Koch, C (2017) Reduction or revaluing in cost constrained design? -reverse innovation conceptualized. In: Chan, P W and Neilson, C J (eds.) Proceedings of 33rd Annual ARCOM Conference, 4-6 September 2017, Fitzwilliam College, Cambridge, UK.
Abstract
Where construction research and practice are ripe with examples of cost overrun, it rest predominantly with practical accounts when it comes to systematic reductions in functionality and other aspects of building design to avoid scope and cost creep. Research on such systematic reductions are rare.An emerging research literature on reverse innovation propose ways to understand such efforts. The rise of developing countries as emerging markets triggered a geographically oriented notion of reverse innovation denoting a product or service developed in a developing country and later introduced in an advanced country. However second generation definitions include reverse innovation with reduced cost and pricing, but also new values of the product or service addressing potential clients in a new way.As most reverse innovation examples are simple consumer products there is a potential in addressing more complex built products to commence conceptualizing processes and practices of reverse innovation in building, promising access to markets where high end complex build products otherwise cannot enter.The aim is to explore a possible conceptualization of reverse innovation of complex built product and gather insights of reverse innovation processes from praxis cases.The cases of reverse innovation exhibits different features and processes, Where the precedent reverse innovation literature tend to dismiss reduction strategies with departure at a high end product, this practice appear to be recurrent in construction. Once faced with a potential, estimated cost overrun some building designers would follow an ad hoc strategy of reduction in functionality until the cost target is reached. This can lead to a “cut across areas – cut one area out” dilemma. But also to more proactive strategies such as offshoring of design work, shift of suppliers, global sourcing, and international expansion. Research proposals and managerial implication are presented.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | reverse innovation; cost,design |
| Index terms: | international expansion, revaluing, cost overrun, functionality, proposal, developing country, designer, emerging market, building design, praxis, strategy, markets, pricing |
| Subjects: | design features, architectural design, profession, business, project planning, financial and cost management, reflexivity, real estate economics, economic analysis, management, development economics |
| Topics: | International Construction, Roles and Professions, Research Practice, Design Practice, Cost Management, Business Strategy, Urban Studies, Project Management |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here