So why can’t a company like GE follow down this path with “open reverse innovation”
– inviting small companies in India and China to submit their products,
services and ideas to be evaluated by GE for global distribution. Of
course, the open model would require an environment of trust –
but what better way to create goodwill in new markets than to be seen
as a development partner in the China, India, and resource-starved
Africa? A.G. Lafley sits on GE’s board; surely he could help them get started.
Townsend also proposes the formation of innovation collaboratives funded by companies like GE to create a pipeline of new products for GE.
Not a bad idea, if you consider that a recent McKinsey survey found that 20% of companies have opened up their
innovation processes to employees and customers and they report a 20%
rise in the number of innovations, on average.
How GE is Disrupting Itself describes the concept of reverse innovation – how products developed in and for low-cost countries (like India and China) by multinationals (like GE) lead to growth – not only in the low-cost market, but at home as well.
VG says the article has touched an “emotional” chord with readers who are saying that this approach is just what “western” multinationals should be doing – designing products for the local market at a price-point which is within reach.
Check out the advertisement for one such product:
To me, this is just the first step to being truly global (as they say at Thunderbird). With business commitments at a local level, social commitments will surely follow.
Now let’s see some “ecomagination” in action and build portable solar/wind electrical generators for off-grid villages at an affordable price-point. Right, Bob?