What is Reverse Innovation?
A reverse innovation, very simply, is any innovation likely to be adopted first in the developing world. Increasingly we see companies developing products in countries like China and India and then distribute them globally.
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Organizing Principles
- Reverse innovation requires a decentralized, local-market focus
- Most if not all the people and resources dedicated to reverse innovation efforts must be based and managed in the local market
- Local Growth Teams (LGTs) must have P&L responsibility (this is a key hurdle for American multinationals)
- LGTs must have the decision-making authority to choose which products to develop, how to make, sell, and service them
- LGTs must have the right (and support) to draw from the companies global resources
- Once tested and proven locally, products developed using reverse innovation must be taken global which may involve pioneering radically new applications, establishing lower price points, and even cannibalizing higher-margin products.
- Reverse innovations can be, but are not always, disruptive innovations



