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Study highlights developing countries' IT markets

Study highlights developing countries' IT markets

Innovation created for the demanding constraints of emerging nations will deliver systematic disruption to technology solutions in developed nations during the next decade, a market intelligence company said in its latest report.
By 2015, Gartner said it estimates that IT engineered for developing economies will drive 20 percent of "disruptive" IT innovation worldwide.
Coined by Harvard Business School professor Clayton M. Christensen in his 1995 article "Disruptive Technologies: Catching the Wave" which he co-authored with Joseph Bower, "disruptive" technology is an innovation, product or service that eventually overturns the existing dominant technology in the market.
'A fundamental rethinking'
According to Gartner, many corporations, looking at ways to serve the core needs of the poorest consumers, have found that solutions frequently go beyond packaging and price. Such solutions also require "a fundamental rethinking and re-engineering of product specifications, design and creation processes," said Jackie Fenn, vice president and a Gartner Fellow.
Fenn referred to the research findings of Christensen that said disruptive technologies usually begin at the low end of the cost and value curve. At first, these newer technologies are below the quality levels required by existing customers and are limited to small, previously unserved markets too small for the established players to worry about.
Over time, the performance of low-end technology rises to where it more than adequately meets the needs of large numbers of consumers, and new players take over market share from the incumbents.
"While discussions around globalized microbusiness are moving beyond leading multinationals and starting to attract a broader audience, less attention is being paid to the reverse flow of innovation. A pattern of disruptive innovation is exactly the type of innovation taking place to serve the consumers 'at the bottom of the pyramid,'" Fenn said.
"We should therefore expect that the quality and performance delivered by these innovative approaches will reach levels that are attractive to existing consumers within the next decade, leading to disruption of many established technologies and vendors."
A renewed focus on innovation is driving organizations to focus not just on the continuing flood of new technologies, but also on the inextricable relationship of technology with business and societal trends.
Innovation on the rise
"After the relative stagnation of the post-dot-com period, innovation is raising its profile among IT and business managers," Fenn added.
"This current surge of interest and experimentation concerning innovation will create new approaches to systematizing innovation within organizations. The need to look more broadly at the driving forces, sources, and consequences of technology and business innovation will be key."
Gartner recommended that companies grab the opportunity reach underserved markets.
"Hordes of organizations need simple low-end solutions. For them, consumer-grade technology is good enough, economic and easily managed," the market research firm said.
Importance of Internet
Organizations should also harness the power of the Internet as far as marketing strategies are concerned, it added.
"Traditional marketing has been displaced by the unlimited creativity, reach, range and viral aspects of the Web. Despite seemingly unbounded by change, smart organizations can harness the power of the Web through new access to markets and new ability to monitor and analyze patterns, trends and behaviors," Gartner said.
"Brand innovation" is also a must for companies that want to stay ahead of the pack.
"It can keep an organization 'top of mind' and can develop a social connection to desirable people. Increasingly, organizations will broadcast social consciousness and lifestyle to markets," the industry tracker said.


Updated : 2020-12-03 16:30 GMT+08:00