Frugal Innovation: 8 key ideas
The core ideas of Frugal Innovation, each in under a minute, written in our own words. Want the full depth? Get the book.
- IDEA 1 OF 8
Frugal means better with less
Radjou and Prabhu define frugal innovation as creating more value for customers and society while using fewer resources.
They argue that limited money, energy and materials now make this approach essential everywhere.
- IDEA 2 OF 8
Old innovation models are too costly
The authors argue that big research budgets and long, secret development cycles are slow and expensive.
Companies are being challenged by smaller firms that create useful products faster and more cheaply.
- IDEA 3 OF 8
Engage customers and iterate
The first principle is to involve customers early and improve products through quick experiments.
Instead of perfecting a product in private, companies test simple versions and learn from real users.
- IDEA 4 OF 8
Flex your assets
The authors encourage firms to make factories, supply chains and services more flexible.
Smaller, adaptable operations can respond quickly to changing demand without wasting resources. They give factory examples from several countries.
- IDEA 5 OF 8
Build sustainable solutions
The authors argue that products should be designed to reduce waste and be reused or recycled.
Sustainability, in their view, saves money and builds trust with customers. Waste is treated as a design failure.
- IDEA 6 OF 8
Shape how customers behave
Companies can help customers make better choices, such as using less energy or living more healthily.
The authors suggest that nudging behaviour can create value for both customers and businesses.
- IDEA 7 OF 8
Work with prosumers
The authors describe prosumers, customers who also make, share or improve products.
Firms can benefit by inviting them to co-create, through communities, open platforms and do-it-yourself culture. Users become partners in making things.
- IDEA 8 OF 8
Partners speed up innovation
The final principle is to build alliances with start-ups, universities, suppliers and even competitors.
The authors argue that working with others spreads costs and brings in fresh ideas. No firm needs to innovate alone.
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