Bret Ryder, author of the article "First Break all the Rules: The Charms of Frugal Innovation," gives readers several examples of the way in which creative product designers were able to devise lifesaving products for people who are living in areas with struggling economies. The mentality of those inspired individuals stands in stark contrast to other countries, such as the United States, where it seems that most products are designed to be sold at a price point set just a faction below consumer's comfortable spending levels.It was inspirational to read about people like India's Dr. Devi Shetty and Ananth Krishnan, as they truly desired to make products that can be accessible to people who have difficulties providing their families with the basic necessities of life. An article in the July / August 2012 edition of the Ivy Business Journal (http://bit.ly/YLdr54) reiterates the social impact of businesses and individuals who focus on customers residing at the bottom of the financial pyramid. The author of the article, Kaushik Mukerjee, looks at the building blocks vital to frugal innovation. This includes designing affordable products, knowing the customers, and building new value chains. Frugal innovation typically comes as a result of a necessity to overcome seemingly insurmountable obstacles through adaptation and invention. Many inspired products have come to reality through frugal innovation. As long as areas of the world face financial and social struggles, innovative thinkers will continue to devise ways of providing cost effective products for those to which the items would typically be unattainable.
I like the fact that you essentially point out that American advertising is predicated on the notion of making consumers buy things that they do not need. For me, Frugal Engineering is an opportunity to create awareness that disadvantaged people need these products in order to lead quality lives instead.
ReplyDeleteIt would be nice if more American companies would recognize the value of frugal innovation. It could even be tweaked to fit our market. One of the points against it is that it is not necessarily profitable. However if you mix the two a company can have profits and work to bring products to the market which help those at the bottom of the pyramid. It is the best of both worlds capitalism and social responsibility.
ReplyDeleteThe article mentioned points out that frugal innovation has to be tailor made for the consumers, instead of the Western way of producing the most expensive luxury items to sell. I found some similar information regarding the differences in Western thinking and how that will have to change if Western markets want to compete and understand how frugal innovation actually works and is beneficial.
ReplyDeleteWill,
ReplyDeleteI liked your comment, "As long as areas of the world face financial and social struggles, innovative thinkers will continue to devise ways of providing cost effective products for those to which the items would typically be unattainable." I think this is very true, not only in areas where there are financial struggles, but environmental concerns are going to increase the use of frugal innovation. I posted this article on Amy's blog, but I think it applies here as well showing some of the recent innovations that are being done here in the United States to help "go green." I think Santa Clara University has the right idea by having the next incoming class take a class on this concept.
http://livinggreenmag.com/2013/02/07/green-business/frugal-innovation-engineers-bring-green-solutions-to-the-developing-world/
I'm with Garth - I liked that you pointed out that prices, etc. are set up in order to have the consumer spend what's just below their comfortable level, and that the consumer most often looks at price rather than functionality at the basic level. That's what frustrates me the most with American economics at the present. I've even guilty at this point of purchasing a phone that's the newest, and at the top of the line, not necessarily because my older phone was no longer working, but because I wanted a new phone (although, the argument could be said that my older phone was malfunctioning somewhat...)I think that the problem in America is the idea that we are the dream for most countries, and that we do not face the financial and social struggles that you mention. It's going to take an active change in thinking in order for frugal innovation to be widely adopted in America, but it's one that I'm ready for.
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