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JUGAAD: a Frugal Innovation Model to Drive Sustainable Growth

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JUGAAD: a Frugal Innovation Model to Drive Sustainable Growth JUGAAD: A Frugal Innovation Model To Drive Sustainable Growth Navi Radjou Innovation and leadership consultant Fellow, Judge Business School, University of Cambridge Co-author, Jugaad Innovation Co-author, From Smart To Wise 4th India-China Cooperation Forum—CEIBS 16 October 2013—Shanghai, China Source: Strategy & Business Copyright © Navi Radjou 2 Western firms are stuck in “structured” processes (e.g., Six Sigma) “Our traditional teams are too slow. We're not innovating fast enough. We need to systematize change.» Beth Comstock, CMO, GE Copyright © Navi Radjou 3 The West needs a new innovation model Copyright © Navi Radjou 4 Scarcity is mother of invention Copyright © Navi Radjou 5 Adversity is father of invention http://nif.org.in Kanak Das http://economictimes.indiatimes.com Copyright © Navi Radjou 6 Frugal ingenuity Source: gcstz.com/products Source: www.quotednews.com African ingenuity Filipino ingenuity Copyright © Navi Radjou 7 Frugal ingenuity Peruvian ingenuity Copyright © Navi Radjou 8 Frugal ingenuity at large scale: TATA Ratan Tata, Chairman, Tata Group Copyright © Navi Radjou 9 Frugal ingenuity at large scale: M-PESA Copyright © Navi Radjou 10 Frugal ingenuity at large scale: Neusoft 11 FRUGAL PRODUCTS JUGAAD mindset Copyright © Navi Radjou 12 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 Copyright © Navi Radjou 13 Jugaad: frugal, flexible, inclusive Structured innovation: costly, rigid, elitist Copyright © Navi Radjou 14 The rise of jugaad innovation in the West Jugaad innovation pioneer: Siemens Source: Siemens Copyright © Navi Radjou 16 Jugaad innovation pioneer: Siemens Simple $200 billion Maintenance-friendly market + Affordable Dozens of Reliable patents Timely-to-market Copyright © Navi Radjou 17 Western universities teach youth to think frugally and flexibly Copyright © Navi Radjou 18 Jane Chen Co-founder EMBRACE Copyright © Navi Radjou 19 20 Western governments are embracing “bottom up” grassroots innovation Copyright © Navi Radjou 21 Adopting the jugaad mindset: Renault-Nissan Carlos Ghosn “(These partnerships) allowed us to learn CEO, Renault-Nissan a lot more on… FRUGAL ENGINEERING” Copyright © Navi Radjou 22 Do More with Less: Renault-Nissan Copyright © Navi Radjou 23 Adopting the jugaad mindset: Renault-Nissan “In the West, when we face huge problems and we lack resources, we tend to give up (too) easily… Jugaad is about never giving up!” Carlos Ghosn CEO, Renault-Nissan Copyright © Navi Radjou 24 Adopting the jugaad mindset: Renault-Nissan Gérard Detourbet Renault’s head of Common Module Family (CMF-A) architecture entry-level vehicles Copyright © Navi Radjou 25 Adopting the jugaad innovation mindset: Renault-Nissan “We want to integrate and synergize the jugaad mindset of our Indian engineers with the project management skills of our French teams and the deep technical expertise of our Japanese R&D group” Carlos Ghosn CEO, Renault-Nissan Copyright © Navi Radjou 26 Eastern innovation R&D-driven Jugaadmodel R&D-driven Jugaad structured innovation structured innovation innovation Westerninnovation innovation model Copyright © Navi Radjou 27 Discussion Navi Radjou [email protected] jugaadinnovation.com Twitter @JugaadAtWork Facebook.com/jugaadinnovation .
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