understand Viki’s forerunners. The authors describe two distinct, yet overlapping, waves of business innovation from emerging markets in Asia in recent years: one decades old and still going, and another that
is newer and includes companies like Viki.
The first wave primarily exploited differences in labor and other input costs between developed and
developing markets. By contrast, the second wave is driven primarily by business model innovation and
typically leverages new technology. These companies are characterized by extensive and often radical
reconfigurations of the profit formula, resources, processes, and relationships within a broader stakeholder ecosystem. They may have a global orientation from the start.
Established companies, the authors argue, can also embrace the opportunity for business model
innovation. The authors cite examples such as Medtronic Inc. and MetLife Inc., which have both been
experimenting with new business models in Asia. The authors also offer suggestions for how established
companies can start to explore business model innovation.
REPRINT 58217. For ordering information, see page 4.
Mastering the Market Intelligence Challenge
Murali D.R. Chari (Rensselaer Polytechnic Institute), Kimberlee Luce (Boston Analytics),
and Inder Thukral (Boston Analytics) pp. 41-49
Multinational companies have invested heavily in emerging economies — over $3 trillion since 1998, by
one estimate. Many of these companies, however, have not adapted their products and operations sufficiently to succeed in these markets, and returns have often been mediocre. Even when managers think they
are performing well in emerging markets, they often are not because they have set low expectations.
Adapting products and operations requires obtaining and using good market intelligence, which is
difficult in emerging markets due to the paucity and unreliability of information. Another factor is the
wide heterogeneity of emerging markets compared to developed markets. A third common problem is
a lack of shared responsibility for market intelligence between headquarters and country managers, so
market intelligence that is collected either is dismissed as not credible or is not updated often enough to
keep pace with the rate of change in emerging markets.
The authors argue that companies can overcome these difficulties by ( 1) treating market intelligence
as a strategic asset; ( 2) organizing differently for market intelligence in emerging markets; and ( 3) using
a wide range of sources and methods for market intelligence in emerging markets. They also recommend
that market intelligence be organized as a shared responsibility between the corporate office and emerging-market business executives, with shared decision rights and shared resources.
The article includes examples illustrating how companies such as Wrigley, Unilever, and Procter &
Gamble obtain market intelligence in emerging markets.
REPRINT 58208. For ordering information, see page 4.
Engaging With Startups in Emerging Markets
Shameen Prashantham (China Europe International Business School) and George S. Yip (Imperial
College Business School) pp. 51-56
For large global companies, forging effective partnerships with high-potential startups is easier said than
done. The very traits that make such startups potentially complementary as partners also make it difficult