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- 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 Zizhu Chuangxin in China Système D in (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