In McKinsey & Company’s Special Report “What Happens Next”, the writers discuss the five crucibles of innovation which they believe will shape the future of business. McKinsey’s writers explain this crucible as characterized by the vibrancy emerging market growth to possibly be the most profound disruption reshaping the global economy. In the forbes.com article “GE Healthcare’s India Center is a Model of Its Emerging Market Strategy”, the writer describes an example of GE Healthcare leveraging the first crucible, “The Great Rebalancing”, within its emerging market initiative in India.
GE Healthcare is making a push to launch at least 20 medical equipment products in India within the year. The company announces that this strategy of emerging market innovation seeks to find low cost healthcare solutions which can be applied in these markets. GE Healthcare chose India as a strategic emerging market focus because it sees the country as the closest to being a “consumer driven market”. GE Healthcare also recognizes it will gain a competitive advantage by innovating in India because its R&D costs are much lower and development times are significantly shorter than other candidate countries.
McKinsey’s “What Happens Next” writers would certainly agree with GE Healthcare’s emerging market innovation focus as they state “emerging markets will be the next fount of innovation” and that companies must leverage that inevitability to their advantage. Additionally, as GE Healthcare establishes a strategic presence in India, it is looking for the country to become one of the emerging markets which McKinsey writers describe as “a locus of growth in consumption, production and innovation”. GE Healthcare has publicly announced its dedication and determination to its emerging market focus by declaring 2012 as the year of “At Work, for a Healthier India”. Similar healthcare equipment companies around the globe are vying for the same market share, but GE Healthcare has made the most recent aggressive move by placing this large bet on India as a future driver of its emerging market innovation.
McKinsey & Company Special Report “What Happens Next”