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engineering reverse innovations.
- Source :
- Harvard Business Review; Jul/Aug2015, Vol. 93 Issue 7/8, p80-89, 10p, 1 Color Photograph, 2 Diagrams
- Publication Year :
- 2015
-
Abstract
- Multinationals are starting to catch on to the logic of reverse innovation, in which products are designed first for consumers in low-income countries and then adapted into disruptive offerings for developed economies. But only a handful of companies have managed to do it successfully until now. In this article an MIT engineering professor and a Tuck professor of management explain why. After conducting a three-year study of reverse innovation projects, they’ve concluded that the main hurdle facing product developers is a mindset. Western designers, who usually create products by following time-tested methods, struggle to overcome the constraints and leverage the freedoms of emerging markets. They tend to fall into common mental traps that prevent the development of reverse innovations: matching segments to existing products, lowering price by removing features, failing to think through all the technical requirements, neglecting stakeholders, and refusing to believe products created for low-income markets could have global appeal. But companies can avoid these traps, the authors found, by adhering to five design principles. The success of several new products illustrates how. One is the Leveraged Freedom Chair, a low-cost wheelchair that can navigate rugged terrain in places with poor infrastructure; a modified version is taking Western markets by storm. INSET: Idea in Brief.. [ABSTRACT FROM AUTHOR]
- Subjects :
- NEW product development
CONSUMERS
TECHNOLOGICAL innovations
APPROPRIATE technology
EMERGING markets
INTERNATIONAL business enterprises
ECONOMIC conditions in developing countries
SOCIAL conditions of developing countries
MARKET segmentation
CONSUMER behavior
COMMERCIAL product testing
ENGINEERING design
DEVELOPING countries
Subjects
Details
- Language :
- English
- ISSN :
- 00178012
- Volume :
- 93
- Issue :
- 7/8
- Database :
- Complementary Index
- Journal :
- Harvard Business Review
- Publication Type :
- Periodical
- Accession number :
- 103329710