are consulting
                                                and sponsored research.




                                                                                                  R&D Globalization Council           2
There are three popular innovation models that MNC subsidiaries should embrace


                                                      Innovation Models in
                                                         Globalization

                                                                   PREM         • Top 3 CSAT for India COE 83%
                                                                                • Partner operations managed
                                                                   Managed      • Q1-’09 End Utilization 84% (Estimated)
                     Reverse Innovation                             Innovation • Very high TCE / CSAT
                                                              LocalServices                           Disruptive Innovation
              • To tap opportunities in             • Every personConsulting • Current utilization 60% that take root in simple
                                                                    is a consumer who         • Products
  Concept                                             shapes his own experience Sales enablement with CSD hasthe bottom of the
                                                                               •
                emerging markets and pioneer                                                     application at resulted in multiple
                value segments in wealthy           • Market Development Task which
                                                                                 large-scale RFP’s
                                                                                                 market
                                                                               • Transitioned local partner headcount
                                                      involves converting consumers’
                countries                                                                     • These products relentlessly
              • Focus on developing products          unorganized markets to efficient           move up market and eventually
                in countries like China and India     private sector                             displaces more established
                and then distributing them          • BOP will force breakthrough                competitors
                globally.                             innovations




                 • Simple products that are innovated and developed for emerging segments/markets
 Similarity      • Access to a whole new customer base, initially unavailable due to high cost of product or low need
                 • Global scalability possible with the right kind of resource allocation



               Low cost of Innovation                    Access to huge customer                  Keeps new entrants at bay
  Benefit
                                                          base; platform for future


                                                                                                                                       3
But the success of these models necessitates a mindset change at HQ and an
      organizational change at the Global level
The executive overseeing the LGT has 3 critical                                                                         Without autonomy, the LGTs won’t be able
 roles: mediating conflicts between the team                                                                            to focus on the problems of customers in
 and the global business, connecting the team                                                     1                    emerging markets. Specifically, they need the
 to resources such as global R&D centers, and                                                                            power to develop their own strategies,
  helping take the innovations that the team                                                                                   organizations ,and products
     develops into rich countries. Only top
  managers have access to experiment with
people transfers, organizational structures, and                         Have local growth
         processes to see what works                                      teams report to                Shift power to
                                                                         someone high in                where the growth
                                                    5                     the organization                      is
                                                                                                                               2

   Innovation, by nature, is uncertain.
   It’s more important to learn quickly                                                                                                   Given the tremendous gulf between
                                                                Customize                                          Build new
 by efficiently testing assumptions than                                                                                                rich countries and poor ones in income,
                                                            Objectives, Targets                                offerings from the
  to hit the numbers. Relevant metrics                                                                                                  infrastructure, and sustainability needs,
                                                               and Metrics                                         ground up
 and standards for LGTs—the ones that                                                                                                   reverse innovation must be zero-based.
    resolve the critical unknowns—are                                                                                                      These wide differences cannot be
  rarely the same as those used by the                                                                                                   spanned by adapting global products.
          established businesses.                                                               Build Local
                                                                                              Growth teams
                                                                                             from the ground
                                                                   4                           up – Like new
                                                                                                companies       3


                                                                   Zero-based innovation needs zero-based organizational design.
                                                                    Hiring practices, reporting structures, titles, job descriptions,
                                                                   norms for working relationships, and power balances between
                                                                     functions—all should be evolved to support glocalization .
Source: Harvard Business Review Article by Jeffrey Immelt, Vijay Govindrajan, and Chris Trimble                                           R&D Globalization Council          4
GE is one such Global company which has introduced this change

                                      GE’s Senior Management Team
                                                                                                                                 Discussion
                                                                                                                   Structure:
           Global R&D Teams                                                       Global R&D Teams                 • GE has adopted a new organization
                                                                                                                     model to help foster innovation in
                                             Local Growth Teams                                                      emerging locations
                                                                                                                   • This new reverse innovation model has
                                                                                                                     local growth teams, LGTs, who have
                                                                                                                     autonomy in the entire value chain i.e.
                                                                                                                     Development, Sourcing, Manufacturing,
                                                                                                                     Sales and Marketing of a region
                                                                                                                   • These teams report directly to global
                                           Development/Marketing/P&L etc
                                                                                                                     senior management and also have access
                                                                                                                     to existing company R&D and technical
                                                                                                                     resources from across the globe




                                                                                                Idea 8….
                     Idea 2




                                  Idea 3




                                                            Idea 5




                                                                         Idea 6




                                                                                     Idea 7
                                                 Idea 4
      Idea 1




                                                                                                           Ideas
                                                                                                                   Objective:
                                                                                                                   • The objective is to create low cost
                                                                                                                     products that can be made available to
                              Low Cost and viable product for people                                                 the masses and not the classes alone
                                 at the low income group in India                                                  Success Stories:
                                                                                                                   • GE successfully launched
                                                                                                                     Electrocardiograms at a nominal price of
                                                                                                                     USD 1000 which is being used in rural
                              Heated Bassinets                       Electrocardiograms                              clinics and hospitals meant to serve the
                                                                                                                     bottom of the pyramid
                                                                                                                   • In India, GE has also launched a heated
                                                                                                                     bassinet which is meant for women in
                                                                                                                     villages who have young children
        Reverse innovation - Products launched for the local market and taken to the global market

Source: Harvard Business Review Article by Jeffrey Immelt, Vijay Govindrajan, and Chris Trimble                              R&D Globalization Council          5
India, expected to emerge as the fifth largest consumer market in the world by
              2025, is the ideal market to experiment with local and reverse innovations
                                 Total Household Consumption                                    Consumption of Major Consumer Products
                                                                                      80%                    (percentage)
              1,600                                               1,491               70%           17%                                          20%
                                                                                                                         19%
              1,400                                                                   60%            2%
                                                                                                     5%                   3%                     6%
              1,200                                     1,044                         50%            7%                   6%
                                                                                                                                                 9%
              1,000                                                                   40%                                 9%
                                                                                                                                                 13%
                                                  731
USD billion




               800                                                                    30%
                                                                                                    42%
               600                  511                                               20%                                34%
                                                                                                                                                 25%
                      362
               400                                                                    10%

                                                                                       0%            3%                   3%                     3%
               200
                                                                                                    2005                 2015                    2025
                 0                                                                               Household Products             Food,Beverages and Tobacco
                      2005          2010       2015     2020      2025                           Healthcare                     Education
                                                                                                 Communication                  Transportation




                                                                    GDP Growth 2008-09
                                                                           United
                      France               Germany       Russia           Kingdom   United States          India          China             Ukraine
              10%
               5%
               0%
               -5%
                                                                                                                      Customers are here
              -10%
                             χ                χ             χ               χ               χ                 √                 √                √

                                                                                                                          R&D Globalization Council          6
Thank You




69 "Prathiba Complex", 4th 'A'      575 N. Pastoria Ave      21, Waterway Ave,
Cross, Koramangala Ind. Layout,     Suite J                  Suite 300
5th Block, Koramangala              Sunnyvale                The Woodlands
Bangalore – 560095                  CA – 94085               TX – 77380

Phone: +91-80-41127925/6            Phone: +1-408-716-8432   Phone: +1-281-362-2773

More Related Content

What's hot

Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016
Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016
Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016Purdue RCODI
 
Innovation Leadership Study: Managing Innovation - An Insider Perspective
Innovation Leadership Study: Managing Innovation - An Insider PerspectiveInnovation Leadership Study: Managing Innovation - An Insider Perspective
Innovation Leadership Study: Managing Innovation - An Insider PerspectiveCapgemini
 
Cii Industrial Innovation Award Compendium 2017-18
Cii Industrial Innovation Award Compendium   2017-18Cii Industrial Innovation Award Compendium   2017-18
Cii Industrial Innovation Award Compendium 2017-18Innomantra
 
Innovation In Indian Context
Innovation In  Indian ContextInnovation In  Indian Context
Innovation In Indian ContextSunaina Kain
 
India : Innovation and patents Sector Report_August 2013
India : Innovation and patents Sector Report_August 2013India : Innovation and patents Sector Report_August 2013
India : Innovation and patents Sector Report_August 2013India Brand Equity Foundation
 
Shaping the Future of Open Innovation
Shaping the Future of Open InnovationShaping the Future of Open Innovation
Shaping the Future of Open InnovationPurdue RCODI
 
Sam Inkinen Open Innovation and Web 2.0
Sam Inkinen Open Innovation and Web 2.0Sam Inkinen Open Innovation and Web 2.0
Sam Inkinen Open Innovation and Web 2.0samink
 
From Idea to Product, Course Lectures Samples Promo
From Idea to Product, Course Lectures Samples PromoFrom Idea to Product, Course Lectures Samples Promo
From Idea to Product, Course Lectures Samples PromoMotaz Agamawi
 
Technology and Innovation Management
Technology and Innovation ManagementTechnology and Innovation Management
Technology and Innovation ManagementJamil AlKhatib
 
Innovation Unpacked
Innovation UnpackedInnovation Unpacked
Innovation UnpackedJo Carter
 
Innomantra - Create the Future - Product Portfolio 2022 v1.0F
Innomantra - Create the Future - Product Portfolio 2022 v1.0FInnomantra - Create the Future - Product Portfolio 2022 v1.0F
Innomantra - Create the Future - Product Portfolio 2022 v1.0FInnomantra
 
The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...
The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...
The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...Jose Briones
 
Alex van Someren Nordic Seed Capital Summit 2012
Alex van Someren Nordic Seed Capital Summit 2012Alex van Someren Nordic Seed Capital Summit 2012
Alex van Someren Nordic Seed Capital Summit 2012Nordic Innovation
 
Innovation & Change Management
Innovation & Change ManagementInnovation & Change Management
Innovation & Change ManagementLauren Peters
 
Accelerating Innovation - A Functional Innovation Workshop
Accelerating Innovation - A Functional Innovation Workshop Accelerating Innovation - A Functional Innovation Workshop
Accelerating Innovation - A Functional Innovation Workshop Innomantra
 
training of Professor Kent Millington
training of Professor Kent Millingtontraining of Professor Kent Millington
training of Professor Kent MillingtonHTPBELARUS
 

What's hot (20)

Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016
Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016
Open Source and Open Innovation - Dr. Sabine Brunswicker - Red Hat Summit 2016
 
Innovation Leadership Study: Managing Innovation - An Insider Perspective
Innovation Leadership Study: Managing Innovation - An Insider PerspectiveInnovation Leadership Study: Managing Innovation - An Insider Perspective
Innovation Leadership Study: Managing Innovation - An Insider Perspective
 
Cii Industrial Innovation Award Compendium 2017-18
Cii Industrial Innovation Award Compendium   2017-18Cii Industrial Innovation Award Compendium   2017-18
Cii Industrial Innovation Award Compendium 2017-18
 
Innovation
InnovationInnovation
Innovation
 
Innovation In Indian Context
Innovation In  Indian ContextInnovation In  Indian Context
Innovation In Indian Context
 
Business innovations
Business innovationsBusiness innovations
Business innovations
 
Business Innovations
Business InnovationsBusiness Innovations
Business Innovations
 
India : Innovation and patents Sector Report_August 2013
India : Innovation and patents Sector Report_August 2013India : Innovation and patents Sector Report_August 2013
India : Innovation and patents Sector Report_August 2013
 
Shaping the Future of Open Innovation
Shaping the Future of Open InnovationShaping the Future of Open Innovation
Shaping the Future of Open Innovation
 
Sam Inkinen Open Innovation and Web 2.0
Sam Inkinen Open Innovation and Web 2.0Sam Inkinen Open Innovation and Web 2.0
Sam Inkinen Open Innovation and Web 2.0
 
From Idea to Product, Course Lectures Samples Promo
From Idea to Product, Course Lectures Samples PromoFrom Idea to Product, Course Lectures Samples Promo
From Idea to Product, Course Lectures Samples Promo
 
Innovation generation factors
Innovation generation factorsInnovation generation factors
Innovation generation factors
 
Technology and Innovation Management
Technology and Innovation ManagementTechnology and Innovation Management
Technology and Innovation Management
 
Innovation Unpacked
Innovation UnpackedInnovation Unpacked
Innovation Unpacked
 
Innomantra - Create the Future - Product Portfolio 2022 v1.0F
Innomantra - Create the Future - Product Portfolio 2022 v1.0FInnomantra - Create the Future - Product Portfolio 2022 v1.0F
Innomantra - Create the Future - Product Portfolio 2022 v1.0F
 
The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...
The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...
The Market for Open Innovation Platforms: Deciding If and Where to Invest - J...
 
Alex van Someren Nordic Seed Capital Summit 2012
Alex van Someren Nordic Seed Capital Summit 2012Alex van Someren Nordic Seed Capital Summit 2012
Alex van Someren Nordic Seed Capital Summit 2012
 
Innovation & Change Management
Innovation & Change ManagementInnovation & Change Management
Innovation & Change Management
 
Accelerating Innovation - A Functional Innovation Workshop
Accelerating Innovation - A Functional Innovation Workshop Accelerating Innovation - A Functional Innovation Workshop
Accelerating Innovation - A Functional Innovation Workshop
 
training of Professor Kent Millington
training of Professor Kent Millingtontraining of Professor Kent Millington
training of Professor Kent Millington
 

Viewers also liked

Microsoft managers
Microsoft managersMicrosoft managers
Microsoft managersPrince Patni
 
Ge 2017 summer conf sponsor info
Ge 2017 summer conf sponsor infoGe 2017 summer conf sponsor info
Ge 2017 summer conf sponsor infoJim Forde
 
Reverse innovation – what, how & where
Reverse innovation – what, how & whereReverse innovation – what, how & where
Reverse innovation – what, how & whereSwatantra Kumar
 
Ge’s two decade transformation
Ge’s two decade transformation Ge’s two decade transformation
Ge’s two decade transformation Vivek Rathod
 
6 F.01 Technology update for customers
6 F.01 Technology update for customers6 F.01 Technology update for customers
6 F.01 Technology update for customersGE_India
 
Someday is Today - GE's Brand Book
Someday is Today - GE's Brand BookSomeday is Today - GE's Brand Book
Someday is Today - GE's Brand BookRich Narasaki
 
The GE India Journey
The GE India JourneyThe GE India Journey
The GE India JourneyGE_India
 
Environment Clearance Letter
Environment Clearance Letter Environment Clearance Letter
Environment Clearance Letter GE_India
 
Ge company profile
Ge company profileGe company profile
Ge company profilePrince Patni
 
GE in India
GE in IndiaGE in India
GE in IndiaGE_India
 
Power LifeMax* - Solutions for B/E Gas Turbine Fleet
Power LifeMax* - Solutions forB/E Gas Turbine FleetPower LifeMax* - Solutions forB/E Gas Turbine Fleet
Power LifeMax* - Solutions for B/E Gas Turbine FleetGE_India
 
Harel Kodesh, Vice President, Predix and CTO, GE Digital
Harel Kodesh, Vice President, Predix and CTO, GE DigitalHarel Kodesh, Vice President, Predix and CTO, GE Digital
Harel Kodesh, Vice President, Predix and CTO, GE DigitalMIT Enterprise Forum Cambridge
 
Ge Presentation
Ge PresentationGe Presentation
Ge PresentationMcudworth
 
How GE Is Disrupting Itself
How GE Is Disrupting ItselfHow GE Is Disrupting Itself
How GE Is Disrupting ItselfWei Li
 
General Electric Presentation
General Electric PresentationGeneral Electric Presentation
General Electric Presentationscholarballer51
 
Smart Appliances : Wipro, Zinnov joint whitepaper
Smart Appliances : Wipro, Zinnov joint whitepaperSmart Appliances : Wipro, Zinnov joint whitepaper
Smart Appliances : Wipro, Zinnov joint whitepaperZinnov
 
How to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your NicheHow to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your NicheLeslie Samuel
 

Viewers also liked (19)

Microsoft managers
Microsoft managersMicrosoft managers
Microsoft managers
 
Ge 2017 summer conf sponsor info
Ge 2017 summer conf sponsor infoGe 2017 summer conf sponsor info
Ge 2017 summer conf sponsor info
 
Reverse innovation – what, how & where
Reverse innovation – what, how & whereReverse innovation – what, how & where
Reverse innovation – what, how & where
 
Ge’s two decade transformation
Ge’s two decade transformation Ge’s two decade transformation
Ge’s two decade transformation
 
6 F.01 Technology update for customers
6 F.01 Technology update for customers6 F.01 Technology update for customers
6 F.01 Technology update for customers
 
Someday is Today - GE's Brand Book
Someday is Today - GE's Brand BookSomeday is Today - GE's Brand Book
Someday is Today - GE's Brand Book
 
The GE India Journey
The GE India JourneyThe GE India Journey
The GE India Journey
 
Environment Clearance Letter
Environment Clearance Letter Environment Clearance Letter
Environment Clearance Letter
 
Ge company profile
Ge company profileGe company profile
Ge company profile
 
GE in India
GE in IndiaGE in India
GE in India
 
Power LifeMax* - Solutions for B/E Gas Turbine Fleet
Power LifeMax* - Solutions forB/E Gas Turbine FleetPower LifeMax* - Solutions forB/E Gas Turbine Fleet
Power LifeMax* - Solutions for B/E Gas Turbine Fleet
 
Harel Kodesh, Vice President, Predix and CTO, GE Digital
Harel Kodesh, Vice President, Predix and CTO, GE DigitalHarel Kodesh, Vice President, Predix and CTO, GE Digital
Harel Kodesh, Vice President, Predix and CTO, GE Digital
 
Reverse Innovation 2014
Reverse Innovation 2014Reverse Innovation 2014
Reverse Innovation 2014
 
Ge Presentation
Ge PresentationGe Presentation
Ge Presentation
 
How GE Is Disrupting Itself
How GE Is Disrupting ItselfHow GE Is Disrupting Itself
How GE Is Disrupting Itself
 
General Electric Presentation
General Electric PresentationGeneral Electric Presentation
General Electric Presentation
 
GE Case Study
GE Case StudyGE Case Study
GE Case Study
 
Smart Appliances : Wipro, Zinnov joint whitepaper
Smart Appliances : Wipro, Zinnov joint whitepaperSmart Appliances : Wipro, Zinnov joint whitepaper
Smart Appliances : Wipro, Zinnov joint whitepaper
 
How to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your NicheHow to Become a Thought Leader in Your Niche
How to Become a Thought Leader in Your Niche
 

Similar to Reverse Innovation

Phil giesler unilever
Phil giesler unileverPhil giesler unilever
Phil giesler unileverBizsprouts
 
Smartvt state of vermont
Smartvt state of vermontSmartvt state of vermont
Smartvt state of vermontwww.SMARTvt.org
 
Developing and Applying Private Sector Engagement Strategies - January 2013 w...
Developing and Applying Private Sector Engagement Strategies - January 2013 w...Developing and Applying Private Sector Engagement Strategies - January 2013 w...
Developing and Applying Private Sector Engagement Strategies - January 2013 w...CARE Economic Development Unit
 
U D O I, Sami Oinonen, Nokia, Feb 2, 2009
U D O I,  Sami  Oinonen,  Nokia,  Feb 2, 2009U D O I,  Sami  Oinonen,  Nokia,  Feb 2, 2009
U D O I, Sami Oinonen, Nokia, Feb 2, 2009Piotr_Krawczyk
 
Enabling Disruptive Innovation in Government
Enabling Disruptive Innovation in GovernmentEnabling Disruptive Innovation in Government
Enabling Disruptive Innovation in GovernmentMaxwell Wessel
 
Iain Gray Presentation Innovate Carolina 2012
Iain Gray Presentation Innovate Carolina 2012Iain Gray Presentation Innovate Carolina 2012
Iain Gray Presentation Innovate Carolina 2012pdmacarolinas
 
NineSigma presentation September 2012
NineSigma presentation September 2012NineSigma presentation September 2012
NineSigma presentation September 2012MarcelZillig
 
Examples of Innovation Building Blocks in IBM
Examples of Innovation Building Blocks in IBMExamples of Innovation Building Blocks in IBM
Examples of Innovation Building Blocks in IBMPietro Leo
 
IMT Lecture: Transforming Invention To Innovation
IMT Lecture: Transforming Invention To InnovationIMT Lecture: Transforming Invention To Innovation
IMT Lecture: Transforming Invention To InnovationDjadja Sardjana
 
Distributed Perspectives on Innovation (UC Berkeley Aug 2010)
Distributed Perspectives on Innovation (UC Berkeley Aug 2010)Distributed Perspectives on Innovation (UC Berkeley Aug 2010)
Distributed Perspectives on Innovation (UC Berkeley Aug 2010)Joel West
 
Building Effective Business Models in Emerging Markets
Building Effective Business Models in Emerging MarketsBuilding Effective Business Models in Emerging Markets
Building Effective Business Models in Emerging MarketsDr. Amit Kapoor
 
Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P Norton
Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P NortonStrategy Maps: Innovation Process - A Book by Robert S Kaplan & David P Norton
Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P NortonEndro Catur
 
Disruption and Your Business
Disruption and Your BusinessDisruption and Your Business
Disruption and Your BusinessMaxwell Wessel
 
Lean Startup: It's Not Just Technology, Lives are at Stake
Lean Startup: It's Not Just Technology, Lives are at StakeLean Startup: It's Not Just Technology, Lives are at Stake
Lean Startup: It's Not Just Technology, Lives are at StakeKen Power
 
Cloud World Innovation In The Cloud Static
Cloud World   Innovation In The Cloud   StaticCloud World   Innovation In The Cloud   Static
Cloud World Innovation In The Cloud Staticjtnoble
 
White paper -satyam_industrial_practice (3)
White paper -satyam_industrial_practice (3)White paper -satyam_industrial_practice (3)
White paper -satyam_industrial_practice (3)Ramprasad Srivats
 
Idea management systems drive competitiveness
Idea management systems drive competitivenessIdea management systems drive competitiveness
Idea management systems drive competitivenessGunnar Oskarsson
 
Lean Innovation
Lean InnovationLean Innovation
Lean Innovationkevinlu
 

Similar to Reverse Innovation (20)

Phil giesler unilever
Phil giesler unileverPhil giesler unilever
Phil giesler unilever
 
Smartvt state of vermont
Smartvt state of vermontSmartvt state of vermont
Smartvt state of vermont
 
Developing and Applying Private Sector Engagement Strategies - January 2013 w...
Developing and Applying Private Sector Engagement Strategies - January 2013 w...Developing and Applying Private Sector Engagement Strategies - January 2013 w...
Developing and Applying Private Sector Engagement Strategies - January 2013 w...
 
U D O I, Sami Oinonen, Nokia, Feb 2, 2009
U D O I,  Sami  Oinonen,  Nokia,  Feb 2, 2009U D O I,  Sami  Oinonen,  Nokia,  Feb 2, 2009
U D O I, Sami Oinonen, Nokia, Feb 2, 2009
 
Enabling Disruptive Innovation in Government
Enabling Disruptive Innovation in GovernmentEnabling Disruptive Innovation in Government
Enabling Disruptive Innovation in Government
 
Iain Gray Presentation Innovate Carolina 2012
Iain Gray Presentation Innovate Carolina 2012Iain Gray Presentation Innovate Carolina 2012
Iain Gray Presentation Innovate Carolina 2012
 
NineSigma presentation September 2012
NineSigma presentation September 2012NineSigma presentation September 2012
NineSigma presentation September 2012
 
Examples of Innovation Building Blocks in IBM
Examples of Innovation Building Blocks in IBMExamples of Innovation Building Blocks in IBM
Examples of Innovation Building Blocks in IBM
 
IMT Lecture: Transforming Invention To Innovation
IMT Lecture: Transforming Invention To InnovationIMT Lecture: Transforming Invention To Innovation
IMT Lecture: Transforming Invention To Innovation
 
Certificate Program in Leading Innovation and Growth
Certificate Program in Leading Innovation and GrowthCertificate Program in Leading Innovation and Growth
Certificate Program in Leading Innovation and Growth
 
Distributed Perspectives on Innovation (UC Berkeley Aug 2010)
Distributed Perspectives on Innovation (UC Berkeley Aug 2010)Distributed Perspectives on Innovation (UC Berkeley Aug 2010)
Distributed Perspectives on Innovation (UC Berkeley Aug 2010)
 
Market-led R&D
Market-led R&DMarket-led R&D
Market-led R&D
 
Building Effective Business Models in Emerging Markets
Building Effective Business Models in Emerging MarketsBuilding Effective Business Models in Emerging Markets
Building Effective Business Models in Emerging Markets
 
Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P Norton
Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P NortonStrategy Maps: Innovation Process - A Book by Robert S Kaplan & David P Norton
Strategy Maps: Innovation Process - A Book by Robert S Kaplan & David P Norton
 
Disruption and Your Business
Disruption and Your BusinessDisruption and Your Business
Disruption and Your Business
 
Lean Startup: It's Not Just Technology, Lives are at Stake
Lean Startup: It's Not Just Technology, Lives are at StakeLean Startup: It's Not Just Technology, Lives are at Stake
Lean Startup: It's Not Just Technology, Lives are at Stake
 
Cloud World Innovation In The Cloud Static
Cloud World   Innovation In The Cloud   StaticCloud World   Innovation In The Cloud   Static
Cloud World Innovation In The Cloud Static
 
White paper -satyam_industrial_practice (3)
White paper -satyam_industrial_practice (3)White paper -satyam_industrial_practice (3)
White paper -satyam_industrial_practice (3)
 
Idea management systems drive competitiveness
Idea management systems drive competitivenessIdea management systems drive competitiveness
Idea management systems drive competitiveness
 
Lean Innovation
Lean InnovationLean Innovation
Lean Innovation
 

More from Zinnov

COE Hotspots of the World Report 2021
COE Hotspots of the World Report 2021COE Hotspots of the World Report 2021
COE Hotspots of the World Report 2021Zinnov
 
Chiratae-Zinnov Report 2022 - India SaaS - Punching Through the Global Peckin...
Chiratae-Zinnov Report 2022 - India SaaS - Punching Through the Global Peckin...Chiratae-Zinnov Report 2022 - India SaaS - Punching Through the Global Peckin...
Chiratae-Zinnov Report 2022 - India SaaS - Punching Through the Global Peckin...Zinnov
 
202X & Future Growth Possibilities - Navigate at speed of the new reality
202X & Future Growth Possibilities - Navigate at speed of the new reality202X & Future Growth Possibilities - Navigate at speed of the new reality
202X & Future Growth Possibilities - Navigate at speed of the new realityZinnov
 
Inclusion And Diversity Maturity Benchmark – Creating An Inclusive Workplace ...
Inclusion And Diversity Maturity Benchmark – Creating An Inclusive Workplace ...Inclusion And Diversity Maturity Benchmark – Creating An Inclusive Workplace ...
Inclusion And Diversity Maturity Benchmark – Creating An Inclusive Workplace ...Zinnov
 
Top Enterprise Technology Trends that will Redefine 2021
Top Enterprise Technology Trends that will Redefine 2021Top Enterprise Technology Trends that will Redefine 2021
Top Enterprise Technology Trends that will Redefine 2021Zinnov
 
Location Analysis - CoE Hotspots of the World
Location Analysis - CoE Hotspots of the WorldLocation Analysis - CoE Hotspots of the World
Location Analysis - CoE Hotspots of the WorldZinnov
 
The Future of Internet Content Consumption in India | Zinnov
The Future of Internet Content Consumption in India | Zinnov The Future of Internet Content Consumption in India | Zinnov
The Future of Internet Content Consumption in India | Zinnov Zinnov
 
Digital SMBs - Key Pillar of India's Economy | Zinnov
Digital SMBs - Key Pillar of India's Economy | ZinnovDigital SMBs - Key Pillar of India's Economy | Zinnov
Digital SMBs - Key Pillar of India's Economy | ZinnovZinnov
 
Wipro-Zinnov PLM Assortment Case Study
Wipro-Zinnov PLM Assortment Case StudyWipro-Zinnov PLM Assortment Case Study
Wipro-Zinnov PLM Assortment Case StudyZinnov
 
USA-India-Israel Collaboration Report 2018
USA-India-Israel Collaboration Report 2018USA-India-Israel Collaboration Report 2018
USA-India-Israel Collaboration Report 2018Zinnov
 
Zinnov Zones for Product Engineering Services 2017
Zinnov Zones for Product Engineering Services 2017Zinnov Zones for Product Engineering Services 2017
Zinnov Zones for Product Engineering Services 2017Zinnov
 
Zinnov Zones for Digital Services 2017
Zinnov Zones for Digital Services 2017Zinnov Zones for Digital Services 2017
Zinnov Zones for Digital Services 2017Zinnov
 
Large Enterprises : Transforming India's Digital Future
Large Enterprises : Transforming India's Digital FutureLarge Enterprises : Transforming India's Digital Future
Large Enterprises : Transforming India's Digital FutureZinnov
 
Campus Compensation Trends in India - 2017
Campus Compensation Trends in India - 2017Campus Compensation Trends in India - 2017
Campus Compensation Trends in India - 2017Zinnov
 
How to become a Machine Learning Expert
How to become a Machine Learning ExpertHow to become a Machine Learning Expert
How to become a Machine Learning ExpertZinnov
 
How to create an effective Point of View
How to create an effective Point of ViewHow to create an effective Point of View
How to create an effective Point of ViewZinnov
 
How to be an Employer of Choice
How to be an Employer of ChoiceHow to be an Employer of Choice
How to be an Employer of ChoiceZinnov
 
IoT Startup Landscape in India - Part II
IoT Startup Landscape in India - Part IIIoT Startup Landscape in India - Part II
IoT Startup Landscape in India - Part IIZinnov
 
IoT Startup Landscape in India - Part I
IoT Startup Landscape in India - Part IIoT Startup Landscape in India - Part I
IoT Startup Landscape in India - Part IZinnov
 
Changing R&D Structure and Talent redistribution across the Globe
Changing R&D Structure and Talent redistribution across the GlobeChanging R&D Structure and Talent redistribution across the Globe
Changing R&D Structure and Talent redistribution across the GlobeZinnov
 

More from Zinnov (20)

COE Hotspots of the World Report 2021
COE Hotspots of the World Report 2021COE Hotspots of the World Report 2021
COE Hotspots of the World Report 2021
 
Chiratae-Zinnov Report 2022 - India SaaS - Punching Through the Global Peckin...
Chiratae-Zinnov Report 2022 - India SaaS - Punching Through the Global Peckin...Chiratae-Zinnov Report 2022 - India SaaS - Punching Through the Global Peckin...
Chiratae-Zinnov Report 2022 - India SaaS - Punching Through the Global Peckin...
 
202X & Future Growth Possibilities - Navigate at speed of the new reality
202X & Future Growth Possibilities - Navigate at speed of the new reality202X & Future Growth Possibilities - Navigate at speed of the new reality
202X & Future Growth Possibilities - Navigate at speed of the new reality
 
Inclusion And Diversity Maturity Benchmark – Creating An Inclusive Workplace ...
Inclusion And Diversity Maturity Benchmark – Creating An Inclusive Workplace ...Inclusion And Diversity Maturity Benchmark – Creating An Inclusive Workplace ...
Inclusion And Diversity Maturity Benchmark – Creating An Inclusive Workplace ...
 
Top Enterprise Technology Trends that will Redefine 2021
Top Enterprise Technology Trends that will Redefine 2021Top Enterprise Technology Trends that will Redefine 2021
Top Enterprise Technology Trends that will Redefine 2021
 
Location Analysis - CoE Hotspots of the World
Location Analysis - CoE Hotspots of the WorldLocation Analysis - CoE Hotspots of the World
Location Analysis - CoE Hotspots of the World
 
The Future of Internet Content Consumption in India | Zinnov
The Future of Internet Content Consumption in India | Zinnov The Future of Internet Content Consumption in India | Zinnov
The Future of Internet Content Consumption in India | Zinnov
 
Digital SMBs - Key Pillar of India's Economy | Zinnov
Digital SMBs - Key Pillar of India's Economy | ZinnovDigital SMBs - Key Pillar of India's Economy | Zinnov
Digital SMBs - Key Pillar of India's Economy | Zinnov
 
Wipro-Zinnov PLM Assortment Case Study
Wipro-Zinnov PLM Assortment Case StudyWipro-Zinnov PLM Assortment Case Study
Wipro-Zinnov PLM Assortment Case Study
 
USA-India-Israel Collaboration Report 2018
USA-India-Israel Collaboration Report 2018USA-India-Israel Collaboration Report 2018
USA-India-Israel Collaboration Report 2018
 
Zinnov Zones for Product Engineering Services 2017
Zinnov Zones for Product Engineering Services 2017Zinnov Zones for Product Engineering Services 2017
Zinnov Zones for Product Engineering Services 2017
 
Zinnov Zones for Digital Services 2017
Zinnov Zones for Digital Services 2017Zinnov Zones for Digital Services 2017
Zinnov Zones for Digital Services 2017
 
Large Enterprises : Transforming India's Digital Future
Large Enterprises : Transforming India's Digital FutureLarge Enterprises : Transforming India's Digital Future
Large Enterprises : Transforming India's Digital Future
 
Campus Compensation Trends in India - 2017
Campus Compensation Trends in India - 2017Campus Compensation Trends in India - 2017
Campus Compensation Trends in India - 2017
 
How to become a Machine Learning Expert
How to become a Machine Learning ExpertHow to become a Machine Learning Expert
How to become a Machine Learning Expert
 
How to create an effective Point of View
How to create an effective Point of ViewHow to create an effective Point of View
How to create an effective Point of View
 
How to be an Employer of Choice
How to be an Employer of ChoiceHow to be an Employer of Choice
How to be an Employer of Choice
 
IoT Startup Landscape in India - Part II
IoT Startup Landscape in India - Part IIIoT Startup Landscape in India - Part II
IoT Startup Landscape in India - Part II
 
IoT Startup Landscape in India - Part I
IoT Startup Landscape in India - Part IIoT Startup Landscape in India - Part I
IoT Startup Landscape in India - Part I
 
Changing R&D Structure and Talent redistribution across the Globe
Changing R&D Structure and Talent redistribution across the GlobeChanging R&D Structure and Talent redistribution across the Globe
Changing R&D Structure and Talent redistribution across the Globe
 

Recently uploaded

PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfAnhNguyen97152
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024Stephan Koning
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfJohnCarloValencia4
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 

Recently uploaded (20)

PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdfGraham and Doddsville - Issue 1 - Winter 2006 (1).pdf
Graham and Doddsville - Issue 1 - Winter 2006 (1).pdf
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 Building Your Personal Brand on LinkedIn - Expert Planet-  2024 Building Your Personal Brand on LinkedIn - Expert Planet-  2024
Building Your Personal Brand on LinkedIn - Expert Planet- 2024
 
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdfAMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
AMAZON SELLER VIRTUAL ASSISTANT PRODUCT RESEARCH .pdf
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 

Reverse Innovation

  • 1. Reverse Innovation February 2010 Sunnyvale Beijing Bangalore Hyderabad Pune Gurgaon This report is solely for the use of Zinnov client and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Zinnov
  • 2. MNCs are slowly shifting their focus from developed to emerging markets but Indian R&D subsidiaries are still not their primary agents for innovation MNC Focus Make products for Make products for Make products for local Make products for local global developed global markets. Localize markets. Innovate at market needs and adapt markets. for emerging markets home and near to worldwide needs. Innovate at home, innovate at home, and emerging markets. Innovate near the local distribute everywhere develop near emerging Develop near local market. markets markets. Global GLocal Local Reverse Support mature and Lead localization Incubate products and ? declining products for support related services aimed at local developed markets enhancements customers R&D Subsidiary Play None Low Medium High Very High Source: Harvard Business Review Article by Jeffrey Immelt, Vijay Govindrajan, and Chris Trimble, Zinnov Analysis R&D Globalization Council 1
  • 3. India centers follow a multitude of models to tap new product and technology innovations 3 1 • MNCs have set up venture capitalist • Dedicated teams responsible for arms that fund companies with innovation and productization of products/services that fit their own ideas, i.e., teams of technical portfolio. architects and a few innovative engineers. • Companies also tie up with VC firms / carry out independent research to • Part time resources – Top level talent help them fund and then acquire the of different teams brought together right kind of startups. to work on innovative ideas and product prototypes. Partnership University 2 • There are different collaboration models between industries and universities to help foster innovation. The most commonly followed models are consulting and sponsored research. R&D Globalization Council 2
  • 4. There are three popular innovation models that MNC subsidiaries should embrace Innovation Models in Globalization PREM • Top 3 CSAT for India COE 83% • Partner operations managed Managed • Q1-’09 End Utilization 84% (Estimated) Reverse Innovation Innovation • Very high TCE / CSAT LocalServices Disruptive Innovation • To tap opportunities in • Every personConsulting • Current utilization 60% that take root in simple is a consumer who • Products Concept shapes his own experience Sales enablement with CSD hasthe bottom of the • emerging markets and pioneer application at resulted in multiple value segments in wealthy • Market Development Task which large-scale RFP’s market • Transitioned local partner headcount involves converting consumers’ countries • These products relentlessly • Focus on developing products unorganized markets to efficient move up market and eventually in countries like China and India private sector displaces more established and then distributing them • BOP will force breakthrough competitors globally. innovations • Simple products that are innovated and developed for emerging segments/markets Similarity • Access to a whole new customer base, initially unavailable due to high cost of product or low need • Global scalability possible with the right kind of resource allocation Low cost of Innovation Access to huge customer Keeps new entrants at bay Benefit base; platform for future 3
  • 5. But the success of these models necessitates a mindset change at HQ and an organizational change at the Global level The executive overseeing the LGT has 3 critical Without autonomy, the LGTs won’t be able roles: mediating conflicts between the team to focus on the problems of customers in and the global business, connecting the team 1 emerging markets. Specifically, they need the to resources such as global R&D centers, and power to develop their own strategies, helping take the innovations that the team organizations ,and products develops into rich countries. Only top managers have access to experiment with people transfers, organizational structures, and Have local growth processes to see what works teams report to Shift power to someone high in where the growth 5 the organization is 2 Innovation, by nature, is uncertain. It’s more important to learn quickly Given the tremendous gulf between Customize Build new by efficiently testing assumptions than rich countries and poor ones in income, Objectives, Targets offerings from the to hit the numbers. Relevant metrics infrastructure, and sustainability needs, and Metrics ground up and standards for LGTs—the ones that reverse innovation must be zero-based. resolve the critical unknowns—are These wide differences cannot be rarely the same as those used by the spanned by adapting global products. established businesses. Build Local Growth teams from the ground 4 up – Like new companies 3 Zero-based innovation needs zero-based organizational design. Hiring practices, reporting structures, titles, job descriptions, norms for working relationships, and power balances between functions—all should be evolved to support glocalization . Source: Harvard Business Review Article by Jeffrey Immelt, Vijay Govindrajan, and Chris Trimble R&D Globalization Council 4
  • 6. GE is one such Global company which has introduced this change GE’s Senior Management Team Discussion Structure: Global R&D Teams Global R&D Teams • GE has adopted a new organization model to help foster innovation in Local Growth Teams emerging locations • This new reverse innovation model has local growth teams, LGTs, who have autonomy in the entire value chain i.e. Development, Sourcing, Manufacturing, Sales and Marketing of a region • These teams report directly to global Development/Marketing/P&L etc senior management and also have access to existing company R&D and technical resources from across the globe Idea 8…. Idea 2 Idea 3 Idea 5 Idea 6 Idea 7 Idea 4 Idea 1 Ideas Objective: • The objective is to create low cost products that can be made available to Low Cost and viable product for people the masses and not the classes alone at the low income group in India Success Stories: • GE successfully launched Electrocardiograms at a nominal price of USD 1000 which is being used in rural Heated Bassinets Electrocardiograms clinics and hospitals meant to serve the bottom of the pyramid • In India, GE has also launched a heated bassinet which is meant for women in villages who have young children Reverse innovation - Products launched for the local market and taken to the global market Source: Harvard Business Review Article by Jeffrey Immelt, Vijay Govindrajan, and Chris Trimble R&D Globalization Council 5
  • 7. India, expected to emerge as the fifth largest consumer market in the world by 2025, is the ideal market to experiment with local and reverse innovations Total Household Consumption Consumption of Major Consumer Products 80% (percentage) 1,600 1,491 70% 17% 20% 19% 1,400 60% 2% 5% 3% 6% 1,200 1,044 50% 7% 6% 9% 1,000 40% 9% 13% 731 USD billion 800 30% 42% 600 511 20% 34% 25% 362 400 10% 0% 3% 3% 3% 200 2005 2015 2025 0 Household Products Food,Beverages and Tobacco 2005 2010 2015 2020 2025 Healthcare Education Communication Transportation GDP Growth 2008-09 United France Germany Russia Kingdom United States India China Ukraine 10% 5% 0% -5% Customers are here -10% χ χ χ χ χ √ √ √ R&D Globalization Council 6
  • 8. Thank You 69 "Prathiba Complex", 4th 'A' 575 N. Pastoria Ave 21, Waterway Ave, Cross, Koramangala Ind. Layout, Suite J Suite 300 5th Block, Koramangala Sunnyvale The Woodlands Bangalore – 560095 CA – 94085 TX – 77380 Phone: +91-80-41127925/6 Phone: +1-408-716-8432 Phone: +1-281-362-2773