Reverse Innovation - a different perspective on product innovation

Title: Reverse Innovation: Create Far From Home, Win Everywhere

Author: Vijay Govindarajan and Chris Trimble

Reviewers: Richard Sesek (educator, wantrepreneur)

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Topic/Intent of book: Global innovation strategy and emerging market dynamics. This book discusses how innovations designed for and deployed in emerging markets can disrupt and redefine developed markets. The normal progression for product development is from developed to developing economies. This book discusses the advantages of going in the other direction, hence the name “Reverse Innovation.”

I selected this book because: I selected this book because I was intriguing by the premise and the concept of designing “lower-end” (e.g., just the essential features) products rather than full-blown products with more “bells and whistles” than many (most?) consumers will demand.

Recommendation: I highly recommend this book, particularly for those working in global markets or developing products for markets with fewer individual consumer resources, but potentially many more customers (i.e., the Indian market). I also like the message of “starting small” and working with tighter budgets and additional logistical constraints (e.g., distribution, advertising, refrigeration, retail locations/dealerships, etc.). I think this is good reference those in traditional R&D environments as well since it encourages fully understanding customer cultures markets and the need to work directly with both customers and engineers/designers in the beach head market. Wealthier nations can no longer rely on “de-featuring” or “dumbing-down” their products for poorer markets. Solving problems for these poorer markets often translate to viable, and often more cost-effective, products for more developed, wealthier markets.

Major lessons from this book: Innovation must be localized. This requires decentralized teams making product decisions locally. Lower costs and other constraints can drive creativity. Scarcity can drive efficiency and elegant design which can benefit developed markets as well. For reverse innovation to be effective, leadership must be willing to study culture, experiment, and give up some control to teams in the market explored. Solutions created in resource-constrained environments are often more sustainable/eco-friendly and scalable globally. The authors suggest that “the world’s poorest customers may hold the keys to your company’s future growth.”

Book Inspirations: This book illustrates how creativity flourishes when traditional assumptions about the flow of innovation are removed. This books makes the case for the power of frugality, true customer empathy, and real-world, constrained problem solving can benefit both the developing world and advanced markets. Designers, engineers, and entrepreneurs can all benefit from such a mindset. Personally, I really enjoy solving resource-constrained problems such building data collection equipment with limited budgets. This book reminded me why it is so satisfying!