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Posts Tagged ‘reverse innovation’

Is ‘Reverse Innovation’ Really Innovation?

Posted by Plish on September 30, 2009

Comparison of Innovation Strategies - Click for Full View

Comparison of Innovation Strategies - Click for Full View


Recently, GE’s CEO coined the term “reverse innovation”¬†in this article.¬† (Or read the shorter summary version¬†from BusinessWeek)

In a nutshell, Reverse Innovation is ¬†a process by which Product ‘X’ gets developed in and for places like China or India.¬†¬†It meets¬†very specific needs at a lower price.¬† However, after launch there is a realization in the U.S. that¬†Product ‘X’ meets¬†needs for a sizable demographic within the U.S., at the lower price.¬†¬†In a strange twist, a company creates products that compete against its own products.¬† Instead of expensive, feature rich products¬†being developed in the U.S. and then being modified for sales overseas, products get developed overseas and come back to the U.S. at a lower price point.

That said, is reverse innovation truly innovation?

Vote here before reading my take:


My take:

Ultimately innovation, which involves bringing good designs to market at acceptable price points, comes from knowing the customer.¬† This should be¬†done on a local level, and that part of reverse innovation is on the mark.¬† However, it shouldn’t take someone creating a device in a different country to open one’s eyes to a market for that same product¬†in the U.S..

I’m not sure what I’d call it, but if you want to know what reverse innovation sounds like,¬†I created this:

Posted in Case Studies, Customer Focus, Design, Disruptive Innovation, innovation, Market Assessment | Tagged: , , , , , | 5 Comments »

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