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Frugal innovation

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Frugal innovation or frugal engineering is the process of reducing the complexity and cost of a good and its production. Usually this refers to removing nonessential features from a durable good, such as a car or phone, in order to sell it in developing countries.

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Frugal innovation

  1. 1. Frugal Innovation Lars Iversen @Larski Partner, Springfellow International
  2. 2. Top 1000 corporates spent USD 647 bn on R&D in 2014 – 90% focus on Western markets In the consumer sector 80% failed!
  3. 3. • Top down and hierarchical • R&D system is way too costly to maintain • Rely on “structured” innovation processes that can’t deliver the agility and speed need • Driven by financial outcomes • Linear, sequential thinking • Do innovation in secret R&D labs rather than opening up the innovation process and harnessing the creativity of all their employees, customers, and partners. • Strategic planning based on the past • Risk intolerance • Process inflexibility • Still believe that “knowledge is power” • Large number of employees • Control over own assets Traditional, incremental innovation
  4. 4. More for less Faster – Smarter - Cheaper
  5. 5.  Digital  Manufacturing and logistics  Social – Consumer  Old advantage no longer valid – decentralized  New roles for the multinationals and public sector  Platforms for innovation – eco-systems for Startups  Health  Education  Employment  Energy
  6. 6. Thank You! @Larski WeChat: Larski73 Linkedin.com/larsiversen Lars.iversen@springfellow.com

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