Comments on: Reverse innovation: How GE is disrupting itself http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/ Your source for what's happening at GE. Wed, 28 Jul 2010 20:12:36 +0000 hourly 1 By: queniheseCeme http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-31787 queniheseCeme Sat, 27 Feb 2010 21:59:42 +0000 http://www.gereports.com/?p=3897#comment-31787 Hi there! i've just joined here and wanted to say hi to all of you!I really hope to give something back to this board... Cheers Hi there!

i’ve just joined here and wanted to say hi to all of you!I really hope to give something back to this board…

Cheers

]]> By: Arthur Bertinus http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-30413 Arthur Bertinus Sat, 06 Feb 2010 22:44:09 +0000 http://www.gereports.com/?p=3897#comment-30413 The model for creating new reverse is a brilliant one, the initiative start with the mother office (headquarters), then outsource the manufacture to the emerging markets, sell the new products and service to the emerging market, and sell the same product and service (with some adjustments) from the emerging market to technology develop markets. The idea on itself is not new, we can see this same process with a multinational organization as Shell, who develops new products, with his headquarter in the Netherlands. New about this idea is the fact that GE sees this reverse innovation as a future strategy. But for the near future, there is more to it than only reverse innovation strategy. This reverse innovation don’t have components of corporate strategy, but so it seems, put more emphasis on technology, production and marketing, with many restrictions from the management team, and this can be a constrain for GE, especially in the technology market. GE needs to develop corporate strategies, to stay in profitability and affectedness in the technology market. Mr. Vijay Govindarajan and his co-authors state correct that the economic influence of China and India has growth, but when it comes to being wealthy of other nations, my approach differs somewhat from that taken in much of the recent literature and that of Mr. Vijay Govindarajan when referring to slow growth of wealthy nations. In my vision slow growth of the wealthy nations suggests that there will be a fast growth soon but a wealthy nation (read U.S.A.) economic powerhouse will not experience exceptional economic growth anymore. I see clearly that U.S.A. economy has come to the end of its production life circle just as a production life circle of any product during the industrial age. To break through GE management layers the colleagues need more than only educated in economic development, business analysts, financial systems, marketing and the traditional MBA education. It seems that GE history attracts many talent professionals that are able to drive the reverse innovation but as many traditional organizations, after bringing professionals in GE emerging workforce, GE headquarter seems to lose interest in these professionals with their creative ideas and energy. These communications constrain GE is wasting time, energy and money when it comes to developing the full capacity of the workforce and stationed in the emerging markets. Organizations and societies are constant changing and in the emerging region the changes between organization and society create a gap when it comes to the quality of life. International and global companies don’t have a traditional in making policies concerning quality of life in the emerging markets. If there are no individuals with influence, human rights organizations, unions, global organizations like GE will not have design code of conduct or ethics as they have at the headquarter. If GE has code of conduct for their reverse innovation officers, is not clear that these are implemented and maintained. It is good for GE brand to talk about the quality of life. Possible that these health care machines and devices provide (is affordable) for some groups in the society, but is GE aware that these products are manufacture by those (at the end of the outsource chain) that are responsible for packing and transport, that in these chains cheap labor is involving. Like young children, sexual abuse and harassment of man and woman by their poor social economic status, less restricts health and safety regulations and labor conditions. These issues are less taken care of when GE goal is to double its revenue in the emerging market, the higher the profit the lower the conditions. Is GE leader capable of design programs that influence the society and the way the individual in the emerging markets looks at GE and its stakeholders and does GE want to measure its influence on the society and individuals in that society? Where is GE headquarters future implications for her organization responsibility on the emerging market? Does GE see the demand for health care system driven by economic and technology changes in the emerging markets as the same as the consumer demanding for better quality of life? Is GE a reliable party to reach that goal and not merely money making machine, but the one organization that helps those that don’t have access to medical care that can improve the quality of life? When it comes to organization design, the organization structure for the emerging market partners can be design as a depended entity. Such organization structure independent from the mother organization can identify the possibilities in the emerging markets and customers in the USA, EU and other countries. The structure of the organization in the emerging markets can create, and sustain competitive advantage when competition from China and India will become more intense, or when the health care market attracts more rivals that offer the same product and service as the GE partners but at the lower price and play a new ball game. Is the organization structure in the emerging market design from the macro economic perspective, to drive human potential in the quality of serving others, and prepare the organization to be flexible when recognizing is time to change gear, recognizing the economic and cultural of the emerging country where GE partner is residing? GE headquarter must build a staff of visionaries that can identify growing health care industries, staff that wants to make a positive contribution in their communities, staff that put their energy to create a better quality of life and that are passionate about create vision and opportunities to suit those in needs that are excluded from the economic inner circle, health care and education. I am a where that GE has to deal with corruption, misguided social, political, and economic policies, personal self enrichment, where the lower of the social class system then no-bodies of this world have to struggle for sufficient food as well the social and economic injustice, and the inhuman living conditions worse than slums. No one knows how much work their finger to the bone without honest pay. Everyday people, who are wrestling with the complexities of reality of life, without hope on a better life and are longing to taste social and economic freedom to take their life in their own hands, time will tell. The model for creating new reverse is a brilliant one, the initiative start with the mother office (headquarters), then outsource the manufacture to the emerging markets, sell the new products and service to the emerging market, and sell the same product and service (with some adjustments) from the emerging market to technology develop markets. The idea on itself is not new, we can see this same process with a multinational organization as Shell, who develops new products, with his headquarter in the Netherlands. New about this idea is the fact that GE sees this reverse innovation as a future strategy. But for the near future, there is more to it than only reverse innovation strategy. This reverse innovation don’t have components of corporate strategy, but so it seems, put more emphasis on technology, production and marketing, with many restrictions from the management team, and this can be a constrain for GE, especially in the technology market. GE needs to develop corporate strategies, to stay in profitability and affectedness in the technology market. Mr. Vijay Govindarajan and his co-authors state correct that the economic influence of China and India has growth, but when it comes to being wealthy of other nations, my approach differs somewhat from that taken in much of the recent literature and that of Mr. Vijay Govindarajan when referring to slow growth of wealthy nations. In my vision slow growth of the wealthy nations suggests that there will be a fast growth soon but a wealthy nation (read U.S.A.) economic powerhouse will not experience exceptional economic growth anymore. I see clearly that U.S.A. economy has come to the end of its production life circle just as a production life circle of any product during the industrial age.
To break through GE management layers the colleagues need more than only educated in economic development, business analysts, financial systems, marketing and the traditional MBA education. It seems that GE history attracts many talent professionals that are able to drive the reverse innovation but as many traditional organizations, after bringing professionals in GE emerging workforce, GE headquarter seems to lose interest in these professionals with their creative ideas and energy. These communications constrain GE is wasting time, energy and money when it comes to developing the full capacity of the workforce and stationed in the emerging markets.
Organizations and societies are constant changing and in the emerging region the changes between organization and society create a gap when it comes to the quality of life. International and global companies don’t have a traditional in making policies concerning quality of life in the emerging markets. If there are no individuals with influence, human rights organizations, unions, global organizations like GE will not have design code of conduct or ethics as they have at the headquarter. If GE has code of conduct for their reverse innovation officers, is not clear that these are implemented and maintained. It is good for GE brand to talk about the quality of life. Possible that these health care machines and devices provide (is affordable) for some groups in the society, but is GE aware that these products are manufacture by those (at the end of the outsource chain) that are responsible for packing and transport, that in these chains cheap labor is involving. Like young children, sexual abuse and harassment of man and woman by their poor social economic status, less restricts health and safety regulations and labor conditions. These issues are less taken care of when GE goal is to double its revenue in the emerging market, the higher the profit the lower the conditions.
Is GE leader capable of design programs that influence the society and the way the individual in the emerging markets looks at GE and its stakeholders and does GE want to measure its influence on the society and individuals in that society? Where is GE headquarters future implications for her organization responsibility on the emerging market? Does GE see the demand for health care system driven by economic and technology changes in the emerging markets as the same as the consumer demanding for better quality of life? Is GE a reliable party to reach that goal and not merely money making machine, but the one organization that helps those that don’t have access to medical care that can improve the quality of life?
When it comes to organization design, the organization structure for the emerging market partners can be design as a depended entity. Such organization structure independent from the mother organization can identify the possibilities in the emerging markets and customers in the USA, EU and other countries. The structure of the organization in the emerging markets can create, and sustain competitive advantage when competition from China and India will become more intense, or when the health care market attracts more rivals that offer the same product and service as the GE partners but at the lower price and play a new ball game. Is the organization structure in the emerging market design from the macro economic perspective, to drive human potential in the quality of serving others, and prepare the organization to be flexible when recognizing is time to change gear, recognizing the economic and cultural of the emerging country where GE partner is residing?
GE headquarter must build a staff of visionaries that can identify growing health care industries, staff that wants to make a positive contribution in their communities, staff that put their energy to create a better quality of life and that are passionate about create vision and opportunities to suit those in needs that are excluded from the economic inner circle, health care and education.
I am a where that GE has to deal with corruption, misguided social, political, and economic policies, personal self enrichment, where the lower of the social class system then no-bodies of this world have to struggle for sufficient food as well the social and economic injustice, and the inhuman living conditions worse than slums. No one knows how much work their finger to the bone without honest pay. Everyday people, who are wrestling with the complexities of reality of life, without hope on a better life and are longing to taste social and economic freedom to take their life in their own hands, time will tell.

]]> By: Gururaj Rao http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-28975 Gururaj Rao Fri, 15 Jan 2010 13:11:59 +0000 http://www.gereports.com/?p=3897#comment-28975 Well researched and brilliantly articulated;that the chalenge is more organizational than technological.May be this "commoditisation of innovation" made possible by India and China having attained a critical mass in resources and consumers will be the biggest disruptive event of this century. Well researched and brilliantly articulated;that the chalenge is more organizational than technological.May be this “commoditisation of innovation” made possible by India and China having attained a critical mass in resources and consumers will be the biggest disruptive event of this century.

]]> By: H. R. Prasad http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-27912 H. R. Prasad Thu, 31 Dec 2009 07:40:36 +0000 http://www.gereports.com/?p=3897#comment-27912 Dear Prof. Govindarajan: I am associated with Anand group, one of the largest groups manufacturing auto components in India, like Gabriel shock absorbers, Behr airconditioning systems, Perfect Circle piston rings, Spicer axles and drive shafts, Victor gaskets, Emcon exhaust systems, Haldex brake adjusters, Mahle filters, Mando brakes, Federal- Mogul bearings, Valeo friction materials, Henkel products, and many others, through joint ventures with world leaders. I am inspired by the work you are doing on Innovation and have been reading about it in various publications. The recent article in HBR about GE is particularly inspiring. We have decided to start a formal process in Anand group for Innovation for which we seek your advice and guidance and, if possible, participation. I am an MIT Sloan graduate and look forward to your response. I take the opportunity to wish you and your family a happy new year. With best regards, H. R. Prasad. Dear Prof. Govindarajan:

I am associated with Anand group, one of the largest groups manufacturing auto components in
India, like Gabriel shock absorbers, Behr airconditioning systems, Perfect Circle piston rings, Spicer axles and drive shafts, Victor gaskets, Emcon exhaust systems, Haldex brake
adjusters, Mahle filters, Mando brakes, Federal-
Mogul bearings, Valeo friction materials, Henkel
products, and many others, through joint ventures
with world leaders.

I am inspired by the work you are doing on Innovation and have been reading about it in various publications. The recent article in HBR
about GE is particularly inspiring.

We have decided to start a formal process in Anand
group for Innovation for which we seek your advice
and guidance and, if possible, participation.

I am an MIT Sloan graduate and look forward to
your response. I take the opportunity to wish you
and your family a happy new year.

With best regards, H. R. Prasad.

]]> By: Bindu Gupta http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-23372 Bindu Gupta Fri, 06 Nov 2009 11:23:53 +0000 http://www.gereports.com/?p=3897#comment-23372 This a very enlightening article about GE new strategy for innovation and how structure has been aligned to support the strategy of GE. The authors have explained very well how the need to change the strategy was felt and how changes have been implemented. This article is great contribution to academia and other corporate world. Dear Prof. your research papers have been great learning source. This a very enlightening article about GE new strategy for innovation and how structure has been aligned to support the strategy of GE. The authors have explained very well how the need to change the strategy was felt and how changes have been implemented. This article is great contribution to academia and other corporate world. Dear Prof. your research papers have been great learning source.

]]> By: Ikechukwu Igbokwe http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-21593 Ikechukwu Igbokwe Fri, 16 Oct 2009 11:33:56 +0000 http://www.gereports.com/?p=3897#comment-21593 Excellent article VG. I am profoundly thrilled by the depth of academic research that went into this article. Indeed 'reverse innovation' holds vast promises for international firms operating in 'red oceans'. Seems to me that china and india will continue to be the rallying point for international firms in product innovation and strategy for coming years. I equally subscribe to your idea that Africa would be a potential honey pot for GE( energy) in the near future. But I have doubts. The greatest casualty might be the GE health care brand itself. The organizational structure necessary for 'reverse innovation' in my view cannot operate as independent units because the products they spawn come back to cannibalize GE global markets. Its like having 'resistance units' in an army batallion. Making cheap products most likely will spark price wars in developing countries, making GE comparable with cheap(and maybe substandard) medical products from asian countries. would GE be able to win the price war? GE in my reckoning is known for innovation and quality and these are traits other health care companies cannot contend with. Finally, reverse innovation might be the trend today but is it sustainable?? Apart, excellent article. Keep more coming. Regards Excellent article VG. I am profoundly thrilled by the depth of academic research that went into this article. Indeed ‘reverse innovation’ holds vast promises for international firms operating in ‘red oceans’.
Seems to me that china and india will continue to be the rallying point for international firms in product innovation and strategy for coming years. I equally subscribe to your idea that Africa would be a potential honey pot for GE( energy) in the near future.
But I have doubts. The greatest casualty might be the GE health care brand itself. The organizational structure necessary for ‘reverse innovation’ in my view cannot operate as independent units because the products they spawn come back to cannibalize GE global markets. Its like having ‘resistance units’ in an army batallion. Making cheap products most likely will spark price wars in developing countries, making GE comparable with cheap(and maybe substandard) medical products from asian countries. would GE be able to win the price war? GE in my reckoning is known for innovation and quality and these are traits other health care companies cannot contend with.
Finally, reverse innovation might be the trend today but is it sustainable??

Apart, excellent article. Keep more coming.

Regards

]]> By: Mark g. Evans http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-21386 Mark g. Evans Wed, 14 Oct 2009 12:38:47 +0000 http://www.gereports.com/?p=3897#comment-21386 Well done VG. This article explains the necessary steps multinationals must take; 3 Box Thinking for sure. Congrats and I sincerely hope that your work becomes the "tipping point" for other multinationals to see the upside of developing markets. Well done VG. This article explains the necessary steps multinationals must take; 3 Box Thinking for sure. Congrats and I sincerely hope that your work becomes the “tipping point” for other multinationals to see the upside of developing markets.

]]> By: Paul Hobcraft http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-20905 Paul Hobcraft Sun, 11 Oct 2009 09:38:09 +0000 http://www.gereports.com/?p=3897#comment-20905 I fell reverse innovation has great potential and important to develop further. There are I feel considerable obsticles and barriers to overcome and I wrote of these in the following link: http://blogs.harvardbusiness.org/hbr/hbreditors/2009/09/hbr_issue_highlights_october_2.html These raise issues relating to GE from the article written in the Harvard Business Review published “How GE is Disrupting Itself,” for further thoughts for the adoption of reverse innovation I fell reverse innovation has great potential and important to develop further.

There are I feel considerable obsticles and barriers to overcome and I wrote of these in the following link:

http://blogs.harvardbusiness.org/hbr/hbreditors/2009/09/hbr_issue_highlights_october_2.html

These raise issues relating to GE from the article written in the Harvard Business Review published “How GE is Disrupting Itself,” for further thoughts for the adoption of reverse innovation

]]> By: R.Sundaresh http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-20135 R.Sundaresh Tue, 06 Oct 2009 07:30:45 +0000 http://www.gereports.com/?p=3897#comment-20135 Indeed a good thought articulated well.I endorse the concept of reverse innovation.Markets precedes products.Developing countires to contribute significantly for growth of organization which hitherto has seen good times in developed countries but are currently facing challenging times.Paradigm shift in the concept of Rest of the World.Ultimately market orientation and customer needs ,customer affordability, and basic functional needs of the product are critical for sustained growth.The operational budgets should reflect target/achievements in new market/new geographies/new customers/new products separately and the team achieving desired results should be recognised. Indeed a good thought articulated well.I endorse the concept of reverse innovation.Markets precedes products.Developing countires to contribute significantly for growth of organization which hitherto has seen good times in developed countries but are currently facing challenging times.Paradigm shift in the concept of Rest of the World.Ultimately market orientation and customer needs ,customer affordability, and basic functional needs of the product are critical for sustained growth.The operational budgets should reflect target/achievements in new market/new geographies/new customers/new products separately and the team achieving desired results should be recognised.

]]> By: Rajib Ghosh http://www.gereports.com/reverse-innovation-how-ge-is-disrupting-itself/comment-page-1/#comment-19443 Rajib Ghosh Thu, 01 Oct 2009 08:25:21 +0000 http://www.gereports.com/?p=3897#comment-19443 This is indeed a very powerful and awakening article for many. It's interesting that in the IT enabled services and other services in the IT space, Indian MNCs like Wipro & Infy has actually pushed large players in same space to adopt " Reverse Innovation". This is indeed a very powerful and awakening article for many. It’s interesting that in the IT enabled services and other services in the IT space, Indian MNCs like Wipro & Infy has actually pushed large players in same space to adopt ” Reverse Innovation”.

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