1
Going beyond Jugaad:
Building a Systematic Innovation
Capability 3 Improve

Batting Avg

1

Build a
pipeline

2

Improve i...
Theme 1: Build a Pipeline
3

1. Lay the Foundation
2. Create a Challenge Book
3. Build Participation
8 Steps to Innovation Excellen
4

STEP 1
LAY THE FOUNDATION
Build a Pipeline
5

1. Lay the Foundation
 Create

Innovation Programme

Jeff Immelt “Imagination Breakthroughs” - $1B
po...
Idea Management
6

source

scope

technology selection

Idea Box

stages

funding
40 years, 20 million ideas

Year

Suggestions

Participation

Adoption

suggestions

per person

Rate(%)

Rate(%)

789

0....
The Power of Small Ideas
8

“There is no genius in our company.
We just do whatever we believe is
right, trying every day ...
Small Ideas Matter:
Cognizant’s Innovation
Programme

9

Year

FY08
FY09
FY10
FY11
FY12

Ideas

327
5,551
20,848
78,354
1,...
10

Buzz Creation (creative
campaigns)
Titan: The 3M of India?
11
12

Some Titan Innovation
Campaigns


2004: “What is new?”
 Identification

and implementation of 5 new ideas
by every s...
Training & Development
13
Training & Development
14



Titan Innovation School of Management
 “Everybody

Focus area
Design thinking
Systems think...
8 Steps to Innovation Excellen
15

STEP 2
CREATE A CHALLENGE
BOOK
Build a Pipeline
16

2. Create a Challenge Book
 Feel

the Pain

 Sense

 See

the Wave

the Waste
17

Why was the Bajaj Pulsar
successful?
18

Why was the Bajaj Pulsar
successful?
Pain: New generation
of bike riders wanted
more than transportation:
power & styl...
Vigyanlabs
Nasscom Innovation Award 2013
19
20

Vigyanlabs – inspired by pain, wave,
waste
Nasscom Innovation Award 2013

Pain

Wave

Waste
21

7 Themes
 Digital consumers
 Emerging economies
 Sustainable tomorrow
 Smarter organizations
 New commerce
 Perv...
8 Steps to Innovation Excellen
22

STEP 3
BUILD PARTICIPATION
How to build participation…
23



Role model



Community of
practice



Innovation catalyst



Rewards &
recognition
24

Theme 2: Improve the Idea
Velocity
4. Experiment with Low Cost at High Speed
5. Go Fast from Prototyping to Incubation...
8 Steps to Innovation Excellen
25

STEP 4
EXPERIMENT WITH LOW
COST AT HIGH SPEED
Improve the Idea Velocity
26

4. Experiment with Low Cost at High Speed
27

Feb 2004
Sep
2003

Nov
2003

itch

Apr 2004
demo

idea

Feasibility Loop Viability Loop
2 months

3 months

2 months

...
Creating a Climate for
Experimentation
28



Failure plays a critical role in innovation


Post-It Notes & failed adhesi...
Avoid the “Failure Fallacy”
29
8 Steps to Innovation Excellen
30

STEP 5
GO FAST FROM
PROTOTYPE
TO INCUBATION
Improve the Idea Velocity
31

5. Go Fast from Prototyping to Incubation
8 Steps to Innovation Excellen
32

STEP 6
ITERATE ON THE
BUSINESS MODEL
Improve the Idea Velocity
33

6. Iterate on the Business Model
Theme 3: Increase the Batting
Average
34

7. Build an Innovation Sandbox
8. Create a Margin of Safety
8 Steps to Innovation Excellen
35

STEP 7
BUILD AN
INNOVATION SANDBOX
Increase the Batting Average
36

7. Build an Innovation Sandbox
The Power of
Platforms
37

Platform
7 Themes
 Digital consumers
 Emerging economies
 Sustainable tomorrow
 Smarter org...
Open Innovation
38



Procter & Gamble
 Works with universities,
suppliers and outside
inventors
 Offers them a share i...
8 Steps to Innovation Excellen
39

STEP 8
CREATE A
MARGIN OF SAFETY
Increase the Batting Average
40

8. Create a Margin of Safety
Could a premortem have prevented
Dreamliner problems?
41

A premortem might have
surfaced important failure
modes such as ...
42

Where do you Stand?
Measuring Idea Pipeline
43

Small
ideas
Idea/person/yr
TVS Motors: 44

Patentable
ideas
IP/person/yr

New product
ideas

N...
Measuring Idea Velocity
44

Response
Time

Experiments

Shell Gamechanger % of ideas
< 48 hr
Toyota < 1month

#of exp

Rev...
Measuring Batting Average
45

Sandbox

Partnership
Network

# of
sandboxes

# of active
partners

# of
technology
platform...
Assess your innovation maturity
From Jugaad (level-1) to Excellence (level-5)
Creative confidence

Success rate of imple
m...
My Contacts:
47








Phone:
Email:
Blog:
Web:
Book:

+91 9845022710
rishi@iimb.ernet.in
http://jugaadtoinnovation....
THANK YOU
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NASSCOM Engineering Summit 2013: Going Beyond Jugaad: Building a Systematic Innovation Capability - Prof. Rishikesha T. Krishnan

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Going Beyond Jugaad: Building a Systematic Innovation Capability

Speaker: Prof. Rishikesha T. Krishnan, Corporate Strategy & Policy, IIM Bangalore

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NASSCOM Engineering Summit 2013: Going Beyond Jugaad: Building a Systematic Innovation Capability - Prof. Rishikesha T. Krishnan

  1. 1. 1
  2. 2. Going beyond Jugaad: Building a Systematic Innovation Capability 3 Improve Batting Avg 1 Build a pipeline 2 Improve idea velocity
  3. 3. Theme 1: Build a Pipeline 3 1. Lay the Foundation 2. Create a Challenge Book 3. Build Participation
  4. 4. 8 Steps to Innovation Excellen 4 STEP 1 LAY THE FOUNDATION
  5. 5. Build a Pipeline 5 1. Lay the Foundation  Create Innovation Programme Jeff Immelt “Imagination Breakthroughs” - $1B potential  E.g. Cognizant “Managed Innovation Programme”  E.g. 3 Key Processes  Idea Management  Buzz Creation  Training & Development
  6. 6. Idea Management 6 source scope technology selection Idea Box stages funding
  7. 7. 40 years, 20 million ideas Year Suggestions Participation Adoption suggestions per person Rate(%) Rate(%) 789 0.1 8 23 1971 88,607 2.2 67 72 1986 2.6million 48 95 96 1951 7 No of
  8. 8. The Power of Small Ideas 8 “There is no genius in our company. We just do whatever we believe is right, trying every day to improve every little bit and piece. But when 70 years of very small improvements accumulate, they become a revolution” From Interview with Katsuaki Watanabe in HBR, July-Aug 2007
  9. 9. Small Ideas Matter: Cognizant’s Innovation Programme 9 Year FY08 FY09 FY10 FY11 FY12 Ideas 327 5,551 20,848 78,354 1,34,24 2 Ideas/ person/ye ar % participation 0.01 0.07 0.20 0.60 0.90 % implementation 2 3 9 21 37 Source: Kumar Sachidanandam et. al “Is managed innovation an oxymoron?”, Jan 7, 2013 http://www.mixprize.org/story/managed-innovation-oxymoron NA NA 14 13 14
  10. 10. 10 Buzz Creation (creative campaigns)
  11. 11. Titan: The 3M of India? 11
  12. 12. 12 Some Titan Innovation Campaigns  2004: “What is new?”  Identification and implementation of 5 new ideas by every supervisor on the shopfloor  2006: HOD Fund  Every head of department authorised to spend upto Rs. 1 lakh on an idea without any approvals  2008: “Simplify & Automate”  Most  successful theme at Titan 2009: “Innovation School of Management”  Making every employee an innovator
  13. 13. Training & Development 13
  14. 14. Training & Development 14  Titan Innovation School of Management  “Everybody Focus area Design thinking Systems thinking Lateral thinking an innovator by 2015” Techniques Immersive research, rapid prototyping, brainstorming TRIZ Systems archetypes Theory of constraints (TOC) Edward de Bono’s six thinking hats
  15. 15. 8 Steps to Innovation Excellen 15 STEP 2 CREATE A CHALLENGE BOOK
  16. 16. Build a Pipeline 16 2. Create a Challenge Book  Feel the Pain  Sense  See the Wave the Waste
  17. 17. 17 Why was the Bajaj Pulsar successful?
  18. 18. 18 Why was the Bajaj Pulsar successful? Pain: New generation of bike riders wanted more than transportation: power & style at a reasonable cost Wave: Young, male employees with disposable income far away from home Waste: Powerful bikes consumed too much fuel (solved by DTSi
  19. 19. Vigyanlabs Nasscom Innovation Award 2013 19
  20. 20. 20 Vigyanlabs – inspired by pain, wave, waste Nasscom Innovation Award 2013 Pain Wave Waste
  21. 21. 21 7 Themes  Digital consumers  Emerging economies  Sustainable tomorrow  Smarter organizations  New commerce  Pervasive computing  Healthcare economy http://jugaadtoinnovation.blogspot.in/2012/04/infosys-innovation-to-build-tomorrows.html
  22. 22. 8 Steps to Innovation Excellen 22 STEP 3 BUILD PARTICIPATION
  23. 23. How to build participation… 23  Role model  Community of practice  Innovation catalyst  Rewards & recognition
  24. 24. 24 Theme 2: Improve the Idea Velocity 4. Experiment with Low Cost at High Speed 5. Go Fast from Prototyping to Incubation 6. Iterate on the Business Model
  25. 25. 8 Steps to Innovation Excellen 25 STEP 4 EXPERIMENT WITH LOW COST AT HIGH SPEED
  26. 26. Improve the Idea Velocity 26 4. Experiment with Low Cost at High Speed
  27. 27. 27 Feb 2004 Sep 2003 Nov 2003 itch Apr 2004 demo idea Feasibility Loop Viability Loop 2 months 3 months 2 months impact
  28. 28. Creating a Climate for Experimentation 28  Failure plays a critical role in innovation  Post-It Notes & failed adhesives  Create infrastructure, give resources for expts  Have a high trial rate: fail fast, learn fast  Can you do the “last” experiment first?
  29. 29. Avoid the “Failure Fallacy” 29
  30. 30. 8 Steps to Innovation Excellen 30 STEP 5 GO FAST FROM PROTOTYPE TO INCUBATION
  31. 31. Improve the Idea Velocity 31 5. Go Fast from Prototyping to Incubation
  32. 32. 8 Steps to Innovation Excellen 32 STEP 6 ITERATE ON THE BUSINESS MODEL
  33. 33. Improve the Idea Velocity 33 6. Iterate on the Business Model
  34. 34. Theme 3: Increase the Batting Average 34 7. Build an Innovation Sandbox 8. Create a Margin of Safety
  35. 35. 8 Steps to Innovation Excellen 35 STEP 7 BUILD AN INNOVATION SANDBOX
  36. 36. Increase the Batting Average 36 7. Build an Innovation Sandbox
  37. 37. The Power of Platforms 37 Platform 7 Themes  Digital consumers  Emerging economies  Sustainable tomorrow  Smarter organizations  New commerce WalletEdge  Pervasive computing  Healthcare economy Offering http://jugaadtoinnovation.blogspot.in/2012/04/infosys-innovation-to-build-tomorrows.html
  38. 38. Open Innovation 38  Procter & Gamble  Works with universities, suppliers and outside inventors  Offers them a share in the rewards  50% of P&G’s new-product ideas originate outside of the firm  Major source of growth  Eureka Forbes  Partners with technology suppliers from across the world
  39. 39. 8 Steps to Innovation Excellen 39 STEP 8 CREATE A MARGIN OF SAFETY
  40. 40. Increase the Batting Average 40 8. Create a Margin of Safety
  41. 41. Could a premortem have prevented Dreamliner problems? 41 A premortem might have surfaced important failure modes such as problems with the Lithium-ion battery
  42. 42. 42 Where do you Stand?
  43. 43. Measuring Idea Pipeline 43 Small ideas Idea/person/yr TVS Motors: 44 Patentable ideas IP/person/yr New product ideas New business ideas Potential biz impact / % of rev Patents/yr 100 ideas, $1 B each Tata Motors: 22 Cognizant: 1 Machine tools: 100 Cr Rev, 2 Cr each idea
  44. 44. Measuring Idea Velocity 44 Response Time Experiments Shell Gamechanger % of ideas < 48 hr Toyota < 1month #of exp Reviews Quarterly Ideas with champions
  45. 45. Measuring Batting Average 45 Sandbox Partnership Network # of sandboxes # of active partners # of technology platforms 3M: 45 Avg response time to a challenge Success rate P&G: 15%->50% Biz impact Cognizant: $550m/year
  46. 46. Assess your innovation maturity From Jugaad (level-1) to Excellence (level-5) Creative confidence Success rate of imple mented ideas>50% % of rev from Innov in last 5 yrs>30% Idea/person/yr >1 Level-5: High biz Big idea pipeline> Impact (Excellence) 10% of revenue # of sandboxes>1 Prototypes>10%(ideas) Response time<1month Participation 30%+ Idea Mgmt Buzz creation Incubation pipeline Level-4: Balanced Review: Quarterly L&D Portfolio Biz impact calculator in Innovation place dashboard Participation Level-3: Engaged (In Experiments/Reviews) 10%+ Don’t track Level-2: Foundation ideas (of 3 key Level-1: processes) Ad Hoc (Jugaad) Incubation effectiveness v6: 23-Aug-2013
  47. 47. My Contacts: 47      Phone: Email: Blog: Web: Book: +91 9845022710 rishi@iimb.ernet.in http://jugaadtoinnovation.blogspot.in http://www.iimb.ernet.in/~rishi http://www.8stepstoinnovation.com
  48. 48. THANK YOU
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