Individual Paper on Reverse & Frugal Innovation
1. Other than price sensitivity, what are the starkest differences between the needs of customers in developing countries and the needs of customers in developed countries? Why is it essential for companies in the developed world to understand these needs?
The other needs of customers in developing countries mostly relate to the global challenges, like chronic poverty, climate change, energy dependency, health care and etc. these are the starkest differences customers in developed countries. It is vital for companies to understand their needs to create solutions to solve these life-sustaining problems in developing countries. After that, when the solution is successful in developing countries, companies add features to their innovations make it more complex and upgrade it and sell it in developed countries. This is the reverse innovation, which starts in developing world, and after meet the customer needs, upgrade the spread in developed worlds to find ne areas to growth with high margins.
2. Can you meet the needs of your customers in developing countries simply by customizing your existing offerings? When is clean-slate innovation needed? Please elaborate as appropriate from your readings and experience.
No, only customizing innovation is not enough to be acceptable, because the needs and challenges are different in developed and developing worlds. A company who want to meet customer needs in developing country has to make radical changes from below and above to integrate customer needs. The local company may able to have freedom to make decisions with all capacity. Being autonomous about location, staff, incentives reporting structures, targets, and process are the requirements for local company.
When the traditional logic, dominant thinking reach on impasse and conflict appears a clean-slate innovation is needed. To be able to achieve clean-slate innovation, clean-slate design, clean-slate...