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Jugaad innovation


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Jugaad innovation

  1. 1. JUGAAD INNOVATION Amaia Giralt @amaigi
  2. 2. WHAT IS JUGAAD? Is about doing more with less
  3. 3. WHAT IS JUGAAD? A break through growth strategy
  4. 4. WHAT IS JUGAAD? Finding new uses for everyday objects
  5. 5. WHAT IS JUGAAD? Improvise cleverly Acts where there is a need
  6. 6. WHAT IS JUGAAD? “Jugaad” is a Hindi word that describes an improvised or makeshift solution using scarce resources. It's a way of life in India, where washing machines are used for whipping up yogurt drinks, but it's also an innovation theory that's proving to be increasingly influential in the marketing departments of Western corporations. In a business context, jugaad is a frugal, flexible, and inclusive approach to problem solving and innovation. Jugaad thinking helps us focus on the essence, the real requirements, and often leads to taking the mental leap that is required for a disruptive new design or product
  7. 7. WHAT IS JUGAAD? Jugaad innovators don’t view customers as merely passive users of t h e i r p ro d u c t s a n d s e r v i c e s . Recognizing the diversity of customer needs, they invent new solutions from the ground up by working closely with marginal groups to identify their unique needs. They then engage local communities and partners to set up a grassroots value chain to locally build, deliver, and support their solutions— making these solutions in turn affordable, accessible, and sustainable.
  8. 8. 6 Jugaad principles
  9. 9. 6 Jugaad principles 1. Seek opportunity in adversity: Learn to transform adversity into an opportunity to innovate and bring value to your organization and your communities. Hande, for instance, faced extreme adversity in the early stages of SELCO as many Indian rural customers, who earn $1 to $2 a day, couldn’t afford the up- front costs of buying and installing solar lighting systems. Undeterred, Hande improvised a new pay-per-use business model that proved to be highly successful.
  10. 10. 6 Jugaad principles2. Do more with less Optimize the use of scarce resources while delivering high value to more of customers. Avoid reinventing the wheel and reuse existing technologies and networks. Reuse and recombine thats the key. Its not necessary to add more technology features just because we can. We must design for the real world by practising “radical which is doing more with less incrementalism”. The sucess here would be doing almost nathing and having create a huge difference. Besides, Jugaad isnt about designing affordable products, it is also about succesfully selling these products in the marketplace.
  11. 11. 6 Jugaad principles 3.Think and act flexibly Constantly question conventional wisdom and keep all options open so you can respond quickly to unexpected changes. Chinese appliance maker Haier found out that many farmers across China routinely use its washing machines to clean their vegetables. Sensing a big market opportunity, Haier developed a washing machine with larger pipes that could also handle vegetables. The product was a hit among farmers. Its about improvising, experimenting and adapting to the circunstances. This process is always fast, this way we fail cheap, fast and often in order to perform better. In the mindset of uncertainty long-term plans become dangerous, to thrive this volatile world, the ability to think and act flexibly is crucial.
  12. 12. 6 Jugaad principles 4.Keep it simple Rather than over-engineering your products, provide customers with “good enough” solutions that are easy to use. Recognizing that physicians in emerging markets had no use for bulky, hard- to-use ultrasound machines, GE’s engineers developed Vscan, a portable ultrasound machine that is as compact and simple to use as a cellphone. Vscan has been a big success in both emerging markets and developed countries. Practical benefits of simplicity: -They are more affordable - Easier to install and maintain. - It satisfy a wider audience Take into account that the 2% of the adults in India are illiterate so they cant read the basic instructions manuals is crucial to be simple. Basically, the simplicity makes their solutions affordable and accessible not only to mainstream customers but also to those who live on the managings society
  13. 13. 6 Jugaad principles 5.Include the margin Scarcity, diversity and interconnectivity are some of the characteristics of emerging markets. Jugaad innovators dont view customers as marely passive users of their products or services. They recognize the diversity of customer needs and they invent new solutions from the ground up by working closely with marginal groups to identify their unique needs. So create an inclusive work culture to include the margin. And never forget that the marginal minds are not marginal minds.
  14. 14. 6 Jugaad principles 6. Follow your heart Logical thinking can only take you so far. Rely on your gut intelligence and innate empathy for customer needs to innovate breakthroughs that disrupt entire industries. For instance, Kishore Biyani, founder of Big Bazaar, one of India’s largest and most successful retail chains, did not use management consultants to validate his idea of launching retail stores that look, feel, and even smell like chaotic street bazaars. He trusted his intuition more than any analysis to conjure up an innovative retail model that is hard for rivals to replicate. Gut intelligence: A creative intuition hored by years of experience.
  15. 15. 6 Jugaad principles By practicing these six principles of jugaad innovation you will be able to generate breakthrough growth in today’s complex environment.
  16. 16. Integrating Jugaad into your organization Jugaad innovation delivers the most impressive results when it is practised in complex and volatile environments with the following characteristics: - Rapid changes - Widespread resource scarcity -Frugal and diverse customers -Industry immaturity -Exploding interconnectivity
  17. 17. Integrating Jugaad into your organization Getting started with Jugaad: Jugaad can disrupt business as usual-for the better. As with any disruptive change, however, companies can adopt jugaad in one of two ways: in one fell swoop or in small chunks. For this reason is important to prioritize the jugaad principles you need to adopt. At the corporate level, you need to let industry dynamics and your company´s strategic requirements determine which pf the six jugaad principles is most critical for you business success. In addition, once you have decided which principles are of strategic importance to you, you can adopt each of them in small, manageable stages. For example, if “keep it simple” appeals to you, you can begin by simplifying the design of your products and makeng them easier to use and mantain (as Siemens did by launching their SMART initiative).
  18. 18. Integrating Jugaad into your organization Training future Jugaad Innovators: The Jugaad concept is becoming more popular in American and European universities for this reason through programmes that imbue the next generation of engineers and managers with a Jugaad mindset and its associated principles. Interiorizing the principles the future leaders will be able to design and deliver affordable and sustainable solutions that are relevant not only for developing nations but also for developed economies in the west.
  19. 19. If you have the gutsy ability to improvise, you might recognize yourself as Jugaad-minded. Jugaad Innovation is about not being afraid to fail; experiments are allowed. As trivial as it may seem, Jugaad Innovation is out-of-the-box thinking. Are you inspired by the idea of Jugaad Innovation? Then have a look at the Jugaad movement website : for more information. The challenge: