Innova&on  in  a  Flat  World:  Lessons  from  India  

Tathagat  Varma,  VP,  Strategic  Process  Innova2ons,  

Innova2on  Labs,  [24]7  Customer,  Inc  

India Yesterday vs. India Today

#54  Governance  

#94  Corrup<on  Percep<on  Index  

#97  Educa<on  

#100  Personal  Freedom  

#104  Entrepreneurship  &  Opportunity  

#106:  Prosperity  Index  

#109  Health  

#120  Safety  &  Security  

#134  Ease  of  Doing  Business  

#1  Milk  Producer,  Two-­‐wheeler,  IT  Outsourcing  Country,  Bollywood,  Gold  consumer,    

#2  Wheat,  Rice,  Mobile  Users,  Labor  force,  Roadways,  Cement,  CoYon,  Potato,  Sugarcane,  Tea,  Students  studying  abroad    

#3  Internet  Users,  Coal,  GDP  (PPP);  #4  Railways,  Steel;  #5  Heavy  Truck,  Wind  power;  #6  Car  maker,  Electricity  Producer  

OR  AND  

…and India Tomorrow?

IT  Outsourcing-­‐

led  Innova&on  

Glocaliza&on   “Jugaad”  Innova&on  

“India-­‐scale”  Innova&on  

Reverse  Innova&on  

New  to  the  World  

India’s Innovation Spectrum

IT Outsourcing-led Innovation

Intui<ve  Customer  Experiences.  2.5  Billion  <mes  a  year.    [24]7  Customer,  Inc.  

Glocalization

Globaliza<on  +  localiza&on  

Well-­‐established  examples  in  India  

Explainable,  even  if  not  always  repeatable  

“Jugaad”

hYp://jugaadinnova<on.com/infographics/    

Grassroots  approach  to  solve  daily-­‐life  problems  

Simple,  Quick,  Frugal,  Workaround  

Might  not  be  elegant,  sustainable  or  scalable!  

A Billion Examples of Jugaad…but only a few become big!

Missed-call – a “Zero Billion $” Idea?

Industry  es<mates  loss  of  revenue  between  20%  to  30%  due  to  missed  calls  

96%  of  India’s  900m  user  give  missed-­‐call  –  India’s  zero-­‐cost  Morse-­‐code  for  rou<ne  ‘updates’  like  ‘arrived  safely’,  or  ‘call  me  back’,  etc.    

However,  it  is  a  $100m+  business  

For “India-scale” Problems…

1.2Billion+  People  

Largest  democracy  

30%  <$1.25/day  and  97%  <$5/day  

70%  live  in  rural  areas  

31%  use  improved  sanita<on  (2008)  

0.6  Doctors  per  1000  (#124)  

Largest  popula<on  of  blind  

…and  many,  many  more!  

… “India-scale” Innovations

Polio  Eradica<on  

Jaipur  Foot  

Sanitary  Napkin  King!  

Educa<on  for  underprivileged  

Mid-­‐day  Meal  Scheme  

Aravind  Eye  Care  System  

UID  “Aadhar”  Card  Project  

Maha  Kumbh  Mela  

…and  many,  many  more!  

India vs. Polio

Till  2009:  India  accounted  for  50%  cases  

13  Jan  2011:  last  recorded  case  

hYp://www.cdc.gov/polio/progress/     hYp://www.unicef.org/india/Polio_Booklet-­‐final_(22-­‐02-­‐2012)V3.pdf    

World’s Largest Organization ���for the Disabled

Since  1975,  over  1.3  million  beneficiaries,  mostly  in  India  and  also  in  26  countries  of  Asia,  Africa  and  La<n  America.  

Rapid  fitment  —  limbs,  aids,  etc  generally  fiRed  in  one  to  three  days.  All  ar<ficial  limbs  and  other  aids  and  appliances  given  totally  free  of  charge.  

India’s Sanitary Napkin King!!!

Arumugam  Muruganantham,  a  school  dropout  who  wants  to  give  dignity  to  rural  women  

Only  2%  of  rural  women  use  sanitary  

napkin  

He  became  first  man  to  wear  sanitary  napkin…  

Generates  local  employment;  

Cost  per  napkin:  

0.02-­‐0.03  US$  

630+  machines  installed  across  23  states  and  6  

countries  

Established  in  1994  to  provide  pre-­‐school  educa<on  to  the  children  in  the  slums  of  Mumbai  city.  

Pratham  is  the  largest  NGO  working  to  provide  quality  educa&on  to  the  underprivileged  children  of  India.      

“Every Child in School and Learning Well” 

•  In June 2000, started  mid-day meal program in Bangalore by feeding 1500 children in 5 schools

•  1.37m children everyday

Objectives of the mid-day meal scheme ���- avoid classroom hunger, ���- increase school enrolment, ���- increase school attendance���- improve socialization among castes ���- address malnutrition & ���- empower women through employment

Today, India's mid-day meal scheme is the largest school lunch program in the world, reaching out to nearly 120 million children in the country.

Aravind Eye Care System

Founded  by  Dr.  Venkataswamy  in  1976.  Now  300+  hospital  network  

Has  seen  32m+  pa&ents  and  done  4m+  surgeries  

Each  year,  Aravind  does  60%  as  many  eye  surgeries  as  the  UK’s  NHS,  at  one-­‐thousandth  of  the  cost.  

“My goal is to spread the Aravind model to every nook and corner of India, Asia, and

Africa; wherever there is blindness, we want to offer hope. Tell me, what is this

concept of franchising? Can’t we do what McDonald’s and

Burger King have done?” —Dr. V, 1993

“Aadhar” – Unique Id for India’s 1.2 Billion!

To  empower  residents  of  India  with  a  unique  iden2ty  and  a  digital  plaForm  to  authen2cate  any2me,  anywhere.  

Cost  per  card:  $3-­‐5  

Cost  to  ci<zens:  Free  

Maha Kumbh Mela 2013 Largest  peaceful  gathering  of  mankind  every  12  years  

58  sq.  kms  campus  

100m+  pilgrims  visited  in  2013  

30m+  took  dip  on  10  Feb  2013  

No  major  disease  outbreak!  

Reverse Innovation: Create far from home, win everywhere!

Microso_  is  crea<ng  new  phone  app  services  for  "dumb"  phones  which  allow  users  with  exis<ng,  non-­‐smartphone  devices  to  access  Web  sites  such  as  TwiYer,  Facebook.  Built  for  markets  in  India  and  South  Africa,  there  is  surprising  poten<al  for  these  apps  as  a  low-­‐cost  cloud  compu<ng  plaxorm.  

GE  is  now  selling  an  ultra-­‐portable  electrocardiograph  machine  in  the  U.S.  at  an  80%  markdown  for  similar  products.  The  machine  was  originally  built  by  GE  Healthcare  for  doctors  in  India  and  China.  

Tata  Motors  is  planning  to  sell  an  upgraded  version  of  the  Tata  Nano  in  western  markets;  it's  called  Tata  Europa.  

Procter  &  Gamble  found  that  a  honey-­‐based  cold  remedy  created  for  Mexico  also  had  a  profitable  market  in  Europe  and  the  United  States.  

Nestlé  learned  that  it  could  sell  its  low-­‐cost,  low-­‐fat  dried  noodles  originally  created  for  rural  India  and  posi<on  the  same  product  as  a  healthy  alterna<ve  in  Australia  and  New  Zealand  

In  China  and  India,  Harman  designed  from  scratch  a  completely  new  infotainment  system  for  emerging  markets  with  func<onality  similar  to  their  high-­‐end  products  at  half  the  price  and  one-­‐third  the  cost.  It  has  generated  more  than  $3  billion  in  new  business.    

Mahindra  Tractors  developed  smaller  tractors  for  small  <me  farmers  across  the  world  and  have  succeeded  tremendously  from  it  based  on  their  India  model    

Narayana  Hridayalaya  has  developed  the  process  for  low  cost  cardiac  surgery  and  is  now  se{ng  up  hospitals  close  to  the  USA  to  deliver  lower  cost  healthcare  based  on  the  model  they  perfected  in  India.  

Key Takeaways

Outsourcing  and  glocaliza&on  have  opened  up  India  markets  for  MNCs  beyond  just  cost  advantages  

Jugaad  reflects  day-­‐to-­‐day  constraints  =  ideas  for  future?  

India-­‐scale  problems  test  every  aspect  of  design,  development  and  delivery  

Local  innova<ons  from  MNCs  and  startups  could  be  eventually  funneled  back  as  reverse  innova&on  for  global  markets  

References

•  40 Years of Innovation in India, Harsh Wardhan Gupta, http://www.ipfonline.com/IPFCONTENT/articles/technical-articles/40-years-of-innovation-in-india-1.php

•  9 Talks about Innovation In India, TED, http://blog.ted.com/2012/11/13/9-talks-about-innovation-in-india/

•  Rs. 500-cr missed call biz in India: Banks, FMCG cos, political parties use this tool for customer feedback, Joji Thomas and Harsimran Julka, http://articles.economictimes.indiatimes.com/2013-01-26/news/36564149_1_ceo-vishwanath-alluri-political-parties-imimobile

•  http://en.wikipedia.org/wiki/Missed_call •  http://techcrunch.com/2013/03/06/zipdial-has-turned-400m-missed-calls-into-moneymaking-connections/ •  India: On the Path of Innovation, Shivkamal, http://www.ibef.org/download%5Ccover_story_Innovation_131107.pdf

•  http://hbr.org/2012/04/a-reverse-innovation-playbook/ •  http://www.fastcompany.com/1738533/10-most-innovative-companies-india •  http://pratham.org •  http://www.akshayapatra.org/

•  http://www.transparency.org/cpi2012/results •  http://www.indianexpress.com/news/india-gets-poor-101st-rank-on-global-gender-gap-index/1187096/ •  http://www.globalslaveryindex.org/report/ •  http://www.prosperity.com/#!/country/IND

Thanks!

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