Guest Lecture by Prof. Dr. Neil Foster-McGregor
This is the term for agreements between two or more nations aimed at lowering trade barriers and facilitating the exchange of goods and services.
What are bilateral and multilateral trade agreements?
By 2012, this company had become a global leader in networking with net sales of $46.1 billion and a net income of $8 billion, boasting over 66,000 employees worldwide.
What is Cisco?
This term refers to the process of designing products and services in developing economies and then exporting them, with minor adjustments, to developed countries
What is reverse innovation?
This term describes the traditional approach multinational corporations have used, adapting and selling their products globally by making only minor changes to suit local preferences, a strategy that proved effective post-WWII in markets similar to the U.S.
What is "glocalization"?
This type of innovation focuses on creating products in and for developing markets with the aim of then distributing them globally, often leading to significant cost reductions.
What is reverse innovation?
This type of FDI involves a multinational corporation establishing a new operation in a foreign country from scratch.
What is Greenfield investment?
This Cisco product, developed in Bangalore, India, is tailored for developing markets, offering all the functionalities required by telecom clients while also enabling the transition to next-generation networks.
What is the ASR 901 router?
This common trap involves multinational corporations trying to match market segments in emerging markets to their existing product lines, often resulting in products that don't meet the needs of lower-income customers.
What is trying to match market segments to existing products (trap 1)?
GE uses this approach for developing products in emerging markets.
What is employing cutting-edge technology for ultra-low-cost solutions?
GE Healthcare developed this X that costs 50 cents per scan, weighs less than a can of Coke, and is simple to operate, showcasing the principles of reverse innovation.
What is the portable ECG machine?
This comprehensive process includes all activities firms and workers perform from a product's conception to its end use, often divided among various countries.
What is a Global Value Chain?
In 2006, Cisco's strategic move to globalize its operations led to the establishment of its Global Development Center in this country, making it the second largest after the United States.
What is India?
According to this principle, solutions should be created that are optimal for the emerging markets' context, leveraging design freedoms such as low labor costs, instead of merely stripping down existing products.
What is creating an optimal solution, not a watered-down one (principle 2)?
GE's local growth teams adhere to these three key principles, including utilizing local resources for product development, staying connected to global technology, and adopting what kind of approach?
What is the experiment and learn (iterative) approach?
This principle, vital in reverse innovation, involves creating products that offer significant value at a fraction of the cost, demonstrated by a device that performs ECG scans for 50 cents each.
What is the 10% solution?
This measure of efficiency is calculated as total output divided by inputs and is used as an indicator of technological advancement and innovation.
What is Total Factor Productivity?
The development of the ASR 901 router by Cisco went through this three-phase process, starting with product definition and ending with mainstream development involving 60-70 engineers.
What are Incubation, Prototype, and Mainstream Development?
This principle emphasizes the importance of thoroughly analyzing the technical landscape and testing products with a wide range of stakeholders to ensure the product meets the specific needs of emerging markets.
What is analyzing the technical landscape and testing products with as many stakeholders as possible (design principle 4)?
Identify the key future challenge that emerging markets like China and India are currently facing, which is anticipated to be a similar challenge for the U.S., particularly highlighted in the context of healthcare.
What is universal healthcare (Medicare)?
This is the average daily income of people in rural India, highlighting the affordability gap for traditional $100 ECG scans and underscoring the need for reverse innovation in healthcare.
What is $2 a day?
This occurs when foreign direct investment leads to local firms receiving indirect benefits such as knowledge transfer and improved practices, often enhancing the local economy's competitiveness.
What are spillovers?
This initiative at Cisco encourages all engineers to submit ideas relevant to the company, fostering a culture of innovation and competition within the organization.
What is Innovation Sparks competition?
This principle involves leveraging the unique constraints of emerging markets, such as low consumer income and poor infrastructure, to create products that can also appeal to global markets.
What is using emerging market constraints to create global winners (principle 5)?
This is identified as a crucial element for the success of reverse innovation at GE, signifying the need for not only a strategic shift.
What is cultural change?
Reverse innovation emphasizes this approach to product development, where items must not only be ultra-low-cost but also meet or exceed the quality standards of developed markets.
What is offering a lot of value at an affordable price with world-class quality?