Jugaad Innovation E-Book

Navi Radjou

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 448

Veröffentlichungsjahr: 2012

Beschreibung

"Jugaad Innovation is the most comprehensive book yet to appear on the subject [of frugal innovation]." --The Economist A frugal and flexible approach to innovation for the 21st century Innovation is a key directive at companies worldwide. But in these tough times, we can't rely on the old formula that has sustained innovation efforts for decades--expensive R&D projects and highly-structured innovation processes. Jugaad Innovation argues the West must look to places like India, Brazil, and China for a new approach to frugal and flexible innovation. The authors show how in these emerging markets, jugaad (a Hindi word meaning an improvised solution born from ingenuity and cleverness) is leading to dramatic growth and how Western companies can adopt jugaad innovation to succeed in our hypercompetitive world. * Outlines the six principles of jugaad innovation: Seek opportunity in adversity, do more with less, think and act flexibly, keep it simple, include the margin, and follow your heart * Features twenty case studies on large corporations from around the world--Google, Facebook, 3M, Apple, Best Buy, GE, IBM, Nokia, Procter & Gamble, PepsiCo, Tata Group, and more--that are actively practicing jugaad innovation * The authors blog regularly at Harvard Business Review; their work has been profiled in BusinessWeek, MIT Sloan Management Review, The Financial Times, The Economist, and more * Filled with previously untold and engaging stories of resourceful jugaad innovators and entrepreneurs in emerging markets and the United States This groundbreaking book shows leaders everywhere why the time is right for jugaad to emerge as a powerful business tool in the West--and how to bring jugaad practices to their organizations.

Leseprobe

Table of Contents

Title Page

Praise for Jugaad Innovation

Copyright

Dedication

Foreword

Chapter One: Jugaad: A Breakthrough Growth Strategy

Jugaad: The Gutsy Art of Improvising an Ingenious Solution

Jugaad in the West

How the West Lost Its Jugaad

Complexity Stretches Western Firms' Ability to Innovate

Searching for the Holy Grail of Innovation

The Six Principles of Jugaad—and Their Benefits to the West

Jugaad: A Complement to Structured Innovation

A Groundswell Jugaad Movement Is Growing in the West

Chapter Two: Principle One: Seek Opportunity in Adversity

A Harsh Environment Nurtures Resilience

Reframing the Half-Empty Glass as Half Full

Buckle Up, Western Firms: Major Adversity Ahead

Learning to Capitalize on Adversity

How 3M's Jugaad Spirit Bucked The Recession

Conclusion

Chapter Three: Principle Two: Do More with Less

Scarcity Is the Mother of Invention

Being Resourceful in a Resource-Scarce Environment

Helping Customers Get More Value

Welcome to the Age of Austerity

For Most Western Companies, Bigger Is Still Better

How Western Companies Can Find Abundance in Scarcity

PepsiCo: A Refreshing Approach to Doing More with Less

Conclusion

Chapter Four: Principle Three: Think and Act Flexibly

Jugaad Innovators Adapt to Survive

What Makes Western Firms So Inflexible?

Learn to Improvise

Break Down Organizational Silos to Gain Speed

All the News That's Fit to Digitize

Conclusion

Chapter Five: Principle Four: Keep It Simple

The Practical Benefits of Simplicity

The Art of Simplicity

The Backlash Against Complexity

“Why Make It Simple When We Can Make It Complex?”

How to Simplify Your Products—and Your Organization

How Facebook Is Leading the Low-Tech Revolution

Conclusion

Chapter Six: Principle Five: Include the Margin

Inclusion: A Moral Imperative That Makes Business Sense

Cocreating Value with the Margin

The Margin Is Becoming the Majority

Why Western Companies View Marginal Groups as Unprofitable

Western Companies Will Face Increased Competition in Core Markets

How to Make Big Margins by Including the Margin

How Procter & Gamble Includes the Margin Profitably

Conclusion

Chapter Seven: Principle Six: Follow Your Heart

Your Heart Knows What Your Mind Doesn't

The Gutsy Art of Acting on What Feels Right

Keeping the Fire Alive

The World Is Too Complex for the Mind Alone to Grasp

Industrial-Era Business Practices Keep Hearts Locked Out

How Western Firms Can Follow Their Hearts

Apple: A Heartpowered Corporation

Conclusion

Chapter Eight: Integrating Jugaad into Your Organization:

When Does Jugaad Work Best?

The Hammer Versus the Screwdriver

How GE Successfully Integrates Jugaad and Six Sigma

Getting Started with Jugaad

Driving Jugaad Adoption: The CEO's Agenda

Conclusion

Chapter Nine: Building Jugaad Nations:

The Ingenuity Economy

Millennials Launch the DIY Revolution in the West

Next-Gen Entrepreneurs Reshape Entire Industries

Western Governments Are Joining the Jugaad Bandwagon

Training Future Jugaad Innovators

The Rise of a Global Community of Jugaad Innovators

How Companies Can Profit from the Groundswell Jugaad Movement

A Prosperous World of Jugaad

Notes

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Chapter 8

Chapter 9

Acknowledgments

About the Authors

Index

Bring Jugaad to Your Organization

Praise for Jugaad Innovation

“We are entering an age when humanity's grand challenges are being solved by a new generation of ‘do-it-yourself’ innovators employing jugaad-style thinking. Today the entrepreneurial spirit of your very own employees, customers, and partners—empowered by new technologies—can literally change the world. X PRIZE has proven the value of jugaad by leveraging this bottom-up approach of ‘better, faster, cheaper’ to the point of sending a man into space for a fraction of what NASA spends. This compelling new book, Jugaad Innovation, articulates how you can start to accomplish amazing things on a shoestring. It is a vital read.”

—Peter H. Diamandis, founder and chairman, X PRIZE Foundation

“Jugaad Innovation throws cold water in the faces of CEOs, reminding them of the immense power of grassroots, do-it-yourself, cheap, quick, simple innovation. This is one of the most important lessons that emerging markets are teaching the West.”

—George F. Colony, CEO, Forrester Research

“Jugaad Innovation goes farther than conventional business books that chart consumer growth in Brazil, Russia, India, and China. It explains how emerging economies are pioneering the art of ‘frugal engineering,’ then provides practical tips on how Western companies—from tech startups to multinational industrial corporations—can likewise do more with less. A provocative and entertaining read for 21st century business leaders.”

—Carlos Ghosn, CEO, Renault-Nissan

“The authors have it right: highly structured innovation processes can't deliver all the breakthroughs required by today's ‘speed of business.’ What's called for are new practices that work with—not against—the forces that drive our hypercompetitive world. Jugaad Innovation lays out the new principles that you—and every forward-thinking leader in your company—need right now.”

—Charlene Li, founder, Altimeter Group; bestselling author, Open Leadership

“Businesses must move away from the top-down organizational hierarchies that have defined the past and transform themselves into social enterprises built on bottom-up, agile models based on collaboration. Jugaad Innovation shows how you can enable your entire ecosystem—employees, customers, and partners—to make significant contributions and drive hypergrowth. An important book for anyone who wants to compete in the future.”

—Marc Benioff, chairman and CEO, salesforce.com; bestselling author, Behind the Cloud

“CEOs tend to manage innovation like an orchestra conductor—with a traditional, hierarchical, and prescriptive approach. Jugaad Innovation shows how to innovate like a jazz band—with improvisation, creativity, and agility. Both styles are necessary on today's global stage.”

—Doreen Lorenzo, president, frog

“I've long argued that the role of business is to make the world a better place. In the new economy, this requires true innovation—bold ideas, gutsy people, and extraordinary actions. Need a new roadmap? Fresh inspiration? Accessible tools? It's all in this remarkable book, Jugaad Innovation. Get a copy for yourself and every member of your team today.”

—Kevin Roberts, CEO worldwide, Saatchi & Saatchi; bestselling author, LoveMarks

Copyright 2012 by Navi Radjou, Jaideep Prabhu, and Simone Ahuja. All rights reserved.

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Library of Congress Cataloging-in-Publication Data

Radjou, Navi.

Jugaad innovation : think frugal, be flexible, generate breakthrough growth / by Navi Radjou, Jaideep Prabhu, and Simone Ahuja.—1st ed.

p. cm.

Includes bibliographical references and index.

ISBN 978-1-118-24974-1 (hardback); ISBN 978-1-118-28323-3 (ebk); ISBN 978-1-118-28347-9 (ebk); ISBN 978-1-118-28600-5 (ebk)

1.Technological innovations—Case studies. 2.Adaptability (Psychology)—Case studies.I. Prabhu, Jaideep C. II. Ahuja, Simone. III. Title.

HD45.R245 2012

658.4′063—dc23

2011050766

To our parents, who taught us to be frugal and flexible, and encouraged us to follow our hearts

Foreword

Ideas and creativity are the heart of my business, so when a book like Jugaad Innovation comes along, reframing as it does the language and methodology of innovation, it's time to get excited. As the authors note, this is a time of increasing complexity and greater scarcity of resources, of fractured financial models in the West, and confidently emergent economic powerhouses in the East and the South. What is revelatory is that the authors surface a new set of principles—from emerging markets such as India, Brazil, China, and Kenya—for breakthrough innovation that we must take notice of and start adopting if we are to regenerate growth.

I first met one of the authors—Jaideep Prabhu—at Judge Business School, University of Cambridge, when I was CEO-in-Residence. One of the joys of my role was meeting people like Jaideep and listening to their nascent ideas for making the world a better place. With his collaborators, Navi Radjou and Simone Ahuja, Jaideep has brought the concept of jugaad to life with the full color and exuberance that is India.

This is a radically optimistic book and one that aligns with several strands of my own academic inquiry and gut instincts following forty years in business. My mantras unfold like this: be purpose inspired; change comes from the edge; devote yourself to world-changing ideas; emotion leads to action; creativity overcomes scarcity; in tough times, you need to win ugly. Their principles are parallel: be heart powered; seek opportunity in adversity; do more with less; include the margin; remain asset light; the world is too complex for the mind alone. My touchstone for innovation is “fail fast, fix fast, learn fast.” Theirs: “fail cheap, fail fast, fail often.”

Jugaad Innovation journeys through several of emerging markets' most innovative initiatives, from low-tech street corner entrepreneurs in the Philippines meeting the needs of a local community to large industrial conglomerates in India and China seeking to improve the lives of hundreds of millions of people. The authors track a number of Western companies that have mirrored jugaad methods—Procter & Gamble and PepsiCo are two companies I have worked for—but on the whole conclude that “the Western innovation engine has become too rigid, insular, and bloated … consumes a lot of resources and makes a lot of noise but produces little of significance.” Ouch.

Jugaad is therefore both a wake-up call for mature companies with over-developed processes of institutional innovation, and a primer for how to be resourceful with scarce resources. In my home country of New Zealand, the jugaad equivalent is called “#8 wire.” In the early agricultural and industrial development of New Zealand, farmers and business people couldn't wait for the months it took for replacement parts or new machinery to arrive on the boat from Mother England—so they improvised solutions, made it up. It was amazing what could be achieved with a simple piece of fencing wire.

“Scarcity is the mother of invention” say the authors. Austerity is the new operating system both for many companies and indeed countries. Frugality is the framework of managers; re-using and recombining is a way of life for the characters who populate the pages of Jugaad Innovation, and it is a practice that we in the wasteful West need to learn and then get used to. In my business—communications, marketing, and advertising, aka selling—the advent of social media has slashed the type of budgets we were once used so. Creativity is our greatest savior. Great ideas are budget blind, it's just that we have little practice of working in this environment. Jugaad lights a path.

Where Jugaad Innovation really pumps my blood is in its discussion of “intuiting the latent needs of consumers.” Steve Jobs had this intuition and designed new products that people never imagined but are so obvious when they're in your hands. A classic frugalist, he defined presence as absence; he took away—the keyboard, the mouse, the computer box; he reduced and eliminated. My book Lovemarks: The Future Beyond Brands took the position that companies, if they were up to it, would be able to place themselves into the hearts of customers, be invited in, and be able to clearly answer the killer question that every customer has: “how will you improve my life?” The chest-thumping of companies who claim to put customers at the heart of what they do have the equation back to front. As the authors state, “your heart knows what your mind doesn't.” They advocate “following your heart” with intuition, empathy, and passion; my trifecta is “mystery, sensuality, and intimacy.”

The final element of jugaad to highlight is what I call “mental toughness.” The authors refer to “building up your firm's psychological capital to boost its confident resilience.” At Saatchi & Saatchi we have a founding statement of purpose: “Nothing Is Impossible.” To this I added “One Team One Dream.” Having crazies with purpose on your side is great; having unguided crazies is not. Just as I have invented, adapted, and stolen methods and techniques for organizing and keeping 6,000 people on the straight and narrow, these authors offer us a host of how-to's. You can't have a book about resourcefulness without resources, and Jugaad Innovation is generous in its roadmaps.

Until this book, the commonest currency I had with India was cricket. I captained cricket teams through my school years, beguiled by the mysteries of the googly (look it up on, um Google; it's a type of delivery bowled by a right-arm leg spin bowler) and the blatant power of hitting a six over square leg. Now I have jugaad, and my relationship with India and with innovation is reborn.

Kevin Roberts

CEO Worldwide

Saatchi & Saatchi

Grasmere, England

February 2012

Chapter One

Jugaad

A Breakthrough Growth Strategy

We reached Ramakrishna Nagar, a village in the desert of Gujarat, a state in Western India, after travelling 250 miles from Ahmedabad, the state's capital. Our team—a Silicon Valley management consultant, a business school professor from the University of Cambridge, and the founder of a Minneapolis advisory boutique and media firm—had set out a few months earlier on an extensive research and travel project. Our mission: to discover new approaches to innovation in emerging markets such as India that could help Western firms take on the complexity of our tough and turbulent times.

We came to Gujarat to meet with Professor Anil Gupta at the Indian Institute of Management (IIM) in Ahmedabad.1 Professor Gupta runs Honeybee Network, a non-profit organization that identifies and cross-pollinates grassroots innovation all across India. Over more than two decades, Honeybee had populated a database with over ten thousand inventions of grassroots entrepreneurs who have created ingenious solutions for pressing socioeconomic problems in their local communities. Professor Gupta suggested we meet with one of these rural entrepreneurs.

As we left an arrow-straight concrete highway to follow narrower and increasingly cratered gravel roads, the temperature rose to a debilitating 120 degrees. Stepping out of our air-conditioned jeep, we could feel the weight of the desert's oppressive heat.

Mansukh Prajapati greeted us warmly outside his workshop.2 A potter by trade, Prajapati had for years been experimenting with clay to produce a variety of durable goods, many of which were on display in the office outside his “lab.” We were parched—and grateful when he asked us if we wanted water. We had run out, and there wasn't any sign of a store or kiosk nearby to restock. He reached around to a faucet, handed us cups, and, beaming with pride, said, “Please, have this cold water—from my fridge.”

Baffled, we looked more closely at the terra-cotta box in front of us. It was made entirely of clay, except for a glass door and a plastic faucet at the bottom. While sipping the refreshingly cool water, we looked around and found no electrical cord, no battery—just clay. Amused by our expressions, Prajapati explained how this clay fridge—the Mitticool (mitti means “earth” in Hindi)—works: water from an upper chamber seeps through the side walls, cooling the lower food chamber through evaporation. The fridge consumes no electricity, is 100-percent biodegradable, and produces zero waste during its lifetime. An ingenious invention!

But this inventor and his personal story are even more impressive. Prajapati doesn't work for NASA or Whirlpool, and he doesn't have a Ph.D. in quantum physics or an MBA from Stanford. In fact, he didn't even finish high school. His R&D lab—a simple open-air room with clay in various shapes and forms arrayed on the floor and an oven tucked away in the corner—is a far cry from the sprawling campuses of GE and Whirlpool, which swarm with hundreds of engineers and scientists.