Frugal innovation

About: Frugal innovation is a research topic. Over the lifetime, 472 publications have been published within this topic receiving 9290 citations.

From Cost to Frugal and Reverse Innovation: Mapping the Field and Implications for Global Competitiveness

Abstract: Product and service innovations aimed at resource-constrained customers in emerging markets have recently attracted much research and management attention. Despite the prominence of this topic, however, there are some misconceptions around the different innovation types in this domain that may limit managers' ability to derive informed implications for strategy and operations. This article analyzes the different types of resource-constrained innovation-cost, good-enough, frugal, and reverse innovation-conceptualizes the distinctions between them, and discusses the implications for strategy providing a framework for managers to systematically analyze their own approaches to resource-constrained innovation and craft proper development processes. By highlighting the differences between the various types of resourceconstrained innovation, this article also provides the conceptual grounds for further systematic research.

From Cost to Frugal and Reverse Innovation: Mapping the Field and Implications for Global Competitiveness: Understanding the Different Types of Resource-Constrained Innovation Can Help Companies Analyze Their Approaches to Resource-Constrained Innovation

Abstract: The economic rise of emerging markets, especially in China and India, has created a new market segment, variously referred to as the middle market (Govindarajan 2012), the low-income market (Hart and Christensen 2002; Sanchez and Ricart 2010), and sometimes the good-enough market (Gadiesh, Leung, and Vestring 2007). The fierce competition among firms fighting for the middle-class consumers emerging in these areas has made this market segment the "next global battleground" (Gadiesh, Leung, and Vestring 2007, 82). However, despite increasing incomes, emerging middleclass consumers still have little excess income compared to Western consumers and often suffer from additional constraints, such as poor public and private infrastructure or poor service availability. As a result, firms have started to develop market-specific solutions that are characterized by high value and low costs. These solutions, which have attracted much attention from both managers and researchers, have been captured under the terms cost innovation (Williamson 2010), good-enough innovation (Gadiesh, Leung, and Vestring 2007; Hang, Chen, and Subramian 2010), frugal innovation (Zeschky, Widenmayer, and Gassmann 2011; Economist 2010), resource-constraint innovation (Ray and Ray 2010), trickle-up innovation (Reena 2009), and reverse innovation (Immelt, Govindarajan, and Trimble 2009; Trimble 2012; Govindarajan 2012). The innovation types described by these terms are structurally different from each other with respect to their original motivation, value proposition, and value creation mechanisms. For example, while some solutions may emerge from the redesign of an existing product to make it drastically cheaper, others may be entirely new and may create new markets, as well. However, researchers and practitioners alike often use these terms interchangeably, obscuring the important strategic implications of the differences among them. Based on a survey of the literature and a series of case studies, we argue that there are three distinct types of resource-constrained innovation for emerging markets: cost, good-enough, and frugal innovation. These three types differ from each other with respect to their technology and market novelty and therefore significantly affect how firms approach, develop, and position solutions. Therefore, a sound conceptualization of the different innovation types is essential for management practice and research to move forward in a systematic and fruitful manner. Methodology We started this study by analyzing extant literature on innovation for resource-constrained consumers in emerging markets. Our initial aim was to understand the commonalities and differences between the most frequently used terms--cost, good-enough, frugal, and reverse innovation. We then began to construct a database of cases of resource-constrained innovations. The database now includes 85 cases collected between 2009 and 2013; while some cases were based on data gathered through personal interviews, some relied on extensive secondary data analysis. While all of the cases in our database were characterized by drastically lower prices or operating costs compared to Western products, we employed the Ansoff matrix (Ansoff 1965) as an analytical framework to classify the cases. In the Ansoff matrix, innovations are distinguished according to their technical and market novelty; the matrix thus classifies innovations by whether they are market extensions based on existing technologies, original product development activities for existing markets, or newly developed products for entirely new markets. For this article, we have selected 13 cases that are most illustrative to substantiate our conceptualization. Four of these cases rely on interviews with managers (including two cases representing good-enough innovations and two representing frugal innovations). For the other nine cases (seven cost innovations, one good-enough, and one frugal innovation), we used data gathered from well-respected resources. …

Research and development from the bottom up - introduction of terminologies for new product development in emerging markets

Abstract: This paper gives a comprehensive overview of the commonly used terms jugaad, frugal innovation, frugal engineering, constraint-based innovation, Gandhian innovation, catalytic innovation, grassroots innovation, indigenous innovation, and reverse innovation. Based on that, a conceptual framework is introduced consisting of three core dimensions: sophistication, sustainability, and emerging market orientation. On the basis of these dimensions, analogies and distinctions between the terms are identified and general tendencies are explored such as the increasing importance of sustainability in social and ecological context or the growing interest of developed market firms in approaches from emerging markets. Hence, the presented framework supports further research in new paradigms for research and development (R&D) in developed market firms (DMFs), particularly in relation to emerging markets. This framework enables scholars to compare concepts from developed and emerging markets, to address studies specifically by using consistent terms, and to advance research into the concepts according their characterization.

Frugal Innovation: Core Competencies to Address Global Sustainability

Abstract: The call for global sustainability is echoed by societal, environmental, and economic needs across the globe. In answering this call, a design innovation process that properly considers the needs and context of citizens in the developing world is necessary in order to develop appropriate, adaptable, affordable, and accessible solutions, products and services. This process, called “Frugal Innovation,” is rapidly becoming a standard against which sustainable solutions are assessed. Through an exploration of Frugal Innovation Core Competencies (Frugal Innovation Lab, Santa Clara University), and corresponding case studies of field solutions, a model is presented to begin sustainably addressing global human needs.