Corporate America must learn to innovate frugally to get through the coronavirus crisis
Frugal innovation is the need of the hour in the U.S., with the economy decimated by coronavirus. U.S. firms need a frugal and agile mind-set to not only survive during the current health crisis but also to innovate for success in the recessionary post-coronavirus word. A drastically new world where cost-conscious customers will seek more value for less.
Sadly, corporate America is ill-equipped to innovate frugally and flexibly. Indeed, frugal innovation, which emphasizes speed, agility, and affordability, is the antithesis of how corporate America innovates, instead relying on insular R&D labs, big budgets, and rigid go-to-market processes.
Yet, some forward-thinking Fortune 500 firms — such as Best Buy, Cisco, GE Healthcare, IBM, Mastercard, Medtronic, and PepsiCo — have successfully piloted and adopted frugal innovation as an alternative way to “do better with less” — i.e., deliver greater value to customers quicker at less cost.
The current health crisis in America is an historic opportunity for U.S. firms to unlearn how they practiced innovation for the past 100 years and adopt the three core principles of frugal innovation that could power and sustain their growth in coming decades.
To learn more, read my Fast Company article.