To create a refrigerator for rural residents in India, Godrej Appliances started by observing people in their huts. People were going to the grocery every day, not buying in bulk. Blackouts were a regular occurrence. Families moved frequently.
The company responded with a product called ChotuKool, a small fridge that looks like a portable cooler. It keeps food cold with a cooling chip and fan system, similar to the way a computer avoids overheating.
The approach is called ?frugal engineering,? coined by Carlos Ghosn, chairman and CEO of the Renault-Nissan Alliance, to describe the way Indian engineers innovate under resource constraints.
Renault-Nissan has embraced frugal engineering to become a top producer of electric and low-cost cars. How any firm can do more with less:
1. Create ?good enough? products vs. overengineered products. Example: Renault launched a small, no-frills car in 2004, called Logan. It?s priced at $10,000 but is reliable and energy efficient, and just right for recession-weary Europeans.
2. Introduce artificial constraints to global R&D teams to lead them toward frugal engineering. Example: Ghosn once asked three different R&D teams?from Japan, France and India?to engineer a solution to a technical problem. Each team produced quality answers, but the Indian engineers? solution cost one-fifth of what the others? did.
3. Cultivate a frugal mindset. This can be hard for resource-rich executives. Example: When tasking executive Gerard Detourbet to develop a ?global small car,? Ghosn sent the executive to India.
Says Ghosn, ?We don?t go to emerging markets to just bring back a product, but to learn something?like new processes or a whole new mindset.?
? Adapted from ?The Importance of Frugal Engineering?; Vikas Sehgal, Kevin Dehoff and Ganesh Panneer; Strategy+Business; and ?Frugal Innovation: Lessons from Carlos Ghosn, CEO, Renault-Nissan?; Navi Radjou, Jaideep Prabhu, and Simone Ahuja; Harvard Business Review blog.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/32857/innovate-by-using-frugal-engineering "
Source: http://www.businessmanagementdaily.com/32857/innovate-by-using-frugal-engineering
superbowl commercials best superbowl commercials madonna half time m.i.a super bowl coin toss madonna super bowl halftime kelly clarkson super bowl
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন