Frugal innovation

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A frugal innovation (from Latin frūgālis: "coming from the (field) fruits" in the sense of sparse, frugal) is an innovation that breaks with the paradigm "always more, always better" , which is widespread in research and development , and one Simplified and application-oriented solution denotes to open up new, price-sensitive segments at the foot of the socio-economic pyramid .

Popular properties of frugal products are:

  • More for less: The product should have a high benefit for the end customer relative to the price.
  • Asset-light: capital-saving solutions, d. H. Needs that were traditionally satisfied with products are now met with the help of services (e.g. Airbnb).
  • Good enough: the product should only cover target group-specific and application-oriented functions, but fulfill them at a medium to high level.

Since 2010, frugal innovations have received increased attention from the media, research institutions, consulting firms and business.

In emerging countries in particular , technologically stripped-down products have greater sales potential. According to a study by the management consultancy Roland Berger, frugal products that are tailored to local needs can almost double their revenue share in five years.

Individual evidence

  1. ↑ Navi Radjou, Jaideep Prabhu: 4 CEOs Who Are Making Frugal Innovation Work. In: Harvard Business Review. November 28, 2014, accessed October 8, 2016 .
  2. ^ Yasser Ahmad Bhatti: What is Frugal, What is Innovation? Towards a Theory of Frugal Innovation . Social Science Research Network, Rochester, NY February 1, 2012 ( ssrn.com [accessed October 8, 2016]).
  3. ↑ Marco Zeschky, Bastian Widenmayer, Oliver Gassmann: FRUGAL INNOVATION IN EMERGING MARKETS . In: Research-Technology Management . tape 54 , no. 4 , p. 38-45 , doi : 10.5437 / 08956308x5404007 ( ingenta.com ).
  4. ^ First break all the rules . In: The Economist . April 15, 2010, ISSN  0013-0613 ( economist.com [accessed October 9, 2016]).
  5. ↑ Broadcast on January 30, 2016 . In: Futuremag . ( arte.tv [accessed October 9, 2016]).
  6. ↑ Potential of Frugal Innovations | A joint project of the Fraunhofer Center for International Management and Knowledge Economy and the Technical University of Hamburg. In: www.frugale-innovation-ita.de. Retrieved October 9, 2016 .
  7. ↑ Center for Frugal Innovation | An initiative of the Research Program Global Innovation @ TIM / TUHH. In: cfi.global-innovation.net. Retrieved October 9, 2016 .
  8. ↑ Innovating for the next three billion The rise of the global middle class - and how to capitalize on it. (PDF) In: Growing Beyond. Ernst & Young, 2011, accessed October 9, 2016 .
  9. ^ AllianceRN: Innovation for everyone. July 11, 2013, accessed October 9, 2016 .
  10. ↑ Die Welt : Siemens starts low-cost offensive in Asia , March 11, 2013, accessed on February 11, 2019