BU491 Lecture Notes - Lecture 3: Reverse Innovation, Emerging Markets, Ge Healthcare
Leading mnes are closely moving at similar pace and moving to similar sizes. (slight stagnation, so innovation is important) R&d increasing in costs and technology is becoming more complex. Product life cycles are getting shorter as consumers demand more. Growth found in new emerging markets (untapped), highest potential. Why is international innovation important: lower costs, access knowledge, engage in new environments, which you can find different needs, and lower competition ie. low cost bar of soap. How to create a transnational product? (key capabilities: sensing, responding. Two approaches to worldwide innovation: center-for-global: opportunity sensed in home country, resources from world brought together central, and implemented globally. Hq senses the opportunity and decides how and when to strike on it in the local environment. Central assets and resources > unitary global responses. Problems: market insensitivity, imperialism, local managers can reject the idea: sri in the middle to a lot of i"s internationally. Distributed assets allow for faster response times.