Innovation in emerging markets: 2007 annual study
Jane Lodge & Digby, Lord Jones of Birmingham
Global manufacturers once regarded emerging markets primarily as low-cost locations for routine operations. Now, attracted by the enormous business opportunities, and often encouraged by government policies, manufacturers are locating higher-value activities such as complex production, research and development (R&D), and sales/marketing operations in these rapidly growing economies.
Yet, despite the enormous business opportunities in these markets, a surprising number of companies fall short of their goals. Indeed, Deloitte’s Global Manufacturing Industry Group, which is made up of Deloitte member firm manufacturing industry practices, found in its 2007 study of the challenges in emerging markets that less than half of the executives surveyed said their companies had been extremely or very successful in meeting either their operational goals or their revenue goals.
What is preventing so many companies from fulfilling their goals? Most likely, it is because business complexity continues to increase and because managing emerging market operations is a daunting task. To drive revenue growth, companies are developing innovative products that meet the needs of these new and growing markets. But as they locate more sophisticated activities in emerging markets, companies will need to rethink their business approach. They need to tailor their talent management strategy to each market, and go beyond relying only on compensation by placing more emphasis on training, non-monetary rewards and recognition, and career opportunities.
Learn more from the full report: Innovation in emerging markets: 2007 annual study. (PDF, 2919 KB)
Innovation in emerging markets 2006