Essential Capabilities for Successful Digital Service Innovation at the Bottom of the Pyramid
By Vijaya Sunder M, Siddhartha Modukuri
California Management Review | March 2024
DOI
journals.sagepub.com/doi/10.1177/00081256241231832
Citation
Sunder M, Vijaya., Modukuri, Siddhartha. (2023). Essential Capabilities for Successful Digital Service Innovation at the Bottom of the Pyramid California Management Review journals.sagepub.com/doi/10.1177/00081256241231832.
Copyright
California Management Review, 2023
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Abstract
Several firms worldwide that attempted to penetrate the bottom of the pyramid (BOP) with digital service innovations have encountered disappointing returns. This article explores what capabilities firms should develop and how they should nourish them for value creation at the BOP. Using the multiple-case method, this study inductively derives persuasion, co-creation, adaptation, and self-sustainability as essential capabilities. Cumulative maneuvering of these capabilities resulted in a sand cone model. Both established incumbents and digital natives benefit from this model, which enables them to safeguard their digital offerings while penetrating or expanding within BOP markets.

Vijaya Sunder M is an Assistant Professor of Operations Management (Practice) and Programme Director of the Operational Excellence for Leaders Programme at the Indian School of Business (ISB). He also serves on the advisory board of ISB’s Executive Fellow Programme in Management and Executive Education. Previously, he was Chair of the Experiential Learning Programme (2022-2025), Academic Director of the Centre for Business Innovation (2023–2024), and a BAT Research Fellow (2021–2023).

He holds a PhD in Operational Excellence from IIT Madras and brings over 18 years of industry experience from global corporations. He has served as Head of Business Process Excellence at the World Bank Group, Assistant Vice President at Barclays, and Quality Leader at American Express and Citi.

Professor Sunder’s research focuses on operational excellence, project management, behavioural operations, and human-AI collaboration. He has authored three books and published scholarly research in leading journals, including Production and Operations Management, Journal of Operations Management, International Journal of Operations & Production Management, International Journal of Production Economics, International Journal of Production Research, Journal of Business Research, and IEEE Transactions on Engineering Management. His articles have also appeared in Harvard Business Review, California Management Review, Stanford Social Innovation Review, Management and Business Review, and Rotman Management. His teaching case studies, published by Harvard Business Publishing, are among the bestsellers.
Professor Sunder has received several prestigious honours, including ASQ’s Global Crosby Award, IAQ’s

Walter E. Masing Award, and recognition as one of PEX Network’s (IQPC) Top 50 Operational Excellence Thought Leaders worldwide. In 2025, he was featured in Business Mint’s 50 Under 50 Brightest Minds of India for his contributions to the field of Operational Excellence. He is also a recipient of IIT Madras Best Researcher Award in 2018, the Quality Champion Award (Gold category) by the Quality Control of India (QCI), Ministry of Commerce & Industry, Government of India in 2022, and the Financial Times Responsible Business Education Award (Runner-up) in 2022.

At ISB, he teaches PGP, Executive MBA, and PhD courses such as Business Process Excellence, Operational Excellence, Digital Transformation in Services, Project Management, and Operations Management. He has won multiple “Professor of the Year” – Best Teacher: Teaching Excellence Awards for the PGP core and elective courses for the Class of 2021 (one award), Class of 2023 (two awards), Class of 2024 (one award), Class of 2025 (three awards), and the AMPH Class of 2024 (one award).

A TEDx speaker and sought-after keynote presenter, Professor Sunder  has trained over 10,000 business executives worldwide and is widely known for his innovative and experiential pedagogies.

Vijaya Sunder M (1)
Vijaya Sunder M