Comtrot, a mobile application developer, outsourced the development of an application to a cheaper location in another country. The application would notify users about their blood pressures twice a week. The final product was marketed in the country of Comtrot's origin. Which of the following does this situation demonstrate?
A) disruptive innovation
B) sustainability
C) reverse innovation
D) social business innovation
E) process innovation

Question

Quizplus · Accepted Answer

This situation demonstrates reverse innovation, which refers to the process of innovating in emerging markets and then later diffusing those innovations in developed markets. Comtrot outsourced the development of the application to a cheaper location in another country, implying that the innovation originally came from an emerging market. The product was later marketed in the country of Comtrot's origin, which is a developed market. This example fits the definition of reverse innovation.

Comtrot, a Mobile Application Developer, Outsourced the Development of an Application