It Is Not Just All About Money...
by Nick Ashton, Founder, Tracometry People
CEOs and the C-Level suite of large companies face a puzzle: they are challenged with a growing number of frugal consumers clamoring for affordable solutions, yet their existing corporate culture and incentive systems are designed to support a “bigger is better” business model — not to deliver more with less. As the Age of Austerity begins, however, corporate leaders will have no choice: they will have to bite the bullet and infuse their organizations with a frugal mindset. In sum, CEOs and the C-Level suite with the Board and the blessing of the shareholders need a frugal innovation agenda.
Frugal innovation is the ability to innovate cost-effectively and sustainably under severe resource constraints. We have spoken of “frugal engineering”, which is reinventing your entire company so it can innovate faster, better, and cheaper in a complex and resource-scarce global environment.
Visionary CEOs aren’t caving in to Wall Street’s demands for short-term gains. Rather, they are boldly restructuring every function in their organizations to boost their firms’ long-term ability to deliver affordable and sustainable solutions to increasingly cost-conscious and eco-aware consumers.
Frugal Innovation is not new and there are those of us that embraced the needs and developed the steps to do so.
Tracometry People suggest that CEOs eager to do more with less drive systemic changes across their entire organization — focusing their change management efforts on three functions: R&D, marketing, and sales.
CEOs who are bold enough to implement this frugal innovation agenda — as leaders at P&G, Renault-Nissan, Siemens, and Unilever are doing — will be able to deliver significantly more value to customers while saving on costs and reducing environmental impact. According to the World Economic Forum, corporations can save a whopping $2 trillion by 2030 by implementing frugal innovation strategies that do a better job of utilizing resources.
It is not only your own R & D, which would take time, investment and shareholder approval to ramped up, it is turning to out-sourced companies that have all embraced, developed, designed and tested the marketplace reactions that must be allowed to present their products and findings.
Listening and allowing these out-source companies to share their expertise under NDA agreements, will save you creative time, production costs and that visit to the Board and shareholders to secure the extra funds.
When companies like Tracometry & Infobricks install Beta Testing, they do not do it by half. Our latest was in Germany with 9,000,000 subscribers. That is knowing your product and A-List companies can share with us. Joint ventures are an excellent means to a frugal innovative end.
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