Low-Cost Versus Frugal Innovation Building Blocks & the Fundamentals of Jugaad Business Modeling (Podstawy innowacji niskokosztowych w porownaniu z innowacjami oszczednosciowymi oraz fundamenty tworzenia modeli biznesowych typu jugaad)

Abstract

In this paper, we seek to present the first holistic and frugal business model ever designed to bridge the digital divide in Greenfield Africa. Based on an extensive implication in the Connecting Africa and OLPC Projects, Airtel Telecom Group (a Canadian company) partners decided to go one step further in their quest to revamp state owned telcos and postal service providers who were on the brink of collapse. Unlike low-cost models developed by well-known heavyweights like SFR, Ryanair, Blue Jet, Easyjet, Walmart, etc., a frugal and sustainable business model like the one discussed in this paper has a lot more to do with Jugaad Innovation frameworks which led to many affordable and responsible breakthroughs in healthcare, education, housing, broadband, transportation, alternative energies, etc.; therefore, our main goal is to (a) distinguish between frugal and costkilling models, (b) explain the characteristics of jugaad-based framework and philosophy versus revenue-driven business models, (c) explain the importance of sustainable and organic business models in developing markets versus imported plug & play recipes. At last, we will describe the fundamental building blocks of juggad innovation business models and their impact on growth perspectives for MNCs and entrepreneurs willing to break into greenfield markets.