Frugal Engineering Will Save the World

To state the obvious, emerging markets have different needs than developed economies. Consumers in India are not looking for a stripped-down Buick that guzzles gas and is impossible to navigate. Massive MRI machines will not have an impact on the rural population of Brazil that does not have the means or ability to get to the healthcare facility where they are installed. Frugal engineering recognises this reality, and addresses the “billions of consumers at the bottom of the pyramid who are moving out of poverty in China, India, Brazil and other emerging nations,” write Vikas Sehgal, Kevin Dehoff and Ganesh Panneer in an article titled “The Importance of Frugal Engineering.” The piece, which I highly recommend, is published in the current issue of strategy+business.

Frugal-Engineering

 

To understand the concept of frugal engineering, it helps to understand what it is not, stress the authors. “Frugal engineering is not simply low-cost engineering. It is not a scheme to boost profit margins by squeezing the marrow out of suppliers’ bones. It is not simply the latest take on the decades-long focus on cost cutting,” write Seghal et al. Rather, it is an overarching philosophy that seeks to avoid needless costs in the first place instead of cutting existing costs. The poster child for frugal engineering is the Nano car from Tata Motors. It is not a stripped down version of an existing car but was designed and developed using a bottom-up approach. In the medical realm, GE has forged a frugal path with its low-cost handheld ultrasound scanner that is sold in developed markets. The device was designed in GE’s medical R&D lab in India using frugal engineering techniques, according to the authors.

Frugal engineering, in tandem with leapfrog technologies, is making the world a better place for the 4 to 5 billion people in the world that are unserved or underserved by the private sector. Find out how this philosophy is answering questions that too few global companies are asking by reading this provocative article.

 

 

 

Source : MedtechInsider

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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