Please enable JavaScript.
Coggle requires JavaScript to display documents.
INNOVATIONS AND NETWORKS - Coggle Diagram
INNOVATIONS AND NETWORKS
NETWORKS
Networks in this context is not only companies or competitor, but for example communities, universities or non-profit organizations. In case Solar Water Solutions, the company needed university labs and the support of the community in the target market. Without the network, company could not execute their innovations.
CHALLENGES
It's difficult to combine cheap prizes and high quality. POB market can't afford high prizes, so it is important to innovate new technologies and materials to create sustainability in POB markets. If the quality is not goos, products can be disposable, which is not sustainable
New innovations may work in laboratories, but the circumstances in developing countries can be very different than the innovation is made to. For example extreme heat or distances, or the lack of energy solutions can bring new challenges to new innovations.
Open innovations can cost more to companies because of the licenses and costs of other intellectual property
OPPORTUNITIES
Different companies can success in POB market because the products cannot cost much. That's why the products are very simple and cheap to make. Companies must only have an opportunity to produce a lot of these products because the quantity often replaces quality in POB market.
Innovations and investments in developing countries can bring wealth and better living conditions. It could create new jobs and chances for children to attend schools
If the raw materials and other supplier chains could be provided locally, it could develop the local economy
Could provide better access to energy, finance, insurance and other services in developing countries, that would be more needed if the standards of living rises
-
POB
-
-
The largest market, also the population in this market is only growing.
Companies should operate in this market, because it has a big purchasing power
-
INNOVATIONS IN POB
Companies should aim to POB market because of the big purchasing power and growing segment. This demands new innovations to make quality prducts, services and technology on a budget.
Companies can start off with small test innovations and see how they go, after that the experience and knowledge can lead to improvements in the innovations, such as the location, materials or energy.
As Karnani (2007) presents, the purchasing power of the POB segment is overestimated and POB can not fully be seen as a market segment among others. This is why markets should be created in developing countries, and battle against non-consumption (Simanis, 2010).
investing in different points in the value chain can improve the conditions of low-income market (Vermeulen et al., 2008).
-
USER-CENTRIC DESIGN
Users that innovate can develop exactly what they want, rather than relying on manufacturers to act as their agents.
individual users do not have to develop everything they need on their own: they can benefit from innovations developed and freely shared by others.
Users can create the product they want, and then incorporate it into products that they in turn share with others.
WHAT DID I LEARN
That networks doesn't have to consist of other companies, but can be a community or a university. The network supports each other and doesn't necessarily compete with each other
The difference of open vs. closed innovations. I first thought that all innovations are closed an strictly kept inside the company. What open innovations tought me is that open innovations could benefit many operators (Collaborative networking)
-
Sustainability is a goal that should be taken into concideration when creating markets and consumption to developing countries
A big problem in innovating to POB market is to have high quality combined to cheap prizes (because the consumers do not have a lot to spend.)