Jugaad (a word taken from Hindi which captures the meaning of finding a low-cost solution to any problem in an intelligent way) is a new way to think constructively and differently about innovation and strategy. Jugaad innovation has a long-lasting tradition in India but is also widespread in the rest of the so-called Bric countries (Brazil, Russia, India and China) and numerous other emerging economies. Jugaad is about extending our developed world understanding of entrepreneurial spirit in the traditional Schumpeterian style (Joseph Schumpeter was the Austrian economist known as the prophet of innovation).
Jugaad means thinking in a frugal way and being flexible, which, in turn, requires the innovator or entrepreneur to adapt quickly to often unforeseen situations and uncertain circumstances in an intelligent way.
Intelligence in this context "isn’t about seeking sophistication or perfection by over-engineering products, but rather about developing a ‘good-enough’ solution that gets the job done".
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Innovative and strategy
“The ability to sustain an advantage from cheap labor or even
from economies of scale.
Today, the only way to have an advantage is through innovation.
But this innovation has to involve a consistent strategic direction, a
strategic vision.” Michael E. Porter
Harvard Business School
Clear link between Strategy and Innovation
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Frugal Innovation
“ The Jugaad Innovation : Do more with less. Reduce
complexity, eliminate the non-essentials, back to the essence of
the product.
Give life to concrete products which the consumers want and
need, without excessive sophistication”
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Mitticool revolution: Fridge without electricity
Mansukhbhai Prajapati
Fridge with Clay
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Frugal Innovation: Automotive Industry
Tata Nano
2008
Accessible to the greatest
number
2 000 $US
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Frugal Innovation: Banking Industry
M-PESA in Kenya
No bank account
Networks
12.2M Customers
43% GDP is sent
Kenya GDP
:55,24$Bn (2013)
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Frugal Innovation: Space industry
USA
NASA’s MAVEN:
2013
Exploration of Mars
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Frugal Innovation: Space Industry
INDIA
Exploration of Mars
Divided the cost by 10
Networks
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Frugal Innovation: Expert Vision
Jason Li Yat-Sen
Chairman of Yatsen Group
Young Global Leader-World Economic Forum
Why frugal innovation is important
https://www.youtube.com/watch?v=T59OQnxqOLs
Navi Radjou
European Pioneers of Frugal Innovation
University of Cambridge
World Economic Forum
https://www.youtube.com/watch?v=wSDYo2WWdjM
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Information about the author
I am fascinated by healthcare and the experience of many
companies to develop new types of drug with the aim of saving
lives around the world.
Main topics of passion in the healthcare:
- Strategy
- Digital
- Innovation
- Biosimilars
If you want to know more, please contact me:
joseph.pategou@skema.edu
M. Joseph Pategou
Frugal Innovation & Networks-Joseph Pategou
