Innovation

Frugal Innovation Constraint Based Innovation

Immelt, Govindarajan & Timble, How GE is Disrupting Itself, HBR October 2009

GEs changing outlook

10 years ago GE managers spoke of the global marketplace as The US, Europe, Japan and the rest of the world
Now they talk about -resource rich regions Middle East, Brazil, Canada, Australia and Russia; - people rich regions China and India - rest of the world US, Europe and Japan
Immelt, Govindarajan & Timble, How GE is Disrupting Itself, HBR October 2009

Frugal Innovation Constraint-based Innovation

Tata Nano CISCO - $ 1 billion second Global HO in Bangalore Polycentric innovation Huawei has become the worlds 4th largest patent applicant Hand held ECG for $ 800 as against $ 2000 cost of ECG $ 1 per patient
The Economist, The world turned upside down: A special report on Innovation in Emerging Markets, April 17-23, 2010

Frugal Innovation Constraint-based Innovation

Godrej & Boyce - $ 70 fridge that runs on batteries Bharti Airtel business model Narayana Hrudayalaya 1/10th the cost 7.7% PAT as compared to 6.9% for average American hospital Jugaad Shanzhai
The Economist, The world turned upside down: A special report on Innovation in Emerging Markets, April 17-23, 2010

Reverse Innovation Innovation Blowback

Immelt, Govindarajan & Timble, How GE is Disrupting Itself, HBR October 2009

Reverse Innovation

Reverse Innovation
Developed countries are ripe for embracing frugal innovation Debt fuelled spending and spiraling budgets Changing demographic profiles demand greater healthcare spends

The Economist, The world turned upside down: A special report on Innovation in Emerging Markets, April 17-23, 2010

Innovation & Internationalization from India

Ford Figo Tata Ace Swachh Toyota Etios GE Cisco 2nd Global HQ 750 MNCs have R&D labs in India Wheel Jaipur Foot Narayana Hryudalaya Godrej Consumer Products Hero Motors

Reverse Innovation The Opportunity

Aravind Eye Hospitals 270 k eye surgeries in 2008 50 % were free 50 % were at or below market rates Of 2.46 mn. outpatients 50% are free Charges $ 100 per IOL cataract surgery Cost in the US $ 2500-3000 Better than or equal to (in morbidity) The Royal College of Ophthalmologists in UK

US Debt 100% of GDP Rising to debt as % of GDP Currently at $ 14 trillion Aging population Rising healthcare costs (18% of GDP) Big contributor to deficits

Opportunity for India?

Thank you
Sunil Sangra +91 9650866566 sunil.sangra@gmail.com