19/04/2013

IDG Connect Dan Swinhoe (Global) - Lessons from Emerging Markets

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Dan Swinhoe (Global) - Lessons from Emerging Markets

Posted b y Dan Swinhoe Company IDG Connect 04/19/2013

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When it comes to emerging markets, the focus is usually on opportunities for people looking to invest, or why they're failing, or lessons learned from failures. But with the news the BRICS are looking to create their own development b ank, mayb e we should b e asking what can we learn from what they're doing right? 1) Flexibility Playing fast and loose with ideas and patents may sound crazy when majors companies are suing each other on a regular b asis over the tiniest details. But the Chinese idea of Shanzhai Innovation' does just that. Ideas are quickly shared, changed and improved upon, and then sold cheaply. Yes it's a b it ethically patchy, b ut allows lower income consumers access to the kinds of products normally out of their reach, such as iPhones, and it can work. Just look at the success of Rocket Internet. 2) Localization The prob lem with multinationals is they don't look close enough. In Kenya, mob ile payment company M-Pesa accounts for a staggering 31% of the country's GDP spending b ecause the infrastructure doesn't lend itself well to other forms of b anking. While an exceptional case, there are other, smaller examples. There are localized social networks such as Mxit and Lagb ook in Africa, Sinwa Weib o and Renren in China, and localized tab lets in Africa, Malaysia and India, just to name a few. It's simple; understanding what's happening on the ground and then you can solve the prob lems you find. 3) Education Despite unemployment b eing high in many Western countries, there' still a chronic skills shortage in many areas, so much so that Faceb ook's Mark Zuckerb erg formed a lob b ying party to try and relax immigration laws. Meanwhile China and India are expected to produce 40% of glob al graduates b y 2020, just under doub le US & European figures. No wonder so many R&D Innovation centers are now b eing opened in the region. While the average quality may not b e as high as the West, it's still impressive that so many are availab le when the cupb oards are b are here. 4) Shared Value We looked at Shared Value a few weeks ago, and Latin America are showing they really get it. The fact that many

Martin Veitch (Global) - Interview: GE's Bill Ruh Expects Human-Machine Dialogue
*Ravi* I think there's a perfect storm of factors. There are a great many more sensors and they're a lot more accurate and cheaper. Even a cellphone will... Martin Veitch 04-17-2013

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IDG Connect Dan Swinhoe (Global) - Lessons from Emerging Markets

countries in the region have many social prob lems, especially around inequality and education, means it's well placed for this kind of social project. Using LatAm as an example would b enefit b oth companies and the people around them. 5) Small Businesses In Latin America, the SMB is king; they make up the vast majority of b usinesses and employment in the area, and around a third of the region's GDP. Clearly, they know how to work in those markets, and have plenty of offer especially when it comes to deploying limited resources. But they also know when they need to come together. Clustering allows the sharing of knowledge, skills and resources- essentially allowing small b usinesses to act like b ig ones. The collective Shenzai b usinesses are a good example of this. You can't always rule the world on your own. 6) Sustainability The US might not have started to emb race Green IT, and efforts in Asia are mixed, b ut emerging markets are quickly b ecoming b eacons for sustainab ility in b usiness. It's an issue that will only grow in time; watching how companies from Costa Rica, Egypt and the Philippines are taking the lead shows not all b usinesses are shorttermist. By Dan Swinhoe, Editorial Assistant, IDG Connect Do you agree? What lessons you do think Emerging Markets can teach? Take our survey now. Seoul Space IDG Connect Marketers ILX Group Gerdau SA Afrinnovator South African Local Government Association idgconnectlaw Popular Tags idgconnect Technology Cloud Computing IT Infrastructure (ISC)2 Monster Reksoft CSC Netmagic Solutions Smart Sky Electronics We45 Solutions Business Daily Web sense Afrinnovator Business TechNode Mob ility Cib ecs Security

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