Quiz 2 MKTG 442

What is the key principle behind the innovation sandbox as described by C.K. Prahalad?

To innovate effectively for the bottom of the pyramid, firms must start by identifying rigid constraints and then explore creative solutions within those bounds.

What is the typical cost range for a Western-style hotel room in Bangalore?

US$250 to $300 per night.

How does IndiOne differentiate itself in the hotel market in India?

IndiOne offers hotel rooms at $20 per night while maintaining modern amenities and a profitable business model.

What is the seating capacity of the Narayana Hrudayalaya hospital in Bangalore?

1,000 beds.

Define the concept of 'combination chula' introduced for rural cooking in India.

A multi-fuel stove that allows users to switch between biomass and natural gas depending on their budget.

What is the gross margin difference between IndiOne and typical luxury hotels in 2005?

IndiOne had a gross margin of 65%, while typical luxury hotels had 30-40%.

Name one way that the Narayana Hrudayalaya hospital innovates to manage healthcare costs.

The hospital performs multiple surgeries per day, achieving high volumes that improve efficiency.

What is the significance of 'world-class quality' in the context of innovations for base-of-the-pyramid markets?

It ensures that the innovations meet global standards while being affordable and scalable.

How does the combination chula benefit users in rural India?

It provides flexibility in cooking fuel choice, potentially improving health by reducing smoke emissions from biomass.

What is the focus of the Aravind Eye Care system regarding cataract surgeries?

To provide affordable cataract surgeries while treating over 60% of patients for free.

What innovative business model does Narayana Hrudayalaya use to cater to low-income patients?

A sliding scale of fees and a health insurance scheme that allows the poor to access affordable surgeries.

What are the four key conditions for innovation according to Prahalad?

1. World-class quality, 2. Significant price reduction, 3. Scalability, 4. Affordability for low-income consumers.

How can applying constraints in the innovation process lead to breakthroughs?

Constraints can stimulate creative problem-solving by forcing innovators to think differently within set limits.

What is the purpose of the Jaypur Foot prosthetic?

To provide an affordable and functional prosthetic foot for below-the-knee amputees in developing countries.

What is meant by 'innovation sandbox'?

A framework allowing for free exploration and experimentation while operating within defined constraints.

Explain the impact of healthcare innovations like NH on the Indian healthcare system.

They set new global standards for quality and delivery at reduced costs, improving accessibility for underserved populations.

What has been the trend in the availability of healthcare services in India compared to the U.S.?

There's a significant scarcity of doctors and healthcare facilities in India, particularly in rural areas.

What is the main challenge faced by healthcare providers targeting bottom-of-the-pyramid consumers in India?

High costs of healthcare that many consumers cannot afford due to lack of insurance.

How does the Aravind Eye Care system achieve profitability while serving low-income patients?

By treating a significant percentage of patients for free while offsetting costs through high patient volume and efficient operations.

What does the term ‘bottom-of-the-pyramid market’ refer to?

A market segment consisting of consumers with the lowest income levels, who are often unserved or underserved by traditional businesses.

What innovation allows the Narayana Hrudayalaya hospital to manage surgeries effectively?

Specialization in cardiac care, enabling high volume and consistent training for medical staff.

Describe the economic model of health insurance designed by Narayana Hrudayalaya.

Health insurance sold to entire villages for about 20 cents per person per month, facilitating access for the low-income population.

What was the cost of the Jaipur Foot prosthetic foot compared to Western alternatives?

About $30 compared to $8,000 to $10,000 for similar Western prosthetics.

What role do values play in the innovations by NH and similar organizations?

Shared values of service and equality drive teams to work collaboratively towards providing world-class care for all.

According to Prahalad, how must firms approach the design of new products for bottom-of-the-pyramid markets?

They must start with understanding the needs and limitations of the target consumers and innovate accordingly.

What was one significant achievement of the Aravind Eye Care system in 2004?

It performed 240,000 cataract surgeries and treated 1.6 million outpatients.

How do the innovators at NH and other hospitals view the organizational elements of service delivery?

They decentralize roles, allowing teams to take responsibility for patient outcomes through specialized training and teamwork.

What is a common misconception about innovation according to Prahalad?

That creativity must be entirely unconstrained; rather, it often thrives within certain limits or challenges.

What is a major reason for the resurgence of interest in sustainable practices among businesses?

The growing awareness of environmental impacts and the need for meaningful contributions to sustainability.

Identify one way in which the healthcare innovators have achieved cost reductions.

By redesigning processes and being capital efficient in purchasing specialized medical equipment.

What major societal need is the focus of healthcare innovations in India?

To improve accessibility and affordability of health services for the large low-income population.

What aspect of patient care is transformed through the use of telemedicine at NH?

Remote consultations expand access to specialist care even in rural areas.

How does the operational model of Aravind Eye Care influence healthcare access?

The use of volume and efficiency allows the organization to provide both free care and maintain profitability.

What is a significant factor enabling the success of companies like NH?

Their ability to innovate while maintaining world-class quality at affordable prices.

Name a key technological advancement used in telemedicine by Narayana Hrudayalaya.

Satellite and Internet-based communications for consultations with specialists.

What methodology does Prahalad suggest for innovation in the healthcare sector?

Starting innovations with the perspective that poor individuals deserve the same quality of healthcare as the wealthy.

What is the most used resource for cooking among rural populations in India?

Cow dung and biomass, such as sticks and grass.

What distinctive feature does the Aravind Eye Care system offer to patients during cataract surgeries?

Minimal waiting times and efficient use of operating rooms.

In which sector has Prahalad seen significant breakthroughs in India?

The healthcare sector, particularly in cardiac care and vision services.

What principle guides the pricing strategy of Narayana Hrudayalaya?

To charge uniform rates that ensure equitable access while maintaining profitability.

What does the term 'value recovery' refer to in the context of sustainable innovations?

The process of reclaiming resources from used products for reuse in production.

Describe the importance of 'customer insights' in Prahalad's innovation approach.

Understanding consumers' needs and limitations is crucial in developing effective product solutions.

What role does specialization play in the operational success of hospitals like NH?

Specialization allows for expertise development and efficiency in healthcare delivery.

How does the combination chula provide economic flexibility for its users?

Users can switch fuels based on budget and needs, enhancing affordability.

What is NH's strategy for recruiting talent amidst a shortage of healthcare professionals in India?

They focus on training and skill enhancement of available personnel, rather than solely hiring experienced staff.

What major healthcare problem does the Aravind Eye Care system aim to address?

To eliminate needless blindness caused by cataracts.

In the context of health innovations, what does 'workflow' refer to?

The way tasks are organized and executed to enhance efficiency and outcomes.

What distinguishes the service process at Aravind Eye Care as innovative?

Surgeons perform multiple surgeries in succession without compromising care quality through efficient teamwork.

Why do incremental innovations matter according to Varadarajan?

They help firms remain competitive and generate stable revenue streams alongside radical innovations.

What is a notable feature of the Jaipur Foot regarding its approach to distribution?

It is distributed free of charge through nonprofit organizations, focusing on accessibility.

Explain the purpose of health camps organized by Aravind.

To screen for eye problems and subsequently provide surgeries to those in need.

What advantages does the use of digital medical records offer in hospitals like NH?

Improved efficiency and reduced costs in patient care management.

In healthcare innovation, what principle does 'universal access' encapsulate?

The necessity for innovations to be affordable and reachable for the poorest populations.

What underlying theme connects NH and Aravind's healthcare models?

Delivering high-quality healthcare services to low-income patients while maintaining profitability.

What does the term 'scalable' refer to in the context of healthcare innovations?

The ability to replicate successful models in various locations and circumstances.

What social issue does the Aravind Eye Care system uniquely address in its operations?

Cataract blindness prevention and treatment at minimal cost for the population.

What insights can be drawn from the 'price-performance' levels introduced by health innovators in India?

They show how healthcare can be provided at significantly lower costs without sacrificing quality.

Why is it important to understand the concept of 'consumer generated' pricing strategies in health care?

These strategies cater to affordability, allowing low-income patients to receive necessary care.

What is the core mission of innovative organizations like Narayana Hrudayalaya and Aravind?

To provide accessible and high-quality healthcare to all, irrespective of income.

Describe a key aspect of the Jaipur Foot that makes it successful in developing countries.

Its low cost and ease of replacement encourage widespread use and access.

How has technology influenced the capacity of NH to service its patient population?

By employing telemedicine and efficient scheduling, NH has improved access and monitored patient care.

What is the focus of Prahalad's argument regarding innovations at the BOP?

Innovations should address unmet needs of low-income consumers while ensuring quality and affordability.

In what way does the healthcare sector in India represent a unique case for innovation?

It requires low-cost yet high-quality solutions to address widespread health issues among low-income populations.

How does the health care model of NH differ from traditional U.S. healthcare models?

NH focuses on cost reduction and high patient volume, unlike the U.S. model which prioritizes premium pricing.

What potential does Prahalad see in the BOP market globally?

The BOP market represents a vast, untapped consumer base that can drive innovation and growth.

What is the outcome of successful implementation of innovative healthcare systems like NH?

Improved healthcare access and outcomes for underserved populations.

Summarize the goal of the combination chula in rural India.

To provide efficient cooking options flexible enough for various fuel sources, improving health and safety.

How do the health innovations in India challenge traditional business assumptions?

They demonstrate that high-quality, affordable services can be profitable, challenging the notion that low-cost equates to low quality.

What distinguishes the market approach of Indian healthcare innovations from those in developed nations?

Focus on affordability and accessibility for low-income groups rather than merely expanding existing market segments.

What is a notable feature of the smart basics hotel model employed by IndiOne?

It combines affordability with modern amenities to cater to budget-conscious travelers.

Give an example of a challenge that Aravind Eye Care addresses through innovation.

Reducing waiting times for eye surgeries through efficient scheduling and surgical practices.

How does the NH hospital approach patient education, and why is it significant?

They engage patients in understanding their conditions for better treatment adherence and health literacy.

What essential lesson does the business model of Narayana Hrudayalaya teach regarding healthcare?

That sustainability in healthcare can be achieved through innovative financing and operational efficiency.

How does the principle of scalability apply to healthcare innovations in India?

Innovations can be effectively replicated across diverse locations to meet healthcare needs globally.

What advantage does internal collaboration provide to innovators in healthcare settings like NH?

It facilitates sharing insights and improving processes based on collective experiences of health professionals.

Discuss the role of community engagement in the success of healthcare innovations.

Engaging local communities helps ensure that innovations meet their specific needs and increase adoption.

What characterizes the economic models of successful hospitals like Aravind and NH?

A blend of high patient volume, low operational costs, and a commitment to quality care.

What success story reflects the impact of proper healthcare innovations on rural populations in India?

The widespread adoption and effectiveness of the combination chula in improving cooking safety.

Highlight a successful healthcare innovation originating from India that can be applied globally.

The Jaipur Foot, as a low-cost, effective prosthetic solution for amputees.