As I’ve dug into examples of Frugal Innovation, I’ve been struck by the number of instances where virtual teaming has been an important factor. Since we are surrounded by electronic communications — from email to Skype to shared worlds, it might be easy to shrug this off.
The principles of Frugal Innovation were created in developing companies. Firms like Husk Power Systems were established to operate, in part, to serve communities with few resources. In developed countries, examples like ACX within Amazon.com illustrate how an unconventional approach like Frugal Innovation can be adapted to create opportunities and encourage innovation for clients and vendors who, though operating in rich nations, lack funding and capital. (Amazon.com itself is backstopping this work with its established company and, it appears, primarily is looking to open up a new profit stream, not to lift up impoverished writers and actors.)
«Make the poor your market» is one of the central tenets of Frugal Innovation. I mentioned it in my first post on this subject, and, taken literally, it speaks to humanitarian values. «Serving the poor» is a clear and stark answer to why people will dedicate themselves, even work on a volunteer basis, to succeed … Leer más
Current measurement practices may provide the biggest barrier to successful implementation of frugal innovation. Management schools provide students with a lot of tools to track cash flow, customer satisfaction, inventory, performance, and dozens of other dimensions of business. These tools, supported by an array of reporting mechanisms, provide security, assure compliance with laws, allow for … Leer más
Frugal innovation, like all innovation, is a social activity. The best work comes from a team with a variety of capabilities, perspectives, and experiences, and the ability to share their talents and skills effectively.
How unlikely is this? I was in the midst of brainstorming this article, looking for examples that demonstrated the business sense of opening up new markets — inspired by the Bottom of the Pyramid, but not necessarily the poorest of the poor. Completely by accident, I stumbled across a presentation by Amazon.com on self-publishing. Specifically, an explanation of ACX, their entity that facilitates turning books – mostly from independent/self published authors – into audiobooks.
Innovators were often driven by a passion to fulfill the needs others, especially those who are poor and disadvantaged. If you look at the examples of frugal innovation, the products and services that emerged from this approach are essential, even life-changing to the customers.
rugal innovation takes advantage of available resources, but it doesn’t just put them to use in an obvious way. Materials, skills, and tools are combined in creative and surprising ways. Like the bespoke character in MacGyver, a frugal innovator pulls together whatever is at hand to get the job done.
The biggest barrier to innovation is a lack of funding, so frugal innovation has an immediate advantage. Doing things on the cheap means less work in finding money and lower risk overall (as well as other benefits – see Frugal Innovation: Not just for tough times). However, any innovation means change, and change will always meet resistance.
Last time, I wrote about Frugal Education. With the pressures on education, it is an obvious choice for applying a new approach that brings benefits to more people while cutting costs. But what other areas are top prospects for frugal innovation approaches? Here are some questions I would ask to qualify the candidates:
