ABSTRACT
The third construct drawn from the responses to the challenges giving rise to the need for Business of Humanity (BoH) Strategies is that of frugal engineering. This is not a topic that is commonly addressed in the arena of strategy, being seen as more logically in the purview of industrial engineering or operations management. It is a critically important construct, however, in the context of BoH Strategies. Disruptive innovation is both a prerequisite and a consequence of addressing the needs of the 4 billion people at the bottom of the pyramid. Given the limited, to say the least, disposable income and purchasing capability of customers at the base of the pyramid, such disruptive innovation has of necessity to be frugal. Meeting the price point pressures that exist in the BRIC economies is the challenge that frugal engineering seeks to meet.
