Jugaad innovation

Olivier GRYSON – November 2014

JUGAAD - Scarcity is the mother of innovation


JUGAAD

• "An innovative fix, an improvised solution, born from ingenuity and cleverness"

• "Have that goddamn thing work!"


JUGAAD


WESTERN FIRMS

• The structured approach:

– Expensive and resource consuming

– Lack of flexibility, risk aversion


6 PRINCIPLES OF JUGAAD

• Seek opportunities in adversity




• Do more with less


Zhongxing Medical (X-Ray)• Zhongxing obtained the base technology from its parent: Beijing

Aerospace

• By re-engineering the technology and ancillary equipment, Zhongxing’s machine cost just $20,000 to build compared to $150,000 for GE and Philips models

• Zhongxing took 50% of Chinese market– Philips withdrew from segment– GE cut prices by 50%

• Zhongxing now aggressively expanding into overseas markets, alreadylargest in Asia





• Think and act flexibly


Fail cheap, fail fast, fail often






• Keep it simple


• Exceptional technical performance

• Early 2000s, market research


• Change of organization:

– Portfolio of businesses: 500 70

– Number of divisions: 70 5

– Corporate PPT: 10 slides max






• Keep it simple

• Include the margin






• Keep it simple

• Include the margin

• Follow your heart

Jugaad innovation

Business

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