VG and Chris Trimble reveal a bold discovery with far-reaching implications in REVERSE INNOVATION: Create Far From Home, Win Everywhere (Harvard Business Review Press; April 10, 2012; Foreword by Indra Nooyi): innovation flows uphill and its future lies in emerging markets.
Most global companies recognize that emerging markets have become today's last source of growth. But all they do is modify and export products that they developed in their home country. To capitalize on the full potential of emerging markets, they must head in the opposite direction - by innovating specifically for and in developing countries to create breakthroughs that will be adopted next at home and around the globe.
Today's poor countries are being tapped for breakthrough innovations that can unlock new markets in the rich world, and can even help solve its societal problems such as high cost - and poor access - to healthcare.
The book originated in 2008, when VG was chosen by CEO Jeffrey Immelt to advise GE on innovation as their first Professor-in-Residence and Chief Innovation Consultant. In these pages are an inside account of how reverse innovation is transforming GE's strategy, and secen additional in-depth case studies based on original interviews with senior leaders. They include:
As these examples show, the biggest hurdles to reverse innovation are not scientific, technical, or budgetary. they ae managerial and organizational, and with the right mindset and tools can be overcome by any manager. Better yet, the evidence shows that companies can earn the same or even better margins and return on investment for a low-cost product designed for China or India than for a higher cost current product at home. The result is a win-win at home and abroad.
"Govindarajan and Trimble offer a framework for the next phase of globalization."
- Jeffrey R. Immelt, Chairman of the Board and Chief Executive Officer , General Electric
"Reverse Innovation is a playbook for leaders who want to unlock growth in emerging markets."
- Robert A. McDonald, Chairman of the Board, President and Chief Executive Officer, The Procter & Gamble Company