For India, GE Healthcare produced a hand-held electrocardiogram (ECG) device with cutting-edge technology that is much smaller, much simpler, and less than half the cost of traditional ECG machines. Here's one of their launch videos:

GE's inexpensive pocket-sized ultrasound device, designed for the Chinese market, turns out to have broad global appeal. Tata Motors in India has produced the Nano, a $2,200 car, which has stimulated "cheap car" development in the U.S. and many other markets.

There are numerous examples of high quality products and services produced and sold in India, China, and other countries at far lower cost than in the West. Emerging markets (formerly known as developing countries) invite us to make do with less. That leads to frugal/disruptive innovation.

I believe these five principles are key to creating a frugal innovation mindset and successfully innovating: 1) Start with a blank slate - zero-based thinking, not with the deductive approach of simply stripping away features from the existing expensive product. 2) Think of the end user customer as different, not deficient. Don't compare with the stereotypical Western lifestyle. 3) Don't overgeneralize and assume all people in an emerging market are the same. Segmentation principles apply as they do anywhere else. 4) Proactively consider and take advantage of the numerous brand enhancement and cause marketing opportunities. 5) Think simple, which means less is more. What's the minimum feature set your customer needs?

Don't be surprised when your simpler cheaper product has greater appeal than your traditional product in developed markets too. In fact, plan on it.

Who new that the sipholes in coffee cup lids at Starbucks, Dunkin Donuts and other caffeine purveyors were affecting the human condition? I just ran across the little green siphole plugs that prevent coffee spilling, splashing, staining and other evils.

I applaud the inventor's open mindedness that led to his epiphany and turned a problem into a solution. You can see how they work in this 32 seconds of action-packed video:

However, what is most interesting to us marketers is the creation of a "need." Now coffee drinkers everywhere will be worried about unplugged sipholes! Some experts say that revealing unmet needs (are there other kinds?) is what marketing is all about. I believe we need to tread lightly here. As a culture, we are trained to confuse wants and needs. Like when my kids used to say "I need candy" in the supermarket. In my book, these little green plugs are about a "want" - plain and simple. While there's nothing wrong with innovating new problem-solving products, as marketers and consumers we need to be aware and honest about whether we are really satisfying a want or a need.