innovation’s holy grail: more from less for more · innovation’s holy grail: more from less for...
TRANSCRIPT
Innovation’s Holy Grail:More From Less For More
R A MashelkarHyderabad
Exclusive Innovation
Getting More (performance)
From More (resource)
For Less (people)
Industrial Enterprises aim at
GettingMore( Performance)
From Less (Cost)
For More (Profit, value to the shareholder)
Inclusive Innovation
Getting More (performance)
From Less (resource)
For More (people)
MLM
From Less Resource = Affordable
Getting More Performance = Excellence
Affordable Excellence!
PriceLow High
High
ExcellencePERFORMANCE
Affordable
Affordable Excellence
Innovation’s Holy Grail - MLM
C.K. PrahaladR.A. Mashelkar
Harvard Business Review- July, August 2010
Special SessionMore From Less For More
16 Nov 2010
Income Disparity in China
Gini index of income inequality in China
Rural-urban disparities in annual per capita disposable income
World Bank- Inclusive Innovation Summit China
C
Indian Gini Index
Indian Challenge:
Both Incomes & Income Inequality Rising!
True inclusion of 2.6 billion will demand
Not just “low cost” but “ultra low cost”
This means
Not minor redesigningBut radical rethinking
And creative reinventing
Affordable Excellence is not about …
Stripping products and services to make them cheap, somehow
It is about ……Giving high quality at affordable prices!
Affordable Excellence!
• Hepatitis B vaccine- 40 times cheaper…
• Cataract Eye Surgery – 100 times cheaper...
• Open Heart Surgery- 20 times cheaper…
• Artificial Foot- 300 times cheaper…
No dreams- It has been done!
PriceLow High
High
Excellence
Affordable
PERFORMANCE
PriceLow High
High
Excellence
Affordable
PERFORMANCE
PriceLow High
High
ExellenceAffordable Excellence
PERFORMANCE
Model T$19,700 Ford
Beetle$11,333 Volkswagen
Mini$11,777 British Motor Corp.
Nano$2,000 Tata Motors
Current Dollar Value
| 20
AffordableExcellence
Technological Innovation
Business Model
Innovation
Workflow Innovation
Organizational Innovation
Research Process
Innovation
System Delivery
Innovation
Policy Innovation
Income Inequality 1000 : 1 ?
Access Equality 1:1!
Technological and Business Model innovation
Handset $250 $25
Call Rates 10 cents 0.1 cent
X
X
TechnologicalInnovation(Nokia, Ericsson…)
Business ProcessInnovation(Reliance, Airtel….)
Work Flow Innovation
Cataract Surgery $3000 $30X
Aravind Eye CareIncrease surgeons’ productivity not the number of surgeons.
Assembly line technique of surgery- increases productivity by factor of 10- inspiration from McDonalds!
Operating profits are more than 40%- but only 30% of the patients pay.
Around 300,000 cataract surgeries per year.
High Performance at Low Cost
Event____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
AravindRoyal College of Ophthalmologists, UK
Capsule rupture 2.0%4.4%
Iris trauma 0.3%0.7%
Iris prolapse 0.01%0.07%
Anterior chamber collapse 0.3%0.5%
Loss of nuclear fragment 0.2%0.3%
Retained lens material 0.87%1.1%
Loss of IOL into vitreous 0.01%0.16%
Cost of Treatment: $20000!
Time for Development: 10 yrs
Cost of Development: Few hundred million dollars
X $100?
X 5 yrs?
X<$10 mn?
CSIR India, NMITLI Challenge
Traditional Medicine
Modern Medicine
Modern Science
Standard Drug Delivery Process
Molecule Mice Men
Reverse Pharmacology ProcessReverse Pharmacology Process
Men Mice Men
Indian Psoriasis Breakthrough
Affordable Excellence
| 32
AffordableExcellence
Technological Innovation
Business Model
Innovation
Workflow Innovation
Organizational Innovation
Research Process
Innovation
System Delivery
Innovation
Policy Innovation
Innovation
Med
icinal Che
mistry
Process Driven
Targets Assays
NewMolecules
KnownMolecules
High‐throughput screening
AssaysCytotoxicity/Side Effects
Pre‐clinical/ Clinical
OSDDCommunity Cloning /
Expression
CROsLibrary
Protein crystals
OSDD ‐ Process flow
34Using creativity of students and young researchers
Using experienced low-cost globally competitive Contract Research Organizations
Software professionals
Computational Biologists
Unconventional Collaborative Networks
Medicinal Chemists
Organic Chemist
Medical Professionals
Management Professionals
Management Professionals
Engineering ProfessionalsMathematicians
35
DRIVERS
Emerging Economies
• Rising Incomes & Aspirations • Rising Inequalities• Rising Social disharmony
Enterprises
• New Consumers with rising incomes represent the ‘Next Billion’ market
“If we do not come up with innovations in poor countries and take them global, new competitors from the developing world –The Mindray, Suzlon & Goldwind- will. That is a bracing prospect.”
- Jeffrey ImmeltCEO, GE
REVERSE INNOVATION
Reverse Innovation
ElectroCardioGraph Machine
$10000 $600X
Reverse Innovation
Ultrasound Machine $30000 $1500X
GE plans to spend $3 billion till 2015 to create at least 100 health-care innovations that would substantially lower costs, increase access, and improve quality..”
Frontier Innovation Inclusive Innovation
GoalsImproving lives of people (access and purchasing power) and social harmony
Improving productivity and economic growth
Driven byInnovative entrepreneurs faced with challenge of scarcity and aspiration, and businesses vying for makets in emerging economies
Sophisticated research capabilities, popular among policy makers and STI community
Market Newer routes to not yet established markets
Well‐established route from idea to product to market
MarginsHigh volume low margin products and services
High R&D investments recouped by long‐lasting premiums (high margins)
Drivers Applications and impact driven, cost‐conscious science and research
Curiosity or market driven science and research
No electricity, no moving parts, portable and safe
?√ √
Making High Technology Work for Affordable AccessQuantum Dots for Affordable Point of Care Disease
Diagnostics Devices
Three‐dimensional interweaving of biology and electronicsvia 3 D Printing to generate a bionic ear
Mannoor et al, Nanoletters, 2013, 13, 2634
Collected plastic waste20 Cents per Kg
Separated flaked plastic80 Cents per Kg
Protoprint purchases greenfilament$ 5 per Kg
“ This allows the waste picker unions to leverage our low cost technology and provides them with a sustainable source of income”
- Protoprint
Getting More From Less For More People!
Mindsets- Policy makers, STI community, business sector, citizens
Conducive Government Policies
Leaders with a Difference
What do we need for Inclusive Innovation?
Conducive Public PolicyIncentivizing public and private sector to undertake R&D leading to inclusive innovations
Public procurement, guaranteed off-takes, price subsidy for inclusive innovation products and services
Fiscal incentives for inclusive innovation
National and global recognition for game changing inclusive innovation
Indian Inclusive Innovation Fund
• $ 1 bn in phases
• Support enterprises developing ‘inclusive innovation’ solutions
• ‘For-profit' entity with a focus on social investment
Strategic Shifts for Inclusive Innovation Business
Technologically sophisticated performance rich products with many features
Remove features to reduce costs
Premium Price-High Margins
Technology Push, Product –Out Approach
Current Markets- Old Money
Use developed world products to transform emerging markets
Functional but high quality products
Reinvent the product from ground up
Affordable Price- High Volumes
Customer Centric, Market Based Approach
New Markets- New Money
Build new global growth platforms based on emerging markets
FROM TO
Inclusive Innovation Leaders
• Set ambitious goals and stretch targets.
• Allow teams to invent the means and reach out beyond the obvious industry practices.
• Invent Next Practices not just Best Practices
• Force project teams to be entrepreneurial
• Strategy as stretch- what is my man on the moon project?
• Combine Innovation, Passion & Compassion
Inclusive Innovation:The Global Game Changer
Access Equality Despite Income Inequality
Social Equity with Business Competitiveness
‘Doing Well by Doing Good’
Anjani MashelkarInclusive Innovation Award
60
Anemia- Hemoglobin Detection
Best Practice
Invasive with Needles
Cost per Test - $ 5
Next Practice
Non-Invasive, No Needles
Cost per Test- $0.2
62
h o
Affordable Excellence
Winner 2012- Anjani Mashelkar Inclusive Innovation Award
High Technology : Photoplethysmography + Spectrophotometry
Myshkin Ingawale
64
Anjani Mashelkar Inclusive Innovation Award 2011
Intelligent, integrated, pre‐screening ophthalmology device
• Non‐invasive •Does not require dilation•Portable & affordable
Detects•5 major eye ailments (cataract, diabetic retina, glaucoma tools, cornea issues)
Cost• Just 10% of current machines
65
“I want to take this to the USA……”‐ Hillary Clinton
2.6 Billion PeopleIncome - Less than $2 a day
Thank You