Innovating for better with less
When I started in my role as Innovation Leader in a large Pharma company, I was intrigued by Navi Radjou’s book “Jugaad Innovation“. The term Jugaad means a non-conventional, frugal innovation, an innovative fix or a simple work-around. This kind of innovation was especially relevant for the emerging markets geography I was working in at that time: while resources were limited, innovations were desperately needed.
I recently attended a webcast, organized by Innov8rs in which Navi Radjou discussed his new book “How To Thrive In The New Frugal Economy“. His inspiring talk was very relevant for the current economic environment where corporations in all geographies need to do more and better with less resources. He made a strong case for building/accessing an ecosystem to leverage existing solutions. The role of an Innovation Leader in this ecosystem is then to be an integrator: helping to avoid the need to invent/reinvent and sharing with others that have more knowledge. This approach saves time compared with going through a learning process.
This talk brought back memories on how indeed many marketers in the emerging markets organization I referred to above, were applying those principles of frugal innovation. Following are a few examples of innovations that illustrate some of the “attributes” as Navi calls them in his work:
Affordability/access (India)
- To help patients afford their expensive treatment for Hepatitis C, the commercial team applied the concept of micro-loans. With the help of a bank, the patients could pay for the treatment over a 3 year period, instead of during the 3 months the treatment took. This created a win-win-win: patients could afford treatment; the bank connected with potential customers; the Pharma company increased access to the medication. More here.
Borrow expertise/share clients (India)
- To increase awareness of Hepatitis C in rural areas, the marketing team partnered with P&G, leveraging their expertise in mass communication towards the same population both companies were targeting. Another win-win-win: patients could be diagnosed early and got treatment in time; P&G (Gillette) sold more disposable razors (they better prevent HepC transmission than traditional cutthroat razors); the Pharma company reached potential patients effectively. More here.
Engage (Tanzania)
- Women who skip their daily contraceptive pill increase their chance of getting pregnant. Patients told us they didn’t want a reminder via their smart phone, as they often didn’t want their partner to know or couldn’t rely on daily battery charging. A low cost “smart” pendant, working on a simple button cell battery, gave a discreet vibration daily, as a reminder. This pendant looked like a nice piece of jewelry, so patients also liked to wear it. A win-win-win: The patient prevented pregnancy; the pharmacist could provide extra value to generate customer loyalty; the Pharma company provided a differentiating value for their product. More here.
External partner (South Korea)
- Developing a pain free (non-injection) administration for existing vaccines would take years to develop. The vaccines team partnered with a company that had developed a pain free way for dentists to administer anesthetics. By inserting the injection in a slightly vibrating tool, the surrounding nerves were “numbed”, so the patient did not feel the injection. A win-win-win: the patients were less anxious (children); the “dental” company expanded the market for their product; the Pharma company provided quickly a differentiating pain-free solution. More here.
Sustainability (Ghana)
- Reaching people in remote areas with vaccines that need refrigeration is a huge challenge. The team partnered with the government and a drone company to deliver the vaccines with drones and on the way back, transported trash from those remote areas (disposal, including used vaccine syringes, is a major local challenge). A win-win-win: the patients could access reliable vaccines; the government provided both disease prevention and a protected environment; the Pharma company provided access to the vaccines.
These kinds of frugal innovations are being created more and more in developed countries – note the South Korean case above. Or, as Navi explains: “… frugal innovators strive to create products and services that score high on three, seemingly contradictory, attributes that are increasingly valued by Western customers: affordability, quality and sustainability.”
As Jeff Bezos said:
“I think frugality drives innovation, just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.”
So, as Innovation Leader, I created a large network so I could act as an integrator, connecting innovators in the corporation with others that have the complementary knowledge.
More, different viewpoints on this topic: ‘Jugaad’, India’s most overrated idea, by Manu Joseph and Why JUGAAD Innovation Is Smart But Not Sustainable, by Somali K Chakrabarti.
Do you have other thoughts on this topic?
Click here for more of my blogs on innovation within corporations: Wim Vandenhouweele
