Session on ‘Frugal Innovation’ by World’s Leading Experts and Panel Discussion with CEO’S
IIT Delhi Campus (Bharti School of Telecommunication)
7th April 2015
A one day Session on ‘Frugal Innovation’ by World’s Leading Experts and a Panel Discussion with CEO’S was organized by the Yi (Young Indians) Delhi Chapter in partnership with Confederation of Indian Industry (CII) & Hachette Publishers at Indian Institute of Technology, Delhi on 7th April 2015. Mr. Divyanshu Sinha, Assistant Professor, Department of Computer Science & Engineering, Dronacharya Group of Institutions, Greater Noida attended this coveted event.
In the first session Mr. Navi Rajdou Silicon Valley Based Innovation and Leadership Advisor, Winner of Thinkers 50 Innovation Award explained the concept of Frugal Innovation as a disruptive growth strategy that aims to create significantly more business and social value while drastically reducing the use of scarce resources such as energy, capital, and time. Long practiced by companies in complex and resource-constrained emerging markets like India and China, frugal innovation is now being adopted by pioneering Western companies to address the needs of cost-conscious and eco-aware consumers in developed economies. Frugal innovation challenges the traditional “more for more” business model of Western companies which pump billions of dollars into R&D, use lots of natural resources to crank out complex, expensive products, and charge customers ever more for new features.
In the second speaker in the fray was Professor Jaideep Prabhu Director of Research at the Tanaka Business School at Imperial College, London, Uk who cited examples of people who are making Frugal Innovation work. In 2004, the French car maker Renault launched Logan, a no-frills sedan priced at €5,000 euros ($6,000). Initially destined for emerging markets, the low-cost car became a huge hit in Western Europe where, due to the recession, budget-conscious consumers had begun seeking affordable products that deliver greater value for money. Sensing an opportunity, Carlos Ghosn, CEO of the Renault-Nissan Alliance (a strategic partnership between Renault and Nissan), launched the development of a whole new product line of entry-level vehicles under the Dacia brand. Professor Jaideep Prabhu said that Andrew Witty, CEO, GlaxoSmithKline (GSK) when he took over as CEO of GSK in 2008, the then 43-year-old Witty resolved to overhaul the pharma giant’s R&D strategy, structure and culture. The focus was very much on how to re-organize and put processes in place to increase the firm’s agility and responsiveness to new opportunities. The strategy became one of breaking up big-ticket R&D programs (it costs over $1 billion to launch a new drug).
The session came to a close with the official unveiling of the book ‘Frugal Innovation: How To Do Better With Less’ by Mr. Rajdou, Mr. Prabhu and the panel of experts.