The global medical industry is one of the world's fastest growing industries, absorbing over 10% of gross domestic product of most developed nations. It constitutes of broad services offered by various hospitals, physicians, nursing homes, diagnostic laboratories, pharmacies and ably supported by drugs, pharmaceuticals, chemicals, medical equipment, manufacturers and suppliers.
The medical and health care industry provides enormous employment opportunities to choose from. Apart from using the services of medical professionals, this industry also utilizes the expert services of public policy workers, medical writers, clinical research lab workers, IT professionals, sales/marketing professionals and health insurance providers.
SIZE OF THE INDUSTRY
The United States of America has one of the largest medical and healthcare industries in the world, followed by Switzerland and Germany. The USA's medical industry comprises of more than 750,000 physicians and 5,200 hospitals. USA witnesses approximately 3.8 million inpatient visits and 20 million outpatients visit on a daily basis. Furthermore, the United States of America has the largest workforce i.e. one in every 11 US residents employed in the health care business.
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The Global prescription drug market was $550 billion in the year 2006. Also, the total health care expenditures across the world were $4.5 trillion last year. Of which, US solely account for $ 2.2 trillion, $ 2 trillion in OECD countries and remaining $ 0.3 in other countries of the world.
MAJOR SEGMENTS OF THE INDUSTRY
The global medical industry is highly fragmented, comprising of various ancillary sectors namely medical equipment and supplies, pharmaceutical, healthcare services, biotechnology, and alternative medicines sectors.
Medical Equipment and Supplies:
It consists of various establishments or units engaged in designing, manufacturing, selling and distributing of surgical and medical instruments, ophthalmic, lab apparatus, electro medical, dental, irradiation, surgical appliances and supplies.
It consists of several establishments involved in developing, researching, marketing and distributing drugs or medicines. Globally, the market share of pharmaceutical industry is US $340 billion. The global pharmaceutical sales account for US$ 602 billion, with an annual growth rate of 7%.
Healthcare Services Industry
It includes various establishments dealing in different type of services like testing, outsourcing, compliance, chemical analysis, transcription, quality assurance, validation, and other types of services. The global market share of biotechnology services industry is worth US $ 50 billion, which is soon expected to witness a hike in coming years. Presently, pharmaceutical testing service industry values to US $ 5.9 billion, which is predicted to reach US $ 9.5 billion by the end of 2009. Microbiological testing service industry accounts for US $ 2.4 billion. Globally, the medical outsourcing services industry accounts for approximately US $ 200 billion.
It is one of the most research-intensive segments of the global healthcare industry. Biotechnology industry is composed of many establishments, which are engaged in making wide variety of biotech products. Biotechnology is primarily being used by the pharmaceutical industry but there are other industries like agriculture, mining, waste treatment industries as well, which are making continuous use of biotechnology. Biotechnology companies focus on developing methods or products used for preventing, diagnosing and treating dozens of life threatening and chronic diseases. The biotechnology industry has mushroomed since its inception and at present it is equivalent to US $ 50.7 billion. China, USA, India, Australia, and France are the market leaders of biotech products in the world.
Alternative Medication Industry
It consists of various groups involved in the promotion of different forms of alternative medications and therapies like ayurveda, homeopathy, aromatherapy, massage therapy etc. The total market size of alternative medicine is valued at US $2.7 billion while global market for traditional therapies accounts for US $60 billion.
Dietary Supplements Industry
As per the Office of Dietary Supplements, consumers in the USA spent $20.3 billion on dietary supplements in 2004. This comprises of vitamins, minerals, herbs, botanicals, amino acids, whole foods, nutraceuticals, etc, the USFDA regulates dietary supplements differently than the "conventional" foods and drug products. Regulated by the Dietary Supplement Health and Education Act of 1994 (DSHEA), the manufacturers are responsible for ensuring the safety of dietary supplements before they are marketed. The industry derives much of its demand from growing health awareness, ageing population, consumer spending, and nutrition trends. Bringing out innovative products, effective merchandising and competitive pricing determines the manufacturers' profitability. Supplements are sold via supermarkets, drugstores, Internet, mail orders, health food stores, and by direct sellers.
KEY GROWTH DRIVERS OF THIS INDUSTRY
Always on Time
Marked to Standard
There are various factors, which govern the growth of the medical and healthcare industry. Some of the key factors are:
Continuous investments in research & development has resulted in increased productivity and better quality of drugs, medicines, medical instruments, hospital equipment, and other medical supplies used in medical industry.
Provides employment to large chunk of human population. United States of America has the largest workforce i.e. one in every 11 US residents employed in the health care business.
Increased costs in the medical treatment in the developed nations have driven patients to migrate to Asian countries.
Rise in ailments among the ageing population especially in developed nations has led to the increase in demand of variety of drugs or medicines.
Innovative techniques of drug discovery and drug development, new cures and treatments, gene testing for insurance, genetic predictions of disease and related issue, human cloning and reproductive technologies are the other key drivers of the medical industry.
FUTURE PERSPECTIVE OF THE INDUSTRY
The future perspective of medical industry seems to be immensely bright and encouraging for this industry in terms of the expected surge in global demand and upsurge in investments. Several trends such as globalization, continuous investments in research and development, newer techniques of drug development and discovery, product proliferation, mergers and acquisitions are the key drivers of this industry.
Increasing corporatization of Private Healthcare in the backdrop of a growing and affluent middle class is an emerging trend that has been pushing the growth of this industry. Health Insurance and Medical Tourism are the other significant trends, which are governing the global healthcare and medical industry. Most of the nations are now emphasizing on the accreditation of medical professionals so as to ensure legitimacy of the services provided by them. Robust advancement in the field of information technology will allow critical medical data to be processed and transferred quickly over larger distances, thereby saving time of both the patients and physicians in the speeding delivery of treatment.
WELCOME TO INDIA!
Indian Herbal Industry
The Indian herbal market is sharply rising, expecting to hit the INR 14500 crore mark with exports reaching INR 9000 crore by the year 2012. The herbal market has a CAGR of around 25%. India is followed by China as the largest producer of medicinal plants having more than 40 per cent global diversity. The World Health Organisation (WHO) has projected that the global herbal market will grow to USD 5 trillion by 2050.
According to a study on 'Herbal Industry Biz Potential', currently, the Indian herbal market is worth Rs 7000 crore (USD 1.7 billion) and India exports herbal raw materials and medicines worth over Rs 3600 crore (USD 902 million)
THE AYURVEDIC MEDICINE INDUSTRY IN INDIA
Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighborhood pharmacies that compound ingredients to make their own remedies. It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of one billion dollars (U.S).
The industry has been dominated by less than a adozen major companies for decades, joined recently by a few others that have followed their lead, so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic medicine. The products of these companies are included within the broad category of "fast moving consumer goods" (FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as having traditional herbal ingredients in the composition of toiletries.
The Ayurveda industry is dominated by Dabur, Baidyanath and Zandu, which hold nearly 85% share of the market.
Dabur India Ltd. Leads the Ayurveda market as India's largest supplier and the fourth largest of FMCG products. Dabur's Ayurvedic Specialities Division offers a range of medicines ranging from common cold to chronic paralysis. However, this is only 7% of Dabur's total revenue. The famous Chyavanprash from Dabur, owns 70% of the market while the Digestive Hajmola tablets has an 88% share. Dambur's Amla Hair Oil, Vatika Shampoo and Tooth powder occupy a major chunk of the marketplace.
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Kolkata based, Sri Baidyanath Ayurvedic Bhawan Ltd. Is a specialist in Ayurvedic Products and has recently ventured into FMCG markets Its forte was in its internationally marketed Shikakai (Soap) and range of cosmetic products. Baidyanath has more than 750 products in its Ayurvedic portfolio pulling a sales volume of over 350 million dollars. Similar to the product basket of Dabur, Baidyanath is into massage oils, Chyavanprash and patented Ayurvedic products.
Mumbai Based, Zandu Pharmaceutical Works, focused largely on Ayurveda based products. In its 45 million dollars turnover, Zandu drives its entire sales from its chemicals and cosmetic division.
In 1934, Bangalore witnessed the birth of The Himalaya Drug Company. With over 500 million dollars of net worth, Himalaya has expanded and engraved a footprint into the US soil. Some of its offerings such as the Liv-52 capsules, introduced in India in 1955, are marketed as a liver protector and therapy for liver diseases like viral hepatitis.
Charak Pharmaceuticals, producer of liquids, tablets, and veterinary products has constantly grown in market share with its newest introduction of the product Evanova, a concoction of 33 herbs and minerals and non-hormonal active ingredients used as a menopause treatment alternative to HRT. Containing a good amount of Soya content, Evanova contains herbs like elective estrogen receptor modulators as well as asparagus root (shatavari), which diminishes the regularity and intensity of hot flashes.
The age old Vicco Laboratories incorporated nearly 60 years ago, primarily produces Ayurveda based topical therapies. Its evergreen, Vicco Vajradanti, has enhanced its foothold, not only in India but in the US markets too.
The newest entrant in the segment, The Emami Group, provides a diverse range of cosmetic and Ayurvedic products. Emami's, Himani line of Ayurvedic products occupies only 110 million dollars of the turnover of the group. Similar to its competitors, Emami deals with products such as Chyavanprash and herbal oils.
Aimil Pharmaceuticals Ltd. Excells in the manufacture and selling of generic and proprietory Ayurveda based medicines. With a meager 20 million dollars of business, its Ayurvedic range comprises of therapeutic products which had received the National Award for Quality Herbal Preparations and National Award for R & D. Aimil is well known for its proprietary formulae for hepatitis, diabetes, menstrual disorders, digestive disorders, and urinary diseases.
The herbal honey, Chyavanprash dominates the Indian market with 69% market share. Dabur leads the Amla based Chyavanprash product market with Baidyanath, at 11%, and Zandu and Himani (Emami Group) with about 7.5% each. An assortment of stand-alone herbs, traditional formulae, coupled with proprietary medicines make up the herbal Indian market> there is also a huge section comprising of the massage oils, shampoos, skin creams and other tropical products.
Himalaya Drug Company and Universal Medicaments (UM) in Nagpur, lead the market for such traditional medicines. UM has a JV for production and R&D of herbal based products, with Cipla Ltd. and Lupin Ltd. UM is exports both pharma based medicines as well as herbal medicines.
STATUS OF AYURVEDA IN INDIA
The governments of India and NGOs in India have been collecting data on the Ayurvedic system in India pertaining to the manpower and institutional aspects of Ayurveda which has emerged over the years.
60% of Indian physicians deal with non-allopathic systems of medicines. There are 4 lakh Ayurvedic practitioners, while over 1.7 Lakh doctors dealing in Homeopathy. Even though India has over 500,000 medical doctors, similar to that of US, India addresses nearly 4 times the number of patients as compared to the US.
Even with the illustration of Universal Medicaments Pvt. Ltd., we can see the depth of product offerings with a herbal base. Some of the formulations developed by them are Karnim (Anti-diabetic supplement), Herbokam (Anti-stress formula), Chetak (Stimulant), Tonabilin (Iron supplement), Minitone, U-Gyanetone, and Unicough Syrup. With over 15 main stream proprietary products, they are gradually moving away from traditional Ayurveda and adopting newer forms to suit existing trends.
Colorado based, Maharishi Ayurveda Products International is the largest supplier of Ayurveda based herbal products to the US and other western countries. Despite the popularity of the teachings of Maharishi Mahesh Yogi, and his teaching of transcendental meditation, the company holds a meager market share and a limited staff. The Maharishi has adopted a typical Pharmaceutical company approach where Doctors are attracted by their products and thus, become representatives to spread the message regarding their products.
Due to the age old perception in western worlds that traditional medicines cannot be promoted or accepted with ease, there is an increased focus on individual herbs such as the Indian Ashwagandha. Comparing the product with ginseng, which has been the best selling medicinal herb in the international markets, it has earned the name of the "Indian ginseng"
Earlier, the greatest promoted basil from Ayurveda was Centella asiatica, a variety of Brahmi. The herb contained two other non- Ayurvedic herbs with which it gained immense importance and was promoted extensively as an energizer and a tonic for brain related issues. However, a Chinese herb has taken its place due to confusion about its source.
On the contrary, there are bitter past experiences for many westerners when they make a trip to India which indicates that the problems exist primarily in the source country.
Contamination issues and quality control from heavy metals, pesticides and other materials has become an increasing concern among Ayurvedic factories. Yet a few large ones have managed to invest in testing facilities and quality issues.
The Story Kottakkal Arya Vaidya Sala, an Ayurvedic Medical Center
Kottackal Arya Vaidya Sala which was founded in 1902 by Vaidyaratnam P.S. Varier is today one of India's morst revered ayurvedic institutions. It offers Ayurvedic medicines and treatments to seekers all over India. It is a charitable institution offering medicines and treatment. The Arya Vaidya Sala also manages one Ayurvedic Hospital at Kottakkal in Kerala and at Delhi. It also cultivates medicinal plants and manufactures medicines along with conducting research programmes and publishing various literature on Ayurveda. They also run a Kathakali Academy. The founders studied this traditional medicine under the classical Gurukul system.
They also acquired proficiency in the practice of Allopathy. In 1933, in recognition of his valuable services to humanity, Sri P. S. Varier was conferred the distinguished title of "Vaidyaratna" by His Excellency the Viceroy and Governor General of India.
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Left: Some of the 500 Ayurvedic formulas developed by Arya Vaidya Sala; Right: Home of S. Varier, the organization's founder.
Sri Varier, called the 'Savior of Ayurveda in the South' passed away in 1944. He had executed a will prior to his demise, which converted his proprietary into a charitable trust, as per the provisions of its founder's will Arya Vaidya Sala functions as a charitable trust.
Ayurvedic Natural Health Center, Goa, India
Today's Ayurvedic health care services aspires to cater to tourist from across the world. Although herb products can be taken everywhere, the services of Ayurveda are epitomized by the week-long Panch Karma regimen which are obtained by staying at a special clinic. The Ayurvedic Natural Health Care Center is a group of sites in Goa where people can visit for two weeks to experience a wide range of therapies. The Ayurvedic system is particularly focused on cleansing and detoxifying approaches and uses numerous methods for promoting elimination and relaxation this involves the application of medicated oils and herbs.
This center was established only a few years ago by Dr. Gopala Krishinan Valiyaveetil. He belongs to a family specializing in Ayurveda and he has obtained his grounding in Ayurveda from his parents.
BREAKING OUT OF THE SLUMBER- AWAKENING INDIA
India holds centuries old treasure of well practiced and well recorded wisdom of traditional medicine
The basic requirements for gaining entry into the rest of the world include well-documented traditional use of single-plant medicines, Medicinal plants free from pesticides and heavy metals. Herbal drug development is possible only through the enlargement of standardized natural products. The health care systems are going to become more and more expensive hence we have to develop methodologies to essentially introduce and integrate herbal medicine system in mainstream health care.
There is a huge scope for India also to emerge as a leading player in the global herbal product based medicine. Drugs manufactured in accordance with principles of Ayurveda, Siddha and Unani can reach new horizons. The need is to make them the best in the world by maintaining their quality and efficacy.
There is nothing to stop ayurveda and herbal sciences from competing with the modern medicine with its virtues added advantages, fewer side effects and lower costs.
THE INDIAN HEALTHCARE MARKET
India Spends US $ 22.7 Billion On Healthcare
HEALTHCARE MARKET (2005 VS 2025)
Healthcare is the third largest growth segment in India
THE CURRENT STATUS OF HEALTHCARE
Out of pocket semi-urban and rural expenses higher than Urban
DRIVERS OF GROWTH
Increasing health awareness, Increasing spends on health
Health Insurance penetration
Increasing disease burden - lifestyle diseases
Awareness of healthcare and preventive care
Employer provided healthcare
Community based health plans
INDIA PREFERS PRIVATE PROVIDERS
Private expenditure as % of total expenditure on health : 82.7 (2004)
Healthcare services is highly unorganised segment in India
The Himalaya Drug Company was founded in 1930 by Mr. M. Manal with a clear vision to bring Ayurveda to society in a contemporary form and to unravel the mystery behind the 5000 year old system of medicine. The Himalaya Drug Company is a leader in the Indian phyto-pharmaceutical (Ayurvedic) products ever since its founder M Manal, while visiting Burma in 1930, discovered how elephants were pacified and developed the world's first anti-hypertensive drug, Serpina.
It offers a wide range of pharmaceutical, personal care, consumer and animal health products. Over 300,000 doctors around the globe have endorsed Himalaya's products and consumers in over 70 countries rely on Himalaya for their health and personal care needs.
The company has pioneered the use of modern science to rediscover and validate the secrets of Ayurveda, the centuries-old Indian system of medicine. It employs cutting edge-technology to create pharmaceutical-grade ayurvedic products. Himalaya is dedicated to providing the highest quality and consistency in herbal care products and the company was also awarded the ISO 9001-2000 certification in 2003.
Himalaya has always focused on developing safe, natural and innovative remedies that will help people live safe and healthier lives. Himalaya's history is one of innovation through research. The company believes that ideal healthcare system lies in the synergy in between ayurveda and modern science. Himalaya's constant endeavour is to create innovative products that satisfy the health and personal care requirements of contemporary living.
To bring 'Ayurveda - the source of natural medication', to the society in a modern-day form and to untangle the mystery behind the 5000 year old system of medicine.
Establish Himalaya as a science based, problem solving holistic brand with its source entrenched in the ancestry of nature and characterized by trust and healthy lives.
Not just consider the local markets but also broaden their horizons across regions (worldwide) with a long term in-depth approach, by adopting the highest ethical standards at each step.
Value, consider and utilize the inputs of all the stakeholders of the 'Himalaya family' to garner the seed to shelf policy. The focus is on adopting eco friendly practices to support the environment that we live in.
The employees are expected to support the Himalayan promise of exceeding consumer expectations each and every time.
PRODUCT & SERVICES
Himalaya's products can be broadly classified into 3 main ranges viz.
Health maintenance, eye care, skin care, cardiac care, immune booster and cough control
Health care, oral care, hair care, skin care and baby care
Daily care products for sensitive cats and dogs
Each of the products under the categories mentioned above are ayurvedic and have no side effects after use.
Constant innovation has been the mantra of the management at 'Himalaya'. Himalaya has had some exceptional innovative products in its product offerings that has helped it grow in stature. Some of the most successful innovations that have helped Himalaya become the leaders in 'Herbal Healthcare' are as follows;
Serpina - Derived from the plant 'serpentina'. It was a natural tranquiliser with anti-hypersensitive properties. Was the world first natural hypersensitive medicine launched in 1930.
Liv. 52 - An apt example of innovation at Himalaya. The R&D department was given the job to come up with a natural remedy that improved liver function as that was the main concern of people then in 1950. The team came up with a natural medicine that became the 'hallmark' of innovation. Today, 1 billion tablets and 13 million syrup bottles of Liv. 52 are sold annually across the globe.
Bonnisan - A sweet tasting natural paediatric digestive tonic introduced in 1972. Soon after launch it became the leading brand in its category and today is India's number 1 paediatric digestive product. On further research in Malaysia, Bonnisan also helped cure the long standing asthama problems in several preteens.
Reosto - A unique herbomineral preparation that slows bone loss and strengthens bone. The plant hormones that are present present in Resto influences the bone formation and also minimizes the risk of fracture cased by osteoporosis.
Menosan - It is an ideal alternative to 'Hormone Replacement Therapy'. Menosan helps women during the menopausal and post menopausal stages. The plant derived hormones i.e. phytoestrogens are completely risk free and help women cope with the menopausal discomforts and mood swings.
PureHands - A herbal sanitizer that kills 99.9% of the germs and prevents infection. The germicidal action on Neem, freshness of lemon and softening action of hrivera has helped this product gain acceptance in the market.
Himplasia - A product that was launched in 2002 to help 'aged men' deal with the prostrate problems. This is a natural product with no side effects and men could start taking this medicine early and hence restrict the growth of the prostrate.
Hair Loss Cream - This product helps reduce hair loss, stimulate hair growth, increase hair thickness and improve tensile strength of hair. The regular use of this product lead to a 20% reduction in hair loss in just 2 weeks.
In their effort to do something good for the society, Himalaya has also forayed into many community services and corporate citizenship programs, which are a part of their 'corporate social responsibility'. This has been broadly classified into 'Health, Education, Community and Environment'. Himalaya has constantly been investing in 'Training, Education and community welfare projects'. They have taken the global cultivation practices, contract cultivation techniques and rain water harvesting techniques to the farmers. Partnerships with companies like Shristhi Special Academy (NGO) and IDEI has helped them walk an extra mile towards community services.
Himalaya has grown from being an Indian Ayrvedic brand to a global player with its products being well accepted in more than 70 countries. It has a sound base in USA, Middle East, Europe and Asia and has been diversifying its base rapidly.
Himalaya went onto instituting a global company in the name of 'Himalaya Global Holdings Ltd.' which is a parent company of the Himalaya Drug Company worldwide.
The company has its offices strategically located in 7 regions through which they reach across to 71 countries. One of the offices in Bangalore (India) extensively looks into the pharmaceutical operations for India, Russia and Asia Pacific while another office in Bangalore looks into only the consumer products.
They have their other offices in:
Europe - Latvia, Middle East - Dubai which also caters to the South African region
U.S.A. - Texas Houston which caters to USA, Canada, Mexico, South America and the Caribbean
Singapore - This office caters to East Asia and South Pacific
Johannesburg - This office caters predominantly to South Africa
HIMALAYA - NEW INITIATIVES
Himalaya has come up with 'State of the art' - Retail Outlets that cater to only 'Himalaya Products'. This is a strategy adopted by Himalaya to entice customers to buy more Himalaya products. This chain of exclusive Himalaya stores is a retail strategy adopted by the company to increase the accessibility, visibility and enhance the consumer shopping experience. In the fiscal year 2006, Himalaya has 92 exclusive retail stores and the number has been increasing ever since.
These retail stores also act as crucial information centers where the customer queries are answered by trained managers. Also, these outlets are electronically linked to a Customer Relationship Management (CRM) Cell, which is assisted by a team of medical doctors who respond to specific customer health queries.
Customer Interaction Management - Himalaya outsourced the entire integration project to a company called 'Talisman'. CIM has helped Himalaya respond to the queries from the customers, doctors and distributors. The main advantage of outsourcing CIM was that they got the module up and running in 2 weeks. Hence, all the queries were catered to and the expertise of Talisman helped them build and strong and fool proof CIM. Also, the work load has been reduced as the primary scanning is done by customer service representatives of Talisman and then the calls / emails are forwarded to the in-house people.
SWOT - HIMALAYA
Large Product Profile
Presence across the globe with strong brand value
Great control over the supply chain across the various countries
Certifications from US Food and Drug Administration for Research and Development
First company to develop 100% herbal Child Care Products.
Very few suppliers for the botanical materials
Lack of proper infrastructure to transport and stock the botanical raw materials
Technology is older / outdated
Share of India in the World Pharmaceutical Production is 1.2% which is quite low as compared to the Population which is 16.1% of world population.
In international market there is high growth potential
Growing demand for Ayurveda and Herbal products
Unorganised rural markets with low penetration of herbal medicines
Increasing use of OTC products
Addition of newer markets due to globalisation
High degree of competition among existing players
High manufacturing and processing costs
Substitutes from alternative therapies
Shift from process to product patents
Higher entry costs in newer markets
High competition from generic products
Few discoveries with high costs on R&D
INNOVATION THEORIES & HIMALAYA
The times for students of innovations have never been better more promising or more challenging. Every speech after speech at AGM's and business schools world over the word Innovation is ubiquitous. A critical goal is to apply innovation concepts to real time issues. Competitive advantage is gained and maintained through innovation. Innovations may not even have to be break through. Innovation is a change in the thought process of doing something or it is the useful application of new inventions or discoveries. Innovation can be defined as the application of knowledge to create additional value and wealth.
Effective innovation is achieved by applying existing knowledge in new and different ways. Innovation can involve significant disruptive change to business and economic structures, or alternatively it can be a process of continuous and incremental business development.
But what innovations really are is the truth that Innovations bring about change in the way we live life. An invention may be the creation of something that the world has never seen before but an Innovation is what helps commercialise and metamorphose that invention to become a widely used benefit for the masses. This is precisely what Himalaya has been doing since its inception in the early 19th century. Many Innovation strategies fail not because there is something fundamentally wrong with the concept or the product but because they were not well implemented. Himalaya has surpassed this obstacle and beautifully implemented its innovative product to reach all corners of the globe by implementing sound ways to market its product on the global stage.
In a book 'Making Innovation Happen' published by the Sunday Times the author Michael Morgan talks about the 4 Ps of innovation namely:-
He also goes on to explain the Triple Jump Theory in Innovation. Michael explains that in any organisation there are 3 types of Innovations
Innovations that hop: These are small everyday findings that go unnoticed in an organisation
Innovations that step: These are a 'New way' of doing things which get implemented in an organisation. For E.g. A new CRM Strategy which is put into practise. A Television on every seat on the plane etc.
Innovations that Jump: These are ideas that change the world....they turn the industry upside down and alter the lives of people....
Himalaya and its products proudly fit in this realm of innovation that jumps or alter the way people can consume and conduct their lives while continuing to innovate of all the 4 P's. Himalaya has introduced a new way of looking and selling herbal ayurvedic products.
Another important Theory of Innovation is the Creative Destruction Theory propounded by German sociologist Werner Sombrat and elaborated and popularised by the Austrian Economist Joseph Schumpeter.
A disruptive (Creative) innovation is an innovation that disrupts existing markets. The term is used in business and technology to describe innovations that improve a product or service in ways that the market may not expect, typically by lowering price or designing for a different set of services for consumers or bring about a product innovation ( as in case of Himalaya).
In Capitalism, Socialism and Democracy Schumpeter popularized and used the term to describe the process of transformation that accompanies radical Innovation. In Schumpeter's vision of capitalism, innovative entry by entrepreneurs was the force that sustained long-term Economic growth, even as it destroyed the value of existing established companies.
Today over 300,000 doctors around the globe have endorsed Himalaya's products and consumers in over 70 countries rely on Himalaya for their personal care needs.
The company has pioneered the use of modern science to rediscover and validate the secrets of Ayurveda, the centuries-old Indian system of medicine. Its cutting edge-technology creates pharmaceutical-grade ayurvedic products.
Himalaya has always focused on developing safe, natural and innovative remedies that will help people live safe and healthier lives. Himalaya's history is one of innovation through research. It created a new range of products and a new market for ayurvedic products.
Innovation is an incremental, emergent or radical change in thinking products processes or organizations. Himalaya's new types of Products include:
Health maintenance, eye care, skin care, cardiac care, immune booster and cough control
Health care, oral care, hair care, skin care and baby care
Daily care products for sensitive cats and dogs
Himalaya's products thus bring in a new business cycle through the creative entrepreneurial skills of its founders and its products create new product/business cycles in the way drugs are used and prescribed.
All products go through a life cycle Himalayas products have lasted the test of time they have gone through the Innovation Diffusion. When Himalaya introduced to the world a science based holistic problem solving method this was the introductory phase of Product Innovation
Himalaya has since then grown from being an Indian Ayurvedic brand to a global player with its products being well accepted in more than 70 countries. It has a sound base in USA, Middle East, Europe and Asia and has been diversifying its base rapidly.
Himalaya has resorted to branding initiatives like forgoing of the "Ayurvedic Concepts" brand and integrating all its products under the Himalaya umbrella to spread its consolidated brand reach. The company is also pioneering its 60-70 sq. ft. exclusive stores across nations to enhance visibility of the product. Such measures help spread the innovation diffusion process increasing Himalayas customer base.
INDIA ON THE INNOVATION MAP
The most recent Innovation Index was published in March 2009. This Index Ranks Countries on the basis of innovation inputs and outputs Innovation inputs included government an, fiscal policy, education policy and the innovation environment. Outputs include patents, technology transfer, and other R&D results; business performance, such as labor productivity and total shareholder returns; and the impact of innovation on business migration and economic growth. The following is a list of the twenty largest countries (as measured by GDP) by the International Innovation Index:
Â South Korea
Â United States
Â United Kingdom
India coming in at rank 15 indicates that as a nation we have a longer way to go in order to foster and encourage innovation. Companies like Himalaya will have much to gain on the international level when as a nation the incentives to innovate increases.