Book Review: Chapter 2: Products and Services of BOP
Book: The Fortune at the bottom of the Pyramid
Author: C.K. Prahalad and Stuart L. Hart
Library Reference: N/A
Amazon Reference:
http://www.amazon.com/Fortune-at-BottomPyramid/dp/B00006L5AW/ref=sr_1_2?ie=UTF8&s=books&qid=1232066330&sr=1-2
Learning Expectations:
- What are the products and services of BOP
- To learn the specifics of Products offered by the BOP
- To learn the specifics of Services offered by the BOP
- How do people conduct these product and services?
- The twelve principles of Innovation for Bottom of the Pyramid Markets
- How does a company or anyone make this part happen?
Quote:
“Will challenge the dominant logic the beliefs and values of the managers serving the developed markets and have been socialized with”
This quote is very much alike from this particular chapter. It is stated there that the challenge will be a dominant logic. That means the people who are in the authority in a particular position must partake the challenge because they are the only one who can handle beliefs and values. For managers, they are challenged to serve, develop markets and socialize with people.
Review:
Since this particular chapter talks about product and services, these matter are considered as part of the business and the process of distributing it to the final consumer or customer is called a market. Again, since market is present here in this chapter, there are many ways now how to market a product and services. Markets are conversation, and as stated from the previous chapter and in Cluetrain Manifesto as part of 95 theses, people plays again the vital role of marketing a product. People are the only key to maximize the potential strength in marketing the product or services. These people will make sure that the quality of product or services they offer to the final consumer will be satisfied with this. In relation for the BOP that this chapter discussed, here is the explanation. According to this chapter, “The BOP, as a market, will challenge the dominant logic” so this means that BOP is a feature in a market that will help the product or services offered by the company or any other business firm will give more improvement for that. Another one is that the BOP will give reputation for these products and services.
For BOP, it is stated here that advanced technology solutions, must coexist. We are talking here the side of BOP. Basically, in a BOP, the technology must be present or coexist because for instance, the networks are considered to be part of Markets are conversation because people can converse digitally. We are now in the 21st century and the thing is that we must maximize the use of technology. For BOP, yes of course the foundation of the pyramid is for the market. It’s just a representation on how markets work on BOP.
Good to know that the author of this book and particular chapter aims to discuss all about the twelve principles of Innovation for Bottom of the Pyramid Markets: These are the ff:
1. Price Performance
2. Innovation: Hybrids
3. Scale of Operations
4. Sustainable Development: Eco-Friendly
5. Identifying Functionality
6. Process Innovation
7. Deskilling of work
8. Education of Customers
9. Designing for Hostile Infrastructure
10. Interfaces
11. Distribution: Accessing the Customer
12. BOP Markets essentially allows us to challenge the conventional wisdom in delivery of Product
Basically, these principles are involved in the innovation and this kind of innovation is part of BOP. Identifying, evaluating, scoring of products or services offered by the company is very much effective determining the state of the product or services as well as promoting that.
What I’ve learned:
I learned that there are twelve principles of innovation to make the products and services of the company succeed. Knowing these principles will help the company or anyone else improve their respective offering for their consumers. This innovation must be evaluated first exactly know how can affect people’s lives. I experienced how to score a scorecard regarding the BOP and while doing it, it was very interesting because while thinking or evaluating for a particular principle, my mind flows for that principle if it is applicable or not.
As a conclusion: Getting the right combination of scale, technology, price, sustainability, and usability are towards the concept of innovation for BOP Markets. Thanks to BOP because company will now have a basis on how to improve their products or services. Determining the status again of a product or services is a great factor to be able for the company to improve their performance in the eyes of the people.
Integrative Questions:
- What are the twelve principles of innovation for Bottom for the Pyramid?
- What are the effects of these twelve in identifying the factors being served by the company or anyone else?
- Is it really important to score the product or services offered by the company to the consumers?
- Is it really easy to implement?
- How does it innovative in our world today?
