Innovation and Entrepreneurship Case Analysis on Aravind Eye Care Essay

Innovation and Entrepreneurship Case Analysis on Aravind Eye Care System model - Essay Example This business model mainly targets Tier 4 consumers as exhibited by The World Economic Pyramid shown in Appendix 1. According to Prahalad & Hart (2002), Tier 4 consumers are mainly comprised by two thirds of the world’s population and these people are very poor since they survive on less than $1 per capita per day. In this case, it can be observed that Aravind Eye Care System is more concerned with the welfare of the people as a result of their level of income. However, the main challenge of this business model is that doing business in the world’s poor requires radical innovations in technology and business models. For instance, Prahalad & Hart (2002) posits to the effect that Tier 4 communities are often physically and economically isolated which entails that distribution and communication systems are essential for the development of the bottom of the pyramid model. Entrepreneurs targeting the consumers belonging to this category should make sure that their business m odels reflect the needs and interests of the targeted people. Business models that do not reflect the needs and interests of the targeted people are likely to face challenges since there may be a tendency by people to shun the services offered. A business model that is customer oriented is likely to appeal to the interests of many people. 2. The Aravind Eye Care System is driven by demand pull which is an opportunity for venturing into business. Basically, entrepreneurship is mainly concerned with recognizing as well as satisfying the opportunity while at the same time building something of recognised value. This entails that innovation is something the entrepreneur is continually doing (Burke, 2006). Dr V as he is affectionately known recognises the demand for eye care and is motivated to pursue a dream of venturing into business meant to eradicate all needless blindness in India among the poor. His business model is built on the nature of the demand that exists in poor communities in India. According to Lamb et al (2008), entrepreneurs are supposed to add value when they recognize a demand for a particular service. In order to design the business model to fulfil this demand, creativity is required in order to effectively satisfy the needs of the people targeted. The 4 P's of innovation namely: paradigm, position, product, process are often taken into consideration when designing a system that is meant to fulfil the demand that has arisen in the market. Nieuwenhuizen (2004) suggests that successful entrepreneur should idealise the main opportunity behind the business venture. This allows him to come up with an effective position of the product or service to be offered. This entails that the product should be carefully defined such that its design can appeal to the interests of the targeted people. The process of designing the product or service is ongoing and is characterised by pro activity, achievement orientation as well as locus control and human relation s (Nieuwenhuizen, 2004). The information management model might be useful in supporting decision making in this case. The model of information management can significantly contribute to improved decision making in business given that the success of any business can be attributed to the quality of information used when making important decisions. There is no business that can properly function without correct information (Kritzinger, Bowler & Goliath, 2003). Through information manag