My Experiences in BUS 358: Innovation, Design, and Prototyping

Essay 7

Innovation Blowback: Disruptive Management Practices from Asia

John Brown & John Hagel

  • The emerging world’s companies have raised their game in response to the presence of Western intruders and the competition that they create
  • Emerging markets are generating a new wave of disruptive products and process innovations
  • Low income in emerging markets means the spending behavior of this immerse group is “obtainable” if you penetrate the market with changed prices most can afford
  • “Go back to the drawing board” as a company to find ways to sell in these places
    • Strip costs, rethink processes, deliver and design offerings differently
  • “Turn blowback to their advantage by building distinctive capabilities in the low-income segments of emerging economies before other companies do”
  • Price competition can erode the profit margins of assemblers and suppliers, jeopardizing both of their abilities to invest further in product innovation
  • “The need to serve low-income customers in challenging conditions spurs innovation”
  • “If you’re not participating in the mass-market segment of emerging economies, you are not developing the capabilities you will need to compete back home” – go offshore and serve the mass market
    • Specialize – new capabilities; choose what to do yourself and what to collaborate on; find partners that enhance and complement your capabilities
    • Orchestrate Process Networks – set-up, access, develop, orchestrate networks
    • Orchestrate Innovation Networks – generate the friction that you need to shape and sharpen learning through diff backgrounds and skills

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