Unexpected Innovation

So-called "Bottom of the Pyramid" (BOP) strategies propose a new way of thinking: if we stop thinking of the poor as victims and start recognizing them as resilient and creative entrepreneurs and value-conscious consumers, a whole new world of opportunity will open up.  The four billion people at the BOP, the so-called poor, can be the engine of the next round of global trade and prosperity, and can be a source of innovation.

One reason firms enter into BOP strategies is for market creation.  Quoting an executive at one of the world's largest toy companies: "There's very little industry growth, companies in my industry are pretty much just shifting profits around". Meanwhile, the 4+ billion people in the BOP - representing a potential multi-trillion market - are largely under-served and often vastly overcharged. One group needs growth, the other group needs services. Companies that can bring the two groups together have great potential for huge profits.

You can look at these strategies as a platform for incubating disruptive innovations which are particularly rewarding for the emerging markets.  Those living in the BOP are a huge source for something unexpected: innovation in utility.  Innovation in utility is rarely discovered inside a corporate R&D lab, rather it is user and market focused: the more people you observe using your technology or service, the better chance you have to discover an unexpected success. Even better is to find people with an entirely different world view than your own, as they can create possibilities you never dreamed of, and then give them reasons to seek you out. The BOP has a wealth of such perspectives and dreams ripe for this purpose.

There are two critical components to discovering innovation in utility: casting your net for innovation as far and wide as possible, through product offerings or services, and then drawing the resulting innovative uses back to you.


--
Brian Swann
VCU Brandcenter / Creative Brand Management / 804-690-7048
www.brandcenter.vcu.edu / swannbr@gmail.com