Frugal Innovation for Business Success
Added on 2020-06-03
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FRUGAL INNOVATION
Table of Contents1.1 Developments in frugal innovation .................................................................................11.2 Role of frugal innovation..................................................................................................2REFERENCES................................................................................................................................5
1.1 Developments in frugal innovation Frugal innovation is the process of regenerating the previously generated creative ideas,in order to gain more beneficial results. In general terms, frugal innovations deals withrediscovering models, redesigning products and reconfiguring the value chain, in case of anydissatisfaction or loss generated in the context of operational activities carried in an organisation.Frugal innovation is a different concept from the standard innovational activities undertaken in aventure, as it deals with targeting bottom users more rather than targeting top users of offeringsprovided (Hartley, 2015). Hence, this type of innovation practices adopted in a companygenerates more beneficial results. A frugal innovative technique is introduced in an organisation, with a view of increasingthe level of profits generated from operational activities carried out in that venture. This processcan be adopted by minimising the use of various resources in production process, thus, reducingthe cost of production activities, which leads an organisation towards the path of creating newways for producing products with low cost, thus, resulting in creation of low pricing strategy bya firm. Thus, frugal innovation is associated with finding more innovative ways in the context ofacquiring more customers for the products or services offered and hence, earning more amountof profits (Neumann and Gassmann, 2017). The frugal innovation technique was introduced inIndia, under the name “ Jugaad.” a few examples of Jugaad that have been undertaken in theorganisational context in India are explained in detail as below: Frugal innovation in cardiac surgery: This innovation was initiated during the 1980s,in order to provide medical access to those individuals who are deprived of having anaccess to medical facilities due to their low income standards. Dr. NarayanaHrudayalaya, a cardiac in Mysore is establishing this chain of providing cardiac care atcheapest rates, in order to fulfil medical requirements of low income group people. Tata motor's innovation: Tata group of companies operating in India has innovated asmall car, suitable for a four members family called Nano. This is the cheapest car, whichis affordable by even middle as well as lower class people. The object behind this frugalinnovation was to provide an access to luxurious facilities of life to those individuals ofsociety, who cannot afford it due to the high level of costs involved in having access tothese luxuries of life. Thus, this kind of creative technique used y Tata Motors has led to1
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