Global ambitions through reverse innovation

As Global companies want to capture the market in every corner of the world, while keeping the core-function of the business such as R&D, technology or Decision making in their home country.

Business models which gave the way to outsourcing of the routine functions or activities such as customer care were actually fading away as more and more organizations have got the taste of reverse innovation.

Reverse innovation is basically about innovating products and solutions primarily in emerging markets with an aim to serve both developing and developed nations. (//Source: Business Today, May 30 2010, Page 77). It is of significant importance because of following four reasons.

Business lies here: Now Big players are getting greater pie of their profit cake from countries such as China, India, Brazil, and South Africa. So focus on the need of the consumer is suppose to be addressed by these organizations and that is possible by being closer to the customer for critical functions such as design.

Cost of innovation: availability of skilled manpower which is equipped with latest technological assets has made the designing of the new products much cost-effective in emerging markets. Renault is designing its global compact car at its design centre in Mumbai, India.

Frugal mindset in developed nations: It is another reason that has given reverse innovation so much importance, as the consumers in developed nations are also becoming cost-conscious, so they are hitting the “VALUE QUOTIENT” of any product. It has made easier for the product designers in the developing countries to address the needs of this segment of customer in developed nations along with local markets. Blurring the line of quality expectations among the consumers has given they way to reverse innovation.

More and more organizations are on set to adopt a business model which has reverse innovation at its core to fulfill their global ambitions.

First Year of MBA - Key learnings

Three things that I have learned at the end of second semester (First Year) of my MBA in technology management at DMS, IIT Delhi.

1. Statistics is one of the foundation of the Management over which this tall building of management is towering. Its principles are used so extensively that future of leading multinational organizations might turn dark without this subject.

Business Intelligence .... has statistics at its core...

2. Its not subject that is interesting or boring in itself, but its teacher who makes it what it should be. Management accounting, I thought of it as night mare being an engineer,before joining the course but thanks to Prof P K Jain, Professor at DMS, IIT Delhi, who not only made our fundamental strong, but also gave the practical aspects of accounting to the engineers giving them better decision making power.

Now I can understand that why Volume Profit Graphs are @ desks of board room.

3. Creative problem solving, a unique course at B School -IIT Delhi, is basically about how problem actually hit our face and how we (manager) should solve them. How a problem from mess state can be turned into statement through process of diverging and converging patterns of thinking, and how we ended up to the solution.

I got to know about P N Khandwalla, Ex Dean IIM Ahmadabad , a true genius and writer of Master piece "Life Long Creativity-An unending Quest"... A bible on Creativity, its process and how it can be part of our life ....


Other Important Books I read during this year...

1. Fifth discipline by Peter M Senge
2. My years with General Motors by Alfred P Sloan
3.Exploring Corporate Strategy by Gerry Johnson,Kevan Scholes & Richard Whittington
4. Managing radical Change -Sumantra Ghoshal & Gita piramal

Thanks 2009-10....

CGPA: 9.5