REVERSE INNOVATION PURPOSE: Multinationals have traditionally innovated in a rich country and later sold products in a poor country. Reverse innovation is doing the opposite. It is currently being...

Explain the picture below.

• purpose of reverse innovation


• how it works


• example

Extracted text: REVERSE INNOVATION PURPOSE: Multinationals have traditionally innovated in a rich country and later sold products in a poor country. Reverse innovation is doing the opposite. It is currently being applied to various industries, including healthcare. Essentially, companies develop products to meet developing countries' needs and then hope the same idea can later be sold abroad to consumers in more established countries. It can help connect developing countries with global markets by increasing cross- border production and testing marketing viability in a lower- cost environment." design and develop offerings to meet those needs. Role of the management accountant: Management accountants can propose a reverse innovation approach as part of a strategic analysis to develop new pathways for profitable growth and innovation." They can also be instrumental in measuring and managing the performance of HOW IT WORKS: Strengths: Reverse innovation can drive growth for companies in a global market where much growth is occurring in developing countries. It differs from other tools (e.g., Blue Ocean, creating shared value, and disruptive innovation) by focusing on designing product in developed country markets or service offerings specifically for a developing country reverse innovation initiatives. • Reverse innovation is a process of specifically designing and developing offerings to fulfill the customer needs in a developing country and, if successful there, looking for ways to deploy the offering EXAMPLE OF REVERSE INNOVATION In 2009, General Electric (GE) announced a $1,000 handheld electrocardiogram device and a portable, personal computer-based ultrasound machine that sells for about $15,000 that were both originally designed and developed for markets in India and China where the key factors were ease-of-use, portability, and low cost. Later, GE Successfully deployed these produ in the U.S. for ambu for a second round of value creation. where there is a It differs from higher likelihood of a traditional success. strategy of adapting offerings for developed Limitations: Reverse innovation requires the countries without additional challenne specific reference to the otherwise 34 of 42 and remote needs of the peopie rescue environments." those countries. an open-ended aporoach to


Extracted text: strategy of adapting offerings for developed designed and developed for markets in India and China where the key factors were ease-of-use, portability, and low cost. Later, GE successfully deployed these products in the U.S. for ambulances and remote Limitations: Reverse innovation requires the additional challenge countries without specific reference of understanding the specific needs in developing countries and taking an open-ended approach to to the otherwise unmet rescue environments." needs of the people in those countries.