Frugal innovation (sometimes called jugaad innovation after a Hindi word meaning flexible improvisation) as a concept emerged in the context of developing countries where resource and financial constraints do not permit ‘mainstream’ solutions to problems like healthcare or transportation. But the underlying ideas have much in common with the ‘lean’ approach (described elsewhere in the Toolkit) – for example the Toyota Production System provided a powerful and more productive approach to car manufacturing because it took a frugal approach and challenged the traditional views on how this could be done. It came form a resource constrained environment (post war Japan) but has diffused widely around the world and the concept has been applied in many manufacturing and service sectors.

About Frugal Innovation

Frugal innovation enablers, critical success factors and barriers: A systematic review

Frugal innovations, ie affordable products and services with appropriately good quality, are getting increasingly important for securing long-term competitiveness in both, the developing world and in industry nations Nevertheless, ensuring actual implementation of technology-driven frugal inventions remains an under-researched area This study investigates modes and routines employed by techno-entrepreneurs from industry nations when innovating frugally The study is based on the patent data of seven auto component sector firms from Germany with a documented history of contributing cost-effective solutions to frugal vehicles With the help of a keyword analysis we identify the role of frugality in (patented) technical inventions Select case studies of frugal inventions show that cost effectiveness and environmental sustainability can be often achieved by simplification of design and production process, as well as by eliminating avoidable complexity, eg through standardization The study shows that frugal inventions in the investigated firms are often driven by individual inventors, while potentials of open global innovation networks are under-utilized Furthermore, the study shows that frugality can (only) be achieved by a holistic approach that encompasses the entire value chain, including logistics and waste management The results are potentially beneficial for techno-entrepreneurs across industry sectors and product domains

/pdf/what-pathways-lead-to-frugal-innovation-some-insights-on-36qk5s9nmg.pdf

What pathways lead to frugal innovation? : Some insights on modes & routines of frugal, technical inventions based on an analysis of patent data in German auto components industry

Purpose – The purpose of this paper is to suggest that firms should transpose bottom-of-the-pyramid (BOP) strategies to top-of-the-pyramid (TOP) countries through adapted business models, noting that strategies usually apply to developing countries. This would enable them to address the consequences of the economic crisis that has increased the number of poor and financially constrained customers in developed countries. Design/methodology/approach – This is a conceptual article based on current research and multiple examples from real-world companies that have implemented BOP business models. These are viewed from the angle of frugal innovation, a fresh perspective on innovation as an outcome and process, which means innovating while significantly economizing the use of scarce resources. Findings – The paper explains how firms should adapt the three dimensions of their business models (value proposition, resources and competences and organization) to transpose BOP business models to TOP countries. Limitations and advantages of this transposition are also detailed. Research limitations/implications – A lack of prior research on how firms can confront poverty in TOP countries is emphasized. Further studies are needed to help firms adapt to the new economic conditions in TOP countries. Practical implications – Practitioners can use the recommendations herein to adapt their business models and address dramatic economic and social changes in the developed countries in which they function. Originality/value – Considering the differences between developed and developing countries, firms should promote a BOP mind-set, rather than struggling to transpose full BOP business models to TOP settings.

Serving poor people in rich countries: the bottom-of-the-pyramid business model solution

This research is an exploratory study, which discusses Inclusive Innovation Mechanisms and the potential adoption of Frugal Innovation projects in a Transition-driven Urban Living Lab. It is believed that by exploring the links between these two concepts an inclusive smart city model can be created as well as increasing equality of BoP in cities like Amsterdam. In this respect, the four inclusive dimensions framework developed by Schillo and Robinson (2017) resulted to be useful to give a shape to these mechanisms. Secondly, the study defined key influencing factors on the potential adoption of FI projects in an Urban Living Lab. In order to reach this goal, the theory of diffusion and the Theory of planned behavior were used to see the level of attractiveness of FI characteristics in a ULL. Finally, there is an attempt to illustrate possible patterns between mechanisms and adoption of FI projects to produce innovation strategies for inclusion. Two research strategies were selected to answer theoretical and empirical research questions. These strategies are desk research of academic literature and Case Study, which are particularly appropriate to study how inclusive innovation mechanisms facilitate the potential adoption of frugal projects in an Urban Living Lab operating under Amsterdam’s smart city program. The analysis uncovers strategies and practices involve in the innovation processes. Resulting in a relevant framework where IIMs stimulate the adoption of FI projects and at the same time FI might strengthen the performance of IIMs in the ULL. In addition, the research complements the four-dimensional framework for inclusive innovation created by Schillo and Robinson (2017) by adding a list of possible mechanisms useful to boost inclusion in an organization. Lastly, policy, theoretical and practical contribution are given. As a result, the study found that by applying inclusion innovation mechanisms and allowing them to work as a mediator’s Smart cities can be frugal. However, future research should be orientated towards the application of these IIMs in other smart initiatives to prove their inclusive nature and their relationship with the potential adoption of FI projects in a western context.

/pdf/can-smart-cities-be-frugal-an-exploratory-study-of-inclusive-1lj69w546c.pdf

Can smart cities be frugal? An exploratory study of Inclusive Innovation Mechanisms and influencing factors on the potential adoption of frugal projects in an urban living lab in Amsterdam

Frugal innovation in the context of developed ecomomies has witnessed increasing interest in recent years. For Western multinational companies (MNCs) emerging markets represent promising opportunities for growth as well as the threat of new local competitors. Furthermore, economic developments drive the demand for frugal products within Western countries. Succesfully mastering this challenge means that Western MNCs have to challenge prevailing paradigms within their organizations. Literature suggests that these companies have to develop a frugal mindset to succeed in frugal innovation. However, to the best of our knowledge no publication addresses the phenomenon on an empirical basis or provides enough detail for further empirical investigation. To address this gap, we conducted a systematic literature review of 80 publications in the frugal innovation field. Building on the theroetical background of the global mindset concept, we assume that a mindset is a cognitive orientation that promotes task completion, which in turn improves task performance. Our qualitative analysis suggests that in the context of frugal innovation improved task performance would positively contribute to the following goals: (1) strategic alignment of innovating for cost conscious consumers, especially in emerging markets (2) deepening the understanding of cognitively remote customers' needs and the context in which they live or work and (3) satisfaction of these customers' needs with frugal solutions. Furthermore, we propose that a frugal mindset can be cultivated along the phases of (1) accepting the new realities of changing markets and competition, (2) a willingness to reconsider current approaches and (3) a willingness to take the necessary action and implement new approaches regarding the identified goals. By developing a definition based on this two-dimensional construct, we build on the theoretical foundations of a well-established mindset concept from the field of organizational behavior/strategic management and integrate various descriptions of the frugal mindset. This contribution provides a solid theoretical basis for further research.

/pdf/the-question-of-a-frugal-mindset-in-western-mncs-exploring-217icbvyne.pdf

The question of a frugal mindset in western MNCs - exploring an emerging phenomenon with a systematic literature review

The importance of growing economic powerhouses like India and China is increasing. Consequently, cost effective products and services and therefore, Frugal Innovations provide attractive business opportunities for globally operating companies. However, not all organizations seem to recognize these opportunities for what they are. The question arises if key decision makers have the right mindset to initiate and support respective innovation projects within their organizations. We take on our previous research on the Frugal Mindset and present the results of two recent studies to further develop our theory. In our first study we generate items based on the Theory of Planned Behaviour by conducting a systematic literature review of 95 publications and validate as well refine this approach in a focus group discussion with 16 experts on Frugal Innovation. Consequently, we test our research instrument for practicability, comprehensibility and further refine the items in a small scale pilot study including 8 follow-up interviews with managers from 2 multi-national companies. Based on this procedure we present a research model, a measurement instrument and first qualitative insights on the Deliberative Fugal Mindset.

https://www.econstor.eu/bitstream/10419/213886/1/1689530391.pdf

The Deliberative Frugal Mindset: A model of managerial opportunity recognition for frugal innovation

Vision for frugal innovation : The power of mindsets for transformation

In order to successfully integrate new, digital teaching and learning formats into university teaching, not only technical, financial, and structural prerequisites must be created, but also competence-related prerequisites that enable students to deal with the new formats. In an interdisciplinary project, we derive 64 relevant digital competencies from interviews and a questionnaire study, considering the perspectives of teachers and students. As a result, a pronounced digital mindset emerges as the most important component. In order to successfully integrate new, digital teaching and learning formats into university teaching, not only technical, financial, and structural prerequisites must be created, but also competence-related prerequisites that enable students to deal with the new formats. In an interdisciplinary project, we derive 64 relevant digital competencies from interviews and a questionnaire study, considering the perspectives of teachers and students. As a result, a distinctive digital mindset emerges as the most important component. *Corresponding author: maike.krohn@tu-dresden.de This article was originally submitted in German. M. Krohn & A. Jantos Digital Mindset as the Most Important Prerequisite for Learning and Teaching in the Future 2-2/13-2 Lessons Learned | Volume 2 (2022) | Issue 2 1. Motivation What digital skills do students need when dealing with new, digital teaching/learning formats? This question is being researched in the sub-project "sTUDents student-oriented digital learning and teaching", one of a total of eight sub-projects in the interdisciplinary joint project "virTUos virtual teaching and learning at the TU Dresden in an open source context", in which innovative teaching/learning formats are being developed using gamification, VR technology and robotics, among other things, in order to be introduced into everyday university life after a successful trial phase. To this end, agile and interdisciplinary innovation teams from the departments of medicine, mechanical engineering, economics, and humanities will initially test the novel virtual and hybrid teaching/learning scenarios and then disseminate them to other departments. The central goal is the development of a common strategy for digitally supported learning and teaching at the TU Dresden. For this purpose, all prerequisites that are necessary for the successful establishment of the new formats in the university context are analyzed, including technical, financial and structural prerequisites. sTUDents approaches the objective from a further perspective and examines the competence-oriented prerequisites that are necessary on the part of the students in order to be able to benefit maximally from the new formats in the learning process. In recent years, the training of digital skills in the university context has become increasingly important in order to prepare learners for the future challenges in everyday working life, so that universities are increasingly creating corresponding offerings [1,2]. This process was accelerated by the pandemic in order to be able to continue to use the digitalization efforts that have been initiated in the long term. Within the framework of virTUos, we want to contribute to researching the current need for student digital competencies in order to enable learners and teachers to perceive digitally supported teaching as an opportunity and not as a hurdle in the long term. In this context, it is also important to delineate which competencies are actually digital competencies. Digital competencies are "... Skills that enable people to navigate and actively participate in a digitized environment" as defined by the Stifterverband [3]. The European Reference Framework for Digital Competences (DigComp) 2017 describes digital competences as "understanding information and data; communication and collaboration; creating digital content; security of devices, personal data and the environment when using digital technologies; problem solving strategies" [4]. However, according to Kerres (2017), these are not additional competencies, but pervasive skills of the previous learning world [5]. Consequently, "digital competence[s] ... are the ability[s] to use digital media, to develop them in a productive way, to use them for one's own life, and to understand reflectively, critically, and analytically their mode of action in relation to the individual and society as a whole, as well as knowledge about the potentials and limitations of digital media and their modes of action." [6]. In the context of the project, we take the definitional approaches listed here as a basis for exploring the competencies needed by students in the university environment of the future. The question of the necessary digital competencies is inevitably followed by the question of their concrete training and further development. Since this is significantly influenced by the needs of students as the central target group, it is essential to involve students already in the development of the competence development formats.

Digital Mindset as the Most Important Prerequisite for Learning and Teaching in the Future Further development of student digital literacy: An interdisciplinary perspective M. Krohn and A. Jantos

The company develops and manufactures a wide variety of electrical components and solutions for high-tech industries, such as Smart Cities, E-Mobility, or Renewable Energy. The company’s long-term strategy strives to integrate a frugal innovation (FI) approach for all affected business units. A technology project potentially provides more freedom to work on emerging technical issues and hence better conditions for learning. On the product site, the team is very engaged in developing a frugal solution and mechanical as well as electrical designs are in the process of being optimized for simplicity and minimum use of resources. FI champions should keep this in mind and develop strategies to gain and maintain full support of all relevant stakeholders, including senior management. The developed product concept likely fulfills the identified customer needs and has the potential for significant cost reduction compared to comparable products in the company’s portfolio.

Malte Krohn

Papers

The question of a frugal mindset in western MNCs - exploring an emerging phenomenon with a systematic literature review

The Deliberative Frugal Mindset: A model of managerial opportunity recognition for frugal innovation

Vision for frugal innovation : The power of mindsets for transformation

Digital Mindset as the Most Important Prerequisite for Learning and Teaching in the Future Further development of student digital literacy: An interdisciplinary perspective M. Krohn and A. Jantos

Developing and implementing frugal innovation mindsets in organisations