Emerging economies are projected to significantly increase their share of Fortune Global 500 companies by 2025, reflecting their agility and long-term investment strategies. The document emphasizes the importance of understanding customer needs, fostering innovation, and building partnerships to drive market growth and create societal value. Techniques for innovation are outlined, including focusing on core strengths, leveraging existing networks, and the establishment of innovation labs to refine ideas into financially viable solutions.

2. The future’s bright

3. “Emerging economies’ share of Fortune Global 500
companies will… jump to more than 45% by 2025, up
from just 5%in 2000. Many of these businesses,
having been nurtured in difficult operating
environments, are not only more agile than their
counterparts from advanced economies but also
prepared to invest for the long term, even if this cuts
earnings in the next few quarters.”
McKinsey & Company, 2013

4. We have some of the world’s most inventive,
resourceful people

5. We have been involved in developing
some of the world’s most useful and
transformative technologies

6. R&D Spend in US$ Billions
450
400
350
300
250
200
150
100
50
0
Sources:
- Battelle
- National Bureau of Statistics of Chine
- Ministry of Commerce of the People's Republic of China

7. R&D Spend as proportion of GDP
4.00%
3.50%
3.00%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%

10. 80% of all employment in Sub-Saharan Africa takes
place in the informal sector
Mo Ibrahim Foundation, 2012

12. We’ve inherited a
culture of authority

13. We’re scared

14. And we’re thinking about
market attractiveness
all wrong

15. How can we overcome these barriers?
• Get to know your customers
• Flatten your structures
• Think outside the pie

16. How can you grow the pie?
Or transform it?

19. SHAREHOLDER
VALUE
CUSTOMER
VALUE
MARKET
VALUE
DIRECT
EMPLOYMENT
VALUE
LONG-TERM
SOCIETAL
VALUE
Benefits:
Better
Revenue
and profit
Better
Growing
New employment
Education,
value for existing categories,
and
healthcare
customers
developing new entrepreneurial infrastructure and
categories
opportunities
sustainable
and unlocking
natural
new markets
resources

21. Shareholder
Value

23. Getting Customer Innovation Right
•
Define the problem
Be clear about what you need to achieve or fix
•
Understand your customer better than anyone else
Authentic ethnography
•
Get Lateral
Speak to experts from unrelated fields, include diverse participants, keep
your eyes and ears open
•
Take the time
You’re not going to solve it in single brainstorm
•
Get the attitude right
Build, don’t break

30. “The most important characteristic of
industry-changing innovators is the ability to
spot consumer trends before the rest. Very
often, those trends are already evident in
other, seemingly unrelated, industries.”
Peter Schoeman, Divisional Director Sales & Marketing,
City Lodge Hotel Group

32. Key techniques for innovation that grow markets:
• Ditch the unnecessary conventions
• Turn pirates into partners
• Identify behaviour shifts
in other categories

36. BUSINESS CHAIN
CORE BUSINESS
INPUTS
DESIGN
MANUFACTURING
Opportunities for entrepreneurial innovation?
DISTRIBUTION
MARKETING
AFTER-SALES
SERVICE

42. Key techniques for innovation that
creates employment value:
• Focus on your core
• Innovate for people
• Piggyback on existing distribution
networks and skills

44. YOUR BUSINESS’
PURPOSE
(eg. Bringing books to
more people)
SOCIAL NEEDS
OF YOUR
MARKET
(eg. Education)

45. Key techniques for innovation that
creates societal value.
• Define your purpose
• Understand the pressing societal needs
faced by your market
• Focus on innovations that leverage your
practical strengths

46. Unintended benefits
“An aspect of FNB’s success is an entrenched
culture of giving back. The culture is nurtured by
our volunteer programme which has a very high
level of staff participation.
The simple act of giving back helps you
understand your markets better and enables
you to solve the problems they face.”
Hema Morar & Seth Maanda, FNB

48. It’s too expensive

49. • Crunch the numbers
Most innovations don’t get beyond the idea stage
because there’s no clear financial picture of what
success looks like

50. We’re too frantic

51. • Crunch the numbers
Most innovations don’t get beyond the idea stage
because there’s no clear financial picture of what
success looks like
• Build an innovation lab
A subdivision enables you to step out of the rat
race to explore, trial, and develop new
innovations

52. We’re doing fine
We don’t need it.

53. • Crunch the numbers
Most innovations don’t get beyond the idea stage
because there’s no clear financial picture of what
success looks like
• Build an innovation lab
A subdivision enables you to step out of the rat
race to explore, trial, and develop new
innovations
• Make it about survival
Make it a KPI that at least 20% of revenue must
come from transformative innovation

56. Thank you
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