by Nick Ashton, Founder, Tracometry People
To increase the customer base, with frugal innovative technology, increased selection of services, additional revenue generating subscription applications/services and storage space.
All of this and the wealth of the company and its shareholders by Frugal Innovation.
What is Frugal Innovation?
Frugal innovation is the ability to “do more - and better - with less.” It is a breakthrough growth strategy that enables companies to develop high-quality products and create more business and social value while minimizing the use of vital resources such as energy, capital and time. Once the preserve of companies in developing markets, frugal innovation is now being adopted by global enterprises, large and small. It is not only a game-changing business strategy but also a new frame of mind – one that perceives resource constraints as an opportunity, not a liability.
With an estimated trillion-dollar global market for sustainable products and huge cost savings to be gained, frugal innovation is revolutionizing business across industries and reshaping management thinking worldwide. As such, frugal innovation is the key to success in a business landscape increasingly defined by mega-trends such as collaborative consumption, the circular economy, and the maker movement.
Tracometry People are a laboratory for frugal innovations and the knock-on effect this is having on business and society and the global community.
Innovation has raced in many parts of the world and especially the Indian Government’s agenda in recent years, and the Indian President has declared the next ten years the ‘Decade of Innovation.’
Input-output metrics are a useful way of benchmarking research excellence, they don’t capture all of what is important about innovation, and miss the distinctive models and approaches to innovation of very different systems. Traditional metrics also miss what this research uncovers as a distinctive specialism of global system: frugal innovation. Combined with deepening scientific and technological capabilities, this could be an important source of competitive advantage for our clients, and is an overlooked opportunity for strategic collaboration in some cases.
Frugal innovation is distinctive in its means and its ends. Frugal innovation responds to limitations in resources, whether financial, material or institutional, and using a range of methods, turns these constraints into an advantage. Through minimizing the use of resources in development, production and delivery, or by leveraging them in new ways, frugal innovation results in dramatically lower–cost products and services.
Successful frugal innovations are not only low cost, but outperform the alternative, and can be made available at large scale. Often, but not always, frugal innovations have an explicitly social mission.