A Quote by Dinesh Paliwal
Reverse innovation is an innovation that is first adopted in developing markets and flows uphill to mature markets. This concept directs forward-looking companies to look beyond industrialized nations to draw new ideas, products, and processes from emerging economies.
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Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to know how to run those markets efficiently before they are created.
New products, new markets, new investors, and new ways of doing things are the lifeblood of growth. And while each innovation carries potential risk, businesses that don't innovate will eventually diminish.
Creativity is the generation and initial development of new, useful ideas. Innovation is the successful implementation of those ideas in an organization. Thus, no innovation is possible without the creative processes that mark the front end of the process: identifying important problems and opportunities, gathering relevant information, generating new ideas, and exploring the validity of those ideas.
In emerging markets, slow growth in the advanced economies has shut down a traditional development path: export-led growth. As a result, emerging markets have had to rely once again on domestic demand. This is always a difficult task, given the temptation to over-stimulate.
There's so much innovation going on, and there are lots of people funding that innovation, but there's very little innovation on that infrastructure for innovation itself, so we like to do that ourselves to help companies create more tech companies.
Big companies have trouble with innovation. Innovation is about bad ideas, or ideas that look like bad ideas. That's the fundamental thing.
It's the unlikely juxtaposition of creativity and logic which causes the wooliness and confusion around the term 'innovation'. Everybody wants to be innovative; many companies and ideas are proclaimed to be innovative and no one doubts that innovation is a money spinner. And, thus, we are all looking for the magic formula. Well, here you go: Creativity + Iterative Development = Innovation.
There's been a dichotomy in the world financial markets over the last 30 years between the developed markets and the developing markets. Brazil, for example, always had to pay a lot more in interest to borrow money than governments in developed nations.
My view is that the U.S. market will eventually join the emerging markets on the downside because if you take a bearish view about emerging economies, you cannot be too optimistic about the U.S. because for many U.S. corporations, 50 percent or more of their profits come from emerging economies.
Financial innovation can be highly dangerous, though almost no one will tell you this. New financial products are typically created for sunny days and are almost never stress-tested for stormy weather. Securitization is an area that almost perfectly fits this description; markets for securitized assets such as subprime mortgages completely collapsed in 2008 and have not fully recovered. Ironically, the government is eager to restore the securitization markets back to their pre-collapse stature.
Implementing any major changes to the way companies operate requires time and determination and the shift to globally integrated innovation is no exception - it calls for new capabilities to be built, changes in the structure of the innovation organization, new systems, processes and mindsets. The scope and scale of this task shouldn't prevent executives from starting down the path of change as the systemic nature of innovation activities means that every single element of change that's brought about will make a difference.
America is the greatest engine of innovation that has ever existed, and it can't be duplicated anytime soon, because it is the product of a multitude of factors: extreme freedom of thought, an emphasis on independent thinking, a steady immigration of new minds, a risk-taking culture with no stigma attached to trying and failing, a noncorrupt bureaucracy, and financial markets and a venture capital system that are unrivaled at taking new ideas and turning them into global products.
I'm still very bullish on emerging markets. There's an emerging middle class. They're a growing group of customers. And frankly, they want Walmart. They want everyday low price. And that's why we are continuing to grow in the emerging markets around the world, too.
Chinese companies, in their well-capitalized, rapidly growing, and surprisingly lightly regulated markets, have become global innovation leaders.
Looking beyond the emerging markets, it is important not to lose sight of the growth opportunities that exist in the developed regions.
Display companies, many of them that we've spoken to, are really excited about virtual reality because they're actually running out of innovation opportunities in other markets.
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