Posts Tagged ‘Healthcare’

New paper: “Frugal innovation and analogies: some propositions for product development in emerging economies”

Tuesday, July 1st, 2014

Working_Paper_84A new paper that seeks to generate some preliminary insights on the use of inventive analogies in the process of creating frugal innovations. The paper has been authored by Rajnish Tiwari, Katharina Kalogerakis and Cornelius Herstatt and was presented at the recently-held R&D Management Conference (June 3-6, 2014) in Stuttgart.

Abstract

Frugal products and services aim at satisfying the unsaturated demand of a large and growing middle class in many “emerging economies”. Although research has been conducted in regard to the strategic importance of frugal innovations, so far, the actual development process of such innovations has not been looked into in detail. Some examples show that inventive analogies are used to develop frugal innovations. For instance, the development of a frugal artificial heart was based on the heart structure of cockroaches, which led to a reduction of costs by 20 times.

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Innovieren für preisbewusste Kunden: Analogieeinsatz als Erfolgsfaktor in Schwellenländern

Monday, October 21st, 2013
An artfical heart developed by IIT Kharagpur based on an analogy  to a cockroach's heart. Photo courtsey: Times of India
An artfical heart developed by IIT Kharagpur based on an analogy to a cockroach’s heart. Photo courtsey: Times of India

Neue Publikation vom Center for Frugal Innovation @TIM/TUHH: Ein neues Arbeitspapier von Rajnish Tiwari und Cornelius Herstatt (Working Paper No. 75, TIM/TUHH) untersucht den EInsatz von innovativen Produktanalogien in frugalen Innovationsprojekten und kommt zum Schluss, “dass frugale Innovationen aufgrund der hohen Bedeutung von Risikominimierung in Produktentwicklungsprojekten häufig eine größere Offenheit für externes Wissen und Analogien aus ihrer Umwelt aufweisen, und davon auch viel profitieren. Den interessierten (potenziellen) frugalen Innovatoren kann diese Methode daher zwecks Reduzierung von Entwicklungskosten und –risiken aber auch zur Steigerung der Prozesseffizient empfohlen werden. Nicht zuletzt zeigen die Fallstudien aber auch, dass der Analogieeinsatz in frugalen Innovationen wichtige Erkenntnisse fürs Management von Innovationsprojekten in nicht-frugalem Bereich liefern kann.”

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Symposium on Frugal Innovations in Hamburg

Thursday, October 3rd, 2013

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

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Date: Tuesday, 19.11.2013, 9:00 – 18:00 hours
Location: Guest House of the University of Hamburg,
Rothenbaumchaussee 34, D-20148 Hamburg, German
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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
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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.

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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.