‘Frugal innovation’ by Navi Radjou and Jaideep Prabhu: Book Summary by D Shivakumar; Chairman &...
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Transcript of ‘Frugal innovation’ by Navi Radjou and Jaideep Prabhu: Book Summary by D Shivakumar; Chairman &...
New regulations require businesses to be more resource
efficient. President Obama passed a law requiring cars to move from 27.5 miles per gallon to 54.5 miles
per gallon by 2025.
Frugal innovation aims to reduce the financial cost of doing
business and also its environmental cost.
Frugal innovation aims to maximize three difficult
attributes : Affordability, Quality and Sustainability.
In the US among the 100 million people who have full time jobs, 50
million are not engaged and 20 million are totally disengaged. The cost of this disengagement in the US is about $550 billion annually.
The 20 th century industrial model worked as long as cheap labor and economies of scale came through.
Good leaders simplify things to get more from their people. Poor
leaders make their employees ‘miserable and disengaged’ with
‘dizzying complexity’
Focus on the core is key. GM plants to reduce the number of
distinct vehicle architectures from 30 in 2010 to 18 in 2018.
Gil Amelio, CEO of Apple cut innovation projects from 350 to 50 and that was seen as good. Steve
Jobs cut that from 50 to 10.
A top down management culture is good in a crisis, but can never
work to make a company flexible and agile. That needs
empowerment and letting people realize and come along.
Nearly 50 % of young European consumers feel that cars will be
consumed as a ‘shared good’ this decade.
Large companies can only do so much for sustainability.
Consumers also have to learn to do more with less.
6 ways to hyper collaborate
1. Talk to suppliers who think originally2. Work with partners to develop an ecosystem3. Engage competitors in realizing big hairy,
audacious goals4. Share assets and resources with other
companies and save5. Work with the social sector6. Engage restless entrepreneurs, innovators.
What GE learnt from start ups
1. Keep things simple2. Work fast3. Find solutions through partnerships in eco
system4. Don’t be afraid of uncertainty
Supply chain experts refer to sales forecasts as ‘stale food’, because it
forecasts the future sales based on past trend. Getting Innovation
forecasts right is a challenge
New technology at point of sale and real time inventory level data
in the value chain will make a future demand forecast better.