Frugal Innovation Trend Meets Global South’s Innovation Culture

There is a trend occurring across the global South that some are calling the next great wave of innovation. It has different names but many are dubbing it ‘frugal innovation’. Frugal innovation is basically innovation done with limited resources and investment. In short, innovation on the cheap but packing a big punch.

The phenomenon has several strands. One involves innovators and companies from the developed world setting up in the developing world and beta testing their inventions and innovations there. Another strand involves innovators in companies and governments in the global South increasingly targeting the so-called ‘BOP’ – bottom of the pyramid – market of the poor.

Another strand is focused on capitalizing on innovations for tackling the problems of the poor that are coming from the poor. Many of these innovations are improvised solutions. They may not be slick but they solve a problem.

And finally, there are companies and entrepreneurs in the global South taking their innovations to the markets of the wealthy, developed countries and finding a welcome reception from price-savvy consumers.

In the global South, frugal innovation is transforming lives – and it is finding its way into developed, wealthy countries too. It has been celebrated in the new book Jugaad Innovation: A Frugal and Flexible Approach to Innovation for the 21st Century (http://jugaadinnovation.com/) by Navi Radjou, Jaideep Prabhu and Simone Ahuja. The authors are innovation experts with a wide mix of backgrounds, from an academic to a Silicon Valley “thought leader and strategic consultant” to the founder of a marketing and strategy consultancy specialising in emerging markets innovation.

The authors propose “jugaad innovation” as a solution to the urgent need to innovate quickly and efficiently in a fast-changing world where little can be taken for granted. This breed of frugal innovation comes from India. Jugaad is a Hindi word (http://en.wikipedia.org/wiki/Jugaad) and basically means a work-around, improvised solution to a problem because it is cheaper. This is commonly used to describe makeshift vehicles people construct in India (http://wheels.blogs.nytimes.com/2011/03/25/jugaad-cheaper-than-a-nanobut-watch-for-splinters/).

As champions of the jugaad philosophy, the authors proclaim the old innovation paradigm is obsolete. The idea that throwing more capital and more resources at a problem will boost innovation, no longer works, they contend. Better results can come from being frugal and flexible. Being more creative allows for a fluid and improvised innovation culture to develop.

“In today’s interconnected world powered by social media, top-down R&D (research and development) systems struggle to open up and integrate the bottom-up input from employees and customers,” the authors say on their website.

“Jugaad on the other hand is flexible, frugal and democratic: it is often bottomup rather than top-down and involves a much larger number of people beyond those who are typically tasked with doing innovation in corporations. The strength of jugaad innovators lies in their ability to get more from less,experiment continually, and creatively engage people who are typically left out of the innovation process.”

And they have a message for the Western, developed nations. They must look to “places like India, China, and Africa for a new, bottom-up approach to frugal and flexible innovation,” if they want to experience continuing prosperity in the 21st century.

For global South inventors, entrepreneurs and manufacturers, this will prove a great opportunity. As debt-laden Western consumers deal with their lower spending power and incomes, they will be looking for products that cost less and yet tackle problems and improve their standard of living with minimal expenditure.

The Indian company Mahindra and Mahindra (http://www.mahindra.com/What-We-Do/automotive) sells its small tractors to American hobby farmers. The Chinese company Haier (http://www.haier.net/en/about_haier/haier_global/china/) has a range of frugal products that have become popular sellers. They include air conditioners, washing machines and wine coolers. Haier is so successful with these products it has been able to capture 60 per cent of the market in these categories in the United States.

Some of the hallmarks of frugal products are their efficient production, rapid development cycle, lower price point, and appeal to poorer customers.

The book argues that adopting a “jugaad” mindset will enable people and companies to innovate “faster, better and cheaper,” “generate breakthrough growth” and “outperform competition.”

“Jugaad innovation has three major benefits. First, it is frugal: it enables innovators to get more with less. Second, it is flexible: it enables innovators to keep experimenting and rapidly change course when needed. Third: it is democratic: it can therefore tap into the wisdom of otherwise marginalized customers and employees.”

“In contrast to the traditional structured approach to innovation, jugaad is inherently more customer-centric rather than technology or product centric.

Because jugaad innovators seek to solve a customer problem first and then develop a suitable solution, jugaad is more market-based than more structured approaches (that may be driven by the motivation to develop technology for technology’s sake) are.”

There are so many of these innovations and inventions happening, a culture has emerged to gather and document them and share them with others.

A good advocate of jugaad innovators in India is the Honey Bee Network (http://www.sristi.org/hbnew/). It has been building a database of grassroots innovation and knowledge (http://www.sristi.org/hbnew/augment_innovation.php).

But this dynamic innovators culture is not limited to India. Across Africa,information technology hubs and start-ups have been sprouting up. One of the more well-known is the iHub in Nairobi, Kenya (http://ihub.co.ke/pages/home.php) but there are centres of information technology innovation in Ghana, South Africa, Uganda and Nigeria.

One of the more outstanding and pioneering chroniclers of this frugal innovation culture in Africa has been the Afrigadget website (afrigadget.com).

It is packed with home-grown inventions. These include a young Kenyan boy using a rigged network of light bulbs to ward of lions from the cattle herd, a mobile phone security system for cars, and a home-made remote control toy car for children. Another great way to see this movement in action is at the Maker Faire Africa (http://makerfaireafrica.com/) which has been bringing together every year “handcrafters from Africa’s tiniest villages to her most expansive urban burgs”.

By David South, Development Challenges, South-South Solutions

Published: May 2012

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=m5GYBgAAQBAJ&dq=development+challenges+may+2012&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsmay2012issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Cool Food for the Poor

A whole wave of hi-tech, innovative products are now being developed and marketed for the world’s poor. These products are designed to raise the quality of life of poor people and treat them as a market with real needs, rather than a mass of people to be ignored.

One of the major challenges of the 21st century is finding ways to make these products affordable for the poor – bringing significant development gains in health and quality of life – without increasing the burden on the world’s environment. In India, this vast new market is rapidly coming alive, with new marketing channels reaching deep into the country’s slums and aided by a lively media scene turning people on to new products.

India is turning its large number of well-trained engineers and product designers to the task of making relevant products for the country’s millions of rural poor.

An Indian refrigerator – the ChotuKool fridge (http://www.new.godrej.com/godrej/godrej/index.aspx?id=1) – is designed to stay cool for hours without electricity and to use half the power of conventional refrigerators. Priced at US $69, it is targeted at India’s poor – a population of over 456 million, almost half the total Indian population (World Bank).

Manufactured by Godrej and Boyce and weighing just 7.8 kilograms, it is designed around the stated needs of the poor, who wanted a fridge capable of cooling 5 to 6 bottles of water and 3 to 4 kilograms of vegetables. Portability was crucial as well, since it needed to be moved when large family gatherings take place in small rooms.

As a video shows (http://www.youtube.com/watch?v=dtCRlynp0bM), the fridge looks more like a drinks cooler than the typical large refrigerator. It works by replacing the standard compressor motor found in most fridges with a battery-powered heat exchanger.

A group of village women was involved in the design process from the beginning. The fridges are being distributed by a microfinance group.

While people in developed countries take it for granted they will have both a refrigerator and a steady supply of electricity, the world’s poor have few options for keeping food cool.

There is a strong economic advantage to refrigeration: many farmers have to throw away vegetables or sell at high discounts because they are quickly spoiling in the heat. By refrigerating, they can keep them fresh and get the higher price. For somebody living on less than US $2 a day, this is a big economic boost.

Keeping food cool also comes with health advantages: it slows bacterial (http://en.wikipedia.org/wiki/Bacteria) growth, which happens at temperatures between 4.4 degrees Celsius and 60 degrees Celsius. This is called ‘the danger zone’, when some bacteria double in just 20 minutes. But when a refrigerator is set below 4 degrees Celsius, most foods will be protected from bacteria growth (USDA).

Through refrigeration, the poor not only can avoid food poisoning, but also benefit from better quality foods, more dietary variety, and better take advantage of buying and storing food when prices are lower. For example, eggs in a refrigerator can last for up to five weeks. Fresh fish can be stored unfrozen for up to two days.

The quality of life improvements from refrigeration are obvious. But with conventional refrigerators costly and dependent on a steady supply of electricity, the poor will not buy them.

An Indian government survey in 2007/08 found daily pay in rural areas ranged from 45 rupees a day (US $1) to 110 rupees a day (US $2.40). This means the ChotuKool fridge costs between one and two month’s wages for a rural worker.

Some argue even the cost of the ChotuKool is still too prohibitive to many poor people. And there are other initiatives out there to offer low-tech solutions to cooling food.

In Nigeria, grassroots inventor Mohammed Bah Abba has designed a cooler called the Zeer (http://practicalaction.org/?id=zeerpots). It works like this: two ceramic earthenware pots of different sizes are arranged one inside the other. The space between the pots is filled with wet sand and kept moist. The user then places their drinks or vegetables inside and covers with a damp cloth. As the water from the moist sand evaporates (http://en.wikipedia.org/wiki/Evaporation), the air inside the centre pot is cooled several degrees, enough to preserve some foods and drinks.

Another Indian innovation is also targeting the rural poor consumer: a water filter. Called the Swach water purifier (http://www.tata.com/article.aspx?artid=TtOdcdNuSRk=), it is aimed at households and stands just less than 1 metre (just over 3 feet) in height. The filter is designed to do bulk water purification and is the result of 10 years’ research. It is aimed at the one billion people in the world who do not have access to clean water. It will sell for 1,000 rupees (US $21.50).

It is very slick and modern in design, with a mix of white and clear plastic, resembling the commonly used Brita (http://www.brita.net/) water filters found in many homes. It works by using ash from rice milling to filter out bacteria. The ash is impregnated with silver particles to kill germs that cause diarrhoea, cholera and typhoid. It is able to purify 3,000 litres of water before the cartridge needs to be replaced.

It is manufactured by the Indian industrial giant Tata.

“It was the pressing need of people trapped by the effects of natural disasters such as the (2004 Indian Ocean) tsunami that saw the deployment of one of the earliest versions of this product,” said Tata vice chairman S. Ramadorai. “A key part was the insight that a natural material like rice husk can be processed to significantly reduce water-borne germs and odours when impure water is passed through it.”

By David South, Development Challenges, South-South Solutions

Published: January 2010

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=rBuYBgAAQBAJ&dq=development+challenges+january+2010&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsjanuary2010issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Info Ladies and Question Boxes: Reaching Out to the Poor

 

Quick access to accurate and useful information is crucial for development. With the remarkable spread of information around the world via the Internet – one of the greatest achievements of the 21st century – more than 1.5 billion people now use the Web to boost their incomes and opportunities (Internet World Stats).

For those lucky enough to be able to afford regular access to the Internet – as well as a computer and electricity – this new technology is a powerful tool for economic and social advancement. But what about people who are overlooked by technology companies because they are too poor, or too remote, or who are illiterate?

Two initiatives are bringing the benefits of information and communication technologies (ICTs) to the poor and the illiterate in ingenious ways.

Bangladesh’s (http://www.virtualbangladesh.com) ‘Info Lady’ scheme is the brainchild of D.Net (Development Research Network) (http://www.dnet-bangladesh.org/), a non-profit organization formed in 2001 to use information and communication technology (ICT) for economic development.

Info Ladies typically come equipped with a mobile phone, laptop computer, Internet modem, headphone, webcam, digital camera, and photo printer. They roam around remote villages on bicycles and are a one-stop access point for the rural poor for information, telephone calls and digital services like photography. And Info Ladies can also be Info Men, though this seems to be a problem because women have an easier time being invited into people’s homes.

One Info Lady is Luich Akhter Porag. She travels the countryside on her bicycle, equipped with a laptop computer, modem and a mobile phone, and can provide a commercial phone service, photography, livelihood information, knowledge services, international and local voice calls, video and animation and Internet resources.

When farmer Dula Miah had two of his cows bitten by a rabid dog, he was puzzled as to what to do. According to Bangladesh’s Daily Star newspaper, Info Lady Luich Akhter Porag came by to help. By using a software programme called ‘Jeeon’ (http://www.dnet.org.bd/MultimediaSoftware.php?BookType=8) – software designed to provide nine essential services to rural people –  Porag was able to identify the solution: a vaccine and a trip to the Sundarganj Veterinary Hospital.

Around 24 Info Ladies are now working in various villages in the districts of Gaibandha, Noakhali and Satkhira. The concept is effective: after receiving training in how to use the laptop computer and resources, they are dispatched on bicycles to remote villages to connect the poor and uneducated with crucial information.

D.Net started with something they called ‘Mobile Lady’ which used just mobile phones, but became frustrated with the limits of the service and decided to combine the phones with a laptop computer, effectively turning the women into mobile ‘telecentres’ (http://en.wikipedia.org/wiki/Telecentre).

Dr Ananya Raihan, executive director of D.Net, told The Daily Star that each Info Lady now earns between Tk 2,500 (US $36) and Tk 20,000 (US $290) per month. It has proven to be a good business for rural women, he said. And things are set to grow: “We are planning to increase the number of info ladies to 1,000 by year-end (2009).”

While traditional technology companies have stayed away from rural villages because it isn’t worth it for them to go there, the Info Ladies are simultaneously making money in the villages and connecting people to the outside world.

Porag says she has provided services to around 6,000 villagers.

“Now I earn more than Tk 2,500 (US $36) to Tk 3,500 (US $50) per month after becoming an info lady,” said Porag who started working as an Info Lady in June 2007.

Another initiative that is filling the gap between the needs of the poor and powerful information technologies is the Question Box (www.questionbox.org).

Pioneered in India – home to the largest number of illiterate people in the world: 304.11 million (Human Development Report) – the idea is brilliantly simple. An intercom-like white tin box with a phone inside is placed in a village’s public areas. Using the existing phone networks, the user just has to hit a simple button to get an operator at the other end. The operator sits in front of an Internet-enabled computer. The user just asks their question, and the operator turns these questions into search queries. When the computer’s search engine gives back answers, the operator selects the best one and then replies in the user’s native language and in layman’s terms.

The Open Mind Program’s Question Box Project opened its first Box in September 2007 and now operates in Pune, Maharashtra.

It has also expanded to Uganda, where the Question Box and Grameen Foundation (http://www.grameenfoundation.org/) have partnered to bring what they call AppLab Question Box (AQB) to rural Uganda. AQB is a live, local-language telephone hotline service that brings the Internet to the fields and market stalls in Uganda where there are no computers.

The Question Box is based on an idea from Rose Shuman, a business and international development consultant. Shuman had become frustrated that with all the clever people and vast sums of money going into information technology, few were developing low-cost ways to take the power of computers to the people.

Following the constant improvement approach favoured in information technology, the Box is now in its third iteration. One of the adjustments made has been the switch to solar power for the boxes because the electricity grid was too unreliable, according to Shuman.

By David South, Development Challenges, South-South Solutions

Published: September 2009

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=uXWUyfb4MacC&dq=development+challenges+september+2009&source=gbs_navlinks_s

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsseptember2009issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Illiterate Get Internet at Touch of a Button

Quick access to information is crucial for development. The remarkable spread of information around the world via the Internet has been one of the greatest achievements of the 21st century. The astounding take-up of mobile phones is another. For those who can afford it or get access to a computer and electricity, the new technology is a powerful tool for economic and social advancement. But what about people who are caught in the technology gap, or who are illiterate?

What about those who have a mobile phone, but are too poor to own a computer – or live in a village without electricity? Or those who can’t read or write? In India, there are 42 million Internet users, 3.7 per cent of the population. But the country is also home to the largest number of illiterate people in the world: 304.11 million (Human Development Report).

A unique solution in rural India is developing a way to connect the illiterate to the Internet. The Open Mind Programme’s Question Box Project, opened its first Box in the village of Phoolpur in September 2007.

The idea is brilliantly simple. An intercom-like white tin box with a phone inside is placed in a village’s public areas. Using the existing phone networks, the user just has to hit a simple button to get an operator at the other end. The operator sits in front of an Internet-enabled computer. The user just asks their question, and the operator turns these questions into search queries. When the computer’s search engine gives back answers, the operator selects the best one and then replies in the user’s native language and in layman’s terms.

The operator’s role goes beyond simply typing questions into Google – the operators use intelligent software that aggregates frequently asked questions (FAQs) to speed up time. FAQs include: school scores, job opportunities, football/cricket scores, and definitions and terms. Operators will also send emails for the users.

The service also has a role to play for the literate who lack Internet access. Students once had to travel to get their exam results, but now they can just ask the Question Box.

The Question Box operates in normal business hours for now. A second Question Box was put into operation at the beginning of 2008 in the village of Ethida, several hours’ drive from New Delhi, and there are plans to expand the Question Box to 30 units connected to 20 operators.

At present, organizers are looking into raising revenue for the service by advertising and sponsorship. Operators are typically homeworkers and well-educated. Mostly female, their parents are happy to have them work from home.

During this first phase, the project team analyzed the results and refined the structure of the service. They are also exploring viable business models to be able to take the service across India and keep it sustainable.

Professor of Psychology Ritu Dangwal from the NIIT Institute, is in charge of working with the villagers to monitor the project. She is also involved in a start-up called Hole in the Wall, which provides Internet kiosks to rural villagers. Dangwal’s research has starkly correlated the relationship between distance from a big city and decreasing quality of education, a graphic example of the damage done by being cut off from good information resources.

The Question Box is based on an idea from Rose Shuman, a business and international development consultant. Shuman had become frustrated that with all the clever people and vast sums of money going into information technology, few were developing low-cost ways to take the power of computers to the people.

“The best thing about this project is that it’s very tangible,” she told the Daily Telegraph newspaper. “It’s not a big infrastructure. You have a box you can see and touch, and a call log of every question.”

By David South, Development Challenges, South-South Solutions

Published: April 2008

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.  

Follow @SouthSouth1

Slideshare: http://www.slideshare.net/DavidSouth1/development-challengessouthsouthsolutionsapril2008issue

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.