Market players that have learnt to compete on volume despite low margins in a tough environment have also developed a lethal capability to explode premium market barriers in mature markets. Western incumbents will only be able to win this race as long as they can compete and excel not only at home, but more importantly, in the rough-and-tumble of emerging markets.
Know more: http://www.infosys.com/building-tomorrows-enterprise/emerging-economies/Pages/index.aspx
The world economy is change. The model of the 20th century corporation need to be adapted toward a 21st century model: flat, connected, focused on innovation, collaborative, global.
The world economy is change. The model of the 20th century corporation need to be adapted toward a 21st century model: flat, connected, focused on innovation, collaborative, global.
MNCs are corporations that control production facilities in more than one country through Foreign Direct Investments. MNCs increase competition thereby breaking domestic monopoly. The demerit of having MNCs is that their functioning can be inimical to national interests.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
1. BENEFITS THAT MNCS BRING TO HOST NATIONS
a. Improvement in the standard of living
b. Employment and economic growth in overseas countries
2. POTENTIAL NEGATIVE IMPACT
a. Influence on foreign governments to gain concession
b. Exploitation of labour in developing countries
i. Implementation of working practices which would be unacceptable in their home country
ii. Sale of unsafe products to consumers
c. Use of unsustainable resources and the degradation of the local environment
d. Cultural Imperialism
e. Footloose Capitalism
3. CONTROLLING MNCs
a. Pressure groups and public opinion
b. Internet
c. Self-Regulation
d. Political Constraints
e. Legal or constraints
f. Competition policy
Globalization Past,Present and The FutureAnkur Sharma
This presentation charts the history and the present status of Globalization and then, introduces a disruptive concept called "Reverse Innovation" which the author believes would change the way Globalization happens currently. Please contact info@ankursharma.co.in more information and my speaking schedules
Nystrom (1990) described high tech markets as marketing dependent and technologically driven. Unfortunately, there is evidence that this linkage is not often recognized by organizations (Gupta, Ray and Wilemon 1985). High tech markets are characterized as complex. In addition, they exist under rapidly changing technological conditions which lead to shorter life cycles (Davidow 1986) and the need for rapid decisions (Bridges, Coughlan, and Kalish 1991). The importance of speed in high tech markets is driven by increasing competition and the continually evolving expectations of customers (Doyle and Saunders 1985). All of this is compounded by higher levels of risk for both the customer and the producer.
Study to understand the management strategies of new multinationals from the ...Charm Rammandala
The purpose of this study is to understand how the emerging multinational companies from emerging economies such as BRIC countries, Middle East and developing countries like Thailand and Malaysia challenging the traditional multinational companies who have strong roots to developed countries. Using various strategies and business models such as alliances, joint ventures and in some cases wholly owned subsidiaries, newly emerging multinationals have made their presence felt in the world market. This study will take an in-depth look in to the management strategies in place to overcome the barriers and accelerate the growth.
MNCs are corporations that control production facilities in more than one country through Foreign Direct Investments. MNCs increase competition thereby breaking domestic monopoly. The demerit of having MNCs is that their functioning can be inimical to national interests.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
1. BENEFITS THAT MNCS BRING TO HOST NATIONS
a. Improvement in the standard of living
b. Employment and economic growth in overseas countries
2. POTENTIAL NEGATIVE IMPACT
a. Influence on foreign governments to gain concession
b. Exploitation of labour in developing countries
i. Implementation of working practices which would be unacceptable in their home country
ii. Sale of unsafe products to consumers
c. Use of unsustainable resources and the degradation of the local environment
d. Cultural Imperialism
e. Footloose Capitalism
3. CONTROLLING MNCs
a. Pressure groups and public opinion
b. Internet
c. Self-Regulation
d. Political Constraints
e. Legal or constraints
f. Competition policy
Globalization Past,Present and The FutureAnkur Sharma
This presentation charts the history and the present status of Globalization and then, introduces a disruptive concept called "Reverse Innovation" which the author believes would change the way Globalization happens currently. Please contact info@ankursharma.co.in more information and my speaking schedules
Nystrom (1990) described high tech markets as marketing dependent and technologically driven. Unfortunately, there is evidence that this linkage is not often recognized by organizations (Gupta, Ray and Wilemon 1985). High tech markets are characterized as complex. In addition, they exist under rapidly changing technological conditions which lead to shorter life cycles (Davidow 1986) and the need for rapid decisions (Bridges, Coughlan, and Kalish 1991). The importance of speed in high tech markets is driven by increasing competition and the continually evolving expectations of customers (Doyle and Saunders 1985). All of this is compounded by higher levels of risk for both the customer and the producer.
Study to understand the management strategies of new multinationals from the ...Charm Rammandala
The purpose of this study is to understand how the emerging multinational companies from emerging economies such as BRIC countries, Middle East and developing countries like Thailand and Malaysia challenging the traditional multinational companies who have strong roots to developed countries. Using various strategies and business models such as alliances, joint ventures and in some cases wholly owned subsidiaries, newly emerging multinationals have made their presence felt in the world market. This study will take an in-depth look in to the management strategies in place to overcome the barriers and accelerate the growth.
Deriving Business Value from Social NetworksInfosys
How do some people sway public opinion where others fail? What's the secret behind personal influence? How important are connections? These have become all-important questions in our age of social networking. Social networks have expanded the influence of connections to unimaginable proportions. Clearly, there is business value to be derived from networks. It's no wonder then that the science of social networks has kindled interest among industry think tanks and corporate executives.Read more: http://bit.ly/Njs9MX
Gaining Competitive Advantage Through Risk Data GovernanceInfosys
This paper examines the need for a comprehensive data governance solution and highlights how it creates a competitive edge for the financial institution.
The Puzzle of Innovation in China - Adding the Missing Parts (goetzpartners s...Wolfram Römhild
+ Innovation: the key to continuing growth in China
+ A plan for the future: setting an innovation road map for MNCs
+ Overcoming barriers: taking the lead with proactive measures
+ Looking inward: a way to identify innovation capabilities
Methodology
The opinions and data presented in this report are based on goetzpartners’ work experience with multinational corporations in China. In addition, a comprehensive innovation survey was jointly undertaken with our partners from renowned Chinese institutions. In cooperation with Professor Zheng Han, Chair of Innovation and Entrepreneurship at Tongji University, and the
German Chamber of Commerce in Shanghai, we interviewed more than 100 German corporations operating subsidiaries in the Chinese market, with two thirds of them being present in China for more than ten years.
https://www.goetzpartners.com/publications/studies/
Innovation sourcing excellence: Three
purchasing capabilities for success
Hervé Legenvre a, Jury Gualandris b,*
a European Institute of Purchasing Management, French Geneva Campus, Archamps, France
b Ivey Business School, Western University, 1255 Western Road, London, ON N6G 0N1, Canada
Business Horizons (2018) 61, 95—106
Available online at www.sciencedirect.com
ScienceDirect
www.elsevier.com/locate/bushor
KEYWORDS
Open innovation;
Purchasing and supply
management;
Capability maturity
model;
Combinative
capabilities;
Sources of innovative
ideas
Abstract Innovation sourcing has become more critical across many industries. As
global value chains have become more fragmented, change and opportunity comes
from all sides. As a result, companies need to excel at capturing innovation
opportunities with existing and potential supply chain members. This article
describes a simple framework with three essential innovation sourcing capabilities
needed to excel in purchasing: (1) Purchasing needs to explore unmet needs and
anticipate future competitive advantages by working closely with other functions and
clients; (2) it needs to explore external opportunities beyond first-tier suppliers; and
(3) it needs to involve suppliers in innovation projects that consistently deliver
results over time. Our framework has been developed based on a combined qualita-
tive and quantitative research methodology that takes into account practices and
results at the purchasing and company levels. The framework will help C-level
managers and purchasing teams benchmark their progress in innovation sourcing
and understand what steps need to be taken to achieve excellence.
# 2017 Kelley School of Business, Indiana University. Published by Elsevier Inc. All
rights reserved.
1. Innovation sourcing: A purchasing
perspective
Over the past 50 years, vertically integrated nation-
al champions turned into global corporations cen-
tered on a handful of core competencies. They
continuously rationalized their supply base and
created a multilayer ecosystem of companies and
organizations. At the same time, many startups and
* Corresponding author
E-mail address: [email protected] (J. Gualandris)
0007-6813/$ — see front matter # 2017 Kelley School of Business, I
https://doi.org/10.1016/j.bushor.2017.09.009
numerous mid-size companies have demonstrated
their ability to bring innovative ideas to market.
They do not just bring products and new technolo-
gies to life, but they also bring new distribution
channels, new processes, and new business models.
They sometimes disrupt existing markets, while on
other occasions they complement existing offers.
The simultaneous unfolding of these two trends
offers a continuous flow of opportunities that es-
tablished companies struggle to capture (Linder,
Jarvenpaa, & Davenport, 2003; Slowinski, Hummel,
Gupta, & Gilmont, 2009).
ndiana University. Published by Elsevier Inc. All rights reserved.
http://crossmark.crossref.org/dialog/?doi=10.1016/ ...
International strategies and value of international strategiesmoqudasakram206
In this presentation you will know about what are international strategies and what is the value of international strategies.How companies gain competitive advantage by implementing international strategies.
Infosys commissioned an independent market research company, Vanson Bourne, to investigate the use of digital technologies and key trends in nine industries. We surveyed 1,000 senior decision makers from business and IT, from large organizations with 1,000 employees or more and annual revenue of at least US$500 million.
The report aims to discover:
a) the surging tide of digital technology adoption in organizations – what is used and where?
b) the promised land of digital technology use, and the hurdles organizations face to get there
c) the biggest disruptive digital trends within the next three years and why organizations see them as vital to future success
The summary here presents the survey results and highlights the digital outlook that will define the healthcare industry strategy over the next three years.
5 tips to make your mainframe as fit as youInfosys
Just like a periodic health check-up is important to assess your overall well-being, a detailed reexamination of the enterprise IT landscape is paramount. We take a look at the various ways an enterprise needs to revamp its mainframe and sharpen its functionalities to stay ahead of the game. While APIs aid you in providing superior customer service, migrating to the cloud provides you with scalability and resilience. These and many more sub-offerings from Infosys aid your organization in staying agile and equipped to leverage the latest technologies to cater to the ever-changing market. Learn more.
Human Amplification In The Enterprise - Resources and UtilitiesInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Resources and Utilities.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Telecom and CommunicationInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Telecom and Communication.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Retail and CPGInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Retail and CPG.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Manufacturing and High-techInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Manufacturing and High-tech.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human amplification in the enterprise - Automation. Innovation. Learning.Infosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Automation, Innovation and learning.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Healthcare and Life SciencesInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Healthcare and Life Sciences
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Human Amplification In The Enterprise - Banking and InsuranceInfosys
Infosys commissioned a study to develop a research methodology and get insights into the current nature of digital transformation enterprises undergo, across industry verticals. This deck provides industry specific insights from Banking and Insurance.
The study sought to understand a) the specific drivers of digital transformation for enterprises, b) the various facets of this transformation, c) expected and ensuing outcomes, and d) the role of Artificial Intelligence (AI).
Take a glimpse at few of our efforts that we made to demonstrate that efficient technologies can easily be deployed in large scale in a cost effective manner to make our campus environmental friendly on this World Environment Day 2015
The Information Services industry is in the eye of the digital storm. Two major contenders within this industry - traditional and new age media companies must adopt strategies for the significant mass of millennials and demanding consumers.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
JMeter webinar - integration with InfluxDB and GrafanaRTTS
Watch this recorded webinar about real-time monitoring of application performance. See how to integrate Apache JMeter, the open-source leader in performance testing, with InfluxDB, the open-source time-series database, and Grafana, the open-source analytics and visualization application.
In this webinar, we will review the benefits of leveraging InfluxDB and Grafana when executing load tests and demonstrate how these tools are used to visualize performance metrics.
Length: 30 minutes
Session Overview
-------------------------------------------
During this webinar, we will cover the following topics while demonstrating the integrations of JMeter, InfluxDB and Grafana:
- What out-of-the-box solutions are available for real-time monitoring JMeter tests?
- What are the benefits of integrating InfluxDB and Grafana into the load testing stack?
- Which features are provided by Grafana?
- Demonstration of InfluxDB and Grafana using a practice web application
To view the webinar recording, go to:
https://www.rttsweb.com/jmeter-integration-webinar
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
In today's fast-changing business world, Companies that adapt and embrace new ideas often need help to keep up with the competition. However, fostering a culture of innovation takes much work. It takes vision, leadership and willingness to take risks in the right proportion. Sachin Dev Duggal, co-founder of Builder.ai, has perfected the art of this balance, creating a company culture where creativity and growth are nurtured at each stage.
Kubernetes & AI - Beauty and the Beast !?! @KCD Istanbul 2024Tobias Schneck
As AI technology is pushing into IT I was wondering myself, as an “infrastructure container kubernetes guy”, how get this fancy AI technology get managed from an infrastructure operational view? Is it possible to apply our lovely cloud native principals as well? What benefit’s both technologies could bring to each other?
Let me take this questions and provide you a short journey through existing deployment models and use cases for AI software. On practical examples, we discuss what cloud/on-premise strategy we may need for applying it to our own infrastructure to get it to work from an enterprise perspective. I want to give an overview about infrastructure requirements and technologies, what could be beneficial or limiting your AI use cases in an enterprise environment. An interactive Demo will give you some insides, what approaches I got already working for real.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Re-Innovating Innovation: The Case for Emerging Markets
1. Insights
Re-Innovating Innovation: The Case for Emerging Markets
- Dr. Martin Lockstrom
It’s often being said that innovation is the mother of competitiveness. That’s true, but only to a limited extent. The fact is
that innovation is only a means, and not an end. So what’s the end then? Adaptation. Only those companies, which adapt
to a changing environment will withstand the test of time. From a Western perspective, the notion of innovation as the
key source of competitive advantage held true for most of the 20th century, as companies in developed markets could
rely on global business models and reap benefits from cost differentials and arbitrage opportunities across geographic
regions. However, as globalization keeps its momentum, the traditional paradigm of inventing in developed markets and
producing in developing markets is becoming increasingly obsolete.
www.infosys.com
2. A World in Flux
Globalization is the key driver behind the need for a new innovation
paradigm. The reasons are two-fold. First, globalization is a self-
nurturing process, which requires companies to globalize, which in
turn drives globalization further. Historically, companies started down
this path by sourcing from low-cost countries, followed by localizing
production, and so forth. This was a model of global production, in
which products were mainly developed by Westerners, in Western
countries, for Western consumers – if products were in demand in
other markets, it was a bonus. In today’s marketplace, however, things
look radically different.
Developing economies are generally growing very fast, often at twice
the rate of developed economies. As a result, they are increasing their
share of world economic output. For instance, over the last decade,
China has overtaken both Germany and Japan, to become the second
largest economy in the world, and is estimated to overtake the U.S in
less than a couple of decades if current forecasts hold true. India is also
catching up, albeit at a slower rate, and is today among the top ten
global economies. It’s the same story for other emerging economies
throughout South and South-East Asia, as well as Latin America and
parts of Africa and the Middle East. Meanwhile, in the wake of the
financial crisis, developed economies in Europe and North America are
struggling to stay competitive and revive slumping consumer demand.
So in order to adapt to this brave new world, it is imperative that
companies reap benefits not only on the supply side by securing
critical factor inputs such as raw materials, but more importantly,
adapt to the needs of local consumers in emerging markets, to offset
the declining demand in mature ones. Put simply, in order to remain
competitive in the future, companies are required to re-innovate
innovation. On an ongoing basis.
Learning from the Locals
It’s often been claimed by pundits that inventiveness and
innovativeness is virtually non-existent in emerging markets, and
particularly in China. However, this cannot be further from the truth.
The problem here is that we’re talking semantics – what is perceived
as innovativeness in emerging markets is not necessarily perceived
so in developed ones, and vice versa. This is a dangerous fallacy, as
it prevents companies from thinking about innovation in new and
necessary ways that are required to succeed in novel markets. Whereas
people in the West tend to think about innovation as a highly linear,
structured, long-term process with the aim of creating radical or
disruptive innovations, innovation in emerging markets is often the
opposite – unstructured, chaotic and opportunistic.
Why is this the case? For starters, besides cultural aspects, the
innovation approach in emerging markets is simply a result of
environmental factors. First, the economies are growing fast, and
rising middle-class consumers have not yet developed the same level
of brand loyalty that we see in mature markets. Therefore, agility is
essential in order to exploit opportunities, which could be perceived
as short-term opportunistic behavior by those from the Western world.
2 | Infosys
3. Second, the purchasing power is often orders of magnitude lower in Impact on Western Companies
emerging markets whereas the savings rate is higher. This limits the
ability of local consumers to absorb the cost of breakthrough R&D. The traditional Western approach to innovation has been based
As a consequence, innovation in emerging markets is often more on increasing product sophistication with functions and features;
focused on reducing rather increasing product/service sophistication increasing product customization; and shortening product lifecycles,
– a concept usually referred to as frugal innovation. Whereas Western all with the objective of increasing margins, even at the cost of
companies often try to serve niche premium market segments with volumes. This has set off a vicious cycle of organizational complexity,
limited volumes and high profit margins, companies in emerging rising overheads and in turn the need to recover that with a higher
markets are doing the opposite. A good example here is Bharti Airtel, price premium.
which redesigned its entire value chain in order to be able to serve This approach has worked very well in B2B businesses where quality
the mass market with rock-bottom prices. Another excellent example and performance requirements are high, and reasonably well with
is Aravind Eye Care Hospital, which so far has provided inexpensive luxury consumer goods and certain proximity-dependent services
or even free eye surgeries to more than 32 million patients during such as upscale hairdressing or fine dining. For most other industries
its 36 years of existence. Both cases are manifestations of jugaad however, premium prices are harder to command and makes them
(Hindi for “improvised arrangement” or “work-around”), where novel vulnerable to emerging market competitors. The reason for this, as
approaches have to be deployed in order to overcome institutional explained earlier, is that emerging market players are often adept
voids and a lack of resources. at reducing complexity, producing in large volumes, and keeping
Third, consumers in emerging markets often have special needs, overhead costs low enough to survive on razor-thin margins. Once
and hence any product/service features that are added are usually these competitors get access to crucial technology, they penetrate
idiosyncratic, often low-cost, and almost always highly impactful. An premium markets with lower prices to turn them into volume markets.
excellent instance of such innovation is the Chinese phenomenon of There are numerous examples of these - particularly from China -
Shanzhai (Chinese for “mountain stronghold”), which is a term used to such as battery manufacturer BYD (also a carmaker), and microwave
denote inexpensive, often inferior-quality imitations or knock-offs of oven manufacturer Galanz who now command impressive market
Western products with a local twist – nevertheless the innovativeness shares. These companies are among those who won big deals from
and speed-to-market is truly impressive. Examples include mini iPhone foreign customers; received training and technology transfer through
knock-offs with two SIM card slots or cell phones resembling cigarette supplier development activities; and by staying cheap and flexible
cases (sometimes even combining the two) among many others. by using inexpensive labor instead of automation, ultimately turned
into global juggernauts.
Infosys | 3
4. New Strategic Imperative for Innovation Reaping Benefits from Innovation Hubs
So, two things are clear: First, companies can no longer rely on pure It is clear that these voids cannot be overcome from a remote overseas
global innovation, developed in one place and sold in another. location; in virtually all cases, this means having local teams with
Second, companies that rely heavily on generating revenues from sufficient on-the-ground resources who can make necessary changes
premium markets are inherently at risk. The following sections to products, services and processes, but more importantly, build solid
elaborate three key drivers of innovation advantage. relationships with local institutions in order to get access to timely
information and fair treatment. Companies like GE for instance, have
Building Growth Momentum set up global R&D centers in key locations across the globe (e.g.
Bangalore and Shanghai) in order to tap into the local talent base.
As mentioned earlier, the organization governing innovation in
emerging markets needs to be reshaped in order to be effective. This By doing so, companies are able to pursue what is commonly referred
is due to the fact that the environment in emerging markets, with to as reverse innovation, wherein products are developed and tested
its institutional voids, is often radically different compared to the in emerging markets, before being launched elsewhere in the world.
West. Overcoming these is pivotal for getting a market foothold and Because they have to counter institutional voids, they are forced to
generating growth; this is also where local players have competitive rethink everything from products to processes to even business
advantage. Hence merely replicating existing innovation processes models, which actually opens up new market opportunities.
in emerging markets is doomed to failure. This is opposite to the traditional innovation paradigm in which
Institutional voids exist in many shapes. An overview is given below: products are developed in mature markets and launched elsewhere
in downgraded versions.
• Political/Legal: Different/weak legal systems, frequently changing
regulations, frequent changes in the political landscape, opaque Another important aspect of reverse innovation is the identification
political processes, trade barriers, lack of Government support, of new consumer needs, or more properly, consumer needs that were
previously unknown. Companies have taken different measures to
• Social/Cultural: Different customs and religions, heterogeneity/ accomplish this. For instance, Unilever has set up a Concept Center in
homogeneity of ethnic/religious groups downtown Shanghai where consumers can try out new products. P&G
• Technological/Infrastructural: Poor availability/access to lets new hires spend time with peasants in the Chinese countryside
technologies, weak IP protection, lack of physical infrastructure to study their behaviors.
(e.g. railroads, highways, sea ports, airports etc.) This type of ethnographic market research can reveal interesting
• Economic: Size and growth of economy, economic inequality insights; for instance, repairmen of the Chinese home appliances
among different regions and social strata manufacturer Haier discovered that rural people used washing
4 | Infosys
5. machines for cleaning vegetables. This information was fed back to is P&G, which launched its Connect and Develop concept in 2000,
the R&D department, which subsequently designed larger outlets to which let external innovators sign up and submit ideas that were
avoid clogging. Another example is Mexican cement maker Cemex, screened and further refined in a co-creation effort.
which discovered that local consumers preferred buying cement in
This not only called for technology, but also required significant
bags rather than pre-mixed cement from trucks, and consequently
changes to processes, and more importantly to corporate culture,
packaged and sold their retail products like powdered soap.
by changing the existing paradigm from “not invented here” to
“proudly invented elsewhere”. By doing so, the company could tap
Smart Sourcing of Key Resources into a potential pool of 1.5mn external researchers. The results were
Proactive companies today are not relying solely on their in-house remarkable: After five years, the share of innovations with external
R&D departments for innovative ideas. More and more are opening origins increased from 15 to 35 percent, while reducing the share of
up their boundaries through open innovation networks (OINs) over R&D expenses from 4.8 to 3.5 percent of total cost.
which ideas can flow both in and out. One of the pioneers in this area
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6. Conclusion
Many multinational companies have for long relied on a Western-
centric innovation model where products have been designed in
the West, for the Western market, and at a very late stage launched
in emerging markets in a downscaled version. As a result of the shift
in center of gravity in global markets towards emerging markets,
companies have to pursue innovation the other way around by
innovating in emerging markets and subsequently adapting
products and services for developed markets. This may sound easy
in theory, but changing the mindset of senior managers and the
overall corporate culture is indeed a daunting challenge. A clearly
articulated innovation vision and a rigorous corporate innovation
strategy is definitely a good start.
What is more, Western companies have traditionally had
profitability, not profit, as the key financial metric. This in turn
has incentivized companies to primarily target high-margin
market segments around which they have erected entry barriers
to competition by increasing product/service sophistication.
However, as technology diffusion has increased tremendously
through a combination of outsourcing and the advent of the IT over
the last decades, many proprietary technologies have been easily
absorbed by aspiring competitors, with rapid commoditization
as a result.
To sum up: Market players that have learnt to compete on volume
despite low margins in a tough environment have also developed
a lethal capability to explode premium market barriers in mature
markets. Western incumbents will only be able to win this race as
long as they can compete and excel not only at home, but more
importantly, in the rough-and-tumble of emerging markets.
6 | Infosys
7. About the Author
Dr. Martin Lockstrom
Principal Consultant, Building Tomorrow’s Enterprise, Infosys Labs
Martin is a specialist in Supply Chain and Operations Strategy,
Outsourcing/Offshoring and International Management. During a
six-year stint in China, he established the research and education
activities at the SCM, Sustainability and Automotive academic
centers at China Europe International Business School, Shanghai.
He established the first endowed chair for Purchasing and SCM in China at Tongji
University, Shanghai, and was also responsible for setting up Supply Chain Management
Institute China, an international network of SCM research and education hubs.
Martin co-founded Procuris Solutions, an IT company specializing in SCM-related solutions,
offering consulting services to companies like Accenture, Ariba, BMW, Clariant, Dell, Dow,
Ernst & Young and Intel, among others.
He has a Ph.D. in Supply Chain Management from European Business School, Germany, a
bachelor’s and master’s degree in Industrial Engineering and Management, from Chalmers
University of Technology, Sweden. He speaks Swedish, English, German and Chinese,
has published over 50 articles and papers and presented at more than 60 conferences.
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