Unleashing your MacGyver
Instinct
Navi Radjou

Winner of Thinkers50 Innovation Award
Member of World Economic Forum’s Desi...
“Bigger is better” innovation model

$603 billion
spent in
R&D in 2011

Copyright © Navi Radjou

2
Source: Strategy & Business

Copyright © Navi Radjou

3
Western firms are stuck in
“structured” processes (e.g., Six Sigma)
“Our traditional teams

are too slow. We're not
innova...
The West needs a new innovation model

Copyright © Navi Radjou

5
Thinking outside the (ice) box:
WHAT IF my fridge

what if my fridge
can talk to my phone?

can operate without electricit...
Scarcity is mother of invention

Copyright © Navi Radjou

7
Adversity is father of invention
http://nif.org.in

Kanak Das

http://economictimes.indiatimes.com

Copyright © Navi Radjo...
Frugal tinkering
Source: www.quotednews.com
Source: http://expatbrazil.wordpress.com/page/9/

Source: gcstz.com/products

...
Frugal tinkering

Peruvian ingenuity

Copyright © Navi Radjou

10
Frugal tinkering at large scale

Ratan Tata, Chairman, Tata Group

Copyright © Navi Radjou

11
Frugal ingenuity at a large scale

Copyright © Navi Radjou

12
Frugal tinkering at large scale

Copyright © Navi Radjou

13
Frugal tinkering at large scale

Copyright © Navi Radjou

14
NASA’s MAVEN:
5 years
$679 million

Copyright © Navi Radjou

15
NASA’s MAVEN:
5 years
$679 million
ISRO’s Mangalyaan:
18 months
$69 million

Copyright © Navi Radjou

16
ingenious
solutions

x

SECRET
FORMULA?

JUGAAD
Copyright © Navi Radjou

17
JUGAAD
The ability to improvise an effective solution
in adverse circumstances…
…using limited resources

Copyright © Navi...
JUGAAD is also known as:
Jeitinho or Gambiarra in Brazil
Zizhu Chuangxin in China
Système D in France
Do It Yourself (DIY)...
Jugaad = The MacGyver spirit

Copyright © Navi Radjou

20
Yankee ingenuity:
The roots of American tinkering
—aka Yankee ingenuity
The “McCormick Reaper”

The “McCormick Reaper”
The...
Tinkering
inside Western
firms took a
backseat to…

…but needs to be rekindled

Copyright © Navi Radjou

22
How can Western firms (re)learn
corporate tinkering?
« The most comprehensive book »
on frugal innovation
- The Economist
...
Best practices for promoting
corporate tinkering (jugaad)

Copyright © Navi Radjou

24
Best practice #1: Set up a dedicated unit
to do “corporate tinkering”—SNCF
“Our innovation formula is :
FEWER RESOURCES
+ ...
Best practice #2: Turn all employees
into MacGyvers—FORD

Copyright © Navi Radjou

26
Best practice #3: Partner with
external tinkerers—GE

Copyright © Navi Radjou

27
GE

CFSI

Rock Health

TechShop

“How Frugal Innovation Is Reviving the US Economy”
Panel discussion at Commonwealth Club,...
Best practice #3: Partner with
external tinkerers—GE

Copyright © Navi Radjou

29
Best practice #3: Partner with
external tinkerers—GE

CellScope

Source: CellScope

Copyright © Navi Radjou

30
Best practice #3: Partner with
external tinkerers—GE

Copyright © Navi Radjou

31
GE partners with external tinkerers

Copyright © Navi Radjou

32
Copyright © Navi Radjou

33
Best practice #3: Partner with
external tinkerers—GE

Copyright © Navi Radjou

36
Best practice #3: Partner with
external tinkerers—GE

Copyright © Navi Radjou

37
Best practice #4: Engage customers
in the tinkering process—SAP Labs India
• AppHaus:
– Cross-functional and
autonomous te...
Best practice #5: Bring in tinkerers
through M&A—Saatchi & Saatchi + Duke
“The new approach
should be:
« I have an idea:
I...
Best practice #5: Bring in tinkerers
through M&A—Saatchi & Saatchi + Duke

Copyright © Navi Radjou

40
Best practice #6: Create “positive”
constraints—Aetna

Copyright © Navi Radjou

41
Best practice #7: Reward tinkering successes
and failures—Tata & Bouygues Construction
“ Failure
is a
goldmine »

Copyrigh...
Best practice #8: Engage Gen Y + Z
tinkerers

Copyright © Navi Radjou

43
Best practice #8: Engage Gen Y + Z
tinkerers

Jane Chen
Co-founder
EMBRACE

Copyright © Navi Radjou

44
Best practice #8: Engage Gen Y + Z
tinkerers

Copyright © Navi Radjou

45
Copyright © Navi Radjou

46
Copyright © Navi Radjou

47
Copyright © Navi Radjou

48
Best practice #8: Engage Gen Y + Z
tinkerers

Copyright © Navi Radjou

49
Best practice #8: Engage Gen Y + Z
tinkerers

Copyright © Navi Radjou

50
Best practice #9: Send top execs to tinker
in emerging markets

Copyright © Navi Radjou

51
Best practice #9: Send top execs to tinker
in emerging markets: Renault-Nissan

Louis Schweitzer
Former CEO, Renault

Copy...
Best practice #9: Send top execs to tinker
in emerging markets: Renault-Nissan

Carlos Ghosn
CEO, Renault-Nissan

« (These...
Copyright © Navi Radjou

54
Best practice #9: Send top execs to tinker
in emerging markets: Renault-Nissan

Gérard Detourbet
Renault’s head of
entry-l...
Best practice #9: Send top execs to tinker
in emerging markets: Renault-Nissan

Gérard Detourbet
Renault’s head of
entry-l...
Best practice #10: Practice tinkering in
your private life!

Copyright © Navi Radjou

57
Thank you
Navi Radjou
navi@naviradjou.com
@NaviRadjou

jugaadinnovation.com

Twitter @JugaadAtWork
facebook.com/jugaadinno...
Graphics sources & credits
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Design for America
http://www....
K^2 Keynote: Unleashing Your MacGyver Instinct - Navi Radjou
K^2 Keynote: Unleashing Your MacGyver Instinct - Navi Radjou
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K^2 Keynote: Unleashing Your MacGyver Instinct - Navi Radjou

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K^2 Keynote, "Unleashing Your MacGyver Instinct," from Navi Radjou, co-author of Jugaad Innovation, presented on February 13th, 2014.

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K^2 Keynote: Unleashing Your MacGyver Instinct - Navi Radjou

  1. 1. Unleashing your MacGyver Instinct Navi Radjou Winner of Thinkers50 Innovation Award Member of World Economic Forum’s Design Innovation Council Fellow, Judge Business School, University of Cambridge Co-author, Jugaad Innovation K²: Infinite Innovation for Exponential Growth Half Moon Bay, California—13 February 2014
  2. 2. “Bigger is better” innovation model $603 billion spent in R&D in 2011 Copyright © Navi Radjou 2
  3. 3. Source: Strategy & Business Copyright © Navi Radjou 3
  4. 4. Western firms are stuck in “structured” processes (e.g., Six Sigma) “Our traditional teams are too slow. We're not innovating fast enough. We need to systematize change.» Beth Comstock, CMO, GE Copyright © Navi Radjou 4
  5. 5. The West needs a new innovation model Copyright © Navi Radjou 5
  6. 6. Thinking outside the (ice) box: WHAT IF my fridge what if my fridge can talk to my phone? can operate without electricity? Copyright © Navi Radjou 6
  7. 7. Scarcity is mother of invention Copyright © Navi Radjou 7
  8. 8. Adversity is father of invention http://nif.org.in Kanak Das http://economictimes.indiatimes.com Copyright © Navi Radjou 8
  9. 9. Frugal tinkering Source: www.quotednews.com Source: http://expatbrazil.wordpress.com/page/9/ Source: gcstz.com/products African ingenuity Filipino ingenuity Copyright © Navi Radjou 9
  10. 10. Frugal tinkering Peruvian ingenuity Copyright © Navi Radjou 10
  11. 11. Frugal tinkering at large scale Ratan Tata, Chairman, Tata Group Copyright © Navi Radjou 11
  12. 12. Frugal ingenuity at a large scale Copyright © Navi Radjou 12
  13. 13. Frugal tinkering at large scale Copyright © Navi Radjou 13
  14. 14. Frugal tinkering at large scale Copyright © Navi Radjou 14
  15. 15. NASA’s MAVEN: 5 years $679 million Copyright © Navi Radjou 15
  16. 16. NASA’s MAVEN: 5 years $679 million ISRO’s Mangalyaan: 18 months $69 million Copyright © Navi Radjou 16
  17. 17. ingenious solutions x SECRET FORMULA? JUGAAD Copyright © Navi Radjou 17
  18. 18. JUGAAD The ability to improvise an effective solution in adverse circumstances… …using limited resources Copyright © Navi Radjou 18
  19. 19. JUGAAD is also known as: Jeitinho or Gambiarra in Brazil Zizhu Chuangxin in China Système D in France Do It Yourself (DIY) in USA Copyright © Navi Radjou 19
  20. 20. Jugaad = The MacGyver spirit Copyright © Navi Radjou 20
  21. 21. Yankee ingenuity: The roots of American tinkering —aka Yankee ingenuity The “McCormick Reaper” The “McCormick Reaper” The “Franklin Stove” Copyright © Navi Radjou 21
  22. 22. Tinkering inside Western firms took a backseat to… …but needs to be rekindled Copyright © Navi Radjou 22
  23. 23. How can Western firms (re)learn corporate tinkering? « The most comprehensive book » on frugal innovation - The Economist Copyright © Navi Radjou 23
  24. 24. Best practices for promoting corporate tinkering (jugaad) Copyright © Navi Radjou 24
  25. 25. Best practice #1: Set up a dedicated unit to do “corporate tinkering”—SNCF “Our innovation formula is : FEWER RESOURCES + MORE FREEDOM = CREATIVITY» Stephanie Dommange Former head of leadership development, SNCF Copyright © Navi Radjou 25
  26. 26. Best practice #2: Turn all employees into MacGyvers—FORD Copyright © Navi Radjou 26
  27. 27. Best practice #3: Partner with external tinkerers—GE Copyright © Navi Radjou 27
  28. 28. GE CFSI Rock Health TechShop “How Frugal Innovation Is Reviving the US Economy” Panel discussion at Commonwealth Club, San Francisco Watch video of this panel: http://www.youtube.com/watch?v=WXeoOkAmfZ0 Copyright © Navi Radjou 28
  29. 29. Best practice #3: Partner with external tinkerers—GE Copyright © Navi Radjou 29
  30. 30. Best practice #3: Partner with external tinkerers—GE CellScope Source: CellScope Copyright © Navi Radjou 30
  31. 31. Best practice #3: Partner with external tinkerers—GE Copyright © Navi Radjou 31
  32. 32. GE partners with external tinkerers Copyright © Navi Radjou 32
  33. 33. Copyright © Navi Radjou 33
  34. 34. Best practice #3: Partner with external tinkerers—GE Copyright © Navi Radjou 36
  35. 35. Best practice #3: Partner with external tinkerers—GE Copyright © Navi Radjou 37
  36. 36. Best practice #4: Engage customers in the tinkering process—SAP Labs India • AppHaus: – Cross-functional and autonomous teams – 90-day development cycle – Design thinking (customer-centricity) – Business & social apps • Big boost in productivity & employee engagement Copyright © Navi Radjou V.R. Ferose Former Managing Director SAP Labs India 38
  37. 37. Best practice #5: Bring in tinkerers through M&A—Saatchi & Saatchi + Duke “The new approach should be: « I have an idea: I develop it cheaply, put it in market quickly, get feedback, and reiterate.» Elie Ohayon CEO, Saatchi & Saatchi + Duke Copyright © Navi Radjou 39
  38. 38. Best practice #5: Bring in tinkerers through M&A—Saatchi & Saatchi + Duke Copyright © Navi Radjou 40
  39. 39. Best practice #6: Create “positive” constraints—Aetna Copyright © Navi Radjou 41
  40. 40. Best practice #7: Reward tinkering successes and failures—Tata & Bouygues Construction “ Failure is a goldmine » Copyright © Navi Radjou 42
  41. 41. Best practice #8: Engage Gen Y + Z tinkerers Copyright © Navi Radjou 43
  42. 42. Best practice #8: Engage Gen Y + Z tinkerers Jane Chen Co-founder EMBRACE Copyright © Navi Radjou 44
  43. 43. Best practice #8: Engage Gen Y + Z tinkerers Copyright © Navi Radjou 45
  44. 44. Copyright © Navi Radjou 46
  45. 45. Copyright © Navi Radjou 47
  46. 46. Copyright © Navi Radjou 48
  47. 47. Best practice #8: Engage Gen Y + Z tinkerers Copyright © Navi Radjou 49
  48. 48. Best practice #8: Engage Gen Y + Z tinkerers Copyright © Navi Radjou 50
  49. 49. Best practice #9: Send top execs to tinker in emerging markets Copyright © Navi Radjou 51
  50. 50. Best practice #9: Send top execs to tinker in emerging markets: Renault-Nissan Louis Schweitzer Former CEO, Renault Copyright © Navi Radjou 52
  51. 51. Best practice #9: Send top execs to tinker in emerging markets: Renault-Nissan Carlos Ghosn CEO, Renault-Nissan « (These partnerships) allowed us to learn a lot more on… FRUGAL ENGINEERING » Copyright © Navi Radjou 53
  52. 52. Copyright © Navi Radjou 54
  53. 53. Best practice #9: Send top execs to tinker in emerging markets: Renault-Nissan Gérard Detourbet Renault’s head of entry-level vehicles Source: http://www.carmagblog.co.za/wp-content/uploads/2013/05/Trafficchaos-Mumbai-style-video.jpg Copyright © Navi Radjou 55
  54. 54. Best practice #9: Send top execs to tinker in emerging markets: Renault-Nissan Gérard Detourbet Renault’s head of entry-level vehicles Common Module Family (CMF-A) architecture Copyright © Navi Radjou 56
  55. 55. Best practice #10: Practice tinkering in your private life! Copyright © Navi Radjou 57
  56. 56. Thank you Navi Radjou navi@naviradjou.com @NaviRadjou jugaadinnovation.com Twitter @JugaadAtWork facebook.com/jugaadinnovation « The most comprehensive book » on frugal innovation - The Economist
  57. 57. Graphics sources & credits • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • Design for America http://www.wallpaperhere.com http://www.artknowledgenews.com http://ekawilastyo.wordpress.com/category/musik/ http://www.sixsig.info/ http://www.qualitycouncil.com/imp_6.asp http://mumbletomyneighbor.blogspot.com/2011_06_01_archive.html http://www.inps4.co.uk/vision/ http://www.innovationmanagement.se http://gizmodo.com http://www.mitticool.in/ www.businessweek.com http://archives.medsmagazine.com/products http://business.in.com/article/boardroom/pg-and-unilever-battles-reach-fever-pitch/12092/0 http://expatbrazil.wordpress.com/page/9/ FastCompany http://thestanfordchallenge.stanford.edu/highlights-by-school/business/ http://en.l4c.me/fotos/macuco00/renault-logan Rolling Stone http://www.good.is/post/the-participation-problem-solver/ http://www.mitticool.in/ http://gizmodo.com Wikimedia.com http://www.examiner.com/road-driver-in-national/world-s-cheapest-car-the-tata-nano Tata Motors http://www.citizen-news.org/2008/11/diabetes-doctor-is-at-your-doorstep-in.html http://0-100.hotnews.ro http://www.connectedaustralia.com http://management.fortune.cnn.com/2011/07/15/zhang-ruimin-managements-next-icon/ http://designprinciplesandpractices.com http://www.philips.com.ph http://www.keywordpicture.com + http://prospect.rsc.org/blogs/cw/wp-content/uploads/2009/06/margaret-chan.jpg • • • • • • • • • P&G web site (pg.com) SwipeSense Strategy & Business Siemens GE Healthcare Cambridge University Press Fast Company http://www.digitaltrends.com/ wp-content/uploads/2011/05/ Square-iPhone-Credit-Card-Reader.jpg http://kristigrassi.com/projects/paynearme/ paynearme-project.jpg 59

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