This case tells us about developing ideas in the emerging market and persuading them to emerged markets. It demonstrates how the companies following the reverse logic focus on major changes such as remodeling the organizational structures, restoring product development and manufacturing methods and reorienting sales force. The article cites example of an Organization Sara’s and how Toyota accepted its technology for emerging as well as western markets.
Executing Radical Change: Innovations in emerging markets require radical changes in: * Rethinking location, staffing, incentives, and reporting structure: * Device initiative names in common language. * Staff people who are familiar with emerging market and rooted in company’s culture. * Low team count to enhance flexibility and welcome innovation * Set brave targets * Rethinking Engineering Process: In terms of * Scalability * Adaptability * Technology
Overcoming Resistance: Reassuring the customers that the quality of the products is good. It also offers other incentives of delivery, simplification and lower prices. After going by the above steps, Saras’ Modular and scalable design moved from the emerging markets. Change from Below and Above: It’s a two part approach with local teams generating radical change from below and CEO’s changing organizational changes from above. * Project level actions: The local growth team is given freedom to function with all energy and imagination. * Establishing radical goals: Example, All features at half price and one third cost. * Practice clean-slate organizational design
* Leverage Global Resources: Innovation units must continue with legacy units * Choose Team leaders without conflicting interest.
* Top level actions: CEO must ensure that they have significant impact in the company by: * Rebranding the company’s future: Analyzing Company’sfuture lay elsewhere. * Increasing R&D spending in emerging markets and focusing on local needs. * Gaining knowledge on emerging markets and their potential. * Manage globalization and reverse innovation within a single enterprise and resolving. Reverse innovation is more of change of mind than taking your products from emerging to Western Markets.
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