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Perils of Unstructured Innovations in Asia

Perils of Unstructured Innovations in Asia

In a recent blog entry, Marianne Mai, makes the point that successful innovation stems from a structured process that carefully controls costs and other factors to provide value to the intended consumer. In all other cases, the additional cost will have to be borne by the user or the company. Asia is particularly sensitive to these issues because of governmental corruption and weak IPR protection. When these issues and their impact on the cost of innovation are well recognized, why is it that governments ignore them?

Writing a blog at, Marianne Mai makes a convincing case for a structured innovation process if one is to succeed in Asia. She argues that if the idea behind the innovation is to commercialize the product, a more structured format is required to be followed.

Many fear that such discipline would go against the idea of innovation itself, but Marianne says the innovation is either for internal consumption or to be sold in the market. In both cases, a user buy in will only occur if the cost of implementing the solution is lesser than the value that the user will derive from the product. This can only be ensured by careful planning.

In an unstructured idea development process all factors of value creation and all types of costs may not be considered. If this is not done then the increased cost of the product would either have to be passed to the customer – reducing potential sales, or would have to be absorbed by the company – reducing potential profits.

Yet another reason why innovators in Asia need a structured innovation process is that a perfect demand and supply regime does not exist. There is corruption in the government and imperfect IPR protection. Besides this, there is a shortage of skilled labor due to strict labor import laws.

Organizations that do not consider Asia specific factors into their innovation plans will find themselves with ideas that cannot be commercialized. A planned and a strategic approach is required to allow companies to commercialize their solutions in Asia.

Note: The preceding is a summary of an article found though our research, and is provided here with editorial comment for members only. Please see the full article at the following link for full original content.

The New Asia Innovation Team