Globalization has changed the world faster than we used to think! In recent years, emerging countries (India/China/Asia/Latin America) had innovated many break-through technologies for their local needs and situation; such innovations are now exported to the developed countries, this process is also called as Reverse innovation . By doing this companies are finding new markets for their products which is thus benefiting both developed and developing countries across the globe, so technically a win-win situation for all!
Definition of Reverse Innovation as per Wikipedia: “The process of reverse innovation begins by focusing on needs and requirements for low-cost products in countries like India and China. Once products are developed for these markets, they are then sold elsewhere – even in the West – at low prices which creates new markets and uses for these innovations.”
Mr. Vijay Govindarajan, India born American professor and former top executive at GE has written a best seller book titled “Reverse Innovation: Create far from home, win everywhere”. In this TED talk Mr. Vijay has discussed the term in detail and highlighted new trend in the world business. Some of innovations he discussed in talk are:
- GE Healthcare India’s innovation regarding low-cost ECG machine for rural India which is now exported to developed country including US!
- Jaipur foot/leg – Low cost and affordable artificial foot for handicapped person even for animals (more details at their website HERE )
- Heart Surgery : Incredible Innovation and initiative of low-cost but high quality Heart Surgery at Dr. Devi Shetty’s Narayan Hrudayalaya Bangalore-India (N.H. Hospital). Visit NH hospital website and other initiative REVIVA
- TATA Nano – TATA motor’s $2000 car ‘Nano’ which has changed the paradigm of car market and given new small car segment. Car will be exported in many countries including Europe and US. More at TATA Nano page
- Ultra low-cost housing ($300 – $400) project in India for homeless.
Mr. Vijay Govindarajan on ‘Reverse Innovation’ at TEDxBigApple.
More detail talks on Reverse Innovation by Mr. Vijay :
My other relevant post : Jugaad innovation: From India To The World
Other references about Reverse innovations:
- CISCO India team’s innovation for solving complexities in Mobile towers technology is now exported to the many countries (see Mr. Ishwar parulekar’s interview, Chief System Architect at CISCo India about new technology HERE )
- Newsweek – The Case for ‘Reverse innovation’ Now
- McKinsey: Innovation Blowback – disruptive management practices from Asia
- Fastcompany-For Bringing Medical care to the masses
image credit: “en.wikipedia.org/wiki/File:Prof_Vijay_Govindarajan-1.jpg”
Sources: Google search, GE, CISCO, H Hospital, CISCO, Jaipur foot/leg, Wikipedia, Newsweek, Youtube, TED, Mckinsey, Facebook, Tata Nano, and other hyperlinks in the post.