Frugal Innovation: Doing More with Less

Introduction

• Growing up in developing countries fosters creativity and resourcefulness.
• Example of Mansukh Prajapati's clay fridge that uses no electricity in India.
• Entrepreneurs in Africa using bicycles to charge cell phones.
• In Peru, a billboard converts humidity into water.

Jugaad: The Spirit of Resourcefulness

• Jugaad is a Hindi term for a clever, improvised fix.
• Such solutions aren't perfect but add value at low cost.
• Frugal innovation: creating economic and social value with fewer resources.
• Transformation of adversity into opportunity.

Frugal Innovations Across Continents

India & China

• Innovation driven by scarcity of resources like capital and energy.
• Neusoft in China: telemedicine solutions for rural areas with simple devices.

Africa & Mobile Solutions

• M-Pesa in Kenya offers mobile payment solutions to the unbanked.
• M-KOPA: affordable home solar solution utilizing mobile payments.

The North vs. South Approach

• Western innovation focuses on technological advancement; "more for more" model.
• Frugal innovation is necessary due to resource depletion and income disparity.

Western Adoption of Frugal Innovation

• Companies and entrepreneurs in the West are beginning to adopt frugal innovation.
• Grameen Danone in Bangladesh: small, economical manufacturing plants.
• Siemens Healthcare in China: cost-effective and efficient CT scanners.

Examples of Western Startups

• gThrive: Wireless sensors for farmers to optimize water and energy use.
• Be-Bound: Connect to the Internet using SMS in no-bandwidth areas.
• Compte Nickel: Low-cost banking without traditional banks in France.

Global Collaboration in Frugal Innovation

• North and South are coming together to co-create solutions.
• IBM in Nairobi: Megaffic project to ease traffic with low-cost technology.
• UCLA Health’s Global Lab for Innovation seeks frugal healthcare solutions.

Principles of Frugal Innovation

1. Keep it simple: Make solutions easy and accessible.
2. Do not reinvent the wheel: Leverage existing resources.
3. Think and act horizontally: Use distributed supply chains.

Conclusion

• Frugal innovation can improve the quality of life worldwide.
• Urges to transcend North-South divide and leverage global ingenuity.