Approach for a Pattern-Based Development of Frugal Innovations (original) (raw)
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Frugal innovations are often associated with sustainable development. These connections, however, are based on anecdotal assumptions rather than empirical evidence. This article evaluates the sustainability of four frugal innovations from water and energy sectors. For the purposes of the evaluation, a set of indicators was developed. Indicators are drawn from sustainable development goals by the United Nations and they encompass central dimensions of sustainability: ecological, social and economic. In this article, frugal innovations are compared to solutions that are currently used in similar low-income contexts. Studied frugal innovations were found more sustainable in terms of energy production and water purification capacity than the existing solutions. In terms of social sustainability, larger differences between innovations were found. For example, business models of frugal energy solutions focus on capacity building and the inclusion of marginalized low-income people, whereas business models of water purification solutions focus on more traditional corporate social responsibility activities, such as marketing awareness campaigns and cooperation with non-governmental organizations. Three major sustainability challenges for frugal innovators were identified: (1) the proper integration of material efficiency into product or service systems; (2) the patient promotion of inclusive employment; and (3) the promotion of inclusive and sustainable local industrialization. The article concludes that despite indisputable similarities between frugality and sustainability, it is problematic to equate the two conceptually.
Pursuing Frugal Innovation for Sustainability at the Grassroots Level
Management and Organization Review
Firms are often criticized for their reluctance to embrace sustainability in their business strategies. Frugal innovation is a recent concept that represents a new way for firms to serve underserved customers in developing countries while also promoting sustainability. Based on three cases of frugal innovation at the grassroots level of India, this article demonstrates how frugal innovation presents a promising way to tackle some of today's pressing societal problems with new business models. We use a range of parameters for economic, social, and environmental sustainability to strengthen the case for frugal innovation. This article attempts to inspire scholars to consider frugal innovation further in their future research endeavors and encourage firms to integrate it into their existing business models.
Frugal innovation and sustainable business models
This study aims to explore how frugal innovations (FIs) emerge at the grassroots level of developing countries and employ novel business models to contribute to sustainable development. It explores various business model elements, mainly viewed through the lens of value proposition, value creation, and value capture. FIs transform underserved customers at the grassroots level into novel consumer groups. By exploring three FI cases, this study contributes to the literature about FI business models. It shows how individuals with limited education, funds, and resources can bring affordable products to market using outside the box thinking to meet the needs of underserved customers in developing countries.
Water is perhaps the most intertwined, and basic, resource on our planet. Nevertheless, billions face water-related challenges, varying from lack of water and sanitation services to hindrances on livelihoods and socioeconomic activities. The Sustainable Development Goals (SDGs) recognize the broad role that water has for development, and also call for the private sector to participate in solving these numerous development challenges. This study looks into the potential of frugal innovations as a means for the private sector to engage in water-related development challenges. Our findings, based on a case study and literature review, indicate that frugal innovations have potential in this front due to their focus on affordable, no-frills solutions. However, we also recognize pitfalls related to frugal innovations in the water sector. Although the innovations would, in principle, be sustainable, deficiencies related to scale and institutional structures may emerge. These deficiencies are linked to the importance of water in a variety of processes, both natural and manmade, as well as to the complexity of global production-consumption value chains. Increasing the innovations' sustainability impact requires broader acknowledgement of the underlying value chains and their diverse links with water. A holistic view on water can mitigate water-related business risks while increasing wellbeing on an individual level.
Frugal innovation: Conception, development, diffusion, and outcome
Journal of Cleaner Production, 2020
Frugal innovation (FI) demonstrates a new entrepreneurial landscape where small firms with limited resources develop innovations for underserved customers in low-income countries. FIs also create new markets and contribute to sustainability. The studies so far have highlighted various frugal products introduced by large and small firms around the world. This study aims to explore the process of how individuals at the grassroots level successfully conceptualize, develop, and diffuse their FIs to achieve commercial success. It analyzes the antecedents, processes, and consequences of FI development and commercialization, and explores how FIs evolve and diffuse in emerging markets. It also seeks to identify what triggers and motivates individuals to engage in FI. The study points out the initiative that individuals take and the challenges they face, from inception to the successful commercialization of their innovations. We therefore portray an overall understanding of the antecedents, processes, and consequences for these entrepreneurs. Along with the scholars, the findings of this study will be insightful for practitioners who are interested in the frugal innovation phenomenon. It points out issues, such as the dual-business model, innovation to serve low-income customers, and diffusion patterns that managers need to understand when shaping their business strategies, for emerging markets in particular and the world in general.
Frugal innovation: doing more with less for more
Philosophical Transactions of the Royal Society A: Mathematical, Physical and Engineering Sciences, 2017
The global economy will face significant challenges over the next few decades. On the one hand, it must meet the needs of 7 billion consumers (growing to 9 billion by 2050), including the currently unmet basic needs of large numbers in developing countries in areas such as food, energy, housing and health. On the other hand, it must achieve this growth without exceeding the resources available on the planet or causing environmental devastation. This paper argues that such change is possible through a systemic shift to a frugal economy that involves radical, frugal innovation across sectors. Such a transformation will involve the participation of large and small firms, consumers and governments alike. The paper introduces the notion of frugal innovation—the creation of faster, better and cheaper solutions for more people that employ minimal resources—and discusses strategies and examples of such change already taking place in core sectors like manufacturing, food, automotive and ener...
Frugal Innovation for Inclusive and Sustainable Development in Africa,
Advanced Research in Economics and Business Strategy Journal, 2024
Frugal innovation has emerged as a promising approach to addressing the unique challenges and resource constraints African communities face. This article presents a comprehensive analysis of the key principles, frameworks, and case studies of frugal innovation in Africa, exploring its transformative potential in driving inclusive development and sustainable progress. Drawing on extensive research and illustrative examples, the article examines the defining characteristics of frugal innovation, such as affordability, functionality, sustainability, and adaptability, which distinguish it from traditional innovation models. The article delves into the theoretical foundations that underpin frugal innovation, including the Jugaad Innovation framework, the Empathic Design approach, the Bottom of the Pyramid (BoP) framework, the Reverse Innovation concept, and the Frugal Innovation framework. These conceptual models provide valuable insights into the drivers, manifestations, and applications of frugal innovation in Africa. Through a detailed examination of sectoral case studies, the article showcases the diverse ways in which frugal innovations are addressing pressing social, economic, and environmental challenges in areas such as healthcare, energy, agriculture, water, and sanitation. These case studies illustrate the ingenuity, resourcefulness, and community-driven nature of frugal innovation, highlighting its potential to create affordable, accessible, and adaptable solutions that empower marginalized populations. The article further explores the barriers and enablers of frugal innovation, drawing on the insights of prominent African scholars, such as Mvemba Phezo Dizolele and Carlos Lopes. It examines critical issues, including policy and regulatory frameworks, financing mechanisms, innovation ecosystem development, and capacity-building efforts. It outlines strategies for fostering enabling environments that nurture the growth and scaling of frugal innovations. Finally, the article delves into the challenges and approaches to measuring the impact and scaling of frugal innovations, emphasizing the need for comprehensive impact metrics, data-driven decision-making, and the alignment of frugal innovation initiatives with the United Nations Sustainable Development Goals. By cultivating a culture of impact-driven innovation, the article argues, African nations can unlock the full potential of frugal innovations to drive inclusive and sustainable development across the continent.
Customers are increasingly seeking "low-cost, high-quality" or what is known as frugal products that meet the buyer's needs while reducing the associated cost of ownership. This book examines the developing principles and theories of frugal innovations across the globe. The authors identify frugal innovation (FI) using a multi-method approach to data analysis. They argue that the concept of frugality as a societal/ethical value has undergone several changes and propose a differentiated model of frugal innovations. They address frugal innovations that have never been accessible to the public.
2018
The phenomenon of frugal innovation, as characterized by "affordable excellence", is experiencing increasing acceptance by business leaders, policy makers and scholars around the world. Frugal products, services and technologies strive to radically increase affordability while significantly reducing their environmental footprint through careful and prudent use of resources. It is expected that frugal solutions will be increasingly necessary in both the developed and developing world to ensure social inclusion, environmental sustainability and continued economic growth. Traditionally, frugality has been regarded as a social virtue in India and the socio-cultural context of the country provides a fertile environment for the development of frugal products and services. Not surprisingly, considerable research shows that discussions of frugal innovations have been closely associated with India. This concept has now begun to spread to other developing and industrialized nations....
Frugal-IDeM: An Integrated Methodology for Designing Frugal Innovations in Low-Resource Settings
2021
People living in low-resource settings at the base of the world income pyramid (i.e. base of the pyramid—BOP) face several constraints. To satisfy their unmet needs, integrated frugal innovations are necessary. Several studies, discussed using many names such as ‘design for base of the pyramid’, ‘design for development’, ‘product service systems’, ‘frugal innovations’, ‘humanitarian engineering’, ‘appropriate technology’, have explored the design of such integrated frugal innovations for the BOP. Based on ten key design aspects, gleaned from such studies, this paper aims at developing an Integrated Design Methodology for designing frugal innovations for the BOP (Frugal-IDeM). We have related the key design aspects with the various phases in the design and development process. The Frugal-IDeM also includes recommendations for how to implement the key design aspects.