In emerging economies, mobile penetration is increasing rapidly while landlines are declining. The shift in trend is attributed to the ubiquity of handheld devices and Gen Y willing to experiment. The next level of offerings in these economies centers on enabling lifestyles for the masses. Applications such as mobile money are slowly but surely gaining prominence in developing countries.
Discuss
The needs of market is emerging economies are different from developed economies and so are the price points and value expectations of consumers. Product design that gives full value to customer calls for a different thought process altogether. Besides, it necessitates invention in core technology areas to tap a huge market. Reverse innovation where products designed in emerging economies are sold in developed markets shifts the focus to emerging economies.
Discuss
Globally, World Trade 3.0 refers to enterprise survival and sustenance in an environment dominated by protectionism and regulatory conditions. Enterprises have a mandate to work within the constraints and scout for ways to create market integration and flourishing trade. This calls for ingenuity to work around the impediments and creation of economic value to all stakeholders concerned.
Discuss
Energy efficiency appears to be an insurmountable goal for emerging economies owing to their reliance on traditional energy sources and long-standing transmission and distribution losses. Tapping renewable sources of energy may help in meeting the growing demands of their population. But how long will it take for emerging economies to attain the desired state remains a moot point.
Discuss
Several factors scuttle the growth of innovators and entrepreneurs in emerging economies. They include indirect tax regimes, stifling labor laws, inadequate capital, lack of infrastructure, and non-availability of land. To reverse this trend, a National Innovation System is critical. What's your view?
Discuss
The $30 mobile phones that provide nationwide service for just 2 cents a minute has worked a magic in a way physical infrastructure hasn’t. This is an apt case where consumption and frugal innovation work together. Rising incomes in emerging economies spurred consumption whilst curtailing financial crisis. In fact, most emerging economies grew in spite of financial crisis. As emerging markets guru Antoine Van Agtmael puts it, "thanks to developing economies there was only a half global financial crisis."
Discuss
The Global Financial Crisis (GFC) has reduced the innovation gap between the U.S. and rest of the world. Over the last 15 years, there has been a systematic reduction in research and development. Discoveries and inventions are no longer singular activities but collaborative ones. With innovation activity shifting to Asia, countries other than the U.S. increasingly have a larger say in international intellectual property rights, establishing of standards and commercialization of intellectual property.
Discuss
Western multinationals are keen for active engagement outside metropolitan cities in emerging markets. Traditionally, these markets under-consumed but now, they display an insatiable appetite. Catering to such markets, calls for rethink on everything from products and prices to distribution systems and customer service. The combination of challenges and opportunities results in a cocktail of creativity, which is temporarily being dubbed as "frugal innovation."
Discuss
Harvard Business School Professors Tarun Khanna and Krishna Palepu studied emerging markets and coined the term “institutional voids” to explain the market ecosystem including labor markets, product markets and capital markets and institutions that make up the ecosystem that were either missing or not functioning as expected. But for every stumbling block there is a creative solution that helps in realizing happy ending.
Discuss
Enterprises need to employ a ground-up approach to attain success in emerging economies. Further, they must be willing to question whether their industry will chart a different trajectory for these countries compared to what they are familiar with in home markets.
Discuss
Study of successful companies based in emerging economies can provide useful tips on how operating model has to change to factor in shift in personnel makeup. Intuitive systems and processes developed by such companies can also be employed by multinationals to operate and scale up in a similar environment.
Discuss