Showing papers on "Frugal innovation published in 2017"

What is frugal innovation? Three defining criteria

Abstract: Recently, the innovation management literature has witnessed a rising interest in the so-called frugal innovation. The term was initially discussed in the context of emerging markets, giving non-affluent customers opportunities to consume affordable products and services suited to their needs. However, the meaning of frugal innovation is fuzzy. Further, the increasing appearance of frugal innovation in developed markets challenges earlier definitions that often characterised frugal innovation particularly in the context of emerging markets. So far, it has not been clear what differentiates frugal innovation from other innovation types. Thus, we need criteria that make it possible to determine what frugal innovation is and what is not. In order to determine a clear definition, we choose a multimethod approach, conduct a literature review, and interview 45 managers from companies and researchers from different research institutes. On the basis of the results, we define three criteria for frugal innovation: substantial cost reduction, concentration on core functionalities, and optimised performance level. We contribute to the literature by refining the meaning of frugal innovation. We also enable organisations to better deal with the challenge of developing frugal innovation in both emerging and developed markets.

A Systematic Literature Review of Constraint-Based Innovations: State of the Art and Future Perspectives

Abstract: The past two decades have seen a tremendous growth in innovation processes conceived under scarcity conditions with special focus on emerging markets and bottom of the pyramid (BOP) customers. However, evolving literature in this field has unfortunately resulted in a multitude of innovation approaches leading to terminology confusion and fragmented literature. Hence, this study is an attempt to systematically organize and synthesize the research on innovation approaches originated in, for or from emerging markets. An extensive systematic review of the existing literature is carried out to investigate the progress of prior research, and to use the insights to define future research pathways. This review is primarily based on the most frequently used innovation approaches, especially frugal innovation, jugaad, disruptive innovation, Gandhian innovation, catalytic innovation, indigenous innovation, bricolage, blowback innovation, trickle-up innovation, resource-constrained innovation, and BOP innovation. Our analysis finds growing standardization in terminology usage and increasing emphasis on “bottom-up” and structured innovation approaches. De-emphasizing the role of technology transfers and spillovers from the West, the findings exhibit increasing applications of these innovations beyond emerging markets to wider markets. Our research results also shed light on the evolution of the topic and instigate further research explorations in the direction of analyzing the user adoption of these constraint-based innovations and understanding the influence of new technological advancements, such as the Internet, mobile telecommunications, and Web 2.0 on the innovation process, with a special focus on the service industry.

Frugal innovation: doing more with less for more

Abstract: The global economy will face significant challenges over the next few decades. On the one hand, it must meet the needs of 7 billion consumers (growing to 9 billion by 2050), including the currently unmet basic needs of large numbers in developing countries in areas such as food, energy, housing and health. On the other hand, it must achieve this growth without exceeding the resources available on the planet or causing environmental devastation. This paper argues that such change is possible through a systemic shift to a frugal economy that involves radical, frugal innovation across sectors. Such a transformation will involve the participation of large and small firms, consumers and governments alike. The paper introduces the notion of frugal innovation-the creation of faster, better and cheaper solutions for more people that employ minimal resources-and discusses strategies and examples of such change already taking place in core sectors like manufacturing, food, automotive and energy in developing and developed economies. It also outlines the role of the interaction between large and small firms as well as between firms and consumers in making change possible, as well as the role of governments in driving change where market mechanisms alone will not suffice.This article is part of the themed issue 'Material demand reduction'.

Frugal innovation-past, present, and future

Abstract: Over the last two decades, frugal innovations have garnered the attention ofmanagement scholars due to their high economic potential and rapidly growing adoption in businesses (George et al., 2012; Nakata & Weidner, 2012; Zeschky et al., 2011). This concept of frugal innovation has come a long way from the initial focus on Bottomof the pyramid (BOP) customers in emerging markets to being explored as a concept in combating challenges at a global level. Environmental and demographic (e.g., ageing population) as well as socio-economic changes (e.g., growing cross-bordermigrations) are being identified as sources of this contextual shift beyond Bottomof Pyramid (BOP) markets. Further, the growing traction towards resourceful and minimalistic consumption in advanced economies also encourage the applicability and potential exploration of 'frugality' in these markets. This widening of perspective definitely shows that the concept of frugal innovation, overcoming association with specific geographical segments based on purchasing power parity (Prahalad & Hart, 2002) is increasingly being explored as a global phenomenon with potential of higher socio-economic impact. This progressive change inmindset is also leading its association to go beyond being "cheap" innovations to being more 'resourceful' (in terms of minimal utilization of resources such as water, electricity, time etc.) and sustainable innovations with higher value propositions (better quality, accessibility etc.).

The search for the holy grail: frugal innovation in healthcare from low-income or middle-income countries for reverse innovation to developed countries

Abstract: The healthcare sector stands to benefit most from frugal innovation, the idea that more can be done for less for many more people, globally. As a first step for health systems to leverage new approaches to offset escalating health expenditures and to improve health outcomes, the most relevant frugal innovations have to be found. The Institute of Global Health Innovation was commissioned by the US-based Commonwealth Fund to identify frugal innovations from around the world that could, if transferred to the USA, offer approaches for expanding access to care and dramatically lower costs. Our global scan was motivated by the need to extend the list of frugal innovations in healthcare beyond the impressive but oft-repeated examples such as GE’s MAC 400, a US$800 portable ECG machine, Narayana’s US$1500 cardiac surgery and Aravind’s US$30 cataract surgery. Our search involved (1) scanning innovation databases, (2) refining frameworks to identify frugal innovations and evaluate their reverse potential and (3) developing in-depth case studies. From 520 possible innovations, we shortlisted 16 frugal innovations that we considered as frugal and with potential for reverse diffusion into high-income country health systems. Our global search was narrowed down to three care delivery models for case analysis: The Brazilian Family Health Strategy around community health workers; Singapore-based GeriCare@North use of telemedicine and Brazil’s Saude Crianca community involvement and citizenship programme. We share core features of the three frugal innovations and outline lessons for practitioners, scholars and policymakers seeking to lower healthcare costs while increasing access and quality.

Advances in science and technology through frugality

Abstract: Sustainable development necessitates the management of progress in science and technology for society's betterment while preserving Earth's resources. In this regard, the appearance in recent years of low-cost sophisticated products consuming resources economically is a force for good. This effort terms each of these products as an advanced frugal innovation to highlight the frugality in resource consumption during the realization of these innovations through advances in various scientific disciplines. Other than 25 examples of advanced frugal innovations in a wide range of sectors from rural electrification to particle physics, a framework for the systematic realization of such innovations for sustainable development has also been described. The innovations showcased bring out the use of advances in science and technology or cutting edge knowledge for creating these low-cost sophisticated products. Moreover, the need for innovators typically with training in advanced knowledge areas to handle the sophistication in technology for the successful fruition of these innovations is also discussed. This effort supports the frugal design and frugal engineering of innovations, whether grassroots or the advanced type, through sound scientific principles for the creation of robust products, especially where the human life is at stake, in various sectors for all-round sustainable development.

A conceptual model of frugal innovation: is environmental munificence a missing link?

Abstract: Purpose The purpose of the study is to propose a conceptual model of frugal innovation and examine how it is linked to value creation. Design/methodology/approach This study is exploratory in nature, whereby previous studies were explored to identify the dimensions of frugal innovation. The previous studies were explored from selected databases including Google Scholar and ProQuest using the key word search, “frugal innovation”, “Jugaad innovation”, “value creation” and “environmental munificence”. The review process included the studies from 1991 to 2017. Findings This study suggests that frugal innovation is a multidimensional construct with affordability, simplicity, quality, sustainability, resilience, management support and defeaturing as its dimensions. The study found that frugal innovation is an important predictor of value creation. The study also proposes the moderating effect of environmental munificence on the relationship between frugal innovation and value creation. Practical implications This study invokes entrepreneurs, academicians and managers to be more inclined toward the bottom of the pyramid by using fewer resources. The study contributes to the strategic entrepreneurship literature by developing a conceptual framework of frugal innovation and linking it to the value creation. Originality/value The conceptual framework proposed is based on selected dimensions which seem to be lacking owing to various conceptualizations and meanings in the literature. The study is the first of its kind which has proposed the dimensions of frugal innovation.

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

Abstract: The topic of frugal innovation is increasingly gaining relevance in social as well as scholarly discourse. Frugal innovations have been perceived by many to be a phenomenon generally confined to emerging economies where there are large groups of unserved consumers with unmet needs. But there is increasing evidence that this phenomenon is getting relevant also in the industrialized nations potentially affecting the long-term competitiveness of domestic firms not only overseas but also at home. This paper has a twofold objective: (a) It seeks to establish the theoretical antecedents of frugal innovation by examining the scholarly discourse; and (b) It attempts to generate hypotheses about its long-term relevance by examining historical trends of frugality and their disappearance. Based upon an extensive literature review and some preliminary primary data we propose a new working definition for frugal innovation and hypothesize that frugality was a key social value with positive associations before the era of unprecedented prosperity in the industrialized world, which led to saturated markets and inter alia to feature-driven competition and over-consumption of resources. New ground realities, e.g., economic downturn in the industrialized world and the rapidly rising consumption in the economically developing world, are expected to turn frugality, once again, into an important societal value and frugal innovation into a critical success factor in mid-term future.

Harnessing frugal innovation to foster clean technologies

Abstract: Clean technologies are imperative to sustainable development. However, due to industry uncertainty on the supply side and slow adoption on the demand side, so-called cleantech is still facing tremendous challenges. Specifically, the higher price of cleantech often deters adoption, and government subsidies will inevitably be cut when economic downturn hits again. In this paper, the researcher sheds light on the possibility of frugal innovation to rescue the cleantech industry. Frugal innovation, initiated from emerging markets to overcome resource constraints and address the needs of the “bottom of the pyramid,” has attracted broad attention. The no-frill, cost-cutting, and resource-saving nature of frugal innovation has enabled many firms to create successful and affordable products. This paper delves into details of how various organizations harness the practice of frugal innovation to develop affordable cleantech or green products. The research found that a range of organizations successfully discovered neglected needs from underserved consumers or environmental concerns, made good use of natural or inexpensive resources locally available, incorporated simplicity in their product design, and took into account the affordability and other requirements altogether to design affordable and sustainable green products. Clean technology firms are advised to harness frugal thinking and design in their products to ensure the longevity of the industry.

Frugal innovation in Germany: A qualitative analysis of potential socio-economic impacts

Abstract: Bundesministerium fur Bildung und Forschung (BMBF) im Rahmen des Forderprogrammes ITA (Innovations- und Technikanalyse)

Healthcare, frugal innovation, and professional voluntarism : a cost-benefit analysis

Abstract: This book investigates what international placements of healthcare employees in low resource settings add to the UK workforce and the efficacy of its national health system. The authors present empirical data collected from a volunteer deployment project in Uganda focused on reducing maternal and new-born mortality and discuss the learning and experiential outcomes for UK health care professionals acting as long term volunteers in low resource settings. They also develop a model for structured placement that offers optimal learning and experiential outcomes and minimizes risk, while shedding new light on the role that international placements play as part of continuing professional development both in the UK and in other sending countries.

Innovation pathways and trajectories in India’s auto component industry

Abstract: Bundesministerium fur Bildung und Forschung (BMBF) im Rahmen des Forderprogrammes ITA (Innovations- und Technikanalyse)

Frugality in Indian Context: What Makes India a Lead Market for Affordable Excellence?

Abstract: In recent years a phenomenon called “frugal innovation” has increasingly gained traction in the scholarly discourse; and as research reveals, it is often brought in connection with India. Apparently, India has quietly acquired the role of a pioneer for innovations that aim at combining affordability with excellence, cutting across sectoral boundaries. But what is it that makes India a forerunner for an innovation paradigm with increasing global relevance? In this paper, I propose that the “lead market” theory can explain to a quite good extent the attractiveness of India for frugal solutions. On one hand, there are concrete economic factors that give rise to resource-efficient and affordable solutions to problems faced in day-to-day life. On the other hand, frugality has been long regarded as a virtuous social value in India and the socio-cultural context of the country provides a fertile environment for the acceptance of frugal products and services on both demand and supply sides.

Mobile training in micro business: Design science research for frugal innovation

Abstract: The loan relationship between micro finance institutions (MFI) and micro businesses (MB) is crucial for the growth of small and micro businesses in Tanzania. Increase of smartphone ownership has opened possibilities to support small businesses with technology innovation. Our previous research has shown that the training services offered by MFIs to MBs face a number of challenges, for example poor attendace due to time and travel constraints. In this design science research (DSR) study, we engaged a team of a total of 50 MB and MFI owners, together with local software specialists and researchers, and designed a simple mobile application for delivery of learning materials, contextualised for the needs of MFIs and MBs. This paper describes the progress of this project, the developed prototypes, observations gained in each phase of the project, and recommendations for future research.

Emerging patterns of Grassroots Innovations : results of a conceptual study based on selected cases from India

Abstract: Among all the innovation strategies that seek to impact developing economies, Grassroots Innovation remains the least explored. With critics of Bottom of the Pyramid literature articulating the need for considering the poor as producers, a better understanding of the grassroots phenomenon may help companies to understand and integrate the Grassroots Innovation strategy into their business models and thereby allowing the poor to become producers of products and solutions. This study examines the dimensions and trends, which make Grassroots Innovations unique, as well as factors which govern and influence them.

Frugal innovation for healthcare: strategies and tools for the identification and evaluation of frugal and reverse innovations in healthcare

Abstract: Global healthcare systems are united by their desire to widen patient access to safe and effective clinical services in the face of increasing demand and financial constraints. In lowand middle-income countries (LMICs), a variety of ingenious product and process solutions, termed frugal innovations, have been able to deliver services at a fraction of the cost. It is the broad proposition of this work that such ideas could be applicable to high-income countries (HICs), a concept labeled reverse innovation. Using a conceptual model of innovation scouting derived from the causal mechanism of critical realism, this work examined the development and testing of a tool to deductively identify frugal innovations in healthcare (FIH-ID tool) and then evaluated methodology to assess the reversibility of potential of frugal innovations. The FIH-ID tool demonstrated consistently acceptable inter-rater reliability scores using different methods of application and different raters, moreover, construct validity was shown by its ability to identify well-known frugal innovations. With respect to the assessment of the reversibility potential, the results of the present study highlighted the challenges of undertaking such a complex evaluation process using a simple scoring system. Raters achieved poor levels of inter-rater reliability and only 2 innovations were thought likely to reverse to a HIC. This study presents the first application of a critical realist approach to innovation scouting. It has identified a cohort of 76 potential frugal innovations in healthcare suggesting that the FIH-ID tool is likely to be a valuable asset for similar studies in the future. It has highlighted the challenges of assessing the reversibility potential of innovations from LMICs. It has documented the emergence of the global innovation curator, entities that seek to identify, curate and promote innovations from LMICs,

Consumer Innovation in the Poor Versus Rich World: Some Differences and Similarities

Abstract: Innovative, distinct products and no “cheaper” copies of the “rich” world are essential in order to succeed at the “Base of the Pyramid” (BoP). However, this type of innovation requires more, in-depth information on the BoP and solution spaces, which are both difficult to access. Literature proposes to generate innovations bottom up through user involvement but remains silent on how to identify and integrate BoP consumers into the innovation process. One obvious solution is to connect up with and cooperate with innovating consumers of the BoP. However, this raises the questions whether (1) user innovation exists at the BoP at what levels of quality and (2) how firms can support the innovators to implement them into real world solutions. In this paper we specifically address the first question and analyze patterns and characteristics of a large sample of innovations developed by people living at the Indian BoP collected by the Indian National Innovation Foundation (NIF). We compare these innovations to consumer innovations in the developed world and examine effects of demographic, knowledge and context factors on innovation activity and the outcome. We find similarities with consumer innovation in the developed world and at the same time adaptations to the BoP context, e.g. fulfillment of rather basic necessities than hobby-related needs. Innovation quality is mostly driven by the innovator’s knowledge and market recognition is highest for creative innovations developed for others. The paper further shows that consumer innovations are a good starting point for firms seeking solutions for BoP markets. Product needs can be systematically deducted and provide insights on how to identify promising consumer innovators at the BoP. Finally, this research contributes to better understand user innovation behavior in a specific context and by that enriches innovation research.

Going East: a framework for reverse innovation in SMEs

Abstract: Past research demonstrated that reverse innovation initiatives generate tremendous returns for innovators. However, the focus is on multinational corporations (MNCs). This paper aims to provide a framework how Western small and medium-sized enterprises (SMEs) can drive reverse innovation success.,The author adopted an exploratory single case study research design. It draws on the findings from a German SME operating in the healthcare industry.,The research reveals that SME can use emerging markets growth opportunities by leveraging open business networks and a clear strategic focus on emerging economies as well as reverse commercialization. The findings provide a framework for managers of SMEs.,This paper analyses an important way for SMEs to enter emerging markets that has not been explored yet in the management literature and business practice. It offers deep insights of a unique case.

A Proposed Instrument for Measuring Frugal Innovation: The First Stage of Development a New Scale

Abstract: In both academia and the press, Frugal Innovation has been gaining more space and attention from researchers and managers, mainly for showing itself as an alternative for competitiveness in times o...

Propositions for a high-quality, affordable and sustainable ‘Food Basket’ : scope of cooperation between India & Germany in areas relating to food processing industry

Abstract: The food processing industry in India is a sunrise industry, which has been growing above-average and is expected to grow further. Even though India has a large agricultural sector, the food processing industry has traditionally played a small role and it is only recently that it has been promoted as a measure to increase food security and generate employment. Germany’s food processing industry is a well-developed industry that is globally competitive. Nevertheless, it is faced with saturation in the domestic market, as far as conventional foods are concerned. Emerging, significant trends in Germany are health and wellness-enhancing and disease-preventing food products that are often organically produced, procured through fair trade and are increasingly plant-based (vegetarian/vegan), which coincides with the increasing popularity of Ayurveda and Yoga. These trends can be seen as areas where India has been traditionally strong. The two countries, thus, have enormous opportunities to collaborate. While German firms can participate in the growing market of India, Indian firms can benefit from the emerging trends in Germany, which play to India’s deep-rooted advantages. Indian companies can also benefit from the vocational trainings and other skill development programmes well-entrenched in the German food processing industry. In addition, India and Germany can engage in collaborative technology development efforts to develop frugal innovations in the food processing industry and in related sectors such as food processing and packaging equipment. Indo-German collaboration in the food processing industry has benefits that go well beyond the geographic limits of the two nations. The joining of forces can enhance the sustainability of the global food security and contribute to the fight against global food wastage & loss, hunger and poverty.

Adoption of Open Innovation by Small Firms to Develop Frugal Innovations for Inclusive Development

Abstract: People at the grassroots level have been developing a growing number of frugal innovations (FIs). Many of them do not have formal education and access to science and technologies. FIs are playing important roles for inclusive development. Open innovation (OI) has been studied in the context of large firms, small and medium-sized firms, or high-tech industries. However, OI has not been explored in the context of FIs. In this chapter, I explore the role of open innovation in three frugal innovation cases that emerged in rural India. I also explore the role of these cases for inclusive development. The chapter enhances our knowledge about OI and expands the scope of OI to new application areas. I find that small firms that develop frugal innovations at the grassroots level need more support in the development stage than in the commercialization stage. They need extensive engagement in open innovation activities, such as networking, collaboration with different partners, and scouting. FIs play a significant role for inclusive development.

The Frugal Innovation Case of Solar-powered Automated Teller Machines (ATMs) of Vortex Engineering in India:

Abstract: Constraint-based innovations are innovations that are conceived under conditions of scarcity for resource-constrained markets, often referred to as Bottom of pyramid (BoP) marketplace One

A comparison of German and Indian innovation pathways in the auto component industry

Abstract: Bundesministerium fur Bildung und Forschung im Rahmen des Forderprogrammes ITA (Innovations- und Technikanalysen)