Emerging Economies to Drive Innovation
Recently I was engaged in a debate on - Where the next big innovation wave would come from? . To me it's obvious that it has to be from countries like India, China .. the emerging economies.
EE (emerging economies) have a large talent pool that is young with the right attitude as compared to the growing populaion in the west. In EE people have grown in a constrained enviornment and have had to do more with less, as a result of this people are constantly looking at doing things faster, better, cheaper than earlier - practicing KAIZEN (unknowingly). This mindset fortunately extends to the medium and large enterprises too.
What should G2K or F500 companies do?
It's simple, find the right partners like Renault did or set up your R&D centers or COE in EE.
Let's take the example of Renault - Bajaj is designing, developing and going to produce the $ 3000 car for Renault which Renault will sell under it's badge. It's not only the cost structure that forced Renault look for a partner, you need to have the mindset to innovate and develop cost efficient products and this would have been tough for them to build internally. Bajaj has the advantage of having an excellent talent pool with the right attitude and immense experience in manufacturing products at very efficient cost.
This arrangement seems to be a WIN WIN for both and hopefully there will be more such alliances going forward.