SYS-CON MEDIA Authors: Noel Wurst, Liz McMillan, Sean Houghton, Glenn Rossman, Ignacio M. Llorente

News Feed Item

Reverse Innovation: What Open-Heart Surgery, $300 Houses, and Rajinikanth Have in Common

MYSORE, Karnataka, January 14, 2013 /PRNewswire/ --

On Sunday, January 6, Vijay Govindarajan (popularly known as VG), the Earl C. Daum 1924 Professor of International Business at the Tuck School of Business at Dartmouth College, gave an enthralling lecture on "Reverse Innovation" to an audience of nearly 200 people at the MYRA School of Business. This inaugural MYRA-Distinguished Lecture was held at MYRA's newly inaugurated campus in Mysore. VG, author of the worldwide best seller Reverse Innovation, spoke on corporate strategy, emerging markets, and sustainability with close relevance drawn to the Indian context.

     (Logo: http://photos.prnewswire.com/prnh/20121120/577568)

http://tinyurl.com/aj8852v

Throughout his lecture, VG referred to the growing disparity between "rich" nations and "poor" nations in terms of access to quality products. Through examples from healthcare and housing sectors, VG illustrated how Reverse Innovation - the idea that innovations should first be developed in and for emerging markets before spreading to the rest of the world - will dramatically change business and society.

VG started off with a picture of a typical electrocardiogram machine that costs around $50,000 in the United States with each scan amounting close to $100. He argued that in spite of a dire need for such a machine in rural India, the extreme cost, heavy weight, and reliance on electricity makes this a highly impractical and "useless" machine for Indians.

"Poor people have the same needs. Poor people have the same desires. Poor people have the same ambitions. Why can't they have the same access?," posed VG to the audience.

These questions led VG (Professor in Residence at General Electric) to work with GE Healthcare to design an ECG machine that costs just $500 - and only 10 cents per scan. This fantastic innovation is battery powered and weighs less than a can a Coca Cola, thus making it an extremely portable and cost-effective solution. The success of this innovation in rural India, he opined, has prompted healthcare professionals in the USA and around the world to take a new look at medical equipment design.

His next example showcased how Dr. Devi Shetty performs open-heart surgeries for $2,000 at Narayana Hrudayalaya in Bangalore as opposed to the $50,000 needed in the United States, simply by using innovative approaches and reducing unnecessary costs. He noted that despite the significantly lesser price, the quality was actually much higher. He explained, "Surgery needs to be of higher quality in India - because Indians typically have weaker hearts and the risk of post-operative complications from heavy air pollution is greater."

Through this example he stressed that, "Reverse Innovation is not about lowering costs. It is about delivering a lot more quality at more reasonable price points. It is about doing more - with a lot less."

Another example which supported this definition of Reverse Innovation came from Dr. Therdchai Jivacate, a Thai physician who creates artificial legs from recycled yogurt containers at just $30, which are more durable and robust than the $20,000 artificial legs available in the US. "While the $30 options may seem to be of poorer quality - they are in fact much better as they are designed to withstand unpaved roads, cross-legged sitting customs, agricultural labor, and other stresses of Thailand's environment," he stated - flabbergasting the audience.

VG also spoke on Reverse Innovation in Housing and the need to create affordable solutions for the 75 million homeless people in the world. He described the "$300 house," a concept he popularized through an article in the Harvard Business Review and explained that housing issues cannot be solved by taking American design approaches and stripping features to make them affordable for the developing world. "It's about designing it from scratch to fit the needs of the developing world," he said. "Applying the American dominant logic simply does not work. Companies shouldn't ask 'how can our products fit into the market?' but rather 'how can our products help the market?'."

To demonstrate the danger in "applying the dominant American logic," he spoke of Kellogg's efforts to sell cornflakes and other sugary cereals in India. In spite of aggressive marketing campaigns, Indian's simply did not buy the cereals. Prof. Govindarajan pointed out that Indians like their breakfasts hot, and pouring hot milk on cornflakes would inevitably lead to an unappetizing soggy mush. The Indian consumer simply will not buy into the idea of pouring cold milk on breakfast cereal!"

VG called for a drastic change in mindset which required big corporations to create novel, affordable, and useful solutions for the world's poor. "The need to Reverse Innovate has never been stronger," and he opined that this is going to define how corporations innovate, impact and eventually survive in the coming decades.

He concluded on a light-hearted note, referring to typical South Indian movies where heroes like Rajinikanth would always find unexpected and imaginative ways of rescuing their heroines from the villain, stating, "if India has to excel in innovation, we have to produce more Rajinikanths!"

The Reverse Innovation lecture was part of the launch of MYRA's Centre of Excellence in Sustainable Business Innovations (CESBI), which aims to create a world-class platform for entrepreneurs, academic researchers, students, policy-makers, NGOs, and corporations to collaborate on issues of sustainability and corporate responsibility.

About MYRA School of Business:

The MYRA School of Business is a newly established management institution in Mysore, India. Through a rigorous research-based curriculum, a distinguished faculty line-up, and an architecturally-acclaimed campus, MYRA aims to deliver an education that is unparalleled in Asia. MYRA will welcome its Founding Class in July 2013. To know more about MYRA's academic programmes, visit www.myra.ac.in. To know more about the MYRA Distinguished Lecture on Reverse Innovation, visit www.myra.ac.in/reverse-innovation-lecture.

Primary Media Contact: Ashwin Rao, [email protected], 91-900-8523333

Secondary Media Contact: Deepa Jaganath, [email protected], 91-953-5423333

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...
"Our premise is Docker is not enough. That's not a bad thing - we actually love Docker. At ActiveState all our products are based on open source technology and Docker is an up-and-coming piece of open source technology," explained Bart Copeland, President & CEO of ActiveState Software, in this SYS-CON.tv interview at DevOps Summit at Cloud Expo®, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
SYS-CON Media announced today that Aruna Ravichandran, VP of Marketing, Application Performance Management and DevOps at CA Technologies, has joined DevOps Journal’s authors. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. DevOps Journal brings valuable information to DevOps professionals who are transforming the way enterprise IT is done. Aruna's inaugural article "Four Essential Cultural Hacks for DevOps Newbies" discusses how to demonstrate the...
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Verizon Enterprise Solutions is simplifying the cloud-purchasing experience for its clients, with the launch of Verizon Cloud Marketplace, a key foundational component of the company's robust ecosystem of enterprise-class technologies. The online storefront will initially feature pre-built cloud-based services from AppDynamics, Hitachi Data Systems, Juniper Networks, PfSense and Tervela. Available globally to enterprises using Verizon Cloud, Verizon Cloud Marketplace provides a one-stop shop fo...
AppZero has announced that its award-winning application migration software is now fully qualified within the Microsoft Azure Certified program. AppZero has undergone extensive technical evaluation with Microsoft Corp., earning its designation as Microsoft Azure Certified. As a result of AppZero's work with Microsoft, customers are able to easily find, purchase and deploy AppZero from the Azure Marketplace. With just a few clicks, users have an Azure-based solution for moving applications to the...
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...