Wednesday, September 7, 2011

Frugal Engineering: Bottom-Up vs. Top-Down

In my effort to synthesize concepts from all the different readings for this week, one concept that I find especially striking is the idea of "frugal engineering" from the Seghal et. al article. This idea, not limited to literal cost management, but which extends to making things specifically for the purpose of meeting the needs of emerging, presents the challenge of balancing"top-down commitment" with "bottom-up innovation." By design, frugal engineering attempts to tap into "bottom of the pyramid" with needs unique to the developing world, but where does the main responsibility lie? The article does a great job highlighting how often the first solution (especially by private-sector entrepreneurs) in product design for emerging markets is to merely re-introduce mature-market products with limited functionality. It is fairly nonsensical, but it prevails because many from the "top" view this as the most cost-effective solution. However, as Seghal (el al.) points out, those in emerging markets do not always part with their money that easily, and many if not most know when they are not being given the best product at the best price. So does this mean that most top-down commitment to developing emerging markets is off base? Perhaps, since in many cases the heads of organizations or corporations would rather dictate what the market wants rather than let the market do it itself. Does that put more pressure on bottom-up innovation from those within the market to utilize the basic frugal engineering concept of avoid needless costs? I think so, as often an insider's perspective is the solution to greater market penetration. But ideally, there is a balance between a quasi-hegemonic force from above and an almost revolutionary response from below. (Or in less dramatic terms, "outsider" producers work with both "internal producers" and the greater populace of the emerging markets to make the best possible products.) I think that bottom-up innovation is universal: it's definitely not unique to the emerging world. What I think is crucial in emerging BoP markets that the authors of this frugal engineering article drive home is the idea that top-down commitment, with the "right" direction, is absolutely necessary in order to continue to develop the emerging markets. As the Tata Motors example shows, there has to be a willingness to match one's own frugal engineering endeavors specifically to the cost constraints of one's consumers beyond simply removing features from existing mature-market products. In others news, it is incredibly ironic to be finishing this post just minutes after the press conference concerning the Dietrich fund. I suppose I am now an alumnus of the Marianna Brown Dietrich College of Humanities and Social Sciences.

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