Frugal Innovation, low cost innovation New Business Option | Investment Science Investerest.co

Frugal Innovation, low cost innovation New business options

As the world spins forward There are many interesting innovations that have arisen to meet the endless needs of human beings. Among all the innovations, there is one concept that is getting very interesting and being watched which is Frugal Innovation or low cost innovation. Or sometimes it may be called economical innovation. It is often used to address problems in underprivileged or deprived sectors. Frugal Innovation is a business design concept that aims to deliver smart, simple, uncomplicated, accessible and affordable solutions.

Low cost innovation will focus on creating social value while reducing the use of both financial and wasteful resources, but will focus more on using locally available raw materials and materials. It can be said that it is trying to solve problems under existing constraints to achieve maximum efficiency.

For the difference between low cost innovation (Frugal Innovation) and conventional innovation. Conventional Innovation is a low cost innovation developed to meet specific needs. focus on solving problems directly Flexible, simple, adaptable

There is usually a market in developing countries. and Developing & Emerging Markets, which are large consumer groups at the bottom of the pyramid. such as India, Brazil, China and countries in the African continent. The general innovation will be developed from the desire to create new things that focus on beauty, refinement and satisfaction for users. There is usually a market in a group of developed countries.

For emerging economies that are often constrained in various fields, low-cost innovations can be a great solution to these problems. In India, for example, Harish Hande, founder of SELCO, provides cheap solar power to more than 125,000 households in remote rural areas. The company uses a method of building a network of local entrepreneurs to sell and maintain solar lamps in their local communities. For this success, Hande was awarded the Ramon Magsaysay Award in 2011.

In China, SIEMENS R&D engineers have applied low cost innovations to design a simple CT scanner with low power consumption. There is no need for technicians to reduce costs, which is good for hospital installations in remote areas. This makes it possible to scan more patients as well.

and for Peru, which is a country with low rainfall but high humidity A local engineer has invented a billboard that can convert moisture into drinking water. It can produce nearly 10,000 liters of drinking water in three months. It pointed out that the challenge of low-cost innovation is that it takes into account the suitability of the local situation and culture, and if low-cost innovation is to be successful. There must be a link between all relevant stakeholders – entrepreneurs, designers, financiers, manufacturers and distributors.