Developing and implementing frugal innovation mindsets in organisations

TLDR: In this paper, the authors present a product concept that fulfills the identified customer needs and has the potential for significant cost reduction compared to comparable products in the company's portfolio, while maintaining full support of all relevant stakeholders, including senior management.

Abstract: 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.