Reverse Innovation Reverse Innovation – Definition and Examples What is Reverse Innovation?

Reverse Innovation is the strategy of innovating in emerging (or developing) markets and then distributing/marketing these innovations in developed markets. Many companies are developing products in emerging countries like China and India and then distributing them globally. Examples of Reverse Innovation: Tata Motors – Tata Nano While companies like Ford set up its global automobile platform in India and catered to the niche premium segments in India, Tata introduced the Tata Nano for the price conscious consumer in India in 2009. Tata plans to launch Tata Nano in Europe and U.S. subsequently. GE – GE MAC 800 GE‘s innovation on the GE MAC 400 to build a portable low-cost ECG machine to cater to the rural population who cannot afford expensive health care was launched as an improved version a year later in 2009, in U.S. as MAC 800. Procter and Gamble (P&G) – Vicks Honey Cough – Honey-based cold remedy P&G‘s (Vicks Honey Cough) honey-based cold remedy developed in Mexico found success in European and the United States market. Nestle – Low-cost, low-fat dried noodles Nestle‘s Maggi brand – Low-cost, low-fat dried noodles developed for rural India and Pakistan found a market in Australia and New Zealand as a healthy and budget-friendly alternative. Xerox – Innovation Managers Xerox has employed two researchers who will look for inventions and products from Indian start-ups that Xerox can use for North America. The company calls them as ‘innovation managers’. Microsoft – Starter Edition Microsoft is using its Starter edition‘s (targeted at not so technically savvy customers in poor countries and with low-end personal computers) simplified help menu and videos into future U.S. editions of its Windows operating system. Nokia – New business models

is any innovation likely to be adopted first in the developing world. It can give purified water enough to provide a family of five drinking water for a year.000) by using locally grown rice husks to produce electricity (a unique and cost-effective biomass gasification technology). Husk Power Systems In India. customers after observing phone sharing in Ghana. LG – Low-cost Air Conditioners (AC) South Korea based LG Electronics (LG) planned to develop low-cost air conditioners targeting the middle and lower-middle classes in India. power or boiling and uses paddy husk ash as a What is Reverse Innovation? A reverse innovation. very simply. There is no way to design a product for the American mass market and then simply adapt it for the Chinese or Indian mass market. Source: http://www. Tata – Swacch – World’s cheapest water purifier Swacch means clean in Hindi. Husk Power Systems brings light to rural population (over 50. high-tech solutions that deliver ultra-low costs and ―good enough‖ quality. The company has also received seed capital from Shell foundation in 2009 to scale up operations. reverse innovation is not a ―nice to have‖ boost to revenue growth rates. In our article How GE is Disrupting Itself. For us.casestudyinc. Tata launched the water purifier – Tata Swacch targeting the rural market in India with the cheapest water purifier in the market. It also uses silver nanotechnology. We believe it will power the future — not just in poor countries. and we explained an organizational model for overcoming that challenge. Buyers in poor countries demand solutions on an entirely different price-performance curve. They demand new. Their goal was to manufacture air conditioners at the cost of air coolers which were very common. Nokia also incorporated new features in its devices meant for U.S. We also showed that it presents a formidable organizational challenge for incumbent multinationals headquartered in the rich world.Nokia‘s classified ads in Kenya are being tested as new business models. The fundamental driver of reverse innovation is the income gap that exists between emerging markets and the developed countries. The company feels it will open a whole new market. Hewlett-Packard (HP) – Research Labs in India HP intends to use its research lab to adapt Web-interface applications for mobile phones in Asia and Africa to other developed markets. The product does not require running water. we argued that reverse innovation will become more and more common. Many tremendous rich-world . but everywhere. Increasingly we see companies developing products in countries like China and India and then distribute them globally.

To meet the budgets of customers in poor countries. Phase 3 —Local Innovation — In this phase. Innovation happened at home. and scaling them up for worldwide use. Phase 4 — Reverse Innovation — If Phase 3 is ―in country. Of course this is a simplified view of the world. they focused on winning market share by adapting global offerings to meet local needs. Now. but in essence it holds true.‖ Phase 4 is ―in country. multinationals recognized that while Phases 1 had minimized costs. Reverse Innovation: Organizing Principles In our view. for the world. for country. local-market focus . Innovation still originated with home-country needs. That is.‖ Multinationals complete the reverse innovation process by taking the innovations originally chartered for poor countries. global corporations must be just as nimble innovating abroad as they are at home. they sometimes de-featured existing products.‖ They are taking a ―market-back‖ perspective. they weren‘t as competitive in local markets as they needed to be. Phase 2 — Glocalization — In this opportunities will arise first in poor countries. multinationals are focusing on developing products ―in-country. and then the new offerings were distributed everywhere. for country.Reverse innovation requires a decentralized. the "first principles" of reverse innovation are as follows: . adapting them. they are starting with a zero-based assessment of customer‘s needs. Phase 1 — Globalization —Multinationals built unprecedented economies of scale by selling products and services to markets all around the world. the first half of the reverse innovation process. Therefore. rather than assuming that they will only make alterations to the products they already have. To compete. the company enables them to remain connected to. global resource base. but products and services were later modified to win in each market. success in developing countries is a prerequisite for continued vitality in developed ones. more than ever. and to benefit from. The Evolution of Reverse Innovation: A Historical Perspective The globalization journey of American multinationals has followed an evolutionary process which can be seen in distinct phases. As teams develop products for the local market.

It is perhaps the single most influential attribute in the way people perceive products. to think of a product fit for the mass market globally and distribute it locally. individuals. The reasoning behind reverse innovation is that the solution needs of developing countries are better met if they are developed keeping the local market needs in mind. This is making companies change the way the business has been run historically. made famous and meaningful by Prof Vijay Govindarajan and Chris Trimble in their book Reverse Innovation: Create Far From Home.Once tested and proven locally. and service them . as against keeping a global market in mind.LGTs must have the right (and support) to draw from the company‘s global resources . A fundamental requirement of doing business in India for example is that a product has to appeal to the price sensitivities of the market. it defines and dictates what every consumer wants from a seller. ‗Reverse engineering' is the term coined.LGTs must have the decision-making authority to choose which products to develop. how many times do customers ask vendors. etc. and what every seller uses to differentiate among other sellers. what value does this product offer me?' and make their purchase decisions based on what ‗value' is offered to them? All the time. The meaning and influence of the ‗value' of a particular product to a customer in a developing market like India is powerful and very different compared to how a customer from an advanced/developed market perceives it. Authors describe reverse innovation ‗is any innovation that is first adopted in the developing world'. but are not always. What's Reverse Innovation? The reason I chose ‗value' to begin this article with is because the perception and acceptance of ‗value' as a quality has always defined economics and because ‗value' has perhaps contributed immensely to the creation of ‗reverse engineering' in the industry. disruptive innovations A Premise to ‘Reverse Innovation’ The reverse innovation currently happening in the industry will bridge gaps and is expected to meet the needs of the government sector Value is an important attribute in life.Most if not all the people and resources dedicated to reverse innovation efforts must be based and managed in the local market . Offshore development centers were put on a transformational path to enabling solutions that local . From a marketplace perspective.. cultural necessity. As the needs of customers-enterprises. products developed using reverse innovation must be taken global which may involve pioneering radically new applications.Reverse innovations can be. sell. relevance. which is. they increasingly looked within (the local market) to give them the right solutions. services. strategic changes were made in the manner companies functioned. or in clearer words. or solutions. . governments.-became increasingly local driven by affordability. how to make. In the technology world. ‗But. establishing lower price points.Local Growth Teams (LGTs) must have P&L responsibility (this is a key hurdle for American multinationals) . Win Everywhere. be cost-effective. As a result. and even cannibalizing higher-margin products. I'm sure.

telemedicine. and not necessarily meet the needs of the local market. criminal justice and the courts. The paper intensive and manual process is both time consuming and prone to mistakes. more than double of the 2. they are still plagued by legacy systems. and importantly. to understand their needs. the emerging economy GDP is expected to grow at around 4. and local imple75mentation problems to gain the insight needed to develop solutions ‗from the ground up'. Frugal development became a priority. One such way is to move from paper based processes to automated back-office processes.3% rate of the developed world (per World Bank projections). power. It can be well-expected that such instances of reverse innovation will only grow from here. Recognizing this need for localized ICT solutions. such as tax processing. and so on. there will be an increasing opportunity for technology vendors to provide solutions customized to meet their needs. Currently. PC. and internet connectivity.7% every year. Reverse innovation has only just begun in the Indian market with examples like Tata Nano. they are mostly only applicable as a best practice. financial inclusion. broadband. affordable computing. ambition. infrastructure. and information workflows. Conclusion As government departments in India and other emerging markets deploy more electronic based citizen services. PC/mobile/broadband connectivity. and the will to invest in development to enable widespread access of inexpensive healthcare.emerging markets needed. education. Government is focusing on ICT as the pivot around which development will be catalyzed has been a significant trait. and inspire other emerging markets and developed nations. so to say. Governments in emerging markets are under tremendous pressure to offer better citizen services and keep pace with the increasing citizen demands and queries. cultural sensitivities. etc. they got closer to the market's customers by adopting a ‗feet-on-the-street' approach. thus becoming ‗local development and innovation centers'. Thirdly. While solutions made for the developed world are available. while the latter are focused on ICT investments to enable large infrastructure readiness and citizen access. Case approvals are used for all types of government functions. In such a scenario. making it challenging to build a transparent and connected government. Comparing governments from wealthier nations to that of emerging nations. and in the government sector with solutions for education. Secondly. Watch out for the fact that between 2011 and 2025. Public sector organizations in India have always faced a challenge in securing funds to ably support their IT investments. driver's license applications. in line with the needs of governments in the emerging markets. While this is changing now. Addressing the Government Sector Emerging markets display one key characteristic that forms the core of their ‗emergence'. they stuck to making these solutions affordable. grants management applications. they built and based teams locally and strengthened their core engineering teams with the skills and experience needed to develop innovative solutions. First. They empowered this talent pool to learn from within and outside. visa and passports. the former have tighter public debt ratios and increased focus on growth investments. Governments of these economies have displayed hunger. government departments in India still follow an age old method for case approvals through a paper intensive and manual process. as a result of a vastly expanding middle class with higher discretionary . IT companies have responded with change. governments need to leverage the power of IT much better.

it is. with four branches and $56 million in loans. Or take the example of telephone service in India. which uses novel methods to make affordable micro-loans to poor borrowers. not a global approach to a local problem. or shampoo. cars. According to the Wall Street Journal. consider wireless banking of the kind pioneered in Kenya. One can readily understand why poor countries will embrace innovations from rich countries. But why would rich countries want innovations from poor countries? To focus on one important reason: there are many more poor people in rich countries than one might expect. Unilever discovered that the same approach worked well with millions of recession-ravaged consumers in Greece. but in the coming decades we are likely to see innovations also flow in the opposite direction. from poor to rich countries. because they live hand to mouth. Think of all the products and services where value-conscious US and European consumers might welcome the low-cost and innovative solutions adopted in poor countries. Spain. For instance. In the US. that demand is booming in emerging economies for smartphones. Multinational companies like Unilever and Nestle discovered that the poor in emerging economies could not afford to buy standard sizes of coffee. and they‘re looking for every way to stretch their purchasing power. washing machines. and eliminate the need for brick-and-mortar branches . and the like. for instance. If ―reverse innovation‖ sounds counter-intuitive. In fact. and many more are being squeezed by stagnant or declining incomes. does just that. the idea of microfinance. Reverse innovation's big impact for consumers For most of the last two centuries innovations have flowed from rich countries to poor countries. Innovations from poor countries are just what the doctor ordered for such consumers. The success of addressing consumer need in emerging economies will be driven by local innovation. which launched its microfinance business in 2005. Guess what? In the aftermath of the 2008 financial crisis. Take. but loved single-serve sachets priced at pennies per packet. which would require no minimum balance. and the US. Grameen America. more and more Americans are cancelling service with high-priced providers like Verizon and AT&T and switching to prepaid plans with no long-term contracts or minimum usage requirements. for instance. but it is just as useful in channeling funds to the inner-city poor in rich countries. toothpaste.incomes and a continuing appetite for consumption. low transaction costs. where 95 percent of users have low-cost prepaid plans in which they top-off balances in tiny amounts. The innovation was pioneered by Grameen Bank of Bangladesh. More than fifty percent of college graduates are unemployed or underemployed and living at home. and it is being joined by big banks like Citigroup. Today. It is no surprise. the number of people below the poverty line is at record levels. almost one in four US users is on a prepaid plan! These examples illustrate the beginnings of reverse innovation.

They are happening in the poor countries first and then they are migrating to advanced nations. John Deere now considers its Indian operations a centre of excellence.000. How GE is Disrupting Itself.and ATMs? Or car-sharing and ride-sharing solutions of the kind inspired by Zimbabwe that are gaining in popularity in California? Or inexpensive healthcare based on telemedicine. and low-cost medical devices of the kind pioneered in China and India? Or lowcost education that leverages distance-learning and other technologies to drastically lower the cost of going to college? Reverse innovations will likely disrupt many US industries in the years to come—and lowincome citizens will be the better for it. But now we are seeing something extraordinary: Innovations are flowing the other way. Dartmouth College. says the word jugaad has distracted India from the real issues. innovations happened in rich countries. Could you cite any examples? There are lots of examples. That's why most Nobel-prize winners are in the US or a rich country like Germany. Second example is Narayana Hrudayalaya Hospital in Bangalore. 'Jugaad has hurt India a lot' The world is witnessing something extraordinary: Innovations are happening first in the poor countries and then they are migrating to advanced nations. They are offering world-class technology for such complicated procedures as heart surgery for such a low price only because they want to serve the masses. What is reverse innovation? Historically. which is doing open-heart surgery for as little as $2. such as the US.000 in the US. they are opening a 2. where farmers don't have acres of farm land. Vijay Govindarajan. specialization. Earl C Daum 1924 Professor of International Business at the Tuck School of Business. which is a 50-minute flight . Now. is now producing utility tractors that are more suited to farming in India. says one of the world's most influential business thinkers. who has been ranked number three on the Thinkers 50 list of the world's most influential business thinkers. that pioneered the concept of reverse innovation. while the same operation costs as much as $50. and then they moved to a poor countries like India. Here are the excerpts: You have written an article. People had money and they were willing to pay. a major manufacturer of tractors in the US. tells Faisal Kidwai in an interview that strong America and Europe are good for India. This is what reverse innovation is all about. Harvard Business Review has rated reverse innovation as one of the 10 big ideas of the decade. John Deere.000-bed hospital in Cayman Islands. Govindarajan. so innovations happened there.

strong America and Europe are good for India and a strong India is good for America and Europe. That is the reason why my latest book. These areas all important and innovation is lacking there. but it innovated the business model and launched the iPod. had been dramatically reset after the 2008 financial crisis and. especially Europe and US. This is an ultra-low-cost ECG machine primarily meant for rural India. Sometimes. to serve the Americans. The global economy. Innovation is using latest technology to solve India's problems. it will invest more . is going through some tough economic times. branding. which happens to be in the so-called emerging markets. That's a classic case of reverse innovation.from Miami. That's a great example of using latest technology. They have made an ECG machine in India that sells for $500. somehow. it will buy more products from India. not yesterday's technology. although there is a recovery. Part of the problem is that business-model innovation hasn't taken place. etc. distribution. but it's a very slow recovery and it's going to take a long time before we see the good old days.000 in the US. Third is General Electric. Narayana Hrudayalaya is not doing jugaad at heart surgery. In India. Indian economy is facing its own difficult period. Product is just one part. This has put the spotlight on companies from the US and Europe to seek avenues of growth. Indians should not stop at product but also focus on business-model innovation. Jugaad is not innovation. we use the word jugaad a lot. Then we have to go beyond product innovation. it hasn't reached the same level of success it was hyped to. How do you see the global economic scenario playing out? The overall growth. Reverse Innovation. You have said that Indian companies should not dumb-down technology and that innovation doesn't mean just products. If the US is strong. Again. there is no need of a new product at all. but it's also helping Indians and the machine is now being sold in several countries.000 to $5. Innovation is not attaching bullock cart to a tractor. has touched such a nerve and has been a bestseller. then you will have to use the latest technology. a famous medical facility in New York. Firstly. It's creating exciting opportunities for GE. They have a car that works but. both in the United States and more so in Europe. It's using the same technology that's used at Mayo Clinic. Tata Nano is a great example. Are you optimistic about India? Absolutely. Apple's iPod is a perfect case. while the same machine costs anywhere from $3. Business-model innovation means marketing strategy. Narayana Hrudayalaya is the best example. If you want to drive the cost down. People had been listening to music long before Apple came. What is innovation? Innovation is about using latest technology. which means improvisation and that has distracted us from the real issue. The business model of an existing product can be innovated.

a unique way of thinking and acting in response to challenges. Are we seeing signs of markets picking up? I'm always an optimist and things are improving but we are some ways away from the boom. Jugaad is a colloquial Hindi word that roughly translates as ‗an innovative fix. back to simplicity. 'outsiders' get blamed. it is the gutsy art of spotting opportunities in . The recovery isn't consistent and there's uncertainty. there are signs of improvement. Jugaad innovation is. all said and done. technology development doesn't receive focus and other such important areas take a back seat. What are your thoughts on political and economic impasse in India? I'm an optimist but. Jugaad Innovation…Think Frugal. Recent regional elections show that a strong and leading party is unlikely to emerge any time soon. America should focus on the global economy and also continue the policy of freedom. Those who come from the outside create jobs. What happens without strong leadership is that reforms get stalled. Be Flexible. but better… it concentrates on the essential aspects and not burdened with non-essentials… back to purity. Drive Growth: India’s Gutsy Art of Improvising Ingenious Solutions Jugaad Innovation is about: Less. but it's like two steps forward. The founders of this country knew that to make a nation strong they needed to be as open to immigrants as possible. It's a fact that immigrants make the pie bigger. I hope in the next elections Indians are able to create the strong leadership that is needed. of late. India's growth is based on private sector and Indian entrepreneurs are doing a fantastic job worldwide. America is still the most welcoming and the most open country in the world. But recently there has been some talk of reducing this openness. After every recession there is a boom. When the economy is not working well and when jobs are in short supply. quite simply. But. but the country cannot grow until it has a good political system and a strong leader. an improvised solution born from ingenuity and cleverness‟. That's a very wrong way to look at things. I've been worried and the worry is coming from the political gridlock. unlike China. A competitive US or Europe is very important for India because we are in a global world and interconnections between countries is very high. Some of it has to do with the slowdown in the economy. They create jobs and opportunities. We are hearing a lot of talk about increasing protectionism in the US? Do you think the US is headed towards more protectionism? The greatness of America is its India and it will develop more business ties with India. In the US. While it's true that. one step backward and five steps sideways.

even if it involves corruption‟. cautions M. Adopting these principles could also help Western firms innovate and grow in a highly volatile. a Ross business . This industrialization of the creative process led to astructured approach to innovation with the following key characteristics: big budgets. healthcare. and controlled access to knowledge. velocity. The six principles are:  Seek opportunity in adversity. adaptability. The French have the term„Systeme D‟. According to Booz & Company. and breakneck globalization.  Include the margin. creating dedicated R&D departments and standardizing the business processes needed to take their ideas to market. Jugaad is a wake-up call for mature companies with over-developed processes for innovation… In the article ―Jugaad Innovation: Think Frugal. Jugaad means. and mindsets that underpin the structured approach to innovation in most Western firms are now failing.  Do more with less. Today‘s highly complex and turbulent business environment demands a new approach to innovation and growth– one that is frugal. and the U. Jugaad is about doing more with less. which anchor the six practices of highly effective innovators in complex settings like emerging economies. struggle to generate a steady stream of ground breaking inventions. It is widely practiced in other emerging economies such as China and Brazil. just as they managed any other business activity. flexible. diversity. The entrepreneurial spirit of Jugaad is not limited to India. not their lifestyle wants. interconnectivity. They focused on managing innovation. despite their hefty R&D investments. Brazilians have their own word for this approach ‗gambiarra‟. it can imply cutting corners. better. Jaideep Prabhu. Be Flexible.the most adverse circumstances and resourcefully improvising solutions using simple means. A Hindi slang word.  Follow your heart. all of which are essential to compete and win in a complex world. large corporations began to institutionalize their innovation capabilities. disregarding safety. ‗somehow get it done. has ‗yankee ingenuity‟. computing and electronics.S. Jugaad (pronounced ‗joo-gaardh‘) translates to an improvisational style of innovation that‘s driven by scarce resources and attention to a customer‘s immediate needs. and Chinese call it ‗zizhu chuangxin‟. Jugaad was once a big part of Western innovation and it was the flexible mindset of innovators that catalyzed growth during the Industrial Revolution. and participative. Many Western firms‘ structured approach to innovation is ill-equipped to help them innovate faster. Collectively. and cheaper as they seek to cope with five major components ofcomplexity. and passion. empathy. the three industries that spend the most on R&D. scarcity. Indian-style innovation could be a fad. Krishnan. The basic principles of Jugaad can be distilled into six guiding principles. In the article “India‟s Next Global Export: Innovation” by Reena Jana writes: Jugaad. & Simone Ahuja write: The processes. Like previous management concepts. Hence there is a weak correlation between how much money a firm spends on R&D and how well it performs in terms of developing and marketing products that generate a significant financial return. To put it bluntly. or providing shoddy service. Generate Breakthrough Growth” by Navi Radjou. In the twentieth century.  Keep it simple. India‘s improvisational style of invention focuses on being fast and cheap– attributes just right for these times. and Kenyans refer to it as ‗jua kali‟. these six principles of Jugaad help drive resilience. because Jugaad essentially means inexpensive invention on the fly. standardized business processes. inclusively. where entrepreneurs are also pursuing growth in difficult circumstances. and automotive. systems.  Think and act flexibly. hypercompetitive environment. frugality. money can‟t buy innovation. This approach delivers ‗more with more‘. as North American and European economies expanded. simplicity.S. Moreover.

It‘s about making the right resource allocations. and getting the product to the market. for a zero-based solution approach. In the article “Jugaad – A Model for Innovation” by Vijay Govindarajan writes: There is always a danger when you come up with concepts like Jugaad. Nonetheless. stripping away extraneous features and processes. and above all else. at the heart. but one led by every housewife. for two reasons: the painful ordeal of battling government bureaucracy. Creativity is about the big idea. They need an alternate approach and Jugaad inspires offerings that are economical for the consumerand the supplier. ingenious attempts are made to circumvent the broken system. Recession-slammed corporations no longer have money to burn on R&D. I am still wary. Two. focus on execution. the practice has long been considered an ‗antidote‘ to the complexity of India. It could be mistaken as ‗chalta hai‟ or ‗everything goes‘. as it turns out. while opening the door to ideas from unconventional sources. transportation and agricultural tools. Life seems like a constant compromise. for the most part. The concept of Jugaad is finding its way into large-scale industries in India as well. water. a country of perpetually shifting cultures and profound scarcity. which is based on constraints. without having to sacrifice margin. transporter or trader. ‗Companies have to be careful. is about a new model of innovation. Jugaad means a workaround solution with limited resources. Innovation is not creativity. farmer. This alternate approach to innovation is an excellent disruptor of rigid legacy processes because it democratizes innovation. understand what they really want. I noticed how all these innovations are in some way a result of the need to circumvent the core issue of lack of access to basic amenities like electricity. common sense and. Take a clean sheet of paper. Interestingly. consumers are trading down to good-enough products and services. get fixed. the Indian economy continues to plow ahead despite the global recession suggesting its executives have a winning strategy. and making money out of your idea. start with the customer‘s problem. The art of Jugaad is . Here innovation is led by creativity. Now the same principles can help address issues faced by multinationals whose capacity for breakthroughs has been stifled by rigid internal processes. There are three keys to Jugaad: One. Jugaad really means solving a customer problem in the most innovative way when your resources are constrained. In the article “Jugaad: Lessons in Frugal Innovation” by Mitali Sharma writes: What can companies in the developed world learn from innovators who make irrigation pumps from bicycles or solar ovens from old suitcases? Quite a bit. are cheap. Instead. ‗How do I solve it?‘ Three.Jugaad seems aligned with the times. Frugal innovation and Jugaad principles are especially important in today‘s economy. building the right team. corporations adversely affected by the slow economy lack resources for R&D. more professor. and ask. Meantime. for two reasons. start by understanding the customer problem. Talk to customers. There is even a colloquial name for this class of innovation for adjustment– Jugaad. and can be rolled out instantly… Jugaad. First. multiple layers of complexity. Management gurus now call this „frugal innovation.‘ The power of Jugaad is amplified in the rural areas where resources are scarcer and the needs more pressing. street hawker. Everyone is scrambling to live the best possible life with the least possible resources. The result is a clean slate. Innovation is about executing it. Despite the positives. Second. the need to survive. In the article “Monday Morning Motivation: Jugaad – the Art of Frugal Innovation‖ by Cherian Joseph writes: Adjustment is a way of life in India. long R&D cycles. Indian engineers have long known how to invent with a whole alphabet soup of options that work. Systems are broken and they do not. forget about what exists now. Likewise. for jugaad to really work. and a chance to re-orient innovation around the customer. But Jugaad. this situation has resulted in a new class of innovation– a class not led by scientists using expensive resources. They must pursue Jugaad with regulations and ethics in mind‟. and the frugalness that is in the DNA of most Indians.

and adaptability. and if there is anywhere that can come up with its own innovative solutions. and bloated… it consumes a lot of resources and makes a lot of noise but produces little of significance. Rather than reinventing the wheel or splurging on expensive R&D projects.. they develop new solutions by building upon existing infrastructure and assets. Jugaad is a ‗bottom up‘ innovation approach that provides organizations in both emerging and developed economies the key capabilities they need to succeed in a hypercompetitive and fastmoving world: frugality. . In summary. but high yearners. Jugaad innovators attempt to meet customers‘ high aspirations by developing solutions that are not only affordable. The overwhelming force of life here that drives people to create their own solutions to intractable problems is inspiring. collaboration. This is evidence of the resiliency of the human spirit. i. insular. As such. inclusivity. as well as by recombining existing solutions. What will be truly ingenious is to see is how we leverage our frugal innovation strength to attack core issues and not circumvent them.e. Highly resourceconstrained and chaotic environment inspires Jugaad innovators. they strive to deliver more (value) for less (cost)… The traditional approach (structured R&D projects) to innovation has become too rigid. entrepreneurs and corporations who practice Jugaad to develop market-relevant products and services that are inherently affordable and sustainable.well placed for an India where there is so much hardship in securing daily needs for so many. Jugaad innovators recognize that consumers in emerging markets are low earners. it is India. but that also deliver superior value.

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