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
WE ARE IN THE NOW AND KEEP YOU; IN THE KNOW...
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