Innovation in emerging markets
15 Aug 2006
In recent years, global manufacturers have been enticed by the enormous business potential presented by emerging markets.
But what is required to succeed in these markets whose cultures, customer requirements, labor practices, and regulatory regimes are very different than those in developed markets? How are companies adjusting their product offerings, human resource strategies, and supply chains? A new publication from Deloitte Innovation in Emerging Markets: Strategies for Achieving Commercial Success identifies five challenges that companies must innovatively tackle to achieve success in emerging markets:
- Build new value propositions to deliver different product offerings that meet the unique needs of emerging market customers. In many cases, this will be at dramatically lower price points than in developed markets.
- Globalise research and development by locating R&D; facilities in emerging markets to acquire deeper customer knowledge, and to build, market and distribute tailored products.
- Tailor talent management strategies to the unique needs of employees in emerging markets, rethinking how to effectively recruit, develop, deploy, and connect people.
- Master the complexity of global value chains to provide autonomy at the local level, while leveraging the strengths of headquarters, including governance and management know-how.
- Build risk management capabilities to effectively detect, correct and manage the unique profile of risks presented by emerging markets, such as the protection of intellectual property.