city unrulyversity - frugal innovation

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

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

http://designforamerica.com/projects/swipesense/

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

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

http://www.sustainablebrands.com/news_and_views/articles/levis-waterless-jeans-reduce-water-use-96-percenthttp:/www.environmentalleader.com/2010/11/04/levis-green-jeans-cut-water-use-up-to-96/

http://www.sustainablebrands.com/news_and_views/products_design/mike_hower/new_levi%E2%80%99s_jeans_production_process_uses_100_recycled_wate

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: 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

http://frugalinnovationhub.com/

http://frugalinnovationhub.com/