Innovation’s Holy Grail - Coggle Diagram
Traditional innovation is heading for obsolescence, because the parameters have completely changed, and will take unsuspecting organizations with them.
The search for lower manufacturing costs and new sources of talent will increase the pressure on them to go global
Most innovation programs are based on assumptions of affluence and abundance. The more the better.
Companies can respond to the challenge by developing strategies that allow them to create more products with fewer resources and sell them cheaply.
Affordability and sustainability, not
wealth and abundance, should drive innovation today.
new processes make products and services accessible to a greater number of consumers around the world.
Several Indian companies have used Western technologies but have created business models that have completely altered the economics of an industry.
They have developed methodologies to divide the work which allows them to enjoy the lowest costs of talented engineers in India
Other Indian companies have synthesized several technologies and, as a result, altered their capabilities—such as design skills or speedy deployment of resources on a large scale.
Indian entrepreneurs have focused not only on building disruptive business models and honing existing capabilities
also in creating or acquiring new capabilities to solve problems, which often requires technology development or a collaborative approach to gain technical expertise.
After India opened up to foreign investment and technologies in 1991, some companies altered the infant industry economics not by developing cutting-edge technologies but by creating new business models.
They established affordable price performance points and changed the way consumers could access offers.
Some products and services need a new infrastructure for development and delivery, so these companies also built unique innovation ecosystems.
Indian organizations have combined cutting edge technologies to create new capabilities, they are scaling rapidly but keeping costs low by using innovative financing methods such as public-private partnerships
They draw on the knowledge base of specialized institutions abroad and set the standards in India even when developing unique research capabilities.
Metrics influence managerial behavior. We found that traditional and Gandhian innovators use very different measures to evaluate their performance.
Companies focus on profits, operating margins, net present value, time to profit, ownership and control, manufacturing efficiency, profits based on intellectual property, and known markets.
Developing country innovators track profit and loss, balance sheets, return on capital employed, cash flow, capital intensity, access and influence, innovation efficiency, volume and costs, and they focus on creating new markets.
Indian companies have invested in the development of new products or services, but their goal is often to create inexpensive deals on tight budgets.
They do this only because they defy conventional techniques.
CEOs must set ambitious goals and clear deadlines to achieve them.
Gandhi's innovators begin by accepting that there are limitations that will not go away.
One, the country's political leaders experimented with socialism for more than four decades, preventing the passage of foreign capital and technologies.
Two, the Indian economy didn't start to grow until the 1990s, so local businesses are small.
Three, local businesses know that while India has both rich and poor, serving only the rich limits its market.
These leaders also engage with project teams constantly, providing a safety net that protects teams from self-doubt during times of gloom and moderates overconfidence.
Leadership is crucial to building Gandhian innovations in organizations.
Four, entrepreneurs, the most important driver of India's innovation mindset, have had the audacity to question the received wisdom.