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Engineering Reverse Innovations

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Summary

Multinational companies are beginning to realize that creating products and services in and for emerging markets can help them gain an edge over local rivals and even disrupt Western markets. However, Western product engineers often struggle to overcome the constraints of emerging markets and leverage their freedom, leading to mental traps that impede the development of reverse innovations. To avoid these traps, companies must adhere to five design principles: defining the problem independent of solutions, creating the optimal solution using design flexibility, understanding the technical landscape behind the problem, testing products with stakeholders, and using constraints to create global winners. Examples of successful reverse innovations, such as the Leveraged Freedom Chair, illustrate how this approach can be utilized by companies.

Q&As

What is the process of reverse innovation?
Reverse innovation is the process of designing products first for consumers in low-income countries and then adapting them into disruptive offerings for developed economies.

What are the common mental traps preventing the development of reverse innovations?
The common mental traps preventing the development of reverse innovations are 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.

What design principles should companies adhere to in order to successfully create reverse innovations?
Companies should adhere to five design principles in order to successfully create reverse innovations: define the problem independent of solutions, create the optimal solution using the design flexibility available, understand the technical landscape behind the problem, test products with as many stakeholders as possible, and use constraints to create global winners.

What is an example of a successful reverse innovation product?
An example of a successful reverse innovation product 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.

What is the aim of reverse innovation?
The aim of reverse innovation is to allow companies to outperform local rivals and undercut them on price—and even disrupt Western markets.

AI Comments

👍 This article provides an insightful and thorough analysis of the concept of "reverse innovation" and offers five design principles to help companies avoid common mental traps when designing products for low-income countries.

👎 This article does not provide any practical advice on how to actually implement the five design principles it outlines.

AI Discussion

Me: It's about reverse innovation, where products are designed for consumers in low-income countries and then adapted for developed countries. It talks about the challenges companies face when designing for these markets, and the five design principles they need to adhere to in order to succeed.

Friend: That's really interesting. What are the implications of this article?

Me: Well, it implies that companies need to start thinking outside of the box when it comes to product design. They need to consider the constraints and freedoms of emerging markets, and use those to create disruptive offerings that can be successful in both the developed and developing world. It also suggests that companies should focus on understanding the economic, social, and technical contexts of emerging markets in order to create successful products.

Action items

Research and analyze successful reverse innovation projects to understand the design principles and strategies used.
Develop a mindset that is open to the constraints and freedoms of emerging markets when designing products.
Create a plan to test products with as many stakeholders as possible to ensure global appeal.

Technical terms

Reverse Innovation: A process in which products are designed first for consumers in low-income countries and then adapted into disruptive offerings for developed economies.
Emerging Markets: Countries with developing economies that are beginning to open up to international trade and investment.
Leveraged Freedom Chair: A low-cost wheelchair that can navigate rugged terrain in places with poor infrastructure.
McKinsey Award: An award given to the best article published in Harvard Business Review.