Welcome!

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
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
TechTarget storage websites are the best online information resource for news, tips and expert advice for the storage, backup and disaster recovery markets. By creating abundant, high-quality editorial content across more than 140 highly targeted technology-specific websites, TechTarget attracts and nurtures communities of technology buyers researching their companies' information technology needs. By understanding these buyers' content consumption behaviors, TechTarget creates the purchase inte...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, will discuss some of the security challenges of the IoT infrastructure and relate how these aspects impact Smart Living. The material will be delivered i...
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...