The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty

Tengo tiempo que leo y aplico las ideas de Innovación del Dr. Clayton Christensen. Tenía tiempo esperando la publicación de éste libro en particular porque sus ideas las encontré en una video de YouTube hace 4 años aproximadamente, en una conferencia que el Dr. Clayton Christensen impartió en la Universidad de Oxford, y ha sido un excelente enfoque y herramienta que he usado en los cursos que enseño en el MBA. Todos los que nos preguntamos porque Mexico no se ha desarrollado exitosamente, éste libro tienen una excelente explicación: no hemos creado innovaciones disruptivas, solo innovaciones de sostenibilidad, y de eficiencia para empresas multinacionales que si las hicieron en sus respectivos países. Las innovaciones disruptivas con capital local son las que gestan desarrollo económico. Excelente enfoque!!

CC und sein Mitautoren haben es in dem Buch geschafft zwei Gegensätze aufzuarbeiten. Einerseits die jungen Gesellschaften, zukunftsorientiert, gebildet mit dem Wunsch auf eigenen Beinen zu stehen (Afrika) und andererseits jene Gesellschaften, die meinen als verlängerte Werkbänke von Industriestaaten Arbeitsplätze schaffen zu müssen. Die Autoren stellen sehr gut dar, dass die marktschaffenede Innovation der kick-starter and accelerator ist, anstatt als verlängerte Werkbank "nuts&bolts"-Industrien aufzubauen. Das Buch ist auch auf Deutsch erschienen: Das Wohlstands-Paradoxon.

Just finished a genuinely transformative and perspective-shifting book called ‘The Prosperity Paradox: How Innovation Can Lift Nations Out of Poverty’ by Clayton Christensen, Efosa Ojomo, and Karen Dillon. They challenged many assumptions I had about the necessity of good governance and infrastructure prior to economic growth and development. They flipped the question from how to eliminate poverty to how to create prosperity. They came to the answer of market-creating innovations (MCIs).If you've known me for awhile, you know that I have a heart for other cultures and am fascinated by new technology, startups, emerging markets, and developing nations. The sheer potential for market and value-creation through entrepreneurship and innovation is incredible due to the talent in these countries and so much untapped opportunity. It's part of why I joined CEO & Founder Mark Sears at CloudFactory 2.5 years ago and moved to the UK. CloudFactory's mission is to help 1M people become leaders worth following by providing digital work in developing nations (like Nepal and Kenya). I've seen so much talent from the teams and people I've interacted with in Nepal and Kenya. Genuinely incredible people. Like other impact-focused companies working in developing nations, we believe talent is equally distributed, but opportunity is not. We're using technology to bring opportunity to really talented people. I digress. Back to the book.This genuinely is an incredible book that I strongly encourage you to read if you have an interest in how nations develop, charity in developing nations, how innovation can be used to increase prosperity and decrease poverty, how innovation can combat corruption, etc. There are so many reasons to read this book. I've tried to give a sampler appetiser of the full course meal of innovation wisdom and insight that's available to anyone that chooses to read 'The Prosperity Paradox.' Enjoy!<a href=https://www.linkedin.com/pulse/new-strategy-fight-poverty-elijah-elkins/>Click Here for Full Review!</a>

I often remember the old tale of two American shoe salesmen who were independently sent to a poor country to assess the potential for shoes. The country was so poor that hardly anyone wore shoes. One salesman would cable back “No one wears shoes; no potential.” The other salesman is excited. His message reads “No one wears shoes; immense potential.” He goes on to add “They grow the best pineapples on earth. Buy pineapples here, sell them at home, and sell shoes to the entire population here.” This is what I would call the difference in mindsets of a bureaucrat (all bean counters included) and an entrepreneur (many stereo type marketers excluded!). This book is for the salesman who can sell anything to anyone who is a non-consumer. Taking a cue from the legendary Prof CK Prahalad, this book is about untapping the potential of ‘Fortune at the bottom of the Pyramid’. This book is also about a means of realizing Gandhiji’s dream of ‘Wiping Every Tear from Every Eye’.The book starts with a counter intuitive hypothesis that the direct investment on widely acclaimed poverty alleviation projects like providing free health care, clean drinking water, infrastructure and schools has not delivered results. In fact, data suggests that scores of countries like Burundi, Gambia and Malawi are worse off. On the other hand, countries like South Korea, Japan, Singapore and Taiwan are prosperous nations today, despite having been flattened by bombs. The difference, the authors argue, is Market Creating Innovations, that were targeted at non consumers. Our second salesman approach!Prof Christensen introduced the concept of ‘Disruptive Innovation’ in his path breaking book ‘The Innovators Dilemma’ in 1997; perhaps the most important framework on innovation till date. He clearly defines Innovation and explains that most big corporations focus on ‘Sustaining Innovation' which is about moving up the functionality curve, premiumisation and higher margins, and ceding low end products to smaller players. Disruptive Innovation is about creating a new dimension of functionality, and perhaps even sacrificing existing ones to levels that are ‘good enough’. The Personal Computer, the Walkman etc are products that opened huge markets to non-consumers, with lower prices and new features like smaller size and mobility.In this book, the authors exploit the potential of Market Creating Innovations (Disruptive in nature) that create a Pull from the non-consumers, that are profitable, and market driven and hence sustainable. To serve new markets and new consumers, it is argued that we need new business models (low margins with high volumes and high penetration for example). These new markets in turn would create new jobs, and over a period of time bring in multiplier effects across adjacencies and create vibrant value chains. Social transformation follows, since people begin to find Value in market driven innovations. Institutions and policies would be a pull from citizens, and the government is a cheer leader and catalyst in enacting laws and building new institutions.Governments in developing countries have no business to run businesses. Led by bureaucrats, they literally run and ruin even gold mines. This book shows us the way to transform the status quo and lead developing countries into prosperity.The concept of hiring products and services for ‘Jobs to be Done’ to help us be better off in a given situation is at the core of the conceptual framework.The chapters explain that in developing countries, over a period, the deep-rooted inefficiencies, corruption, and institutional failures shall be automatically eliminated if we adopt this approach. USA today is a great example in its transition from the Nineteenth Century till date. Henry Ford created a mass market for cars (targeting all American citizens who were once poor), and the rest as they say is history.Case studies from India include Narayana Health and Aravind Eye Hospitals. These great institutions offer valuable processes that can be taken back to developed markets to offer affordable health care globally. (‘Reverse Innovation in Health Care’ by Prof Vijay Govindarajan is a great read on this topic).Finally, economic prosperity alone cannot ensure happiness. South Korea for example has the highest suicide rates and hospitalization for mental illness, despite its achievements. Quoting Robert Kennedy ‘GDP doesn’t register the beauty of our poetry or the strength of our marriages or the intelligence of our public debate…. GDP measures everything except that which makes life worthwhile’.Let us remember to preserve core social values and the wisdom of this great nation in this glorious journey. ‘Sarve Jana Sukhino Bhavanthu’ meaning ‘Let the entire world be happy’. This would certainly put a smile on Gandhiji’s face.JAI HIND.

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