Frugal innovation – achieving more with fewer resources


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Frugal innovation – achieving more with fewer resources

  1. 1. CONSULTING ENGINEERS LIMITED Theme of 46th Engineer’s Day Frugal Innovation Achieving More with Fewer Resources Dr. Narendra Kumar Agnihotra TCE QSTP-LLC, Doha, Qatar Email:
  2. 2. CONSULTING ENGINEERS LIMITED  Original, new and important - in whatever field – actually changes market or social practices like telephone, computer, Internet etc Are Innovation &Invention the same ?  Most Innovation fail and companies that don’t innovate die.  Invention involves the creation of new things from new ideas  Innovation is the application of new solutions that meet new requirements
  3. 3. CONSULTING ENGINEERS LIMITED Need of the World  Often a new technology or market needs a new business model  There are lead markets  High tech for the US, UK & Developed Countries  Miniaturization for Japan  Low cost innovation including bottom of the pyramid in Developing & Poor Countries.
  4. 4. CONSULTING ENGINEERS LIMITED Frugal Innovation for Whom  According to C.K. Prahalad, author of The Fortune at the Bottom of the Pyramid , 2005, low income potential customers are ignored by the large organizations. © Yasser Bhatti, 2011
  5. 5. CONSULTING ENGINEERS LIMITED Frugal Innovation for All High Purchasing Power Low Purchasing Power Potential and Emerging Market for sustainable profit  Sustainable Market : 4 to 5 billion of the 7.0 billion people in worldwide
  6. 6. CONSULTING ENGINEERS LIMITED  Process of reducing the complexity and cost of products or services without sacrificing quality Frugal Innovation or Engineering ?  Carlos Ghosn, 2006, the joint chief of auto majors Renault-Nissan Alliance  Gandhian Engineering – Getting more from less, for more and more  High value science that delivers for poor  There is enough on Earth for everybody's need, but not enough for everybody's greed. Also known as reverse innovation Create market, solutions / products / services / opportunities in adverse circumstances
  7. 7. CONSULTING ENGINEERS LIMITED Is Frugal Innovation, Innovation ?  Low-cost design.  Product development efficiency  Capital efficiency  Manufacturing simplicity  Optimizing customer Interface features  Eliminating non-value adding features Purchasing Power Resources Management Innovative Engineering /Redesign Frugal Engineering
  8. 8. CONSULTING ENGINEERS LIMITED Disruptive Innovation  Address the basic needs of the bottom of pyramid with affordable solutions.  Disrupt existing dominant technology or product / service in the market  Prof. Clayton Christensen, Harvard Business School, conceptualized idea and principles
  9. 9. CONSULTING ENGINEERS LIMITED Frugal Is Not Only Cheap Frugal Cheap Standard Cost Performance/Quality R&D/Innovation Innovation
  10. 10. CONSULTING ENGINEERS LIMITED I observed families riding on two- wheeler the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby. It led me to wonder for such a car, which is safe and affordable to any middle class family. How the dream come ?  Common picture in India
  11. 11. CONSULTING ENGINEERS LIMITED World’s Cheapest Car: Tata Nano  Innovation: 31 design and 37 technology patents  Cheapest car in the world with a cost of $2000.
  12. 12. CONSULTING ENGINEERS LIMITED Chotu Kool  Developed by Godrej and a good example of disruptive innovation  In India, only 20 % have access to a cooling device as against 92% in United States and 78% in China.  ―Chotukool‖ is simple and elegant in design at a cost of less than $70.
  13. 13. CONSULTING ENGINEERS LIMITED Cheapest Mobile & Telecom Services Kar lo Duniya Mutthi Me  Mobile cost is less than $20  Calls and text messages at less than $0.01 a minute
  14. 14. CONSULTING ENGINEERS LIMITED Tata Swach Water Purifier  World’s cheapest household water purification system introduced by Tata Chemicals Ltd. in 2009  World’s ―lowest cost‖ purifier, providing safe drinking water at Rs 0.10 per liter ~ approx $0.002  Cost of Tata Swach is around $20  Availability of clean drinking water is a major problem Worldwide  Natural materials and cutting edge nanotechnology that can eliminate ~90% of the contaminants, pathogens Tata Swach
  15. 15. CONSULTING ENGINEERS LIMITED One Tablet at Cost $40  Canadian company Datawind has launched a $40 tablet, with schools in India being its target market.  2 million tablets, branded Aakash (sky), from Datawind as part of the National Mission on Education, at cost $35— with subsidies, for students and teachers.
  16. 16. CONSULTING ENGINEERS LIMITED Aravind Eye Clinics  Founded in 1976 by Dr Govindappa Venkataswamy , retired eye surgeon  According to WHO: 285 million people are visually impaired worldwide: 39 million are blind and 246 have low vision.  Medicated more than 32 million patients in last 36 years  Auro Lab: manufacture Intra-ocular lenses (IOL) at the cost of $2 only  Cataract operation cost in USA is $2500 – $3000  Target cost in India - $50, but no compromise on quality  Learning from other sectors – the McDonalds approach
  17. 17. CONSULTING ENGINEERS LIMITED Jaipur Leg/Foot  Jaipur leg is a low cost prosthetic leg of cost less than $30.  Jaipur leg/foot is a rubber-based prosthetic leg for people with below- knee amputations
  18. 18. CONSULTING ENGINEERS LIMITED Low Cost ECG, Baby Warmer & Ultrasound Scan  GE developed an ultra low-cost Electrocardiogram (ECG) for rural India  Portable, battery operated, easy to use and easy to repair  $800 vs. $5000  Inbuilt printer and good connectivity  ―Lullaby‖ GE baby warmer  Designed for maternity homes and hospital  $3000 vs. $12000  Reportedly sold in 62 countries
  19. 19. CONSULTING ENGINEERS LIMITED Low Cost ECG, Baby Warmer & Ultrasound Scan  Small and lightweight, Vscan can travel with patient in remote area  Vscan is a handheld, pocket-sized visualization tool powered by Ultrasound technology to inspect patients
  20. 20. CONSULTING ENGINEERS LIMITED Recycled Plastic Bottle House  Bullet and Earthquake-proof and more durable then brick houses Plastics Road Bridge  Bridge is 27 metres long by 5 metres wide, weighs 80 tonnes Recycled Materials  50 years without repairs, as the composite material does not suffer corrosion