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Frugal Innovation: How to do More (and Better) with
Less
Jaideep Prabhu
UnrulyversityLondon, 25 November 2015
Unique Features of Indian Innovators & Innovations
Frugal
Flexible
Inclusive
Thinking Outside the (Ice) Box WHAT IF your fridge
can operate without electricity?
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Thinking Outside the (Hot) Box
Jugaad Innovation
The art of overcoming harsh constraints by improvising an effective solution using limited resources
Gambiarra or jeitinho in Brazil
Kanju in Africa
Jiejian Chuangxin in China
Do-it-yourself (DIY) in the US
Systeme D in France
How Can You Practice Jugaad?
1. Seek Opportunity in Adversity
2. Do More with Less
3. Think and Act Flexibly
4. Keep it Simple
5. Include the Margin
6. Follow your Heart
Social Entrepreneurs
Mansukh Bhai and the MittiCool Fridge
Dr Mohan’s Mobile Diabetes Clinic
Source: http://www.worlddiabetesfoundation.org/composite-2731.htm
Source: http://www.drvmohan.com/
Devi Shetty: Frugal Surgeon
Harish Hande and SELCO
Green Light Planet: Solar Lighting Kit
Cambridge-based Azuri Solar Light
Simpa Networks & Progressive Purchase
Paul NeedhamChief Executive
Officer
Has “prepaid”, “pay as you go”, and “installment plan” elements
Consumer makes a series of payments that unlock the solar home system for a paid amount of energy consumption (Kwh)
Once the total purchase price has been paid, full functionality is restored and the product is permanently unlocked
Large Indian Organisations
Tata and the Nano
Source:http://www.examiner.com/road-driver-in-national/world-s-cheapest-car-the-tata-nano
Tata “Swach” Water Filter
Aakash Tablet
Multinationals in India
GE and Affordable InnovationECG machine designed specifically for
India’s rural markets
Portable, light, battery operated, reliable, cheap
Launched in China, and now in the US after having got FDA approval
Siemens: Foetal Heart Monitor
Siemens’ SMART Products
Simple, maintenance free, affordable, reliable, timely to market
Micro-processor cameras for Indian industrial markets
Processing lines in food industry or engine parts
Sees each biscuit in terms of colour and thickness
The Nokia 1100
Specifically for emerging markets:
Dustproof keypad and front face
Built-in flashlight
Over 200 million sold since late 2003
World's best selling handset and consumer electronics device
Page 24
Person 2 Person TransferAirtime Top-Up
Bill PaymentMerchant Payment
ATM Withdrawals
International Transfer
Cash In Cash Out
The Proposition Is Simple
Social Payments
Photo: M-KOPA
Selling Solar Lighting Solutions
Frugal Innovation in the West
Consumers are Value Conscious
Source: PwC
+17% I seek discounts often
% of all shoppers
I am comfortable buying store (private) brands
I accept living with less
+14%
+13%
Consumers are Values Conscious
Source: Nielsen
67%prefer to work for socially responsible companies
55%will pay extra for products and services fromcompanies committed to positive social andenvironmental impact
The Rise of the « Frugal Economy »
PROSUMERS
MAKINGSHARING
FRUGALECONOMY
Peer-to-peer Sharing is Taking Off
2013
$340 bn
$15
bn
2025 $335 bn$335 bn
Sharing economy sectors Traditional rental sectors Source: PwC
Exit “Fixed Assets”. Enter “Asset Light”
« Marriott wants to add
30,000 rooms in 2014. We are going to do it in
…2 weeks! »
Brian Chesky, CEO, AirbnbSource: Fast Co
Photo: LeWEB12
Exit “Fixed Assets”. Enter “Asset Light”
Design for America and Swipe Sense
To solve problems in health care, education, and energy in the US
Hospital acquired infections: 2 million people
100,000 deaths each year
$2-4 billion dollars in costs to the healthcare industry
Eben Upton and the Raspberry Pi
“Design intended to inspire schoolchildren and adults to program sees overwhelming demand as first versions go on sale”
“Demand for Raspberry Pi, the British £22 computer, crashes website”
Source: The Guardian
Prabhu Subramanian and CoLearnr
Source: CellScope
CellScope
Frugal Innovators Disrupt Industries
US Frugal Finance: PayNearMe
Frugal Banking: Compte Nickel
French Frugal Finance
Hughes Le BretCo-founder, Compte NickelFormer CEO, Boursorama
« The Compte Nickel is the Logan of the
bank account »
3D Printing: Increasingly Affordable
The Rise of DIY Manufacturing
Grace Choi, Harvard Business School Alum
Slide with J&J
43
Simprints: ID to Access Patient Records
Photos: EMBRACE
Photo: EMBRACE
The Maker Movement & Government“Today’s
Do-It-Yourself is tomorrow’s
Made in America”
Photo: WhiteHouse.gov
The Maker Movement & DIY
http://fetosoap.com/blog/index.php?s=faire
Frugal Agriculture: gThrive
Photos: gThrive
49
FabLab Barcelona’s Smart Citizen Kit
An electronic board based on Arduino equipped with the following sensors:
Air QualityTemperatureSoundHumidityLight Quantity
How Can Large Firms do Frugal Innovation?
RESOURCESVALUE
Frugal Innovation
+
—
RESOURCESVALUE - Customers
- Shareholders- Society
- Financial resources- Natural resources- Time
Frugal Innovation
The Six Principles of Frugal Innovation
1. Engage & iterate 2. Flex your assets3. Create sustainable solutions4. Shape customer behavior5. Co-create value with “prosumers”6. Make innovative friends
1) Engage and iterate: Intuit
Scott Cook, Founder, Intuit
Follow me
HomeCopyright © Navi Radjou & Jaideep Prabhu
1) Engage and iterate: Intuit
Source: Kara DeFrias, Intuit
2) Flex your assets: Novartis
2) Flex your assets: PepsiCo
Indra NooyiCEO, PepsiCo
Global Value Innovation Center
Goal: create “disruptive” business models that radically:
1) Reduce CAPEX and OPEXby at least 50%2) Boost “operational agility”
100% open-sourced innovation
Photo: PepsiCo
Michel GiannuzziCEO, Tarkett
3) Create sustainable solutions: Tarkett
Photos: Tarkett
3) Create sustainable solutions: Levi Strauss
Water<Less jeans collection
Designed to reduce the water used in the finishing process by up to 96 percent
And its 100% recycled water standard, a first for the apparel industry
By 2014, the line has saved over 770 million liters of water — enough to supply drinking water for 811,000 people for one year — since its launch in 2011
4) Shape customer behavior: Levi Strauss
4) Shape customer behavior: IKEA
In March 2009, IKEA France launched a car-sharing website to get people to IKEA and reduce energy use
In April 2011, with the help of La Chose, IKEA France launched the “Mysterious Passenger” campaign
The campaign ran for three weeks: the trailer got more than 700,000 views on YouTube; website registrations went up fivefold; site visits increased by 600%; 4,000 people offered to share rides with other IKEA customers, leading to 2,000 car-shared journeys
5) Co-create value with « prosumers »
R&DCUSTOMERS
OPERATIONSMARKETING
&SALES
CO-DISCOVER
CO-D
ESIG
N
CO-MARKET
5) Co-create value with « prosumers »: GE
5) Co-create value with « prosumers »: Ford
6) Make innovative friends: GE
6) Make innovative friends: GE
6) Make innovative friends: Barclays
Techstars selects 10 promising global fintech startups
Start-ups are housed in an accelerator for 13 weeks
They are mentored by Barclays Bank personnel
They pitch to Barclays’ strategic investment team
The new ventures stand to gain up to $100,000 investment and $200,000 partner perks
B2B Sharing and the Circular Economy
KalundborgEco-industrial
Park
Conclusions
The Challenge for Large Organisations
Learn to do more with less
Learn to be agile
Learn to include excluded groups
The Challenge for Large Organisations
Give employees time and space to experiment
Engage with agile entrepreneurs
Create a jugaad mindset by engaging with emerging markets
Create Global Innovation Networks
Western R&D Jugaad innovation
The Challenge for Small Organisations
Learn to scale
Learn to partner with large organisations
ConclusionThe world needs frugal, flexible, and inclusive
innovation
Western firms can gain by engaging with emerging economies
Large and small firms can work together to improve lives everywhere
Discussion
Frugal Innovation Hubhttp://frugalinnovationhub.com
@Frugal_Hub@JaideepPrabhu
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