1. Disruptive and Frugal Innovation

Question 1

What is disruptive innovation?

Answer 1

• Innovation that disrupts a market.
• Better performance than traditional technology, within a given timeframe.

Question 2

How do you identify a disruptive innovation?

Answer 2

• target people not over served by existing products.
• not as good as existing products based on historical measures of performance.
• more simple, convenient and affordable.
• technology enabler?
• is it paired with a business model innovation that allows it to be sustainable?
• Are existing providers motivated to ignore the new innovation at the outset?

Question 3

Give 3 examples of disruptive innovation.

Answer 3

• digital photography killing off camera film based business models.
• Tesla in the automotive sector
• Netflix vs blockbuster

Question 4

Technology needs what to enter a market and become disruptive?

Answer 4

A business model.

Question 5

What is an example of a low cost business model that was paired with an innovative product?

Answer 5

Southwest airlines had a lowcost business model for ages and didn’t grow. With the introduction of the 737-500 they kept the same low cost model but could fly further. This grew the company quickly.

Question 6

What is Frugal Innovation?

Answer 6

• Reaching new customers with low-cost innovation.
• Reengineers traditional R&D (not starting from scratch)
• Boosted by digital tech
• Offers more agile and customer focussed innovation.

Question 7

What are the 2 main types of Frugal Innovation?

Answer 7

1. Frugal innovation that complements and simplifies existing tech e.g tata nano (£1000 car)
2. Jugaad innovation - produces business creativity in resource constrained environments.

Question 8

What are some examples of frugal innovation?

Answer 8

• Mobile internet
• Affordable smartphones
• Mobile banking
  -Turning phones into medical devices