Turning the page…

Another interesting year is rapidly winding down. This year, I had the chance to work with many gifted business and tech leaders, but it was particularly satisfying collaborating with innovators in developing regions — the Sub-Sahara, the Middle East and South Asia.

It’s time for Western multinational companies — especially those in the customer-facing sectors — to enter developing markets where consumer-led growth is robust but capital and resources are in short supply.

Many Westerners have misconceptions about working in emerging markets. For example, they assume that the transfer of knowledge flows only in one direction — from us to them. But our clients in developing regions bring a keen understanding of their markets and what’s needed to elevate their businesses. We typically learn as much from them as they do from us.

Innovation Hothouses

Some of the most interesting business and technology breakthroughs are now coming from developing markets which have become hothouses of disruptive innovation. Behold the $2,500 car, the $25 business hotel room and the $25 mobile handset that provides service for just 2.5 cents a minute.

Developing innovators are finding novel ways for using mobile phones to perform vital functions like transferring money, paying bills, monitoring elections, diagnosing and treating illnesses, and buying and selling food. Each of these breakthroughs was created by inventive, driven entrepreneurs and engineers to improve the lives of consumers in their markets.

Those who aspire to work with innovators in developing regions must recognize the unique challenges that they face.  While conditions are generally improving, operators are often grappling with government red tape, dodgy distribution networks and difficulty securing credit. They demonstrate in quotidian ways how to overcome the kinds of constraints that would crush many Western enterprises.

Price of Admission

To contribute to and benefit from opportunities in emerging regions demands the wise use of capital, talent and resources. Understanding the market and culture are essential. Patience and perseverance are crucial.

Working in these markets also obliges us to give a portion of our time and resources to lend a helping hand where it’s needed the most. Whether that means donating digital equipment to bridge information gaps or mentoring a new generation of leaders, each of us can have a lasting impact.

Serving developing markets isn’t for everyone. For those who are fiercely determined to make a meaningful contribution on a global stage, the rewards outweigh the inconveniences.

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Want more?

I suggest a book, Winning in Emerging Markets, by two Harvard professors, Tarun Khanna and Krishna Palepu. They write, “Companies with ambitious emerging market growth strategies have no choice but to engage deeply with these economies – but the complex nature of these markets has made success elusive.”

Also have a look at McKinsey On Africa — a continent on the move, a “box-set” of essays and interviews about the opportunities and challenges in Africa.

In prior posts I’ve looked at how mobile phones are being used in emerging markets including in this tribute to Professor C. K. Prahalad who died earlier this year. His sage advice resonates. “Focus on becoming part of global citizenry. In exchange for the opportunity to participate everywhere/anywhere in the world you have the obligation to do something productive, which will improve the world.”

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The revolution is discussed by Don Tapscott and Anthony Williams in their compelling ’07 book, Wikinomics: How Mass Collaboration Changes Everything. The authors explore opportunities for organizations to understand and tap into web-enabled collaboration.     

Describing the upheaval as a social revolution isn’t mere hype. Even though mass collaboration, on a global scale, has just begun, encyclopedias, airplanes, software and a host of products and services are being created by distributed teams across oceans.  

P&G was struggling until it shifted to a mass collaboration-driven R&D model several years ago.  Their  success in creating new products and gnerating incremental revenue captured the minds and hearts of analysts around the world.

My company is taking part in wiki-based client-directed efforts.  Team members in Chicago, Seattle and Dublin are collaborating on projects for clients in Capetown and Milwaukee.  

The immediacy and accessibility of wikis leads to an informal, roll-up-your-sleeves setting. And it’s not just atmospherics at play. Under the right circumstances productive wiki-brainstorms tend to occur… 

There are many new challenges concerning how to structure problems to enable multiple teams to work on them and how to manage organizational networks of collaboration. This is fertile ground for social networkers and other theorists to explore.  We keep abreast of emergent practices across industries but some of our best insights come from direct experimention.

The spirit of enthusiasm and experimentation drive our best wiki effots. And I can’t begin to describe the pure joy of escaping the shackles of e-mail.  What’s not to love?  To be continued…

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