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  • July–August 2015
  • Article
  • Harvard Business Review

Engineering Reverse Innovations: Principles for Creating Successful Products for Emerging Markets

By: Amos Winter and Vijay Govindarajan
  • Format:Print
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Abstract

Multinationals are starting to catch on to the logic of reverse innovation, in which products are designed first for consumers in low-income countries and then adapted into disruptive offerings for developed economies. But only a handful of companies have managed to do it successfully until now. In this article, an MIT engineering professor and a Tuck professor of management explain why. After conducting a three-year study of reverse innovation projects, they've concluded that the main hurdle facing product developers is a mindset. Western designers, who usually create products by following time-tested methods, struggle to overcome the constraints and leverage the freedoms of emerging markets. They tend to fall into common mental traps that prevent the development of reverse innovations: 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. But companies can avoid these traps, the authors found, by adhering to five design principles. The success of several new products illustrates how. One 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.

Keywords

Innovation Strategy; Emerging Markets

Citation

Winter, Amos, and Vijay Govindarajan. "Engineering Reverse Innovations: Principles for Creating Successful Products for Emerging Markets." Harvard Business Review 93, nos. 7/8 (July–August 2015): 80–89.
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More from the Authors

    • May 2016
    • Harvard Business Review

    Planned Opportunism: Using Weak Signals to Spur Innovations

    By: Vijay Govindarajan
    • 2016
    • Faculty Research

    The Three Box Solution: A Strategy for Leading Innovation

    By: Vijay Govindarajan
    • 2013
    • Faculty Research

    Beyond the Idea: How to Execute Innovation in Any Organization

    By: Vijay Govindarajan and Chris Trimble
More from the Authors
  • Planned Opportunism: Using Weak Signals to Spur Innovations By: Vijay Govindarajan
  • The Three Box Solution: A Strategy for Leading Innovation By: Vijay Govindarajan
  • Beyond the Idea: How to Execute Innovation in Any Organization By: Vijay Govindarajan and Chris Trimble
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