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Jugaad Innovation - UXPA 2013 Keynote from Navi Radjou


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To win in today's fast-paced and hyper-competitive business environment, companies must learn to collaborate and partner extensively to innovate cost-effectively and sustainably under severe resource …

To win in today's fast-paced and hyper-competitive business environment, companies must learn to collaborate and partner extensively to innovate cost-effectively and sustainably under severe resource constraints. In this engaging presentation, Navi will unveil a groundbreaking business paradigm: Frugal Innovation. Frugal innovation is the ability to actively engage internal and external partners to do more with less: that is, to co-create significantly more business and social value for the entire ecosystem while minimizing use of increasingly limited resources. Thousands of inventive firms in resource-constrained emerging markets like India, China, Africa, and Brazil apply frugal innovation techniques to co-develop with partners affordable and sustainable solutions that deliver more value to customers at lower cost. These innovators extensively leverage public, private, and non-profit partnerships throughout the entire product development cycle. In this keynote, Navi will vividly describe how frugal innovation is practiced today by leading firms worldwide, and show how you can apply new collaborative tools, techniques and mindset to deeply engage partners to address the needs of cost-conscious and eco-aware consumers worldwide.

Navi Radjou is an independent thought leader and strategy consultant based in Silicon Valley. He is an internationally-recognized voice of business innovation and leadership.

Navi is a Fellow at Judge Business School, University of Cambridge, and a faculty member of the World Economic Forum (WEF). He is a member of WEF’s Global Agenda Council on Design Innovation and a columnist on Harvard Business Review.

Navi has consulted with leading international organizations—including Ernst & Young, GM, Hitachi, IBM, Marks & Spencer, Microsoft, Procter & Gamble, SAP, Sprint, and TCS—on innovation and leadership strategies.

Most recently, Navi served as the Executive Director of the Centre for India & Global Business at Cambridge Judge Business School. Previously, Navi was a longtime VP/analyst at Forrester Research in Boston and San Francisco advising senior executives worldwide on breakthrough growth strategies.

Navi is a sought-after speaker by the World Economic Forum, Council on Foreign Relations, The Conference Board, Harvard University, and Asia Society. A prolific writer, Navi has coined and popularized several business concepts such as ‘Global Innovation Networks’, ‘Polycentric Innovation’ and ‘Jugaad Innovation’. Navi has been featured in The Wall Street Journal, Bloomberg Businessweek, CNN, The Economist, The Financial Times, and I-CIO.

Navi is the co-author of Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth (Jossey-Bass, 2012), which The Economist calls “the most comprehensive book yet to appear on the subject” of frugal innovation. Navi is also coauthor of From Smart to Wise, a book on next-generation leadership (Jossey-Bass, 2013).

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  • 1. Frugal  Innova,on:  Collabora(ng   To  Innovate  Faster,  Be4er,  Cheaper     Navi  Radjou   Co-­‐author,  Jugaad  Innova+on     Co-­‐author,  From  Smart  To  Wise   World  Economic  Forum  faculty  member   Fellow,  Judge  Business  School,  University  of  Cambridge     UXPA  2013  Conference  —  11  July  2013,  DC  
  • 2. Western  firms  are  being  forced  to   innovate  faster,  be4er,  cheaper   •  Demographic shifts •  Rapid technology changes •  New regulations •  Global competition •  Dwindling purchasing power 2  Copyright © Navi Radjou
  • 3. Western  consumers  are  now  “frugal”     Persistently high fell $2,250 – the first business cycle on record in which incomes did not end higher at the end of the Real median income of working-age households, 2000-09 F I G U R E P NOTE: Shaded areas denote recessions. SOURCE: EPI analysis of U.S. Census Bureau data. Medianincome($2009) $53,000 $54,000 $55,000 $56,000 $57,000 $58,000 $59,000 $60,000 $61,000 $62,000 $63,000 2009200820072006200520042003200220012000 $60,746 $58,495 $55,821 3  Copyright © Navi Radjou
  • 4. “Bigger  is  be4er”  innova(on  model   $603  billion   spent  in  R&D   in  2011   4  Copyright © Navi Radjou
  • 5. 5  Copyright © Navi Radjou Source:  Strategy  &  Business  Source:  Strategy  &  Business  
  • 6. 6  Copyright © Navi Radjou Source:  Strategy  &  Business   ovation has long been a faith-based initiative: Spend m u losing out to nimbler competitors? On the high-cos Source:  Strategy  &  Business  
  • 7. Firms  need  a  new  innova(on  model   7  Copyright © Navi Radjou
  • 8. Thinking  outside  the  (ice)  box:     what if my fridge can talk to my phone? 8  Copyright © Navi Radjou
  • 9. Thinking  outside  the  (ice)  box:     WHAT IF my fridge can operate without electricity? 9  Copyright © Navi Radjou
  • 10. 10  Copyright © Navi Radjou Scarcity  is  mother  of  inven(on  
  • 11. h4p://economic(mes.india(   h4p://   11  Copyright © Navi Radjou Kanak  Das   Source:  Prof  Anil  Gupta,  IIM-­‐Ahmedabad   Adversity  is  father  of  inven(on  
  • 12. Source: African ingenuity Source: Filipino ingenuity 12  Copyright © Navi Radjou Frugal  ingenuity  
  • 13. 13  Copyright © Navi Radjou Frugal  ingenuity  
  • 14. Ratan  Tata,  Chairman,  Tata  Group   14  Copyright © Navi Radjou Frugal  ingenuity  at  a  large  scale  
  • 15. 15  Copyright © Navi Radjou Frugal  ingenuity  at  a  large  scale    
  • 16. Frugal  ingenuity  at  a  large  scale     16  Copyright © Navi Radjou
  • 17. FRUGAL PRODUCTS JUGAAD   mindset   17  Copyright © Navi Radjou
  • 18. JUGAAD   The gutsy ability to improvise an effective solution with limited resources… …using ingenuity & resilience Also known as: Jeitinho or Gambiarra in Brazil Zizhu Chuangxin in China Système D in France Do It Yourself (DIY) in USA 18  Copyright © Navi Radjou
  • 19. 19  Copyright © Navi Radjou Jugaad:     frugal,  flexible,  inclusive   Tradi,onal  innova,on:     costly,  rigid,  eli(st  
  • 20. Doing  more  with  Less:  Frugal  Innova,on   20  Copyright © Navi Radjou FI  =   RESOURCES   VALUE   -­‐  Customers   -­‐  Shareholders   -­‐  Society   -­‐  Financial  resources   -­‐  Natural  resources   -­‐  Time  
  • 21. Frugal  innova(on  pioneer:  Unilever   Paul  Polman,  CEO,  Unilever   “I  want  to  double   Unilever’s  revenues   by  2020  while   cueng  our   environmental   impact  by  50%”     Source:     21  Copyright © Navi Radjou
  • 22. Frugal  innova(on  pioneer:  PepsiCo   Shiv  Singh    Global  Head  of  Digital,  PepsiCo   “Marketers  should   invest  HALF  of  their   budgets  on  mobile   marke(ng—and  look  at   smart  investments  on   medium  vehicles  that   generate  instant   conversa(ons.”     Source:     22  Copyright © Navi Radjou
  • 23. 24  Copyright © Navi Radjou Takeaway  #1:  Focus  on  customer  value  
  • 24. Jane  Chen   Co-­‐founder    EMBRACE   25  Copyright © Navi Radjou Takeaway  #1:  Focus  on  customer  value  
  • 25. 26  Copyright © Navi Radjou Takeaway  #1:  Focus  on  customer  value  
  • 26. 27  Copyright © Navi Radjou Source:  Siemens   Takeaway  #2:  Keep  it  Simple  
  • 27. Keeping  it  simple:  SIEMENS   28  Copyright © Navi Radjou  Simple   Maintenance-­‐friendly    Affordable    Reliable    Timely-­‐to-­‐market  
  • 28. Elie  Ohayon   CEO,  Saatchi  &  Saatchi  +  Duke   “We  must  radically   change  the  way  we   innovate.  The  new   approach  should  be:     «  I  have  an  idea:     I  develop  it  cheaply,     put  it  in  market  quickly,   get  feedback,     and  reiterate.»   29  Copyright © Navi Radjou Takeaway  #3:  Rapid  experimenta(on  
  • 29. 30  Copyright © Navi Radjou Takeaway  #4:  Leverage  partnerships   State  Agriculture   Marke(ng  Boards   NGOs   Thomson  Reuters   Bhar(   Syngenta     NOKIA LIFE TOOLS OnMobile   Local   villages   Nokia  Life  Tools  
  • 30. Shil  from  Linear  Value  Chains…   DESIGN   CUSTOMERS  PRODUCE   SELL     31  Copyright © Navi Radjou
  • 31. …to  Open  Innova(on  Networks   Market  discovery  partners   Solu,on  design  partners   Go-­‐to-­‐market  partners   32  Copyright © Navi Radjou
  • 32. DISCOVER   33  Copyright © Navi Radjou …to  Open  Innova(on  Networks  
  • 33. 34  Copyright © Navi Radjou Beth  Comstock,  CMO,  GE   “Our  tradi,onal  teams   are  too  slow.  We're  not   innova,ng  fast   enough.  We  need  to     systema,ze  change.»   Takeaway  #4:  Leverage  partnerships  
  • 34. GE                CFSI          Rock  Health              TechShop       35  Copyright © Navi Radjou
  • 35. Applying  Frugal  Innova,on  to   Sogware  Development      
  • 36. Frugal  solware  development:  Intuit   37  Copyright © Navi Radjou •  “Follow Me Home” program •  Rapid prototyping and iterative development –  Don’t solve “world hunger”—solve one specific customer pain point –  Aim for “good enough” vs. “perfect” solution –  Don’t try to change customer behavior—dovetail into it –  Love metrics
  • 37. 38  Copyright © Navi Radjou •  AppHaus: – Cross-functional and autonomous teams – 90-day development cycle – Design thinking (customer-centricity) – Business & social apps •  Boost in productivity and employee engagement V.R.  Ferose   MD,  SAP  Labs  India   Frugal  solware  development:  SAP Labs  
  • 38. The  Emerging  Frugal     Innova,on  Ecosystem   in  the  West    
  • 39. 40  Copyright © Navi Radjou US  government  is  suppor(ng   “bo4om-­‐up”  frugal  innova(on  
  • 40. 41  Copyright © Navi Radjou FEMA  Think  Tank  Conference  at  White  House,  6  February  2013     Richard  Serino   Deputy  Administrator   FEMA   Desiree  Matel-­‐Anderson   Innova(on  Advisor   FEMA   Yours  truly   US  government  is  suppor(ng   “bo4om-­‐up”  frugal  innova(on:  FEMA  
  • 41. Top  US  universi(es  are  training   “frugal”  engineers  &  managers   42  Copyright © Navi Radjou
  • 42. 43  
  • 43. Source:  CellScope   44  Copyright © Navi Radjou CellScope   Young  entrepreneurs  are  driving  the   frugal  innova(on  revolu(on  in  healthcare  
  • 44. Source: Young  entrepreneurs  are  driving  the   frugal  innova(on  revolu(on  in  educa,on   45  Copyright © Navi Radjou
  • 45. 46  Copyright © Navi Radjou Young  entrepreneurs  are  driving  the   frugal  innova(on  revolu(on  in  finance  
  • 46. MAKER  Movement  in  US:     From  DIY  to  Do-­‐It-­‐Ourselves   h4p://   47  Copyright © Navi Radjou
  • 47. Open  Source  Hardware  Movement   48  Copyright © Navi Radjou
  • 48. 49  Copyright © Navi Radjou
  • 49. Slide  with  J&J   52  
  • 50. Discussion   Navi  Radjou         jugaadinnova,   Twi4er  @JugaadAtWork