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Responsible innovation at the bottom of the pyramid

机译：金字塔底层的负责任创新

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With changing times, firms have recognized the need and significance of responsible innovation for BoP consumers, but they find it challenging because this segment cannot afford to buy products even if the cost of existing products is reduced to very low levels. We suggest that responsible innovation is possible for BoP consumers and firms can bank on four-pronged strategy. First, firms need to redefine affordability for the BoP consumers. Products and services are affordable if they lower their current cost of living. Thus, the price benchmark of affordability for BoP consumers is the substitute product they use. If firms can provide a cheaper and economical substitute, BoP consumers will switch to the more economical product offered by incumbent firms. Second, firms should look for natural inventors residing in the BoP market who understand the needs of this segment better than a market research survey can. Firms need to search for these inventors and ally with them to commercialize solutions invented by these local inventors. This creates a win-win situation, as not only economically effective solutions are created for BoP consumers but also entrepreneurial opportunities are generated by virtue of alliances with firms. Third, simpler and cheaper versions of products can be created through architectural innovation where firms integrate already existing streams of technology rather than inventing a new low-cost technology. Fourth, we suggest that responsible innovation does not lie only in product innovation but can also be achieved through process innovation. When a consumer cannot afford a product, it may be possible to convert the product into a service. Our examples highlight how the need to own a water purifier device or camera was eliminated when firms changed the process through which utility of the water purifier device or camera was provided. By virtue of this process innovation, local entrepreneurship and micro employment opportunities are also created. The franchising model of Piramal may not have worked for other income segments of consumers, as they might prefer to use water filters rather than water ATM machines to store and drink water. But for BoP consumers, this was the most economical way of consuming drinking water, which simultaneously generated employment for all those involved in the franchising model. This is a winning situation for firms as well, as local employers act as local marketers and are better equipped to convince BoP consumers about utility of a product or service, thus lowering customer acquisition cost for firms.
机译：随着时代的变化，公司已经意识到对BoP消费者负责任的创新的必要性和重要性，但是他们发现这具有挑战性，因为即使现有产品的成本降低到非常低的水平，该细分市场也无力购买产品。我们建议对BoP消费者进行负责任的创新是可能的，并且企业可以采用四管齐下的策略。首先，企业需要为BoP消费者重新定义负担能力。如果产品和服务降低了当前的生活成本，则它们是可以负担的。因此，BoP消费者负担能力的价格基准是他们使用的替代产品。如果企业能够提供更便宜，更经济的替代品，则BoP消费者将转向现有企业提供的更经济的产品。其次，公司应寻找居住在BoP市场中的自然发明家，他们比市场研究调查更了解该细分市场的需求。公司需要寻找这些发明人，并与他们结盟以将这些当地发明人发明的解决方案商业化。这将创造双赢局面，因为不仅为BoP消费者提供了经济有效的解决方案，而且还通过与公司结盟而产生了创业机会。第三，可以通过架构创新来创建更简单，更便宜的产品版本，在这种创新中，企业可以整合现有的技术流，而不必发明新的低成本技术。第四，我们建议负责任的创新不仅在于产品创新，还可以通过流程创新来实现。当消费者买不起产品时，有可能将产品转换为服务。我们的示例强调了当公司更改提供净水器设备或照相机实用程序的过程时，如何消除拥有净水器设备或照相机的需要。通过这一过程创新，还创造了当地企业家精神和微型就业机会。 Piramal的特许经营模式可能不适用于其他收入阶层的消费者，因为他们可能更喜欢使用滤水器而不是ATM机来存储和饮用水。但是，对于BoP消费者而言，这是最经济的饮水方式，同时也为所有参与特许经营模式的人们创造了就业机会。这对于公司来说也是一个成功的情况，因为本地雇主充当本地营销商，并且更有能力说服BoP消费者了解产品或服务的效用，从而降低了公司的客户获取成本。

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  • 来源
    《Journal of business strategy》 |2017年第3期|40-47|共8页
  • 作者

    Arpita Agnihotri;

  • 作者单位

    Business at Northland College, Ashland, Wisconsin, USA;

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  • 正文语种 eng
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