The two models need to do more than coexist; they need to cooperate. This is a heck of a lot easier said than done since the centralized, product-focused structures and practices that have made multinationals so successful at glocalization actually get in the way of reverse innovation, which requires a decentralized, local-market focus. Almost all the people and resources dedicated to reverse innovation efforts must be based and managed in the local market.
Once products have proven themselves in emerging markets, they must be taken global, which may involve pioneering radically new applications, establishing lower price points, and even using the innovations to cannibalize highermargin products in rich countries.
All of those approaches are antithetical to the glocalization model. This article aims to share what GE has learned in trying to overcome that conflict. The team succeeded because a top executive championed it and gave it unprecedented autonomy. GE has since set up more than a dozen similar operations in an effort to expand beyond the premium segments in developing countries - and to preempt emerging giants from disrupting GE's sales at home.
Brought to you by:. Article Classic. What's included: Educator Copy. Not teaching at a university? Register as a student Register as an individual. Shift power to where the growth is. Because GE Health- bal customer-support and replacement-parts care had an ambitious product-development organizations, it built in-country teams that agenda for rich countries when the compact could provide quicker and less costly service.
Customize objectives, targets, and met- might easily have been redirected to other rics. By its number of engineers the numbers. So the relevant metrics and had grown from 13 to 70 and its total payroll standards for LGTs—the ones that resolve the had increased from to Ishrak also critical unknowns—are rarely the same as personally made sure that the team got the those used by the established businesses.
But the team Korea. In re- major projects to pursue. For example, because the government ucts aggressively pursued those opportunities. In the midst of a mon in wealthy countries. Since salaries are lower and service victory, however. Progress has been uneven. Have the LGT report to someone high in been less enthusiastic. LGTs cannot thrive without centers in China and India have increased strong support from the top.
So there is still a long way to go. Only a senior and make sure they get resources. Even the exemplars have a rich- fers, organizational structures, and processes country bias. In a recent conversation with Jeff, to see what works.
It will be headed by U. Nonetheless, the deep in that market and not just skimming company is going to try it and see if it can the very top. We apologize for the inconvenience. Enter your subscriber email address.
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