I recently read a new study on innovation in emerging markets, and it confirms what I’ve blogged about in the past: navigating those emerging markets waters is a daunting task for most of us. According to the 2007 annual study on Innovation in Emerging Markets by Deloitte’s Global Manufacturing Group, more than half of the companies surveyed fell short of their revenue or operational goals in emerging markets. The report points to the many unique challenges we’re faced with in the areas of talent management, risk management and operating models.

Our thinking about emerging markets has changed. No longer do manufacturers see operations in China or India as simply a means to lower global operating costs. Now places like Hungary, Viet Nam and others are being added to the list of competitive markets as an avenue to grow the top line. Companies are also able to leverage even more sophisticated capabilities in emerging markets to handle high-value activities. This is quickly changing the global competitive landscape.

I highly recommend following this link to read this report, because it evaluates some of the strategic areas that companies need to address to succeed and realize the enormous market potential of the developing economies in China, India, Southeast Asia, Eastern Europe, and Latin America. It also highlights some of the innovative strategies that successful companies are deploying to win the war for talent, manage risk and structure their operations to achieve their revenue and operating goals in emerging markets.