Frugal InnovationLars Iversen@LarskiPartner, Springfellow International

Top 1000 corporates spent USD 647 bn on R&D in 2014

– 90% focus on Western markets

In the consumer sector 80% failed!

• Top down and hierarchical • R&D system is way too costly to maintain • Rely on “structured” innovation processes that can’t deliver the

agility and speed need • Driven by financial outcomes• Linear, sequential thinking• Do innovation in secret R&D labs rather than opening up the

innovation process and harnessing the creativity of all their employees, customers, and partners.

• Strategic planning based on the past• Risk intolerance• Process inflexibility • Still believe that “knowledge is power”• Large number of employees• Control over own assets

Traditional, incremental innovation

More for lessFaster – Smarter -

Cheaper

Digital Manufacturing and logistics Social – Consumer

Old advantage no longer valid – decentralized

New roles for the multinationals and public sector

Platforms for innovation – eco-systems for Startups

Health Education Employment Energy

Thank You!

@LarskiWeChat: Larski73Linkedin.com/larsiversenLars.iversen@springfellow.com