“Frugal Innovations for a Healthy Society – Learnings for India and Germany”

The German healthcare system – which is under pressure on many fronts could benefit immensely from a frugal approach that enables affordable and sustainable excellence. However, there are a number of challenges that crowd-out frugal solutions. These include, but are not limited to, lack of awareness, over-regulation, misplaced financial incentives and mind-set issues, as came to fore during a recent event.

“Frugal Innovations for a Healthy Society – Learnings for India and Germany”: This was the motto for an informative discussion event recently held at the Hochschule Fresenius – University of Applied Sciences (HSF) in Hamburg as a part of the “India Week Hamburg”. The event was held against the backdrop of major problems that the German health care system is facing. Growing patient numbers, a shortage of skilled workers, and exploding costs are burdening more and more hospitals. A core objective was to identify the extent to which frugal innovations, i.e., low-cost “Good Enough” solutions, can alleviate the difficulties. The event was aimed at all stakeholders with an interest in finding new ways to overcome the challenges mentioned above.

Frugal innovation: “Doing more with less” | Image: HSF

Dr. Philipp Walther, professor for healthcare management at HSF, in his talk illustrated some key challenges facing the German healthcare system. For example, demographic changes are leading to an aging population, necessitating increased and more intense healthcare. Statistics show that three-fourths of the senior citizens in the age group 70-74 years suffer from at least three, if not more, chronic diseases. On the other hand, there is a growing trend of urbanization, leaving rural populations vulnerable in terms of the availability of healthcare infrastructure. Challenges are, however, not limited to the elderly alone. Dietary habits are leading to an increasing share of overweight and even obese children in the society. Prof. Walther, therefore, emphasized the need for encompassing frugal approaches in the entire healthcare value chain to ensure affordable access to appropriate and high-quality healthcare.

Prof. Philipp Walther speaking about challenges facing Germany’s healthcare system | Photo: HSF

Once the context for affordable and inclusive healthcare was set, the audience was introduced to the concept of frugal innovation by Dr. Rajnish Tiwari, professor for business administration and global innovation at HSF and co-founder of the Center for Frugal Innovation (CFI) at the Hamburg University of Technology (TUHH). In his talk, he defined frugal innovations as enablers of affordable and sustainable excellence that re-question existing innovation paradigms and advocate a clean-slate approach in the search of an efficient and effective utilization of resources. The concept, as advocated by CFI, argues for moving beyond discussions about low vs. high-tech, and rather to look at the appropriateness of a solution in terms of its ability to solve problems efficiently and effectively.

In this context, Dr. Shyam Vasudevarao, Founder and Director of Forus Health, Renalyx and Rx DHP, joined the event live from India and showcased two successful frugal innovations developed by his firms. The first example connected to the need to achieve good health and well-being (SDG #3). Dr. Vasudevarao pointed out that while 80% of the cases of blindness can be prevented if pre-screened, but only 7-10% of the people are actually screened on time. His solution “3Nethra” is an integrated pre-screening device for the broad based detection of eye ailments with a telemedicine interface. The second solution concerned renal care in an affordable and inclusive manner through early detection & identification, which can be very relevant for industrialized societies, including Germany. Both solutions use digital technologies, especially artificial intelligence and cloud computing. His talk showed that there was an excellent match between the frugal approach (preventive and inclusive care, early detection, education & engagement, and affordable treatment) and the needs of the German healthcare system.

Dr. Shyam Vasudevarao giving a talk live from India | Photo: HSF

However, a new challenge for bringing frugal innovation to German healthcare institutions was revealed by a study presented jointly by Dr. Stephan Buse, deputy director of the Institute for Technology and Innovation Management (TIM) at TUHH, and by Mr. Tim Kneesch from the University Clinic Eppendorf (UKE) in Hamburg. The comprehensive study found that the concept of frugal innovations is not yet well-known in German hospitals. Furthermore, the study identified some very significant political, economic and psychological hurdles for their acceptance. Some key challenges include prohibitively high regulatory norms and standards, non-supportive existing financial incentives in the systems, a perceived conflict between frugality and sustainability, as well as mind-set issues.

Dr. Stephan Buse presenting results of his joint study | Photo: HSF

The talks thus set a very fertile ground for a round of discussion moderated by Dr. Hendrik Müller, professor for business ethics at HSF. The panelists included Mr. Fridjof Stuck, Head of Medical Technology at UKE Hamburg, and Mr. Enrique Dorn Schohaus, Head of R&D at 3B Scientific, in addition to Dr. Stephan Buse, Mr. Tim Kneesch, and Dr. Philipp Walther. The panel discussion provided for a very engaging discussion with pro and contra arguments. It brought to the fore the interesting situation that while there is an acknowledged need for ensuring high affordability in the healthcare sector in Germany, the current status-quo tends to crowd-out frugal solutions. Part of the problem also seems to lie with regulatory and quality standards that raise the bar “too high” (in some cases even unreasonably so),thus sometimes scuttling unconventional innovative solutions. Ensuring a match between quality aspirations and frugality is a challenge that the stakeholders will have to take up. Furthermore, the event showed that the understanding of frugal innovations needs to go beyond the technical paradigm and has to include frugal ways of living.

Panel discussion underway at the event | Photo: HSF

HSF and CFI have decided to further pursue these challenges in cooperation and further engage the relevant stakeholders from industry, research and governments in order to continue exploring avenues for building bridges between German healthcare and frugal solutions, as both, the need and the compatibility, were brought unmistakably to the fore by this event, which was attended by about 25 participants from the relevant sector.

The event was organized in cooperation with the Center for Frugal Innovation TU Hamburg and German-Indian Round Table Hamburg. It was supported by Life Science Nord and the Consulate General of India in Hamburg.

Frugal Innovieren, aber wie? Methoden-Workshop am 9.11. in Hamburg

Methoden-Workshop zur Realisierung von frugalen Produkten und Geschäftsmodellen am 9. November 2017

SG-GroupMit weniger mehr erreichen – nicht weniger versprechen frugale Innovationen. Aber wie? Frugale Innovationen stehen für Produkte und Dienstleistungen, die eine erhebliche Kostenreduktion, eine Begrenzung auf die wichtigsten Funktionen und ein optimiertes Leistungsniveau im jeweiligen Kontext ermöglichen. Um in Schwellenländern wie Indien und China langfristig Erfolg zu haben, sind frugale Innovationen im Unternehmensportfolio zunehmend unverzichtbar. Frugale Innovationen können jedoch nicht nur in Schwellenländern, sondern auch in Industrienationen bedeutendes Absatzpotenzial freilegen, wie unsere Studienergebnisse zeigen.

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Invitation to the Concluding Conference in Hamburg: “Potentials of Frugal Innovation”

We are very pleased to invite interested researchers, business persons, representatives of industry associations, policy makers and members of civil society to our conference on “Potentials of Frugal Innovation” in Hamburg, Germany, on 27 September 2017.

The conference marks the conclusion of our BMBF supported research project entitled “Potentials, challenges and societal relevance of fugal innovations in the context of the global competition for innovation.” Partners of this ITA-project are the Fraunhofer Center for International Management and Knowledge Economy in Leipzig and the Institute for Technology and Innovation Management at the Hamburg University of Technology.

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Course on “Product Planning and Design for Frugal Innovations” at Santa Clara University

Prof. Herstatt teaching a SCU

Prof. Herstatt teaching a SCU

Taking the collaboration between Center for Frugal Innovation (CFI) and the Frugal Innovation Hub at Santa Clara University (SCU) to next level, we have developed a new course on “Product Planning and Design for Frugal Innovations” which is being offered currently to graduate students of the School of Engineering at SCU. The course has been developed by Prof. Dr. Cornelius Herstatt and Dr. Rajnish Tiwari and covers modern tools and methods for product design and development. It is based on a five phase stage-gate process model which integrates all major tasks that need to be paid attention to while creating new products and services. Continue reading

Investigating Frugality and Innovation in Japan

TUHH and TokyoTech collaborate with support of Japan Society for the Promotion of Science (JSPS) to investigate relevance of frugal innovations in the context of Japan

Group photo (L2R): R. Tiwari, M. Tsujimoto and C. Herstatt

Group photo (L2R): R. Tiwari, M. Tsujimoto and C. Herstatt at TokyoTech (Tamachi Campus)

The Hamburg University of Technology (TUHH) via its Center for Frugal Innovation at the Institute for Technology and Innovation Management, and the Tokyo Institute of Technology (TokyoTech) via its Department of Technology and Innovation Management at School of Environment and Society (Tamachi Campus), have decided to join hands to conduct joint research to investigate the phenomenon of frugal innovation in the Japanese context. At first, a preliminary research is being conducted with support from JSPS (Japan Society for the Promotion of Science) to generate initial impressions and take stock of the status-quo of frugal innovations in Japan. A mid-term objective is to conduct comparative studies between Germany and Japan with the objective of enabling mutual learnings. Continue reading