Reverse innovation, a concept introduced in a recent HBR article, occurs when an innovation developed in a poor country turns out to have broad utility in the developed world as well. Executives mistakenly equate reverse innovation with product innovation, but in fact it can involve process, commercial, or business-model innovation. Another mistake executives make when thinking about reverse innovation is to think exclusively about big, game-changing innovations. Seemingly small process changes can make a huge difference to a resource-strapped organization, and can often be exported to wealthier settings. [Continue Reading]Indian healthcare sector is unable to cater to it's gigantic population in an efficient way. That has resulted into several innovations. One of the them is about Narayana Hrudayalaya that is low cost heart surgery. This organization has managed to drastically lower the cost of otherwise expensive heart surgery by purely process innovation.
Narayana Hrudayalaya (Kannada: ನಾರಾಯಣ ಹೃದಯಾಲಯ) , located in the city of Bangalore, India, is one of the world's largest pediatric heart hospitals.[1][2][3] It is the brainchild of the renowned cardiac surgeon, Dr. Devi Shetty. Narayana Hrudayalaya also receives patients from outside India, and it has created a record of performing nearly 15,000 surgeries on patients from 25 foreign countries.[4] It is also a renowned centre for telemedicine and it offers this service free of cost.[5]
Despite helping so many poor patients, it is known for being so efficient, that it has a higher profit margin (7.7% after tax) than most American Private Hospitals (6.9%). [1]
It is building large hospitals across India totaling 30,000 beds, to enable it to gain large economies of scale and bargain down the cost of supplies to the hospitals.
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