accenture emerging markets product development and innovation

8/11/2019 Accenture Emerging Markets Product Development and Innovation

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Emerging-markets ProductDevelopment and InnovationThe New Competitive Reality

By Ana Mundim, Mitali Sharma, Praveen Arora and Ryan McManus


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For many industries emerging markets are key to near- andmedium-term growth. For most companies, the strategyfor these markets has long been to either extend existingbrands, or strip features from those brands in order toattract highly cost-conscious consumers. However, withincreasing consumer awareness and global connectedness,

the competitive picture has changed, and today newemerging-market strategies are required. Companieshave begun to target the specific needs of the emergingconsumer. Not only does this new approach give companiesan edge in emerging markets, but the resulting innovationscan turn out to have applications in the developed world.In the new competitive reality, companies must developand innovate products specifically for and in emergingmarkets, and look for opportunities to leverage those

products back to the developed world.

For many years economic growthand innovation seemed to flow oneway, from the developed world intoemerging markets. In the past fewyears, though, relations betweendeveloped and developing economiesbecame a two-way street, withinnovation, investment and competitionoriginating in both the developed andemerging markets, and moving acrossthe globe from one to the other.

Meanwhile, investors have poured billionsinto emerging economies, not (as oncewas the case) to provide developmentassistance or for purely outsourcing-related purposes, but in order to obtaina good return from promising companiesand sectors. As a result, emerging marketsthroughout the world are rationalizingtheir trade and capital-investmentrelations with the major industrialnations. Market opportunities havereplaced political criteria for choosingwhen and how to invest.

The situation is much the same in therealm of new product development.More and more, innovationthe useof intellectual capital to create newproducts or services that generatepositive business results in the formof financial returnsis being exportedfrom emerging markets into otheremerging and developed markets.

Huge market potentialBy 2008, the BRICs combined GDP wasabout 75 percent bigger than GoldmanSachs had suggested five years before.In its 2011 projection, the bank believethat all of the BRICs should be amongthe ten largest economies in the worldby the end of this year, driven mainly bythe rise of the middle and upper incomeclasses in the emerging markets.1

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As a result, the last decade has seenemerging markets evolve into innovationhubs for new products. Chinese inventorLi Weiguos bicycle that carries its rideron land and water2; a common scooter-powered flour mill devised by IndiasSheikh Jahangir3to cater to erratic powersupply in rural villages and need forportability in far-flung villages; a bicycle

powered washing machine to reducewashing efforts in deep rural areas; amobile sugarcane juice making unit; aportable top-opening fridge developed forIndian rural population, which replacesthe compressor with a cooling chip andfan, working on battery to cope withpower outages in rural regions; a cosmeticline of seeds from the Amazon; andEmbraers efficient mid-sized jets. Theseare among the many innovations thathave originated in developing nations.Many have already captured important

market segments-not only in the hugedemand base of emerging nations poorpopulations, but also in their expandingmiddle class and beyond, in the globalmarket. For example, Haier, the Chinesemanufacturer of appliances, is now thetop refrigerator maker in the world, with a12.5 percent global market share.4

Important for near and midterm growthUnilever estimates that by 2015 that 300million more people will reside in urbanhouseholds, that 700 million householdswill move to modern-style kitchens withwork surfaces, and that 500 millionmore people will use inside toilets. Last

year their emerging markets businessgrew by around 10 percent, with the keybusinesses of China, India and Turkeyall delivering growth well into doubledigits. On the other hand, their businessin Central and Eastern Europe saw moresubdued growth. The emerging marketscontinued to be their growth engine andgenerated 53 percent of sales .5

Another example is the automotive sector,where, after years of double-digit growth,Chinas vehicle market displaced the U.S.

as the worlds largest in 2009 with salesof 13.6 million units (Figure 1). Growthin 2010 may have driven that figure over15 million, according to Chinese officials.Low numbers of vehicles-per-capita inthe emerging markets (compared to thedeveloped markets) should drive highergrowth in the emerging markets for manyyears to come.

Not easy to penetrateAlthough Fiat admits that its emergingmarket presence has been slow untilnow, the Italian company has had hugesuccess in Brazil, where a very well-established presence has helped to makeit the biggest carmaker in the country(and one of the biggest in other SouthAmerican markets like Argentina). Now, it

is setting up a series of joint ventures anddeveloping new models to crack the otherthree BRICs.

In fact, although many companies expectthat most of their near-to-medium-term growth will occur within emergingmarkets, they are also discovering thattraditional business processes might notwork within this new context. In thisPoint of View, we will describe how thetypical process of product developmentand innovation evolved over time inthese markets and what makes productdevelopment and innovation differentin emerging markets. Then well reviewthe key drivers of high performance inthis environment.

Figure 1: Global

35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

Thousands

Car Production

Source: Global Insight (2005-2009) and Wards (2010)

United States

Germany

France

Italy

Russia

Brazil

India

China

Key Developed Economies

BRIC

2005 2006 2007 2008 2009 2010

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The evolution of productdevelopment and innovationin emerging markets

Developed Markets Emerging Markets

Defend and grow developed markets - Base Product

Establish world class products

Leverage Technology and IP Innovation at the high-end segment

Examples: Microsoft Windows, Fiat Punto

Adapting existing products to local markets - Defeaturing

Align product range to compete on value and cost

Defeaturing of products (strip down) to reduce costs

Setup Growth market R&D and Partnerships

Example:Product testing for new emerging market entry

Innovation and NPD from emerging markets targeting

developed markets - Reverse Innovation

Common global low cost platforms Modular architecture to add and deselect features for any part

of the global market

Innovation Examples: GEs Vscan, Quimica Amparos low costcleaning products, Microsoft Office Mobile & other products, Lenovopersonal computers, Janas mobile direct marketing platform

Developing new platforms to local markets - Frugal Innovation

Translate the voice of local customer in product/service requirements Develop new frugally engineered platforms Ground up local R&D capabilities

Innovation Examples: Nokias flashlight & multiple addressbook-enabled mobiles, P&Gs shampoo sachets, Naturas top qualityhealth and beauty products, Tata Motors' Nano car

Figure 2: Product Development and Innovation Strategies across Developed and Emerging Markets

Adapting existing productsto local marketsFor developed-market companies, thisphase marks the normal initial entryinto an emerging market (Figure 2). Ascompanies enter emerging markets, theirlocal trust level, expertise, and culturalunderstanding are very low. Often, theemerging market is treated as simply a

new space to sell existing products. Aftersome experience, though, it becomesclear to the companies that these marketsare fundamentally different. In order toposition their offerings, the companiesbegin de-featuring existing products,often lowering costs to meet marketdemands. At this stage, the basic productremains the same as it was in establishedmarkets. It simply has fewer features.Although this de-featuring appearsto be a smart way to reduce costs, itdoesnt support a dominant-market-share

strategy. It is more useful as a strategyfor testing a product or new market.

Developing new platformsfor local marketsAt a later stage of engagement,companies start to focus on productsthat are fundamentally redesigned(Figure 2). The development process

no longer consists of taking a knownproduct and removing features to makeit cheaper. Instead, companies now beginwith their experience and knowledge oftheir customers, including a target pricepoint. Companies use the information toconceive, design and make a new, locallyappropriate product from the ground up.

This alternative product development cycleis a natural evolutionary step for mostcompanies trying to thrive in emergingmarkets. After some experience, they design

and develop their products based on localneeds. Among Nokias cell-phone modelsin India, for example, are models that haveflashlights (because of electrical blackouts)and multiple phonebooks (becausebottom-of-the-pyramid consumers oftenshare a phone among several owners). AndMcDonalds menus in India feature itemswith familiar Indian spices.

In addition to addressing local tastesand usage patterns, there are threeprimary considerations when developingfor emerging markets, as described byKhanna and Palepu6:

Institutional Voids: Systems inemerging markets might presentunique challenges and opportunitiesin adjacent/non-core areas. Examplesinclude infrastructure, supply chains,information brokers, education, andgovernmental/regulatory structures.

Traditional product development should be adapted to achieve profitable results in andfrom emerging markets. From our research and experience, we can identify three majorevolutionary steps in a typical developed-world companys efforts to innovate and developproducts in emerging markets. However, its important to highlight that the innovationflow can also be triggered from emerging markets directly to developed markets.

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Collaboration: Given the institutionalvoids, companies regularly find itnecessary and beneficial to collaboratemore closely with local partnersand suppliers, non-governmentalorganizations and governmentagencies. These partnering relationshipsregularly include a sustainabilityagenda, representing another systemic

departure from developed marketproduct development.

Frugal innovation: Products used to bedesigned with price rather than featuresas the starting point. However, theturning success factor for emergingmarkets is innovation focused on theend utility of the product. The idea isto keep the rather local voice of thecustomer as the key guideline, andthen design, produce and launch at acompetitive price point.

Janas experience in Africa illustratesthese dynamics. Starting from theobserved institutional void of a lackof an eff icient job-board mechanismin Kenya, Jana collaborates with manymobile operators globally to deliver amobile platform reaching over two billionemerging market consumers. Users receivefree mobile airtime (which also addressesthe limited banking infrastructure inmany areas) in exchange for completingsurveys and purchasing productswhichfurther addresses lack of direct marketing

in their markets. Users are not requiredto purchase any additional productbeyond their existing mobile phones toparticipate. Hence, mobile airtime servesas a proxy for incremental income andcontributes back to the community.

This approach often drives innovation,which can improve competitivenessnot only in the bottom-of-the-pyramidsegment but also in products marketedto the middle and upper classes of anemerging markets consumers, where

products have room to branch out frombasics into the wish list and good tohave set of features.

A number of profitable niches have beenexploited by starting design with thelocal voice of the customer. In India,for example, Procter and Gamble andHLL developed shampoo sachets forrural Indians who cant or wont payfor a whole bottle of shampoo due to

limited weekly disposable income. Thesecompanies tapped into the perceivedluxury value that the local populationascribed to the product. This guidedtheir product positioning, but theprice point was made affordable byselling single-use sachets. Then, too,Tata Motors Nano car represents anintegration solution uniquely suited to

the Indian market. However, its actualbusiness results demonstrate its designteam hasnt properly understood thevoice of the customer. Despite aninnovative design and affordable pricepoint, the positioning differed from thecustomer requirements. It was perceivedas a replacement to a two wheelersegment, therefore failing to leveragethe cars value as a symbol of status.

Innovation and new

product developmentfrom emerging marketsIncreasingly, innovations that werecreated by emerging-market methodsfor emerging-markets consumers arefinding their way into developed markets,in a process Jeffrey R. Immelt, VijayGovindarajan, and Chris Trimble havecalled reverse innovation.7Their studyhighlights the GE case, where they havedeveloped a portable ultrasound machinein China, costing less than half of the

expected cost in a developed countryand which is a success today not only inemerging but also in developed markets.

Of course, this kind of disruption isnot confined to developed-worldmultinationals like GE. Consider, forexample, Quimica Amparo, a 61-year-oldBrazilian company that has competedaggressively for years in Brazils cleaning-products market. Having mastered astrategy of low price coupled with respectfor the environment, the company has

recently begun exporting its productportfolio around the world. In their moveto the global level, such companiesemerging-markets experience givesthem several important advantages.For example, Fiat is now designingits new Fiat Mio, an urban-targetedcompact car, in Brazil for global markets,based on their local competitivemarketing, design and developmentcapabilities.8The United Nations

World Investment Report calculatesthat there are now around 21,500multinationals based in the emergingworld9, and many of these companiesexpect to compete globally withmultinationals from developed markets.

According to a recent Gartner report10,emerging market companies have lessorganizational history, and therefore

fewer problems with legacy systems andmethods. Therefore, they can leapfrogthe usual evolution of their supply chains,skipping expected developmental steps toquickly develop best-in-class practices.For example, extensive collaboration,not only with suppliers but also withcustomers, is a hot topic (and a challenge)for many developed-world companies.Yet Brazilian and Chinese companiesalready collaborate extensively and multi-directionally, with customers and channelsas well as suppliers.

This penchant for collaboration isoften driven by culture: emergingmarket companies are developed insocieties which highly value personalrelationships in business. So havinga rich network of relationships withhundreds, or thousands, of suppliers andconsumers is simply business-as-usual.But it just so happens that this penchantconfers a competitive edge in a time ofvolatility in both supply and demand.Companies with these tight partnershipsare quick to understand customersrequirements and bring those insightsinto the product development process.

Another advantageous trait of emerging-markets product lifecycle managementis the just-in-time approach. Processesand facilities in the developing worldare generally more cost-effective to run,and they have strong channel access.Thus they can adjust nimbly to marketchanges or shifts in customer needs.Within the just-in-time approach, someinnovative companies are also masteringa strategy of price differentiation coupledwith respect for the environment, whichwe call frugal process of innovation.These companies break down processesand reassemble them in the mostcost-effective manner that focuses oncustomer value-add thats geared to thatemerging market.

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Natura, a Brazilian cosmetic company, combinestop quality health and beauty products,competitive pricing, a direct sales model, acommitment to sustainability, a broad social mediapresence and robust sales channels in some of

Latin Americas youngest and fastest-growingmarkets. The company was originally listed on theBOVESPA (Sao Paulo stock market) in 2004, andthe shares have risen over 500 percent comparedto a 250 percent gain for the BOVESPA.11

Such organizational efficiency and agilityhelped emerging-market companiessurvive turbulent periods in their homeeconomies, but its also a competitiveadvantage in the global marketplace.A recent academic study12found thatBrazilian multinationals such as Valeand Embraer excel because of theirorganizational flexibility. They permitand even incentivize subsidiaries to beunusually independent. The researchersalso identified another winning emerging-

markets management characteristic:active waitingthat is, constantlymonitoring conditions and getting readyto give immediate responses. Thatsa stronger strategy than what manymultinationals do now: Plan for the short-term and rely on intuition to get the rightproduct out at the right time.

Whether overcoming talent shortagesthrough innovative educational andtraining programs, incubating consumerdemand through base-of-the-pyramid

business models and infrastructureinvestment, or adapting products andtechnologies to local market conditions,emerging market companies are adept atturning apparently unpromising situationsto their advantage.

Of course, there are also disadvantages tothe emerging-markets environment, whichwe expect many companies from thesenations will have to overcome in orderto compete globally. With their focuson improvisation and quick response,emerging-markets companies are initiallynimble developers, a trait which givesthem the advantageous flexibility toenter in the developed markets . However,to survive and grow, emerging marketcompanies need to acquire some of the

developed-market companies skills. Theyneed to develop more replicable andreliable methods for sustained innovationover time, and shift some of their focusfrom product-improvement to includemore invention and concept-generation,to establish themselves as a sourceof adaptive and disruptive innovation.Another controversial business concern,which must be further institutionalizedin some countries, consists of rules fordefending intellectual property.

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Essentials for productdevelopment and innovationin the new competitive realityThe attractions of emerging markets as production sites are obvious. Theyre alsohome to a rapidly growing middle classa source of present and future customers,and of educated, motivated talent. Yet emerging markets are different from developedmarkets in cultures, customer requirements, labor practices, and regulatory regimes.To efficiently develop effective products and innovations in emerging markets, andthen perhaps to use those innovations as a basis of competitiveness in the developedworld, a company needs to implement a specific business approach (Figure 3). Suchan approach will tackle the main challenges of differentiation and competitiveness.The four essential traits of effective product development should be balanced for theemerging environment and for each business situation.

Defendable NicheIntegrate local and

corporate strategies

Talent PoolLeverage local talent

Nurture natural source

of expertise

Develop R&D centers

closer to customers

Cost AdvantageBuild scale

Practice principles of

frugal innovation

Understand cost economies

of the local market

DifferentiatedProducts

Design and innovation

that understands the core

voice of customer

Figure 3: Essential challenges for Product Development in an Emerging Market.

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Defendable Niche: Havean integrated corporatestrategyAs each market is unique, past experienceof entering a developed market may notserve as a reliable guide. It is importantto understand a markets local economicand sociocultural reality to create a

defendable niche. In addition, companiesmust have a clear and distinct emergingmarket strategy and operating model,linked to long term corporate strategyand tailored for the different successdrivers and unique characteristics ofthe market. For example, a worldwideengineering software house discoveredthat Indian companies, while interested inits products, wanted to know the leadingpractices in processes and skills requiredaround those products. This company

realized that in emerging markets itneeded a more defined layer of servicesaround its offerings. In their familiarmarkets, this companys customerswere less inclined to buy such services.Therefore, the company planned adifferent go-to-market strategy.

On the reverse side, as weve mentioned,sometimes process innovationsimplemented in emerging-marketsproduct development may prove usefulin developed markets as well. For

example, stage gate processes (theproduct development review points) aremore frequent and informal in emergingmarkets, where volatile economic shiftscan change demand overnight. Thispractice has potential to be appliedto an increasingly interdependent andcomplex developed world. So do othercapabilities such as active waiting ordynamic supply chains, or the lessonsfrom customer management, categorymanagement, and efforts to reach thehard-to-access consumer. This makes it

important to have a closely interlinkedglobal and local strategy with a constantfeedback loop.

Talent Pool: How to takeadvantage of a rich sourceof expertiseEvery year, emerging markets, taken as awhole, produce more than a million newengineering graduates from institutions inIndia, China and other developing nations.(By contrast, in established economies

the majority of graduates earn degrees inbusiness or management, social scienceor education13). This creates a largetalent differential: In 2006, for example,American university students earnedabout 11 percent of all science-and-engineering bachelors degrees awardedthat year; Chinese students earned nearlydouble, 21 percent.14This is one reasonmany large multinationals have set upR&D and product design and developmentcenters in emerging economies.

This general picture, though, is nothomogeneous throughout the emergingmarkets. As an example, take the caseof Brazil: while it has also attractedCenters of Excellence from differentmultinationals, the nation is no longerproducing enough engineering graduatesto meet demand.15There, many companieshave found that local engineering talentneeds further development.

It is also important to note that qualityand quantity should not be confused.

Although most emerging markets offeran impressive source of talent, someof that talent might require furthertraining and or industry experience. Thetraditional process of education teachesstudents to apply a systematic andstructured approach to solving problems,which are extremely important skills toproduct development and incrementaladjustments. Quite often, breakthroughrequires out of the box, multidisciplinarythinkers, who may not follow thetraditional career and educational paths,

which will require the development of anopen environment to innovation, wheresuch talent can be harvested adequately.

Cost Advantage:Scale capabilityAnother key advantage of innovationin emerging economies is the chanceto reduce costs. For multinationalcorporations, an emerging-markets costadvantage, achieved through scale and/or efficiency, creates the ability to price

competitively and buffers against periodsof intense global price competition. Giventhe pool of talent and low cost base, theemerging economies form an excellentground for experimentation and learning,so important in todays environment.

Access to low cost capital allowsa company to invest ahead of itscompetition, letting it build scale andmarket share. A case in point is thedevelopment of solar power in India.One of the hurdles of solar power was

the price of the solar panel. However,Chinese manufacturers like SuntechPower and Yingli Green Energy helpeddrive the reduction in solar panel costs.These firms, attracted by the scale ofopportunity that India offers, increasedproduction of the panels and cut coststhis year by about 30 percent to 40percent, to less than $1 a watt. Pricescame down and suddenly it seems thatIndias ambition of going from 140MWtoday to 20K megawatt by 2020 may bepossible16. This would have a tremendous

impact on the global solar power industry.

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Differentiated Products:Design and innovate productthat understands core voiceof customersThere is a tendency to focus on thebottom pyramid when talking aboutemerging market innovation. And its

certainly true that the key businessstrategy in an emerging market is tomeet basic requirements at a competitiveprice, while keeping an eye out foropportunities in other segments. Emergingeconomies form a huge untapped pool ofpotential customers with needs that arequite different from those of people indeveloped countries. However, emergingmarkets are anything but homogeneous.

At the bottom of the economic pyramid,some 70 percent of the total emerging-

markets population17, are people whoare always looking for no-frills basicfunctional products to meet their needs.In an emerging market, the averagecustomer often has less disposableincome than in developed markets, andso will look for products or services thatminimize cash outlay. Sophisticatedproduct features are likely to be lesshighly valued by first time customers forwhom a very basic product is likely tobe a significant improvement over whatwent before. A case in point: Colgate-

Palmolive Co., upon realizing that Indianvillagers were cleaning their teeth withcharcoal, brick dust and similarly abrasivesubstances, replaced its toothpastewith toothpowder.18Or, to take anexample from a different industry, inseveral emerging markets, industrialequipment manufacturers found waysto modify existing products to capturethe bottom-of-the-pyramid market. Onedevice combines a diesel water pumpwith a basic electrical generator setto provide electricity to rural villages.

Produced and sold by a number of localentrepreneurs, this product costs onetenth as much as a standard powergenerator, and it has a rich list offeatures which otherwise would havebeen unaffordable to its buyers.

Even as emerging-markets competitorsstrive to reach bottom-of-the-pyramidconsumers with low-cost, high-volumeproducts, they must remain mindful thatthese markets have other segments.In all these nations, there is also anemerging upwardly mobile class, which isattracting the big players in the fashionand luxury market. Here, too, developed-world companies must re-adapt theirproducts to the local requirements.Cultural norms, heritage, and lifestylemake a big difference. In other words,emerging-markets innovation is notconfined to the bottom-of-the-

pyramid consumer segment.

Indeed, innovation at the high endis common now in emerging marketspaces. Microsofts India DevelopmentCenter, with facilities in Hyderabad andBangalore, has produced some of thecompanys key development initiatives,like Data Protection Manager, RFIDPlatform Technologies, Office Mobile,Windows SFU, Longhorn system features,Visual Studio, Office Live Meeting andMicrosoft-CRM, which are being used

globally. And then there is Lenovo,whose products, developed initially forChinese consumers, have taken a lead intheir computer products for the globalmarket. In a very different industry,Herms approach to entering Chinasupscale market was to create its owndistinctly Chinese brand, Shang Xia. Itsluxury stores sell ready-to-wear anddecorative arts inspired by Chineseculture. And therein lays the untappedpotential that can lead to anotherpowerful global basis of competition.

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ConclusionIts easy to assume that product development and innovation happen in the same way,everywhere. But countries grow in different ways, and they also create intellectualcapital in different ways. As varying innovation models blossom in the emergingmarkets, theyll have lessons for companies everywhere.

In order to take full advantage of these markets, companies looking to develop products

and innovation in and from the emerging markets should consider:

A defendable niche, based on understanding local needs combined with a constantfeedback loop between the integrated local and corporate strategies. This alsoincludes management of local talent pool, to encourage both incremental andbreakthrough thinking.

Cost advantage, achieved through scale and/or efficiency which creates the abilityto price competitively, ride out periods of intense price competition and experimentwith new ideas.

Tailored products or services which address the true voice of consumer ofthe segment being targeted, as well as unique local needs, institutional voids,collaboration opportunities and price points

Emerging markets are the Key Swing factor in the future growth of global trade andfinancial stability, as well as critical players in global politics and business. They havehuge untapped potential and they seem determined to undertake domestic reforms tosupport continuous and sustainable growth. Whats certain for now is that there arenumerous opportunities waiting to be explored in terms of innovative ideas, productlaunches and new markets.

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Ana Mundim is a Senior Principalin Accentures Innovation andProduct Development team, basedbetween London and So Paulo.Her focus is on product development,either within multinationals oremerging markets companies

expansions. She can be reached [email protected]

Mitali Sharma is a senior executive inAccentures Innovation and ProductDevelopment team. Her expertise liesin working with executive managementto quantify, design, and deployinnovative and strategic changes thatdeliver sustained results and helpshift the base of competitiveness. Shelives in Atlanta and can be reachedat [email protected].

Praveen Arora leads the Innovation andProduct Development team at AccenturesManagement Consulting Center ofExcellence in India. He has worked acrossemerging and established markets in hiscareer in this area. He can be reachedat [email protected]

Ryan McManus is a senior manager inAccentures Global Strategy OfferingDevelopment team and the AccentureGlobal Strategy Operations Lead and

a regular author on the topics ofInternational Market Expansion, EmergingMarkets and Mergers and Acquisitions.He lives in New York and can be reachedat [email protected]

The authors would like to offerspecial thanks to R. Venkatesh Iyer,Senior Principal of AccenturesInnovation & Product Developmentteam for his contributions.

1 BRICs Monthly. Goldman Sachs GlobalEconomics, Commodities and StrategyResearch at https://360.gs.com

2 http://www.china.org.cn/chinaphotos/2009-06/01/content_17866889.htm

3

Rediff.com/Business, How Jahangirturned scooters into super machines,July 9, 2010 < http://www.rediff.com/business/slide-show/slide-show-1-innovation-jahangir-turns-scooters-into-super-machines/20100709.htm>

4 ChannelNews, December 13, 2010.

5 Http://www.unilever.com

6 Winning in Emerging Markets, TarunKhanna and Krishna G. Palepu.Copyright 2010, Harvard BusinessSchool Publishing.

7 Jeffrey R. Immelt, Vijay Govindarajan,and Chris Trimble, How GE Is DisruptingItself, Harvard Business Review,October, 2009.

8 Innovation - the New Two-way Play, inKnowledge@Wharton January 26, 2011http://knowledge.wharton.upenn.edu/article.cfm?articleid=2684

9 The Economist, April 15, 2010.

10Gartner Report, Supply Chain

Organization in Emerging Markets,Marcus Blosch, 27 April 2011.

11http://natura.infoinvest.com.br/?language=enu#grafico

12Brazil On the Move, Outlook,October 2010.

13http://nces.ed.gov/fastfacts/display.asp?id=37; http://www.moe.gov.cn/

publicfiles/business/htmlfiles/moe/moe_2812/200906/48836.html ; http://www.aicte-india.org/ssdengineering.htm

14National Science Foundation, Scienceand Engineering Indicators, 2010(http://www.nsf.gov/statistics/seind10/c2/c2h.htm)

15Jeannette Galbinski, The engineeringdeficit: Brazils quest for engineers,AutomotiveWorld.Com, July 18,2011 (http://www.automotiveworld.com/news/components/88153-the-

engineering-deficit-brazil-s-quest-for-engineers)

16India solar power costs could fall by40 percent by 2015, Randy Fabi http://www.reuters.com/article/2011/11/02/us-siew-lanco-idUSTRE7A11KK20111102

17 Wikipedia.

18Accenture Research, A Passage toIndia, 2009, Armen Ovanessoff and

Anish Gupta.

About the Authors References

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About AccentureManagement Consulting,OperationsAccenture is a leading provider ofmanagement consulting services worldwide.Drawing on the extensive experience of its16,000 management consultants globally,Accenture Management Consulting works

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