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).

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(mes.com
h4p://nif.org.in
11
Copyright © Navi Radjou
Kanak
Das
Source:
Prof
Anil
Gupta,
IIM-­‐Ahmedabad
Adversity
is
father
of
inven(on

12. Source: gcstz.com/products
African ingenuity
Source: www.quotednews.com
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:
upload.wikimedia.org
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:
upload.wikimedia.org
22
Copyright © Navi Radjou

24. 24
Copyright © Navi Radjou
Takeaway
#1:
Focus
on
customer
value

25. Jane
Chen
Co-­‐founder
EMBRACE
25
Copyright © Navi Radjou
Takeaway
#1:
Focus
on
customer
value

26. 26
Copyright © Navi Radjou
Takeaway
#1:
Focus
on
customer
value

27. 27
Copyright © Navi Radjou
Source:
Siemens
Takeaway
#2:
Keep
it
Simple

28. Keeping
it
simple:
SIEMENS
28
Copyright © Navi Radjou
Simple
Maintenance-­‐friendly
Affordable
Reliable
Timely-­‐to-­‐market

29. 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

30. 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

31. Shil
from
Linear
Value
Chains…
DESIGN
CUSTOMERS
PRODUCE
SELL
31
Copyright © Navi Radjou

32. …to
Open
Innova(on
Networks
Market
discovery
partners
Solu,on
design
partners
Go-­‐to-­‐market
partners
32
Copyright © Navi Radjou

33. DISCOVER
33
Copyright © Navi Radjou
…to
Open
Innova(on
Networks

34. 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

35. GE
CFSI
Rock
Health
TechShop
35
Copyright © Navi Radjou

36. Applying
Frugal
Innova,on
to
Sogware
Development

37. 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

38. 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

39. The
Emerging
Frugal
Innova,on
Ecosystem
in
the
West

40. 40
Copyright © Navi Radjou
US
government
is
suppor(ng
“bo4om-­‐up”
frugal
innova(on

41. 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

42. Top
US
universi(es
are
training
“frugal”
engineers
&
managers
42
Copyright © Navi Radjou

43. 43

44. Source:
CellScope
44
Copyright © Navi Radjou
CellScope
Young
entrepreneurs
are
driving
the
frugal
innova(on
revolu(on
in
healthcare

45. Source: http://etaglive.com
Young
entrepreneurs
are
driving
the
frugal
innova(on
revolu(on
in
educa,on
45
Copyright © Navi Radjou

46. 46
Copyright © Navi Radjou
Young
entrepreneurs
are
driving
the
frugal
innova(on
revolu(on
in
finance

47. MAKER
Movement
in
US:
From
DIY
to
Do-­‐It-­‐Ourselves
h4p://fetosoap.com/blog/index.php?s=faire
47
Copyright © Navi Radjou

48. Open
Source
Hardware
Movement
48
Copyright © Navi Radjou

49. 49
Copyright © Navi Radjou

52. Slide
with
J&J
52

53. Discussion
Navi
Radjou
navi@naviradjou.com
jugaadinnova,on.com
Twi4er
@JugaadAtWork
Facebook.com/jugaadinnova(on