“Learning and getting inspired from emerging India, first steps in reverse innovation”

Abstract

Introduction: The nowadays economical developments in emerging countries, like Brazil, Russia, India and China (BRIC) ask for a new approach in global practice for multinational companies. Currently most products for emerging countries are simple modifications or defeatured products based on products first designed for developed economies. Reverse innovation is a strategy where products are developed meeting the specific needs and budgets of customers in emerging countries. With a local approach in development and manufacturing innovative products can emerge with a possible spin off for developed countries, which gives the strategy its name: Reverse innovation. Project: This project has been exploring the possibilities for developing an affordable large format printing system by Océ, appropriate for emerging markets. By conducting a field research in India giving insights about printing practice, usage, context, environment, and technical and maintenance related aspects, a design proposal has been developed. This research was mainly focused on small and medium enterprises in the markets of print service providers (copy shops), architects, engineers and constructors. Research: The field research showed five key aspects that should be taken in to account for further product development: With India’s history in caste system and enormous population it has a service focused society, with services that offer solutions for people with every budget. Prepaid payment systems, pay per use and exact and transparent cost communications are elementary in this service practice. Although, with the printed volumes the total cost of ownership of Océ products is much more interesting than inkjet competitors, the initial cost price of the current product is too high and not affordable for offices in India. Offices and copy shops do have serious space constrains, especially in bigger cities. There is no space for media drawers and the printer is only accessible at the front and top side because of other equipment or office furniture. India has a very big and ambitious young population. The focus group of engineers and architects is well-educated, follows the latest technical developments and is an early adaptor of new technologies. They have studied or worked abroad and do know what they want. One of the most noticeable developments in India is the rapid growth in mobile communication, where wired infrastructure is largely skipped. Smart phones are becoming cheaper and will be the first access to Internet for a large population in India. Focus: The research showed that just defeaturing the product is not the solution. Buyers compare products on offered features and price, and all employees have to able to work with the product. They look for most value for money. A new product should be affordable, appropriate for the context and appreciated by the buyer and user. Strategy: In a strategy where product features are offered as pay per use services a more affordable initial cost price could be achieved without taking off features. By transferring the local image processing and data storage to cloud computing, and replacing the local interface by already used mobile devices, first steps in material cost price savings can be made. Business model: Using cloud computing offers a platform for new business models and automated services, for in time supply and maintenance and on distance support. It also offers possibilities for all kinds of cloud services that can be introduced over time, like accounting and document management. Conceptualization: In the design phase of this project the possibilities have been explored to make a smaller and more accessible multifunctional table top printer, with convenient handling, an affordable cost price, meeting the expectations of young professionals. Various workflow scenarios have been studied to improve document handling in an office environment for inexperienced users, with simple interface and cloud solutions. Proposal: The design proposal consists of three layers: printer engine, mobile interface and cloud services. The printer is a full functioning table top printer that anticipates to the space limited context in India. By making the printer smaller, using fabric parts, taking off the local interface and minimizing the local storage and processing the printer has a material cost price reduction of 30% compared to Océ’s current product. The mobile interface connects with the printer trough near field communication. The interface is context aware and adjusts the presented functionalities according to the placement of the mobile device: Mobile device on the printer for scanning, copying, fast print start and media change. Mobile device from the printer for making print jobs, managing scans and documents, accounting and task history. The proposed cloud functionalities can be categorized into six elements: Cloud information and cloud control to support the use of mobile devices and create a more efficient workflow. Cloud processing and cloud storage to compensate the defeatured engine and offer device independent document access. Cloud accounting and cloud monitoring are new services that offer users, Océ and other stakeholders up to date information to make their practice more efficient. Conclusion: This project showed that developing professional products for small and medium enterprises is more focussing on the emerging middle class with young ambitious professionals, than on button of the pyramid. Defeaturing products especially for these markets is not a strategy that will succeed in India. Using new technologies and smart innovations affordable solutions have to be achieved.