Showing papers on "Frugal innovation published in 2016"

Towards a sufficiency-driven business model : Experiences and opportunities

Abstract: Business model innovation is an important lever for change to tackle pressing sustainability issues. In this paper, ‘sufficiency’ is proposed as a driver of business model innovation for sustainability. Sufficiency-driven business models seek to moderate overall resource consumption by curbing demand through education and consumer engagement, making products that last longer and avoiding built-in obsolescence, focusing on satisfying ‘needs’ rather than promoting ‘wants’ and fast-fashion, conscious sales and marketing techniques, new revenue models, or innovative technology solutions. This paper uses a case study approach to investigate how companies might use sufficiency as a driver for innovation and asserts that there can be a good business case for sufficiency. Business models of exemplar cases are analysed and insights are gained that will contribute to future research, policy makers and businesses interested in exploring sufficiency.

Crafting Sustainable Development Solutions: Frugal Innovations of Grassroots Entrepreneurs

Abstract: A shift in the entrepreneurial landscape is taking place brought about by grassroots innovators with little formal education and technological knowhow, living and working in penurious environments. This research represents an emerging third wave of literature on Bottom of the Pyramid innovation, where products are offered for and by the underserved. Using primary and secondary data derived from four cases of grassroots entrepreneurs in the Indian Subcontinent, the study explores the phenomenon where resource scarce entrepreneurs craft solutions that are environmental friendly, with low overall ownership costs, and use locally available material. We argue that the grassroots phenomenon can be fruitfully exploited to achieve the new Sustainable Development Goals proposed by the UN as a post-2015 strategy for the future of global governance. These innovations might have a tremendous impact not only in terms of serving unmet and ignored consumer needs, but also longer term impacts through enhanced productivity, sustainability, poverty reduction and inclusion promotion.

How Frugal Innovation Promotes Social Sustainability

Abstract: There is a need to develop an understanding of how frugal innovation promotes social sustainability. The objective of this paper is to find the connections between the two concepts of social sustainability and frugal innovation, by reviewing the existing literature concerning both fields. This paper presents a framework that identifies essential themes of social sustainability and explores them through frugal innovation. The framework builds on the important themes of social sustainability and shows their relevance in practice through frugal innovation. The notion of frugal innovation can be viewed as an approach towards realizing social sustainability and fulfilling the United Nations’ Sustainable Development Goals.

Frugal Innovation and Development: Aides or Adversaries?

Abstract: Frugal innovation aims to bring products, services and systems within the reach of billions of poor and emerging middle-class consumers. Through significantly cutting costs while safeguarding user value, frugal innovation opens opportunities for new business models and may well disrupt innovation processes in entire economies. The debate on the developmental implications of frugal innovation is ideologically polarized. Whereas advocates suggest a business view of ‘win-win’ in which companies can earn profits while simultaneously alleviating poverty, critics argue that frugal innovation will merely exacerbate capitalist exploitation and inequality. In this contribution we argue that an empirical approach is needed to assess where and when frugal innovation is more likely to enhance inclusive development.

Frugal innovation in medicine for low resource settings

Abstract: Whilst it is clear that technology is crucial to advance healthcare: innovation in medicine is not just about high-tech tools, new procedures or genome discoveries. In constrained environments, healthcare providers often create unexpected solutions to provide adequate healthcare to patients. These inexpensive but effective frugal innovations may be imperfect, but they have the power to ensure that health is within reach of everyone. Frugal innovations are not limited to low-resource settings: ingenuous ideas can be adapted to offer simpler and disruptive alternatives to usual care all around the world, representing the concept of “reverse innovation”. In this article, we discuss the different types of frugal innovations, illustrated with examples from the literature, and argue for the need to give voice to this neglected type of innovation in medicine.

Frugal Innovation and Knowledge Transferability

Abstract: OVERVIEW: Western firms are generally advised to rely on emerging market partners when attempting to develop frugal innovations for these developing markets. Underlying such advice is the idea that the requirements of emerging market consumers may not be familiar to Western firms and local developers will better understand local needs. We propose an alternative approach for high-tech firms-one that relies on home-based breakthrough R&D focused on emerging market needs. Three frugal innovation projects at a Swedish medical devices manufacturer serve to illustrate both how home-based breakthrough R&D can help managers reconceptualize their core products and the contextual factors favoring such an approach.

That's not how the learning works - the paradox of Reverse Innovation: a qualitative study.

Abstract: There are significant differences in the meaning and use of the term ‘Reverse Innovation’ between industry circles, where the term originated, and health policy circles where the term has gained traction. It is often conflated with other popularized terms such as Frugal Innovation, Co-development and Trickle-up Innovation. Compared to its use in the industrial sector, this conceptualization of Reverse Innovation describes a more complex, fragmented process, and one with no particular institution in charge. It follows that the way in which the term ‘Reverse Innovation’, specifically, is understood and used in the healthcare space is worthy of examination. Between September and December 2014, we conducted eleven in-depth face-to-face or telephone interviews with key informants from innovation, health and social policy circles, experts in international comparative policy research and leaders in the Reverse Innovation space in the United States. Interviews were open-ended with guiding probes into the barriers and enablers to Reverse Innovation in the US context, specifically also informants' experience and understanding of the term Reverse Innovation. Interviews were recorded, transcribed and analyzed thematically using the process of constant comparison. We describe three main themes derived from the interviews. First, ‘Reverse Innovation,’ the term, has marketing currency to convince policy-makers that may be wary of learning from or adopting innovations from unexpected sources, in this case Low-Income Countries. Second, the term can have the opposite effect - by connoting frugality, or innovation arising from necessity as opposed to good leadership, the proposed innovation may be associated with poor quality, undermining potential translation into other contexts. Finally, the term ‘Reverse Innovation’ is a paradox – it breaks down preconceptions of the directionality of knowledge and learning, whilst simultaneously reinforcing it. We conclude that this term means different things to different people and should be used strategically, and with some caution, depending on the audience.

Theory of open inclusive innovation for reciprocal, responsive and respectful outcomes: coping creatively with climatic and institutional risks

Abstract: Given the economic squeeze world over, search for what we call frugal grassroots innovations in Honey Bee Network, has become even more urgent and relevant in the recent years. And, to shape this search, models and concepts like open innovation, reverse innovation (GE, Market-Relevant Design: Making ECGs Available Across India, 2009); (Govindarajan, Reverse Innovation: a Playbook, 2012); (Govindarajan and Ramamurti. Global Strategy Journal, 1: 191–205, 2011); (Govindarajan and Euchner, Res. Technol. Manage, 55: 13–17, 2012, Govindrajan and Trimble, 40(5), 5–11, 2012), embedded innovation (Simanis and Hart, Innovation from the Inside Out, MIT Sloan Management Review, 2009), extremely affordable, low-cost, frugal innovation (Honey Bee Network, 1989–2016, Gupta, 2000); (Gupta AK, How Local Knowledge can Boost Scientific Studies, 2007); (Gupta AK, Indian Hidden hotebd of invention, 2009a; Gupta AK, http://anilg.sristi.org/harnessing-stimulus-for-promoting-innovations-and-entrepreneurship/ , 2009b) etc., have emerged over time. We wish to trace the evolution of the Open Innovation Theory (Urban and Von Hippel, Manag. Sci. 34(5), 569–582, 1988) in the context of the Honey Bee Network working on such ideas for over 26 years. The idea is to study the different strands of relationships between knowledge providers and seekers which make the system truly reciprocal, responsible and responsive. When systems become open, search cost for inclusive innovation will automatically come down and the knowledge system will also become more symmetrical and inclusive. Inclusive innovation for social development implies that new solutions should help in dealing with one or more of the five factors of exclusion: spatial, seasonal, sectoral, skill and social. These should also be accessible, affordable, available and adaptable to varying and differentiated user endowments and needs, besides being circular. One has to understand the interaction between natural, social, ethical and intellectual capital, situated in the institutional context of innovations: at, from, for and with grassroots level communities for defining inclusivity in the innovation ecosystem. A company or a community, when in need of an innovative solution to a local problem, may seek it from outside, develop it inside, or co-create/contract it out. The nature of reciprocity between knowledge and innovation exchange partners may have different types of asymmetries (Bansemir and Neyer 2009). Different ethical principle enunciated in the Honey Bee Network may or may not be followed. The discourse on open innovation has been biased in the favour of corporates seeking ideas form outside rather than sharing their own innovation/knowledge as a public good or commons, or even at low cost with less-advantaged industry actors. In this paper, we reflect on such biases that companies and scholars have developed and propose a framework to temper it. The need for such a correction becomes even more important when various kind of climatic, institutional and market risks are making socio-economic systems more fragile and vulnerable to various uncertainties and fluctuations. Coping with risks is significantly related to malleability of innovations. The process of evolving and nurturing innovations may have a bearing on their eventual adaptability to user. We argue that when both technology platform and application domains are known well, the incubation model works. Generally, through this process, incremental innovation grows better. But, when both are unknown or are ambiguous, sanctuary model works better. In incubators, the chaos is outside and the order is inside. In sanctuary, it is the opposite. It is not very surprising that sanctuary nurtures innovation which is more suited to fluctuating climate and market-uncertain environments. Innovations don’t have relevance only at artefactual level. One can learn at metaphorical, heuristic and gestalt levels too. Building bridges between formal and informal knowledge systems poses a unique challenge in designing reciprocal and responsible open innovation platforms? This paper pleads for more reciprocal, respectful and responsible exchanges of knowledge between formal and informal sector adding value to the contributions of grassroots green innovators.

Extending boundaries of Blue Ocean Strategy

Abstract: ‘Blue Ocean Strategy’, one of the best seller books has received tremendous attention amongst scholars and practitioners. This paper first critically analyzes the conjectures presented in the book. Second, we investigate if means suggested by authors to create a blue ocean are applicable in emerging markets. Article further proposes that blue oceans can be created via radical innovation, disruptive innovation, frugal innovation, and purely differentiation strategy and focused differentiation strategy rather than only value innovation. Furthermore, we suggest that strategy canvas is applicable not only for value innovation but all types of innovation. We, thus extend the boundaries of sources of blue oceans. Lastly, we explore if sustainable competitive advantage or blue oceans ae better sources of profitability.

Potential and pitfalls of frugal innovation in the water sector: Insights from Tanzania to global value chains

Abstract: Water is perhaps the most intertwined, and basic, resource on our planet. Nevertheless, billions face water-related challenges, varying from lack of water and sanitation services to hindrances on livelihoods and socio-economic activities. The Sustainable Development Goals (SDGs) recognize the broad role that water has for development, and also call for the private sector to participate in solving these numerous development challenges. This study looks into the potential of frugal innovations as a means for the private sector to engage in water-related development challenges. Our findings, based on a case study and literature review, indicate that frugal innovations have potential in this front due to their focus on affordable, no-frills solutions. However, we also recognize pitfalls related to frugal innovations in the water sector. Although the innovations would, in principle, be sustainable, deficiencies related to scale and institutional structures may emerge. These deficiencies are linked to the importance of water in a variety of processes, both natural and manmade, as well as to the complexity of global production-consumption value chains. Increasing the innovations’ sustainability impact requires broader acknowledgement of the underlying value chains and their diverse links with water. A holistic view on water can mitigate water-related business risks while increasing wellbeing on an individual level.

Frugal Innovation in Scholarly and Social Discourse: An Assessment of Trends and Potential Societal Implications

Abstract: Bundesministerium fur Bildung und Forschung (BMBF) (Forderprogramm: Innovations- und Technikanalyse)

The innovative Indian: Common man and the politics of jugaad culture

Abstract: The idea of jugaad, or frugal innovation, has gained wide popularity within policy circles and business schools as a breakthrough formula – from a quick-fix solution grown in adverse conditions to a six-point business principle – for economic growth generation. I argue that the new jugaad innovation narrative offers an uplifting, potentially emancipatory discourse of mobility in a setting where even after two decades of economic reforms, wealth gap and poverty stubbornly persist. Central to this shift are two processes. First, a dramatic re-signification of the aam aadmi (common man), within a new conceptual scaffolding of India in relation to modern science and technology, where the ability to innovate is portrayed as a natural gift, a deeply ingrained collective Indian trait that even the unlettered common man possesses. Second, the conditions of adversity and absence of public services for Indian citizens are turned on its head to position India as an ideal laboratory condition within which a culture o...

The Emergence of Personalized Health Technology

Abstract: Personalized health technology is a noisy new entrant to the health space, yet to make a significant impact on population health but seemingly teeming with potential. Devices including wearable fitness trackers and healthy-living apps are designed to help users quantify and improve their health behaviors. Although the ethical issues surrounding data privacy have received much attention, little is being said about the impact on socioeconomic health inequalities. Populations who stand to benefit the most from these technologies are unable to afford, access, or use them. This paper outlines the negative impact that these technologies will have on inequalities unless their user base can be radically extended to include vulnerable populations. Frugal innovation and public-private partnership are discussed as the major means for reaching this end.

Corporate and Grassroot Frugal Innovation: A Comparison of Top-Down and Bottom-Up Strategies

Abstract: Frugal innovations aim at the development of basic solutions that are affordable for pricesensitive customer groups. This article looks at the similarities and differences between two major approaches, corporate and grassroot frugal innovation, and identifies initial ideas on how the two streams can learn from each other. The three pillars of sustainability (economic, environmental, and social) provide one of the guidelines for the comparison. The research is based on an analysis of case studies from various industries, six of which are presented in this article. There's no such thing as simple. Simple is hard.

About Frugal Innovation

Abstract: 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.

Frugal innovation, sustainable innovation, reverse innovation: why do they look alike? Why are they different?

Abstract: In this paper, we compare three kinds of innovation recently documented by the literature: frugal innovation, sustainable innovation, reverse innovation. We define, characterize, and discuss the role of these types of innovation. We examine the likely linkages that exist between them. We compare them in relation to their economic implications. We show that they are distinct notions as far as micro objectives, firm strategy, and macroeconomic growth are concerned. We consider frugal innovation as a new technological paradigm, sustainable innovation as relating to the directions taken by innovation efforts towards social needs, and environmental and reverse innovation as new flows of knowledge exemplifying changing trends in the global geography of innovation. Our review tends to confirm many aspects we find in the literature on innovation, but which were fragmented until now.JEL Codes: F23, O14, O19, O32

Cheap and clever – symbiosis of frugal innovation and knowledge management

Abstract: To operate knowledge management system has become an accepted method and a part of everyday life in the biggest companies. The full circle exploitation of advantages and possibilities of this system does not show a hopeful picture. It is especially true when we examine relationships and constructions with other key processes in the operation of a company. Innovation belongs to above mentioned processes. Though every outsider and professional way of thinking sees clearly that knowledge is needed to innovate and knowledge is a basis of knowledge management, but the close connection of the two important processes has not been realized on behalf of success. Defectiveness is especially true in cases of the newest innovation methods. The paper shows the connection of frugal innovation and knowledge management, its theoretical and practical possibilities.

Moving Towards Inclusive Development? Recent Views on Inequalities, Frugal Innovations, Urban Geo-Technologies, Gender and Hybrid Governance

Abstract: This article contributes to the discussion within European Association of Development Research and Training Institutes on how development studies are changing, by setting out recent views on new and changing research topics, and drawing out implications for current discussions on inclusive development. The contributions are written by authors working at the cutting edge of development studies, in terms of their perspectives on development pathways and engagement with other disciplines. They centre on three concerns: (i) poverty and inequalities, (ii) economic development through innovations in local production and international value chains, and global innovations impacting people and policies everywhere, and (iii) hybrid governance arrangements, emerging as non-state actors take on governing activities. Analysing their contributions shows that authors link several dimensions of inclusive development. The conclusion is that thinking about inclusive development must engage with disciplines that are non-traditional for development studies scholars in framing what areas of concern are relevant and strategic.

Frugal innovations and 3D printing: insights from the field

Abstract: In this paper, we present a growing technological sector – additive manufacturing – and discuss its hidden potential as frugal innovation. Additive manufacturing, which is also known as three-dimensional (3D) printing, constitutes a recent manufacturing process that builds layers to create a three-dimensional solid object from a digital model. 3D printing technology has been identified as one aspect of the digital revolution that has the potential to revolutionize the industrial world. This topic has been surrounded with a lot of hype when predicting future application scope. In this paper, we focus on 3D printing as a technology that, under certain circumstances of technological transfer via community-operated organizations like fab labs, enables the development of frugal solutions targeting Base-of-the-Pyramid (BoP) population. At the same time, this paper aims to contribute to the discussion on Frugal Innovations in existing scholar literature.JEL Codes: O32, O35

Implications of Reverse Innovation for Socio-Economic Sustainability: A Case Study of Philips China

Abstract: The idea of reverse innovation, local innovation happening in emerging markets for the global market, has gained much academic and managerial attention in recent years. The purpose of this study is to understand how reverse innovation has successfully diffused into the product and market development strategies at Philips Inc., a prominent multinational company (MNC) of the modern era. Furthermore, the study presents the success achieved by these innovations at both the domestic and global levels, along with their implications regarding socio-economic sustainability in emerging markets. In order to investigate the research questions, a case study of Philips China was conducted involving three product innovations that were found to be suitable examples of reverse innovation. After the study of extant literature on the topic, drawing from research databases, newspaper articles, and company press releases, five semi-structuredinterviews were conducted with key managers and a market practitioner to gain sufficient understanding for this exploratory study. Subsequent case analysis concludes that these innovations are examples of reverse innovation representing a new paradigm change in innovation flow. This flow of innovation from emerging markets to developed markets as confirmed by Corsi’s framework could potentially disrupt developed markets as well as contribute to ensure healthy living conditions for the population living in developing countries. If so, this represents a sustainable socio-economic change in-line with the United Nations' Sustainable Development Goal (SDG) of “ensuring healthy lives and promoting well-being for all at all ages.” This is relevant as Philips aspires to be a prominent private sector player in achieving the above-stated goal by defeating non-communicable disease and strengthening local healthcare systems.

The Principles of Frugal Innovation: An Interview with Navi Radjou

Abstract: Frugal innovation, jugaad innovation, and reverse innovation have grown in importance in recent years as competitors from emerging markets have demonstrated new ways of innovating to Western compan...

Frugal Innovation: A Systematic Literature Review

Abstract: The objective of this study is to explore the frugal innovation phenomenon. The study reveals that scholars affiliated in Indian institutes have played a key role in this discipline. Country wise, the highest number of frugal innovation cases is from India. The articles on frugal innovation have published in a wide range of disciplines and journals. Scholars, practitioners, and policy makers have understood frugal innovation concept in various ways. Studies are predominantly in sectors, such as healthcare, electric and electronics, transport, finance, ICT, and energy. On the contrary, despite high importance, agriculture and education sectors have received limited attention. Based on the findings, this study presents implications and future research avenues.

Frugal Innovation: How to Do Better with Less

Abstract: Frugal innovation takes the bottom-up approach involving the geeks’ next door, or people habituated with Do-ItYourself (DIY) stuff for co-creating innovative products, solutions, or services for the start ups as well as big corporations. In a globalized knowledge economy, frugal innovation is projected as a new model for the business success, where entrepreneurs are encouraging co-production by consumers, who have become ‘prosumers’. As the sub-title of the book suggests, the frugal innovation is a result of the ability to do more and better with fewer resources. In the book, the authors suggest a measurement of the intensity of frugal innovation. Intensity can be measured in terms of a simple formula: “Greater Value (for customers, shareholders, and society)/ Fewer Resources (natural resources, capital, time)”. The communitydriven innovation ecosystem primarily addresses the societal needs, sustainability, and cost-efficiency. Other business considerations come much later. Innovation is made a key constituent in the 2030 Global Development Agenda, while Sustainable Development Goals (SDGs) are set to achieve by the year 2030 as envisaged the member countries of the United Nations. Goal 9 (SDG9) is set to build resilient infrastructure, promote sustainable industrialization and foster innovation. In this context, frugal innovation helps in achieving the mandate of fostering innovation in developing countries. Post-2008 (post-recession or the time of austerity) the corporations were pushed to achieve cost-efficiency without compromising the products’ quality, affordability, and comfortability of the end users. Thus, the key consideration of the book is that how resources-constrained corporations could turn around ensuring the bottom-line innovations are taking place in their backyards. At a central stage, the community participation is really essential for engaging its members in collaborative innovation development processes. The knowledge economy nurtures the innovation frameworks across the board while encouraging the collaborative development of the innovation ecosystem in the country by establishing an array of the innovation clusters, national systems of innovation, and sectoral systems of innovation across the states. The ecosystem is put in place with special concessions are given to the actors in an innovation system, such as the start-ups, entrepreneurs, and intrapreneurs in terms of extending the ease of doing business.

Linking Modular Product Structure to Suppliers’ Selection Through PLM Approach: A Frugal Innovation Perspective

Abstract: To maintain market share rates, frugal innovation is a main solution for competitive enterprises to meet the customer’s needs in different regional markets. The co-evolution of product and production network aims to manage local production sites of the OEM and several collaborative relations between OEM and supplier companies for better management of the project resources in the regional market. Supplier selection and evaluation are among the main factors to be resolved at the earlier stage to guarantee successful results from any OEM-Supplier collaboration. This paper discusses the potential of using a modular-based approach as a kernel methodology to support the co-evolution of product structure and production network definition, especially in the case of supplier selection for frugal innovation perspective. The application of PLM approach to manage interconnected data describing the co-evolution of the product structure and production network is also discussed.