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 senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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