This book explores the new product development process of firms developing frugal innovation for the base-of-the-pyramid (BOP) markets in developing countries. Frugal innovations are products characterised by an affordable price-point, durability, usability and core functionalities that are highly adapted to BOP consumers’ needs. Frugal products have the potential to drive the development progress and living standards of low-income consumers.
With an innovation framework developed from worldwide frugal case studies, this book provides detailed insights through two in-depth start-up firms in Indonesia that have successfully launched frugal products for the low-income market. These two start-ups have addressed two major development challenges for not just Indonesia, but also the global BOP market – traditional methods of cooking and access to clean drinking water.
A detailed roadmap is developed from insights into the processes and management decisions of these two start-ups and combined with previous studies on frugal products. Providing a detailed roadmap across the different phases and stages of the new product development process when developing frugal products, this book will be insightful to not only innovators but also investors and government agencies supporting their activities.
Table of Contents
1. Base-of-the-Pyramid Markets and the Need for Frugal Innovation
2. Critical Reflections on the State of Innovation Research
3. Mapping the NPDP for Frugal Innovation
4. Prime Cookstoves: Cooking with Frugal Innovation
5. Tirta Indonesia Mandiri Foundation: Drinking with Frugal Innovation
6. The NPDP for Frugal Innovation
Stephanie B.M. Cadeddu is a Research Associate at Swinburne University of Technology, Melbourne, Australia. She has extensive experience working with start-ups, including through field research in Indonesia. Her research and teaching interests include frugal innovation, social impact and community development.
Jerome D. Donovan is a Senior Lecturer in Entrepreneurship and Innovation at Swinburne University of Technology in Melbourne, Australia. He is also a Principal Advisor in Technology Entrepreneurship and Commercialisation Development with the Ministry of Science and Technology (Vietnam). His research interests include innovation and entrepreneurship, sustainability and development.
Cheree Topple is the Deputy Chair of Management and Marketing at Swinburne University of Technology in Melbourne, Australia. Her research interests span issues of human resource development and sustainability, with recent publications in Environmental Impact Assessment Review, Transnational Corporations and Impact Assessment and Project Appraisal.
Gerrit A. de Waal is a Senior Lecturer in Entrepreneurship and Innovation at RMIT University in Melbourne, Australia. His current research is in frugal innovation, having published in R&D Management, IEEE Transactions on Engineering Management and the International Journal for Innovation Management.
Eryadi K. Masli is a Lecturer in Entrepreneurship and Innovation at Swinburne University of Technology, Melbourne, Australia. He was a former investment banker, working across Southeast Asia. He is also a Principal Advisor to MANIFEX, a private equity fund. His research interests include start-up funding and innovation.
'This book offers a comprehensive guide on developing frugal products for innovators and researchers within the Asia region. With fast-growing low-income markets across developing and developed countries, their distinctive needs for new products require firms and entrepreneurs to make significant adaptations to their innovation practices. This book offers a unique roadmap from ideation to commercialisation, guiding us through the development of new frugal products for these billion people. This is a unique perspective drawing together the key New Product Development Process and frugal innovation research. Two powerful case studies are presented with detailed insights around the successful ideation to commercialisation of frugal products in Asia, helping address two major development challenges – access to clean water and safe cooking methods. A must-read book for academics and practitioners!' —Stephan Buse, Management board member, Center for Frugal Innovation at TUHH; Deputy Director, Institute for Technology and Innovation Management, Hamburg University of Technology, Germany
'As the co-founder of FabLab Bandung, which is the first FabLab in West Java, Indonesia, and the second FabLab in Indonesia, I found this book timely and interesting. The book provides a framework of NPD in the frugal innovation context with two case studies from Indonesia. As Indonesia is one of emerging economies with more than 260 million people, frugal innovation can be a powerful approach to solve some of the development challenges for the BOP segment in Indonesia. I believe this book is very useful as it gives us the roadmap to convert ideas to commercialization from the frugal innovation perspective. A must read for practitioners.' — Joseph King Wiharjo, Co-founder, FabLab Bandung, Indonesia
'This book is a must-read for academics, researchers, investors, practitioners, as well as policy and decision makers working on frugal innovation and new product development. The book provides key decisions, tools and techniques necessary for the new product development process of frugal innovation in addressing low-income consumer needs. The reported results of case studies in Indonesia are indeed insightful. This book is fantastic!' — Sudi Mungkasi, Dean of the Faculty of Science and Technology, Sanata Dharma University, Yogyakarta, Indonesia
‘… the Indonesia case book starts at the same place, with a useful (and complementary) overview of the field but then quickly explores the ‘how’ questions of frugal innovation in the context of two stories of new product development for emerging market conditions. Cooking stoves and drinking water solutions are of huge importance in emerging markets, especially for rural populations, and innovation in this space is badly needed. A major strength …, apart from the detailed and critical review of the cases, is the development of a new product development process framework to guide innovation of this kind. Because this is elaborated in the context of specific cases, it has potential for wider application and to become part of a frugal innovator’s toolkit…’ ─ International Journal of Innovation Management, Vol. 23, No. 7, October 2019