Flashcards
Lecture Session -Reverse innovations PLUS Blue Ocean
Cards in this deck (20)
- 1The typical globalization sequenceGlobalization is primarily a means of expanding market access OR resource
access ultimately leading to globalization - 2Then, some of our assumptions went wrong….Emerging economies will largely evolve the same way as
established economies have done
• They face a different context today and their challenges are quite different
• Their developmental needs are remarkably different
• Special needs products developed for emerging markets cannot
find a home in established country markets
• Emerging market products can find buyers in established markets, often
creating new market segments
• Emerging market products can provide a “challenger” position against
which developed market products can be evaluated - 3The reverse innovation process
- 4Why does “trickle up” make sense?
- 5Reverse innovation in practice
- 6Relative advantages: DMNEs• Technology pools within the firm
• Strong resource base (capital, talent)
• Familiarity with global marketplace
• Ability to carry innovations across
markets –infrastructure advantage
• Strong presence, brand recognition,
and distribution assets in established
markets - 7Relative advantages: EMNEs• Customer intimacy and proximity
• Focus on low-cost solutions
• Strong commitment to local market
• Product pricing is better suited to
emerging markets so it might be
easier to transport to similar settings
• Unhindered by legacy systems and
entrenched resistance - 8The Familiarity trap• Organizations prefer the
familiar and therefore past
experience always colors
expectations of the future
• Matching markets to
existing products
• Cost reduction require
eliminating features - 9The Competency trapGlobal organizations tend to
focus on a small set of
powerful competencies and
want to exploit them as
opposed to developing new
ones.
• Embracing EM innovation
often demands new
competencies - 10The Complacency trap• Past success often breeds
complacency. If the global
product organization has
delivered results, the firm
could become immune to
opportunities elsewhere
• The Not Invented Here
syndrome - 11Gearing up for exploiting reverse innovations
- 12Divide and Conquer for reverse innovation success
- 13Blue Ocean Thinking
- 14A Blue Ocean Product or Service
- 15WHAT STIFLES INNOVATION?Cognitive: The force to
maintain status quo
•Resources: Lack of
adequate resource support
•Motivation: Tired
organization
•Political: Vested interests - 16Overcoming the Cognitive hurdle•Place your team directly in the context you
want to change
•Experiential (e.g., speaking to your
toughest customer, boss)
•Rational (e.g., projected future scenarios)
•Sharpen your communication both in style
and substance - 17Jumping the Resource hurdle•Focus available resources where they
have most impact
•Retreat from the “cold spots”
•Trade resources with other groups
It is all about multiplying the
value of of available resources - 18Clearing the Motivation hurdle•Engage the key influencers
•Breakdown the challenge into
manageable pieces
•Celebrate successes
How can you help them craft
their winning story? - 19Navigating the Political hurdle• Identify sources of unbiased feedback and support
• Influencing strategy for key stakeholders
• Focus on the extremes first and start with the
positives - 20The single most crucial factor driving success of disruptive innovation....efforts is the ability of leaders to
create a culture where there is a
healthy disrespect for
history
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- Flashcards on Lecture Session -Reverse innovations PLUS Blue Ocean, created by McKay Lyman on 21/11/2019.
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- McKay Lyman
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