Value Chain and Innovation at the Base of the Pyramid

Siim Esko, Mindaugas Zeromskis, Juliana Hsuan

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Purpose – This paper aims to investigate the factors a multinational corporation should adapt when doing business at the bottom of the pyramid (BoP) markets.
Design/methodology/approach – Based on a systematic literature review on BoP, value chain and innovation, an integrative framework is introduced for analysing business readiness in BoP: organisation, value chain and strategy. Four diverse cases were analysed: GE’s reverse innovation project, GrameenPhone, Essilor, and P&G’s PuR.
Findings – BoP project should be a top-down supported separate entity with its own strategic processes and financial measurements. Working in the value chain requires diverse thinking in terms of interactivity, partners, setup, and governance. Involving customers and consumers in the innovation process is crucial. The venture also needs to make its offerings accessible, affordable, acceptable, available, and valuable to the customers. A step-by-step scale-up must be followed.
Originality/value – The BoP framework can be used as a practical roadmap for companies to analyse the readiness of the business venture and strategy development.
Purpose – This paper aims to investigate the factors a multinational corporation should adapt when doing business at the bottom of the pyramid (BoP) markets.
Design/methodology/approach – Based on a systematic literature review on BoP, value chain and innovation, an integrative framework is introduced for analysing business readiness in BoP: organisation, value chain and strategy. Four diverse cases were analysed: GE’s reverse innovation project, GrameenPhone, Essilor, and P&G’s PuR.
Findings – BoP project should be a top-down supported separate entity with its own strategic processes and financial measurements. Working in the value chain requires diverse thinking in terms of interactivity, partners, setup, and governance. Involving customers and consumers in the innovation process is crucial. The venture also needs to make its offerings accessible, affordable, acceptable, available, and valuable to the customers. A step-by-step scale-up must be followed.
Originality/value – The BoP framework can be used as a practical roadmap for companies to analyse the readiness of the business venture and strategy development.
LanguageEnglish
JournalSouth Asian Journal of Global Business Research
Volume2
Issue number2
Pages230-250
ISSN2045-4457
DOIs
StatePublished - 2013

Keywords

    Cite this

    Esko, Siim ; Zeromskis, Mindaugas ; Hsuan, Juliana. / Value Chain and Innovation at the Base of the Pyramid. In: South Asian Journal of Global Business Research. 2013 ; Vol. 2, No. 2. pp. 230-250
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    Value Chain and Innovation at the Base of the Pyramid. / Esko, Siim ; Zeromskis, Mindaugas ; Hsuan, Juliana.

    In: South Asian Journal of Global Business Research, Vol. 2, No. 2, 2013, p. 230-250.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Value Chain and Innovation at the Base of the Pyramid

    AU - Esko,Siim

    AU - Zeromskis,Mindaugas

    AU - Hsuan,Juliana

    PY - 2013

    Y1 - 2013

    N2 - Purpose – This paper aims to investigate the factors a multinational corporation should adapt when doing business at the bottom of the pyramid (BoP) markets.Design/methodology/approach – Based on a systematic literature review on BoP, value chain and innovation, an integrative framework is introduced for analysing business readiness in BoP: organisation, value chain and strategy. Four diverse cases were analysed: GE’s reverse innovation project, GrameenPhone, Essilor, and P&G’s PuR.Findings – BoP project should be a top-down supported separate entity with its own strategic processes and financial measurements. Working in the value chain requires diverse thinking in terms of interactivity, partners, setup, and governance. Involving customers and consumers in the innovation process is crucial. The venture also needs to make its offerings accessible, affordable, acceptable, available, and valuable to the customers. A step-by-step scale-up must be followed.Originality/value – The BoP framework can be used as a practical roadmap for companies to analyse the readiness of the business venture and strategy development.

    AB - Purpose – This paper aims to investigate the factors a multinational corporation should adapt when doing business at the bottom of the pyramid (BoP) markets.Design/methodology/approach – Based on a systematic literature review on BoP, value chain and innovation, an integrative framework is introduced for analysing business readiness in BoP: organisation, value chain and strategy. Four diverse cases were analysed: GE’s reverse innovation project, GrameenPhone, Essilor, and P&G’s PuR.Findings – BoP project should be a top-down supported separate entity with its own strategic processes and financial measurements. Working in the value chain requires diverse thinking in terms of interactivity, partners, setup, and governance. Involving customers and consumers in the innovation process is crucial. The venture also needs to make its offerings accessible, affordable, acceptable, available, and valuable to the customers. A step-by-step scale-up must be followed.Originality/value – The BoP framework can be used as a practical roadmap for companies to analyse the readiness of the business venture and strategy development.

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    KW - Value chain

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    KW - Organisation

    KW - Integrative framework

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