Frugal Innovation in the enterprise, business “outside-in” thinking mode has become more important, as the fusion between social CRM (community-based customer relations) and design-oriented thinking is creating and instilling a new paradigm. Innovations are easily incorporated into interaction patterns between businesses and customers. The rise of Social Media/Web is also playing an important part. Social computing, enterprise mobility and personalization provides customer insights from a multitude of touchpoints. As the customer’s understanding deepens, enterprise organizations evolve to offer more personalized services.
Tracometry People & Infobricks
Frugal Innovation & Change Management…
by Nick Ashton, Founder, Tracometry People
Global leadership in an industry is often linked to having demanding domestic market consumers. It is so partially because Japanese consumers are extremely demanding when it comes to electronics, German consumers for automobiles, Americans for fast food products, and French and Italian consumers for fashion, so much so, in fact, that one observes leading companies in these industries from the vantage point of their respective countries and the needs of their respective markets.
In recent years, companies looking to expand have shifted their focus to emerging markets. But if they are to succeed in these markets companies must understand that they will also have to effect another, highly important shift. They will have to change their approach to innovation.
For most companies in Western markets, innovation has meant the development of new products with more advanced features at premium prices. But in emerging markets, where their products must appeal to the millions who don’t have millions, companies will need to master the art of frugal innovation.
However, understanding frugal innovation and learning how to practice it are much easier said than done.
Affordability is the key
While planning innovations for bottom-of-the-pyramid customers, affordability becomes the key issue. Companies need to understand what customers feel is an affordable pricing structure.
The answer can often surprise companies because the price point could be just a small fraction of prices being charged today.
The challenge for companies is to use innovation to drive down the price to a level that economically disadvantaged consumers feel is affordable. This is what we mean by frugal innovation. Different approaches have been used to achieve this objective.
Tracometry People & Infobricks believe that the Cup of Coffee approach is the answer. No, we are not selling coffee! It is the pricing, everyone can afford a cup of coffee, say €3.00 or $5.00 for a good cup of beans. Meaning that you are marketing to the masses with a frugal innovation that all can afford and has the ability to satisfy their thirst for available technology.
Perhaps the biggest hurdle in crafting frugal innovations is the highly inflexible value chain. Though several companies pride themselves and feel that they possess exemplary value chains, the chains pose a serious hurdle when it comes to creating offerings for economically disadvantaged consumers. In fact, the value chain needs to be tweaked at both ends – suppliers and vendors as well as distributors and channels.
The issues are virtually critical for companies hoping to penetrate emerging markets and serve the needs of the bottom-of-the-pyramid customers. The aspects of affordable pricing, addressing critical considerations of customers, and re-constitution of the value chain will decide the winners and losers in frugal innovation.
Especially when it comes to the Internet of Things (IoT).
Knowing that the savvy techno-geeks are a small percentage of computer users, we were lead to design and develop a portal, gateway, dashboard that anyone could use. This is then their repository of everything they do or want to do on the Internet of Things, (IoT). This becomes your corporate dashboard to all your services. Healthcare, Media Services, Cable or Satellite providers, Internet (ISP), Security Services, Customer Service, Banking etc.
All with a single sign-on, military encrypted and all data in motion fully encrypted, end to end. The public are terrible at security, not just on their computers, Smart phones, Tablets, etc. They leave doors unlocked, windows open, faucets dripping, lights on and television and radio blaring when they leave the home.
Everything is now under one roof, so to speak. On all platforms, Apple, Linux, and Windows. Even further, on all devices!
The Bring Your Own Device (BYOD) concerns are gone!
We are the Poster Child of Frugal Innovation.
Through outside-in frugal innovation, A-Listed conglomerates now have the ability to expand without the inner worries of expenditure for their shareholders.
Tracometry People invite you to discuss how together we can open doors securely and deliver to your existing customers and potential new clients, technology to revolutionize your communications capabilities today!
It is all about simplistic secure access to all…
Telephone: +1 (614) 655-1247
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