Cambridge Judge Business School

FRUGAL INNOVATION:

NEW MARKETS & NEW WAYS TO MARKET

Jaideep Prabhu

21st Century Marketing

September 7 2018

@CambridgeJBS

Frugal

Flexible

Inclusive

Unique Features of Indian Innovators

@CambridgeJBS

Thinking Outside the (Ice) Box

WHAT IF your fridge

can operate without electricity?

Sourc

e: http://w

ww

.mitt

icool.i

n/

Sourc

e: http://g

izm

odo.c

om

@CambridgeJBS

Thinking Outside the (Hot) Box

@CambridgeJBS

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

Jugaad Innovation

@CambridgeJBS

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

How Can You Practice Jugaad?

@CambridgeJBS

Social Entrepreneurs

@CambridgeJBS

Mansukh Bhai’s MittiCool Fridge

@CambridgeJBS

Dr Mohan’s Mobile Diabetes Clinic

Source: http://www.worlddiabetesfoundation.org/composite-2731.htmSource: http://www.drvmohan.com/

@CambridgeJBS

Devi Shetty: Frugal Surgeon

@CambridgeJBS

Harish Hande and SELCO

@CambridgeJBS

Large Indian Organisations

@CambridgeJBS

Tata and the Nano

Source: http://www.examiner.com/road-driver-in-national/world-s-cheapest-car-the-tata-nano

@CambridgeJBS

Tata “Swach” Water Filter

@CambridgeJBS

Multinationals

@CambridgeJBS

ECG 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

GE and Affordable Innovation

@CambridgeJBS

Siemens: Foetal Heart Monitor

@CambridgeJBS

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

@CambridgeJBS

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

The Nokia 1100

@CambridgeJBS

Doing More (and Better) with Less

@CambridgeJBS

Photo: M-KOPA

Selling Solar Lighting Solutions

@CambridgeJBS

Frugal Innovation in the West

@CambridgeJBS

PROSUMERS

MAKINGSHARING

FRUGALECONOMY

The Rise of the Frugal Economy

@CambridgeJBS

Peer-to-peer Sharing is Taking Off

2013

$340 bn

2025 $335 bn$335 bn

Sharing economy sectors Traditional rental sectors Source: PwC

@CambridgeJBS

« Marriott wants to add30,000 rooms in 2014. We are going to do it in

…2 weeks! »

Brian Chesky, CEO, Airbnb

Source: Fast Co

Photo: LeWEB12

Exit “Fixed Assets”. Enter “Asset Light”

@CambridgeJBS

Exit “Fixed Assets”. Enter “Asset Light”

@CambridgeJBS

The Maker Movement

@CambridgeJBS

Design for America and Swipe Sense

Set up to solve problems in healthcare, 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

@CambridgeJBS

Eben Upton and the Raspberry Pi

Source: The Guardian

@CambridgeJBS

Prabhu Subramanian and CoLearnr

@CambridgeJBSPhotos: CellScope

Frugal Healthcare: CellScope

@CambridgeJBS

3D Printing: Increasingly Affordable

@CambridgeJBS

@CambridgeJBSPhotos: EMBRACEPhotos: EMBRACE

@CambridgeJBSPhotos: EMBRACE

@CambridgeJBS

“Today’s Do-It-Yourself is tomorrow’s

Made in America”

The Maker Movement & Government

Photo: WhiteHouse.gov

@CambridgeJBS

The Maker Movement & DIY

http://fetosoap.com/blog/index.php?s=faire

@CambridgeJBS

How Can Large Firms do Frugal Innovation?

@CambridgeJBS

@CambridgeJBS

RESOURCES

VALUE +

—

Frugal Innovation

@CambridgeJBS

RESOURCES

VALUE- Customers- Shareholders- Society

- Financial resources- Natural resources- Time

Frugal Innovation

@CambridgeJBS

1. Engage & iterate

2. Flex your assets

3. Create sustainable solutions

4. Shape customer behaviour

5. Co-create value with “prosumers”6. Make innovative friends

The Six Principles of Frugal Innovation

@CambridgeJBS

Michel Giannuzzi

CEO, Tarkett

3) Create Sustainable Solutions: Tarkett

Photos: Tarkett

@CambridgeJBS

Paul Polman, CEO, Unilever

“ By 2020 I want to double our company’s

revenues while reducing its

environmental impact by 50% ”

So

urc

e: u

plo

ad

.wik

ime

dia

.org

3) Create Sustainable Solutions: Unilever

@CambridgeJBS

Water<Less Collection (96% less water)

Waste<Less Collection (20% recycled materials)

World-class water recycling in Chinese factories

Share sustainability practices with suppliers and even competitors

3) Create Sustainable Solutions: Levi Strauss

@CambridgeJBS

4) Shape Customer Behaviour: Levi Strauss

Chip Bergh, CEO, Levi Strauss

Photo: Levi Strauss

“ We don't need to

wash jeans as often

as most people think

…I haven’t washed

mine in a year ”

@CambridgeJBS

5) Co-create Value with Prosumers

R&D

CUSTOMERSOPERATIONS

MARKETING &

SALES

CO-DISCOVER

@CambridgeJBS

5) Co-create Value with Prosumers: GE

@CambridgeJBS

5) Co-create Value with Prosumers: Ford

@CambridgeJBS

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

@CambridgeJBS

Conclusions

@CambridgeJBS

Learn to do more with less

Learn to be agile

Learn to include excluded groups

The Challenge for Large Organisations

@CambridgeJBS

Give employees time and space to experiment

Engage with agile entrepreneurs

Create a jugaad mindset by engaging with emerging markets

The Challenge for Large Organisations

@CambridgeJBS

Learn to scale

Learn to partner with large organisations

The Challenge for Small Organisations

@CambridgeJBS

The world needs frugal, flexible, and inclusive innovation

Developed economy firms can gain by engaging with emerging economies and vice versa

Large and small firms can work together to improve lives everywhere

Conclusion

@CambridgeJBS

Thank You!

@JaideepPrabhu

@CambridgeJBS