Many nations use non-linear innovation methods to succeed
Tuesday, 30 March 2010, 11:28 Hrs | 2 Comments
Executives in developing nations use great creativity, not to mention flexibility, to make quick decisions, and they do not fear reinventing their products and services on the fly. Also, the executives in developing nations must consistently challenge themselves to not let accepted business practices prevent them from making unconventional decisions. Fast-growing companies in developing nations don't have time for incremental steps. Executives save time and financial resources by investing in innovation that will stand the test of time, as opposed to implementing incremental enhancements.
A prime example of a big innovation is India's Tata Motors ( TTM - news - people ), which is the second-largest manufacturer of commercial vehicles in the world. The company recognized the enormous opportunity for an affordable vehicle in India's burgeoning market and launched the Tata Nano in 2009. While the idea is big, the car is small--and the price tag smaller. The Tata Nano is designed to be the smallest automobile in the world, and sells for approximately $2,000. In order to accomplish its design and pricing goals the Tata team had to change its entire manufacturing process and create new design techniques. The company took a hard look at all facets of the traditional automobile and challenged itself - as well as its partners and suppliers - to think different. The result? The Tata Nano recently won the 2010 Car of the Year Award by Bloomberg UTV-Autocar. Tata Motors recognized that to make an impact with its Nano automobile, it couldn't do it halfway, and took big steps to ensure that this tiny car would be a global game-changer.
Entrepreneurship is a way of surviving in developing countries. And this very spirit leads Latin American companies to survive great storms and stay the course when everyone else is failing. Companies in developed countries need to hire more entrepreneurs and fewer employees. Entrepreneurs are harder to manage because they are free thinking and show initiative. However, they see what no one else sees and find innovation where most other employees do not. Hiring individuals at every level of your company that possess the same entrepreneurial spirit as your leadership team will foster a greater sense of purpose for the entire company.