Frugal Innovation is optimizing the use of resources in development, production and delivery or by leveraging them in new and different ways. Frugal innovation results in dramatically lower-cost products and services.
To successfully achieve the desired results of frugal innovation, Design thinking could be a crucial tool.
1. Empathize the focus society
Frugal Innovation is about solving problem for people at the bottom of the pyramid through innovation. Understanding their problems, challenges and roadblocks is crucial.
2. Defining the Problem
Before jumping right into solution, we should step back and invest good amount of time and effort to improve our understanding of the problem. If the definition of the problem is better, we get much optimized solution.
3. Ideate about the Innovation
Once the problem is well defining in a specific framework it is much lean-to ideate about the solving it through Innovation.
Prototype the products. The key thing to keep in mind here is how to keep the cost under check. As better the cost the chances of getting success is high.
5. Test it in the market
Test it in the target market clusters and collect the feedback.
Frugal innovation responds to limitations in resources, whether financial, material or institutional, and using a range of methods, turns these constraints into an advantage.
Frugal Innovation is solving a problem by reducing complexity and by achieving it through optimizing the cost.
Successful frugal innovations are not only low-cost, but outperform the alternative, and can be made available at large-scale. Often, but not always, frugal innovations have an explicitly social mission