frugal innovation: new markets & new ways to market... · 2018-10-29 · frugal innovation: new...

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

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Thinking Outside the (Ice) Box

WHAT IF your fridge

can operate without electricity?

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Thinking Outside the (Hot) Box

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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

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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?

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Social Entrepreneurs

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Mansukh Bhai’s MittiCool Fridge

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Dr Mohan’s Mobile Diabetes Clinic

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

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Devi Shetty: Frugal Surgeon

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Harish Hande and SELCO

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Large Indian Organisations

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Tata and the Nano

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

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Tata “Swach” Water Filter

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Multinationals

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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

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Siemens: Foetal Heart Monitor

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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

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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

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Doing More (and Better) with Less

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Photo: M-KOPA

Selling Solar Lighting Solutions

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Frugal Innovation in the West

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PROSUMERS

MAKINGSHARING

FRUGALECONOMY

The Rise of the Frugal Economy

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Peer-to-peer Sharing is Taking Off

2013

$340 bn

2025 $335 bn$335 bn

Sharing economy sectors Traditional rental sectors Source: PwC

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« 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”

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Exit “Fixed Assets”. Enter “Asset Light”

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The Maker Movement

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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

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Eben Upton and the Raspberry Pi

Source: The Guardian

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Prabhu Subramanian and CoLearnr

@CambridgeJBSPhotos: CellScope

Frugal Healthcare: CellScope

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3D Printing: Increasingly Affordable

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@CambridgeJBSPhotos: EMBRACEPhotos: EMBRACE

@CambridgeJBSPhotos: EMBRACE

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“Today’s Do-It-Yourself is tomorrow’s

Made in America”

The Maker Movement & Government

Photo: WhiteHouse.gov

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The Maker Movement & DIY

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

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How Can Large Firms do Frugal Innovation?

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RESOURCES

VALUE +

—

Frugal Innovation

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RESOURCES

VALUE- Customers- Shareholders- Society

- Financial resources- Natural resources- Time

Frugal Innovation

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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

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Michel Giannuzzi

CEO, Tarkett

3) Create Sustainable Solutions: Tarkett

Photos: Tarkett

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Paul Polman, CEO, Unilever

“ By 2020 I want to double our company’s

revenues while reducing its

environmental impact by 50% ”

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3) Create Sustainable Solutions: Unilever

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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

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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 ”

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5) Co-create Value with Prosumers

R&D

CUSTOMERSOPERATIONS

MARKETING &

SALES

CO-DISCOVER

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5) Co-create Value with Prosumers: GE

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5) Co-create Value with Prosumers: Ford

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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

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Conclusions

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Learn to do more with less

Learn to be agile

Learn to include excluded groups

The Challenge for Large Organisations

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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

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Learn to scale

Learn to partner with large organisations

The Challenge for Small Organisations

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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

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Thank You!

@JaideepPrabhu

@CambridgeJBS