Frugal innovation
Process of reducing the complexity and cost of a good and its production / From Wikipedia, the free encyclopedia
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Frugal innovation or frugal engineering is the process of reducing the complexity and cost of a good and its production. Usually this refers to removing nonessential features from a durable good, such as a car or telephone, in order to sell it in developing countries. Designing products for such countries may also call for an increase in durability[1] and, when selling the products, reliance on unconventional distribution channels.[2] When trying to sell to so-called "overlooked consumers", firms hope volume will offset razor-thin profit margins.[2] Globalization[3] and rising incomes in developing countries may also drive frugal innovation.[4] Such services and products need not be of inferior quality but must be provided cheaply.[5] While frugal innovation has been associated with good-enough performance, in some sectors such as in healthcare, frugal innovation must offer maximum performance without compromising on quality.[6]
In May 2012 The Financial Times newspaper called the concept "increasingly fashionable".[7]
Several US universities have programs that develop frugal solutions. Such efforts include the Frugal Innovation Lab at Santa Clara University and a two quarter project course at Stanford University, the Entrepreneurial Design for Extreme Affordability program.[8]