Posts Tagged ‘Disruptive Innovations’

Symposium: “Frugal Innovation” und die Internationalisierung der FuE (Hamburg, 9./10. Oktober 2014)

Thursday, August 28th, 2014

Innovationskugel 120x120

Symposium

“Frugal Innovation”
und die Internationalisierung der FuE

Hintergründe, Strategien, Fallstudien

Hamburg, 9./10. Oktober 2014

Direkter Link zu allen weiteren Details sowie zur Anmeldung: hier anklicken


 

(more…)

Der Erfolg frugaler Produkte ist nicht aufzuhalten!

Monday, October 21st, 2013

Pressemitteilung / Hamburg, 21.10.2013

Center for Frugal Innovation @ TUHH„Deutsche Baumaschinen zu gut für den Weltmarkt“ titelte Die Welt am 17.4.2013. Deutsche Maschinenbauer werden dem Bericht zufolge trotz Innovationstrophäen von den Märkten der Schwellenländer verdrängt. Die Gründe sind sowohl die fehlende Zahlungskraft als auch die abnehmende Zahlungsbereitschaft lokaler Kunden. Anstelle hoch komplexer („over-engineered“) und damit einhergehend teurer Produkte fragen sie erschwingliche und robuste Technik nach, die häufig aus anderen Ländern und insbesondere aus den Schwellenländern selbst kommt. Solche „good enough“ Produkte, Lösungen mit ausreichender Funktionalität bei guter Qualität und einem sehr wettbewerbsfähigen Preisniveau, kennzeichnen den Innovationsansatz „fugaler Innovationen“.

(more…)

Symposium on Frugal Innovations in Hamburg

Thursday, October 3rd, 2013

“Mastering the Frugal Challenge: Innovating for Global Growth through Affordable Solutions”

—————————————————————————————————————

Date: Tuesday, 19.11.2013, 9:00 – 18:00 hours
Location: Guest House of the University of Hamburg,
Rothenbaumchaussee 34, D-20148 Hamburg, German
y
Organizer: Center for Frugal Innovation at TIM/TUHH
Cooperation partners: German-Indian Round Table (GIRT), European Institute for Technology and Innovation Management (EITIM)
Download: Information & preliminary agenda (PDF), Registration form (PDF)
Website: www.frugal-innovation.net
—————————————————————————————————————-

Center for Frugal Innovation @ TIM/TUHH

The inaugural symposium on frugal innovations organized by the newly-launched Center for Frugal Innovation at the Institute for Technology and Innovation Management (TIM) of Hamburg University of Technology (TUHH) intends to cover upcoming key questions on global growth in both emerging as well as developed markets through affordable and good-enough solutions.

(more…)

New Publication: Lessons from low-cost healthcare innovations for the Base-of the Pyramid markets

Saturday, June 22nd, 2013

A new publication by Aditi Ramdorai and Cornelius Herstatt of Research Project Global Innovation at TIM/TUHH looks at “Lessons from low-cost healthcare innovations for the Base-of the Pyramid markets: How incumbents can systematically create disruptive innovations”

(Working Paper No. 74, Institute for Technology and Innovation Management, Hamburg University of Technology, June 2013, PDF, 216 KB)

Abstract

Frugal innovations, characterized by their focus on affordability and retaining key functionalities of products/services, are emerging in the healthcare sector from India – ranging from low-cost healthcare delivery by hospitals like Aravind Eye Care that provides cataract surgery to around 300,000 patients at a cost of 18 USD per patient to product innovations such as the Jaipur Foot, a low-cost prosthesis. These frugal innovations represent disruptive innovations, innovations that are typically simpler, more convenient and more affordable. Disruptive innovations create growth potential for companies while opening up access to products and services that were previously beyond peoples’ reach. Low-income markets or Base-of-the-Pyramid [BOP] markets present new opportunities to Multi-National Corporations [MNCs] and scholars are calling MNCs to leverage BOP markets to create disruptive innovations.

Established incumbents generally fail to successfully commercialize disruptive innovations. Their internal processes and values force them to focus on their existing customers, thereby ignoring projects targeted at new emerging markets that lack a customer base.

An exception to this is the American incumbent GE Healthcare, which has been creating several low-cost innovations targeted at emerging markets for the past years. In this research, we look at organizational structures and processes that GE Healthcare has in place, which enables it to create disruptive innovations systematically. With this we hope to contribute towards building disruptive innovation theory, where questions pertaining to selective success and failure of incumbents to create disruptive innovations remain unanswered. Literature on disruptive innovations recommends incumbent firms to create a separate entity for commercializing disruptive innovations. However, scholars have been calling upon firms to explore new markets and exploit existing opportunities simultaneously.

The ability to successfully drive disruptive innovations from within the organization will be analyzed through the lens of organizational ambidexterity. Ambidexterity is the ability of organizations to successfully balance exploration and exploitation. The manifestation of this act of balancing exploitation and exploration is the companies’ ability to initiate multiple innovation streams, in this case sustaining innovations and disruptive. Key proponents of organizational ambidexterity, O’Reilly and Tushman, consider it a “solution to the innovator’s dilemma”, however present their thesis only conceptually. This work will look at the mechanisms of ambidexterity at GE Healthcare to help explain its ability in successfully hosting sustaining and disruptive innovations from within its boundaries.

New publication: “India – A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies”

Friday, January 27th, 2012

The Institute for Technology and Innovation Management at Hamburg University of Technology (TUHH) publishes a new working paper on the topic: “India – A Lead Market for Frugal Innovations? Extending the Lead Market Theory to Emerging Economies“. The paper is authored by Rajnish Tiwari and Cornelius Herstatt (Working Paper 67, January 27th, 2012).

Abstract
India has emerged as a vibrant and versatile source for cost effective, “disruptive innovations” of various varieties. Price-sensitive consumers in a large and growing market keep inducing firms to apply “frugal engineering” for creating affordable products and services without compromising excessively on quality. Because, as The Economist asserts: “Frugal does not mean second-rate”. Such innovations are characterized by high affordability, robustness, and “good enough” quality in a volume-driven market. Resource constraints motivate firms and entrepreneurs to think out-of-the-box. The trick lies in creating solutions that are able to circumvent given environmental constraints in a cost effective way. India’s large and enormously young population faced with limited budgets, but well-endowed with high aspirations, provides an ideal experiment ground for many firms. Solutions created for the Indian market are often suitable for other developing countries in Asia, Africa and Latin America that frequently face similar socio-economic conditions. In some instances they succeed even in developed country markets by enabling significant cost reductions. This emergence as a hub for “frugal innovations” possibly suggests a “lead market” role for India.
On the other hand, lead markets, as understood today, are characterized by high per capita income, great customer sophistication and high quality infrastructure. Such assumptions imply that lead markets, almost by default, can only exist in economically developed countries because only they can finance the development effort. Using two anchor-cases of product innovations aimed at price-sensitive segments in India we generate preliminary evidence to challenge some of the core assumptions of the “lead market” theory and propose that lead markets can emerge in developing countries too because market attractiveness (e.g. volume of demand, export possibilities) and technological capabilities are able to offset many other deficiencies. The supposed absence of customer sophistication is channelized into a challenge for supplier-side sophistication to design cost effective, “good enough” solutions (“low-cost, thin-margin”) that can meet the aspirations of consumers in a highly competitive market. In order to master this challenge companies need access to a competent and sufficiently large technical base with first-hand knowledge of the ground situation of targeted customer groups (“social capital”).
Keywords: Lead Markets; India; Frugal Innovations; Frugal Engineering; Disruptive Innovations; National Innovation System; Sectoral Innovation System.