Lead with PurposeInterview with Prof. Jaideep Prabhu
On this episode of the Lead With Purpose podcast host, Tze Ching Yeung talks to Professor Jaideep Prabhu about frugal innovation and circular business models.
KEY TAKEAWAYS
- The process of production & consumption since the industrial revolution has been a linear one; companies took resources from nature, make products & services from them which they sold to consumers to use, & when we were done with them we simply dumped them back into nature. This system, while it was phenomenally successful for the companies themselves, created a lot of negative externalities for the environment & society. It’s both wasteful & unsustainable.
- It’s important now, as companies & the economy grows we simply cannot replicate growth on that model, we have to move to a circular model where we reduce, reuse and recycle all the resources that go into the products & services we produce & consume. Making the best use of limited resources & not running the risk of running out of precious natural resources, energy & time. Frugal innovation is all about how one does more & better with less.
- Startups using a circular model still have to produce a quality product that can go head-to-head with the equivalent linear model business. It may have to be a premium product because it’s not a trivial thing to do & they are absorbing some of the negative externalities & costs that the linear model competitors are not. By definition your customer cannot be the average mass-market customer who goes for fast fashion products. It may limit your market, but many businesses can succeed with a niche strategy.
BEST MOMENTS
‘There is a very intimate link between sustainability, circularity and, indeed, frugal innovation & it’s really important for businesses to move toward circular business models.’
‘Fashion & clothing is a big source of waste, we buy far in excess of what we need & a lot of it ends up back in landfill. People need to reduce how much they purchase, reuse & repair as much as possible.’
‘You need to know your target market very well.’
‘Design sustainable solutions. It will help you be more efficient & productive, even financially.’
ABOUT THE GUEST
Prof. Jaideep Prabhu is the Jawaharlal Nehru professor of business and enterprise at the Judge Business School at the University of Cambridge, the director of the Centre for India & Global Business (CIGB). He is the co-author of Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth, described by The Economist as "the most comprehensive book" on the subject of frugal innovation.
Frugal Innovation: How to do better with less
ABOUT THE HOST
Tze Ching started her entrepreneurial journey back in 2007 with the launch of a sustainable clothing & home furnishing ecommerce business. Next, she created a sustainable fashion brand.
In 2019, she launched a social enterprise to help raise awareness about the negative impact of fashion at schools & colleges.
Through the 15-year journey, she learned so much, but easily the most meaningful lesson learned was about the importance of marketing. She now focuses on channelling those insights to help others succeed through We Disrupt Agency, a business coaching, mentoring & digital marketing company.
Tze Ching’s mission is to create a community of global change makers and to contribute to positive change in both people & planet.
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