The innovation sandbox
Transcript of The innovation sandbox
![Page 1: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/1.jpg)
The Innovation Sandbox
Based on research by:C K Prahalad/Michigan Univ
![Page 2: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/2.jpg)
2
Topics The Bottom of the Pyramid The Innovation Sandbox The Innovator’s Ecosystem Sandbox Premises
![Page 3: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/3.jpg)
3
700 mn people Bottom of the Pyramid
3
30
300
SuperRich
Rich
MiddleClass
![Page 4: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/4.jpg)
4
Tata Peoples Car: Rs. 100,000 in 2008
![Page 5: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/5.jpg)
5
Combi Chula: Cost Rs. 1000
Cow dung or Bio mass ( grass/
sticks) Natural gas
![Page 6: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/6.jpg)
6
![Page 7: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/7.jpg)
7
Western Style Hotel: $ 250-300/ night versus……Ginger
$ 20/ night GM= 65% (vs luxury hotels @ 35%) w/less broadband, LCD TV ++++ Scalable Business Model
![Page 8: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/8.jpg)
8
Prerequisites for Innovations that change peoples lives Product/ service shd be world class
Significant price reduction (say 90%) wrt existing comparable products in west
Scalable in different geographies
Affordable at the bottom of the pyramid.
![Page 9: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/9.jpg)
9
The next diag. Shows the “sandbox” of constraints & experimentation for the Health Care Industry. The 4 sides of the box represent the core reqmnts for successful healthcare delivery in a mkt such as india. Within those constraints, significant creativity is possible in the 7 inter-related business model innovations shown in the sand.
![Page 10: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/10.jpg)
10
Health Care Industry
![Page 11: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/11.jpg)
11
The Innovation Sandbox
This approach involves complex free-form exploration and playful experimentation (the sand with its flowing, shifting boundaries) within extremely fixed, specified constraints (the walls, straight and rigid, that box in the sand)
![Page 12: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/12.jpg)
12
Constraints are like the limits on an ecological niche, prodding the evolution of new products & services.
![Page 13: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/13.jpg)
13
There is no generic sandbox design
![Page 14: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/14.jpg)
14
The Healthcare Scene in India High costs Stultified traditions Variety of regulators Dissatisfied customer
base Difficult venue for
business innovation 1 physician/ 100,000
popln(US 1 in 300)
Public health admin-dismal
HIV/AIDS Infant mortality hi 6 mn blind 50 mn malnourished
children Type 2 diabetes:
100mn by 2015
![Page 15: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/15.jpg)
15
No constraints/ Constraints…
In US
A customised lower-limb prosthetic fitting takes several fittings over weeks
In India
The same in one 8-hour sitting, so that patient and family can return home before their money runs out.
![Page 16: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/16.jpg)
16
World Class in India Jaipur Foot
Arvind Netralaya
Narayana Hriduyalaya
Cost, Quality, Delivery!
![Page 17: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/17.jpg)
17
Public Sector Subsidy and Philanthropy
lead to
“line extensions” rather than new products or services
![Page 18: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/18.jpg)
18
![Page 19: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/19.jpg)
19
Define Constraints-then think unconventionally
1. Specialization2. Pricing3. Capital intensity4. Talent leverage5. Workflow6. Customer acquisition7. Values & organization
![Page 20: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/20.jpg)
20
The Innovator’s EcosystemArvind Ecosystem 5 hospitals in TN Medical Rsrch Foundation Rsrch Institutes Aurolab Community outreach progs Relationships with: govt/
univ/ tech providers
Narayana Hrudyalaya ICICI bank Low cost suppliers State govt. ISRO
![Page 21: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/21.jpg)
21
Western medical equipment manufacturersmay soon face severe competition fromIndian “format invaders” that will use cost advantages to reframe an industry
![Page 22: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/22.jpg)
22
![Page 23: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/23.jpg)
23
![Page 24: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/24.jpg)
24
Requisite premises for Sandbox Approach
1. Radically rethink entire biz model2. Not mkt rsrch. Immerse in cust
lives(challenge: access, awareness, affordability, availability)
3. Accept constraints4. Don’t innovate in isolation5. Commit to a Strategic Intent
![Page 25: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/25.jpg)
25
Spanish Clothing Chain - ZaraTraditional
Forecast Produce large lots Dump on retailers Several months lead
time
Zara
Constraint: immediate responsiveness
Small batch size Short lead times Excess capacity in
fabrication & trucking
![Page 26: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/26.jpg)
26
Dominant Logic
The zone of comfort drives away the zone of opportunity
![Page 27: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/27.jpg)
27
The bottom-of-the-pyramid customer base is the best friend an innovative company everhad, because of the limitations that it forces.
![Page 28: The innovation sandbox](https://reader036.fdocuments.us/reader036/viewer/2022081503/58ef2ddc1a28ab1d448b45fd/html5/thumbnails/28.jpg)
28