Frugal innovation in healthcare how targeting lowincome markets leads to disruptive innovation by aditi ramdorai. The philosophy behind the development of frugal innovation has been described as instead of adding more bells and whistles, they strip their products down to their bare essentials the economist, 2010. The six principles of frugal innovation and why india can. Research article global health policy health affairs vol. These models could be adopted in the united states, which is under increasing pressure to do more with less, and for many. Please see here for part one t he culture of frugal innovation in india that has always existed is particularly exciting now, especially in the context of healthcare.
Through minimising the use of resources in development, production and delivery, or by leveraging them in new ways, frugal innovation results in dramatically lowercost products and services. How healthcare hacks help doctors innovate ge reports. Its about solvingand even transcendingthe paradox of doing more with less. A solving problem rationale under scarcity conditions article pdf available in technology in society 51 august 2017 with 104 reads how we measure reads. Aravind is a financiallyviable healthcare system in india. Frugal innovation in healthcare download frugal innovation in healthcare or read online here in pdf or epub. How targeting lowincome markets leads to disruptive innovation this book focuses on how companies are innovating with regard to the bottomofthepyramid bop. The products of frugal innovation often look inferior to existing. Frugal innovation involves the design and delivery of goods and services at minimum cost without compromising quality to meet demand from new consumers of healthcare. Save up to 80% by choosing the etextbook option for isbn. If you ever have the opportunity to discuss the book with others, you will be able to clearly tell their views, as you.
Frugal innovation in healthcare and its applicability to. Pdf global lessons in frugal innovation to improve health care. Siemens, too, has embraced frugal innovation, with an approach it terms smart simple, maintenancefriendly, affordable, reliable and timely to market. Describing the successful examples of companies like logitech in china and tata, samsung and ge healthcare in india, mahmood emphasized that these companies endured a long and bumpy journey, but they all embraced an unconventional way of innovating, adopting a more with less, for more strategy, otherwise known as frugal innovation. Frugal innovation sometimes called jugaad innovation after a hindi word meaning flexible improvisation as a concept emerged in the context of developing countries where resource and financial constraints do not permit mainstream solutions to problems like healthcare or transportation. Whilst it is clear that technology is crucial to advance healthcare. The term frugal innovation sometimes referred to as reverse innovation, inclusive innovation and constraintbased innovation describes a type of innovation in which technological products are customised at low prices and high volumes in and for emerging markets dutta and benavente, 2011.
Mar 21, 2017 frugal innovation can be low tech, like the clay fridge in india, but it can also be about using high tech to make services more affordable and more accessible to more customers. Empirical analysis to identify examples of frugal innovation in healthcare. It is about creating meaningful products and services that integrate four core attributes highly valued. In 2012, it conducted over 370,000 eye operations including laser procedures 55% of them delivered at low or no cost.
Various researchers have since tried to define frugal innovation and differentiate the term from similar terms such as lowcost innovation, goodenough innovation, jugaad innovation. Therefore, they remain circumscribed to the specific application context in which they emerged. In an era of resource shortages and empowered consumers, companies. The six principles of frugal innovation and why india can be a trendsetting practitioner and thoughtleader in this space. Frugal health care innovations from resourceconstrained countries use strategies like improving communications through telemedicine and taskshifting to enable more workers to provide treatment. Entrepreneurs are increasingly forming crossindustry bridges between indias ample technological expertise. The indian conglomerate tata group and the american healthcare giant ge healthcare have also developed affordable products targeted at the lowestincome segments in india.
Frugal innovations nesta the innovation foundation. Innovation how healthcare hacks help doctors innovate may 27, 2016 by jan denecker, healthcare marketing director, ups europe the world stands to benefit if the healthcare industry embraces frugal innovation, the art of stripping away complexity to create lowercost goods. Are frugal innovation and social entrepreneurship and innovation related. The authors present an indepth analysis of these companies and present their insightful results on disruptive innovation and the everchallenging bop market. Patterns of frugal innovation in healthcare hareem arshad, marija radi, and dubravko radi introduction the philosophy behind the development of frugal in novation has been described as instead of adding more bells and whistles, they strip their products down to. This book explains how frugal innovation is different to other types of innovation and how frugal innovation offers a creative solution to issues of sustainability and the circular economy. We draw from five cases of frugal innovation within the medical and laboratory equipment industry in india and china.
Frugal innovation, a relatively new concept in social scientific research, has. The english search terms bear a risk of creating, first, a bias towards frugal innovations from industrialized countries and, second, a bias towards frugal innovations from multinational corporations and academia compared to. Therefore, frugal innovation needs to be driven by developing a model wherein affordability is the central issue. Indeed, frugal innovation seems adequate to satisfactorily addressing the problems of many people facing poor healthcare in underdeveloped and developed countries.
Frugal innovation in healthcare the economist youtube. Finding its origin in the hindi word jugaad, it is a synonym for efficient, low cost solutions to everyday problems. If you ever have the opportunity to discuss the book with others, you will be able to clearly tell their views, as you have taken the time to really take into account all relevant aspects. Riding high on the frugal innovation wave, discovery iq is 40% cheaper, making it accessible to a larger number of oncology centres across india. Frugal innovation in healthcare how targeting lowincome markets leads to disruptive innovation. Williamson 2010, and frugal in novation economist 2010. Global lessons in frugal innovation to improve health care delivery in the united states article pdf available in health affairs 3611. This study investigates business models for frugal innovation i. The six principles of frugal innovation and why india.
However, the meaning of frugal innovation is fuzzy. Frugal innovation can be low tech, like the clay fridge in india, but it can also be about using high tech to make services more affordable and more accessible to more customers. This is the second part of a series on healthcare innovation in india. This report offers new insight into the importance of frugal innovation in the development of medical devices and technologies for the global market.
Dec 11, 2019 frugal innovation in healthcare how targeting lowincome. Managing innovation in healthcare world scientific. Global lessons in frugal innovation to improve health care. The authors of the new book frugal innovation share six principles of frugal innovation, and an example from the book about kingfisher register for access you must be signed in as a member or registered user to view this article. As these examples and many product innovations show, business model innovation is also often an essential feature in a frugal solution. However, understanding frugal innovation and learning how to practice it are much easier said than done. Frugal innovation paper university of bath research portal. The healthcare sector stands to benefit most from frugal innovation, the idea that more can be done for less for many more people, globally. Frugal innovation in healthcare and its applicability to developed markets. The authors present an in depth analysis of these companies and present their insightful results on disruptive innovation and the everchallenging bop market.
We suggest three entry points for companies seeking to embark on a. The institute of global health innovation was commissioned by. In constrained environments, healthcare providers often create unexpected solutions to provide adequate healthcare to patients. Pdf patterns of frugal innovation in healthcare semantic.
We used the two search strings frugal innovations in healthcare and frugal innovation and healthcare. We suggest three entry points for companies seeking to embark on a frugal innovation journey. In recent years, the idea of frugal innovation has gained attention among innovation scholars. Managing innovation in healthcare is the perfect accompaniment for msc, phd and mba students on health policy, management and public health courses, as well as managers, consultants and policy makers involved in healthcare services in both the public and private sector. Other examples of frugal innovation in other sectors include the mitticool refrigerator, a natural refrigerator made entirely from clay, and ge healthcares highefficiency lullaby baby warmer for neonatal care. When managed like this, hospitals are only used for critical. However, these particular processes of frugal innovation took place dissociated from the market and the public policy.
Request pdf on jan 1, 2015, aditi ramdorai and others published frugal innovation in healthcare find, read and cite all the research you need on researchgate. John cochran, md, former executive director, kaiser permanente federationthis book is timely and very important for american physicians, healthcare executives, and legislators to read. As a first step for health systems to leverage new approaches to offset escalating health expenditures and to improve health outcomes, the most relevant frugal innovations have to be found. As a process frugal innovation discovers new business models, reconfigures value chains, and redesigns products to serve users who face extreme affordability constraints, in a scalable and sustainable manner. Frugal innovation in healthcare how targeting lowincome. A frugal approach to innovation allows this hospital to solve specific healthcare necessities in a specific domain. Mr thulasiraj, executive director at aravind, explains how the system works. There can be overlapping concerns as frugal innovation and social enterprise commonly agree on who to benefit, but i. The institute of global health innovation was commissioned by the. The growth opportunities in frugal innovation are clear.
Frugal innovations have been adopted in a wide range of industries including automotive, energy, information and communication technology, and healthcare. Pdf frugal innovation download full pdf book download. Since 2007, ive met with and studied hundreds of amazing entrepreneurs in the global south in india, china, africa and south america. Patterns of frugal innovation in healthcare hareem arshad, marija radi, and dubravko radi introduction the philosophy behind the development of frugal in novation has been described as instead of adding more bells and whistles, they strip their products down to their bare essentials the economist, 2010. The book approaches innovation by taking into account the stakeholders and how companies can innovate efficiently in an inclusive manner. Because of the few insights on business models in resourceconstrained environments, particularly with regard to frugal innovation, we adopted a qualitative research approach using a multiple case study design based on eisenhardt 1989 and yin 2014. The aravind eye care system aims to deliver highquality, lowcost ophthalmological care to some of indias poorest people. How targeting lowincome markets leads to disruptive innovation.
Successful frugal innovations are not only low cost, but outperform the alternative, and can be made available at large scale. Frugal innovation in healthcare and its applicability to developed markets abstract frugal innovation, a relatively new concept in social scientific research, has a long cultural history in lowincome developing markets. Frugal innovation in healthcare how targeting lowincome markets leads to disruptive innovation authors. This led us to a sample of 50 frugal innovations in the healthcare sector. Aditi ramdorai,cornelius herstatt 20150429 medical. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The authors use several examples of disruptive innovations for this market. Frugal innovation in medicine for low resource settings bmc. Frugal innovation in healthcare gives motivation to analyze information and is also useful when criticizing plots. Frugal innovation in healthcare services of health technology solutions are inversely related to health needs in developing countries 5. Implications of frugal innovations on sustainable development. In each case, the frugal innovations in these examples were developed for the needs of emerging economies. Business models for frugal innovation in emerging markets.
Frugal innovations like those used in a number of developing countries could enable these u. Dec 27, 2016 recently, the innovation management literature has witnessed a rising interest in the socalled frugal innovation. Reverse innovation in health care is a great and wellrounded approach to tackling many of the current healthcare issues. Frugal innovation available for download and read online in other formats. These inexpensive but effective frugal innovations may be imperfect, but they have the power to ensure. This effort brings out the features of these innovations and further highlights the potential of frugal innovation to improve global health. The two are not mutually exclusive and nor is one a subset of the other. 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, based on the indian concept of jugaad innovating when there are limitations in resources can provide an answer when capital is low, resources are scarce, or. Frugal innovation in medical devices and technologiesthe india opportunity.
Through minimising the use of resources in development, production and delivery, or by leveraging them in new ways, frugal. Frugal innovation is not just about doing more with less but about doing better with less. The economic relevance of frugal innovation is the creation of lowcost market products that are affordable for all social groups, including marginalized ones mcgee, sammutbonnici, 2014. Recently, the innovation management literature has witnessed a rising interest in the socalled frugal innovation. Frugal innovation in medicine for low resource settings. A larger study was undertaken to identify a cohort of frugal innovations, evaluate the application of the fihid tool, and assess the processes and strategies employed by frugal innovators. Nov 28, 2014 frugal innovation is not just about doing more with less but about doing better with less. Here surgeries like hers cost as little as 3% of those carried out in western hospitals.
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