Reverse innovation

Definition[ edit ] The process of reverse innovation begins by focusing on needs and requirements for low-cost products in countries like India. Once products are developed for these markets, they are then sold elsewhere - even in the West - at low prices which creates new markets and uses for these innovations.

Reverse innovation

Amit Verma Four years ago, when the buzz around total rural electrification in the country gained momentum with the arrival of the Narendra Modi-led government, engineers at the Bengaluru premises of General Electric GE started to look for solutions.

India, according to a September report by Reuters, has more than 40 million households that need to be electrified. The project is in partnership with Tata Power—the service provider of electricity.

Each village is home to approximately 1, people, who now get access to power for basic needs such as lighting up bulbs, running fans and charging mobile phones. There are no practical limits on what can be connected to the minigrid, says the company, as it is a function of how the operator Tata Power is limiting or charging for the load.

This, even as the politics of rural electrification has reached a crescendo with the opposition and the government quarrelling over how many rural households and villages Reverse innovation been electrified—the May deadline for electrifying all villages has been extended by a year.

The bulk of the electricity generation is through solar power. The batteries, which are charged through solar power, are switched on at night. The diesel component of the system acts as a backup, quite literally, for rainy days.

Depending on the power Reverse innovation and population of the village, either a 15 kilowatt or 30 kilowatt HDP system can be installed. If the Reverse innovation is for 60 kilowatt, then two kilowatt power systems can be used. And the trick here from the innovation standpoint is to use analytics for remote monitoring and diagnostics.

To be sure, any innovation that happens in India does involve collaboration with other GE innovation centres across the world. The integration of different power sources and relying predominately on solar power meant lower tariffs.

According to GE, Tata Power charges each household a fixed fee per month for a certain amount of power access. As the power systems are connectivity-enabled, it allows GE to remotely monitor and analyse data such as usage, charge and discharge of power and billing among other things.

Since those mines were operating on diesel power, the benefit of this hybrid system makes economic sense out there as well. He explains that reverse innovation has three stages: Innovate in India, for India; use those innovations to drive growth in other emerging markets; and take those innovations to developed countries.

A model for ‘reverse innovation’ in health care

That journey has resulted in GE not only tasting success in India, but also in many markets that are similar to India. One of its most successful products is the Revolution ACT scanner, an affordable CT scanner that is used for the diagnosis of trauma and stroke patients which was launched in Only the big hospitals in metros could afford to buy a CT scanner.

So, while innovating on the Revolution ACT scanner price point was critical, the goal, says Wanchoo, was to build a product that would cost 40 to 50 percent less than a traditional CT scanner. Today, the company sells more than one Revolution ACT scanner per day in India, with annualised sales of over units.

About units have been exported to countries like Vietnam and Indonesia.

Reverse innovation: Made in India, for the world | Forbes India

Also built at a price point that is significantly lower than what was available in the market, it has enabled GE become the biggest player in Molecular imaging in the country.

For this, the engineers had to create a product that had to be much taller, but modular in form so that it could be easily transported to remote site locations. And it had to have larger wind rotors to be able to generate electricity efficiently. This was the first time we have done that. India, he says, will become the centre of excellence for designing and developing the product for markets like China, Vietnam, Pakistan and parts of Europe.

The deployment of the product in India will begin next year. Germany-headquartered Siemens has around 6, software engineers in India spread across Bengaluru, Pune and Gurugram. Recently, its India engineers played a key role in the design and development of two 3D-printed oil sealing rings that were to be installed on an industrial steam turbine owned by JSW Steel Ltd.

Then consider the 18,strong IT engineering workforce of another German multinational, Bosch. It is also the largest research and development centre for Bosch, outside of Germany.

The software allows fleet-owners to effectively manage their fleet—vehicles and aircraft. InBosch launched a locally-developed retinal eye screening camera that could detect conditions like diabetic retinopathy and glaucoma.

However, in recent times South American and Australia companies have begun establishing their presence. It has launched a startup engagement programme called Collider.

Two years ago, as part of its health care division, GE India launched an innovation fund five.REVERSE Innovation is a cutting-edge brand and product design agency. We are based in Milan, Italy but our creativity knows no limits.

“Reverse innovation is rapidly changing the way companies think and how that’s affecting the way they look at markets.”.

Background

Aug 30,  · Introduction ‘Reverse innovation’ — the flow of ideas from lower to higher income settings — is gaining traction in health care as a way to generate innovative ideas. The European Business Review is a bi-monthly journal bringing you features on leadership, strategy and global economic issues.

Rise above your competitors and make informed decisions with business innovation and insightful analysis from global experts. Multinational giants like GE, Siemens and Bosch are mastering reverse engineering to take made-for-India products global.

Reverse innovation

Reverse innovation—developing ideas in an emerging market and coaxing them to flow uphill to Western markets—poses immense challenges, because it requires a company to overcome the.

Reverse Innovation - Definition and Examples