Importance of Jugaad in businesses, business case studies who have implemented Jugaad, how to convert adversity in to opportunity, Challenges of Indian businesses, making constrains work in advantages rather than adversity, how important is Quickly acting in response to opportunity, optimum utilization resources how to do it,
1. JUGA AD -
INNOVATION
R & D IN JUGA ADU ST YLE
Presented By: Suhag Mistry
2. OBJECTIVE
• TO SHARE CONCEPT OF JUGAAD
• TO SHARE LEARNING FROM THE BOOK
• TO SHARE IMPLEMENTATION STAGES AND PROCESS OF JUGAAD PROCESS.
3. WHAT IS JUGAAD?
• AN INNOVATIVE FIX: AN IMPROVISED SOLUTION BORN FROM INGENUITY AND
CLEVERNESS
• IS QUITE SIMPLY, A UNIQUE WAY OF THINKING AND ACTING IN RESPONSE TO
CHALLENGES
• IT IS THE GUTSY ART OF SPOTTING OPPORTUNITIES IN THE MOST ADVERSE
CIRCUMSTANCES
• RESOURCEFULLY IMPROVISING SOLUTION USING SIMPLE MEANS
• JUGAAD: IS DOING MORE WITH LESS
4. ABOUT THE BOOK
•TEAM OF
• SILICON VALLEY MANAGEMENT CONSULTANT:
MR. NAVI RADJOU
• FOUNDER OF A MINNEAPOLIS ADVISORY
BOUTIQUE AND MEDIA FIRM: DR. SIMON AHUJA
• A BUSINESS SCHOOL PROFESSOR FROM THE
UNIVERSITY OF CAMBRIDGE: DR. JAIDEEP
PRABHU
5. HONEY BEE NETWORK
• MEET PROFESSOR ANIL GUPTA (IIM AHMEDABAD)
• RUNS HONEY BEE NETWORK (NON-PROFIT ORGANIZATION)
• IDENTIFIES ENTREPRENEURS WHO SOLVES PRESSING SOCIO-ECONOMIC
PROBLEMS IN THEIR LOCAL COMMUNITY
• WITHIN AROUND 20 YEARS GENERATED DATABASE OF OVER
10,000 INVENTIONS
6. JOURNEY BEGINS
• VISIT TO WANKANER
• COLD WATER FROM FRIDGE
• NO ELECTRICITY
• MITTICOOL: FRIDGE FOR VILLAGERS
7. MITTICOOL
• EARTHQUAKE IN 2001: PICTURE OF BROKEN EARTHEN POT
• “POOR MAN’S FRIDGE BROKEN!” – FIRST EUREKA MOMENT
8. MANAGEMENT FUNDAS
• IDEA : MAKE A FRIDGE FOR VILLAGERS
• TARGET CUSTOMER
• WITH USE OF CLAY
• STRENGTH AND KNOW HOW
• SHOULD LOOK LIKE TYPICAL FRIDGE
• WANT OF CUSTOMER – BEYOND BASIC NEED OF POT
• SHOULD BE MORE AFFORDABLE AND DOESN’T NEED ELECTRICITY
• UNSOLVED PROBLEM - A BUSINESS OPPORTUNITY (NICHE)
9. MITTICOOL
• THE FRIDGE WHICH COST AROUND RS. 2000
• FRIDGE HAS 3 CHAMBERS:
• UPPER ONE STORES WATER –
• IT MAKES WATER COOL – THAT’S WHY IT IS
FRIDGE
• ANOTHER 2 CHAMBERS ARE USED FOR STORING
FRUITS, VEGETABLE (6) AND MILK (3)
• INDIAN USERS ARE ALSO JUGAADU
• THEY CAN STORE ANYTHING IN IT.
10. SALES GROWTH
• SELLING MITTICOOLS ACROSS
INDIA
• BIG BAZAAR
• AND THEN INTERNATIONALLY
11. GROWTH NEEDS
MANAGEMENT - PROCESSES
• PHASE OF SYSTEMS AND PROCESSES:
• TRANSFORM POTTERY FROM AN ARTISANAL CRAFT TO AN
INDUSTRIAL PROCESS BUT HOW?
12. 4M
• MONEY –
• TOOK LOAN OF RS. 11,00,000 FROM PERSONAL SOURCES
• PROFESSOR ANIL GUPTA (HONEY BEE)
• MACHINE –
• UNIQUE PRODUCTS SO MADE BY OWN
• MATERIAL –
• DEVELOPED AN ENTIRELY NEW AND MORE EFFICIENT METHOD OF WORKING WITH
CLAY (SOP)
• MAN –
• TRAINED WOMEN FROM OWN VILLAGE (BASED ON SOP)
• INDUCTION PROCESS
14. ACHIEVEMENTS
• HIS SUCCESS STORY HAS BEEN WIDELY COVERED IN THE REGIONAL AND
NATIONAL MEDIA.
• THE DISCOVERY CHANNEL,
• AAJ TAK,
• NDTV,
• IBN 7,
• DD NEWS,
• BBC AND VIVIDH BHARTI,
• AIR HAVE
15.
16. ACHIEVEMENTS
• Forbes magazine named among the most influential rural Indian entrepreneur
• Award of green conclave
• Brands of India 2009
• NIF 5th award function
• Certificate by ministry of rural development
• Certificate by Amit shah
• Handicraft award 2004
• Sold about 1,00,000 Tawa,
• 5000 Mitticool & 500 cookers.
18. DREAM AHEAD
• To develop a house :
• Which would not require electricity connection for any purpose.
• The cooling in the house would be natural with no need of a fan.
• Similarly the lighting would also be natural.
• He also wants to get his name included in the Guinness
book of records for his inventions
• He is working to make a complete range of cooking
utensils using clay.
19. JUGAAD IN OUR LIFESTYLE
• LANGUAGE OF "MISSED CALLS“
• USA FREE CALLS WITHIN SOME KM
20. JURNEY OF ENTERPRENIOUR
FROM SURAT
• 1980 MOVES TO SURAT.
• TO START TEXTILE UNIT
• ADVERSITY:
• INFRASTRUCTURAL BOTTLENECKS:
• POWER SUPPLY
• EXPENSIVE AND UNPREDICTABLE
• PROFIT MARGIN: AROUND 5%
• 40 TO 50% COST WAS OF ENERGY
21. SEARCH FOR SOLUTION
• STARTED EXPERIMENTING:
• DIFFERENT KIND OF BOILERS
• DIFFERENT KIND OF POWER GENERATORS AND
• COMBINATION OF BOTH
• DEPENDENCY ON:
• FUEL, GAS, OR OIL
22. THE SECRATE:
• THOUGHT: “WHY NOT FIND A SOLUTION THAT DOESN’T REQUIRE FUEL?”
• SEARCH FOR AN ALTERNATIVE SOURCE OF POWER THAT WAS BOTH RELIABLE
AND SUSTAINABLE
• IN 1990:
• INVESTED IN TWO WIND TURBINES TO SUPPLY ELECTRICITY TO HIS TEXTILE
UNIT.
• ULTIMATE SOLUTION FROM ADVERSITY:
• THE ‘FUEL’ CAME AT NO COST AND
• THERE WAS A PLENTY OF IT
23. ABOUT THE ENTERPRENIOUR:
• HIS NAME IS : MR. TULSI TANTI
• OPPORTUNITY:
• 44% OF INDIANS LIVE OUTSIDE THE ELECTRICITY GRID
• WORLWIDE: 140 CRORE PEOPLE LACK ACCESS TO ELECTRICITY
• SET OUT SUZLON TO CAPTURE THIS OPPORTUNITY
• IN HEART OF EVERY CHALLENGE LIES AN OPPORTUNITY
• SIR SAYS: “EVERY UNSOLVED PROBLEM IS A BUSINESS
OPPORTUNITY”
24. CHALLENGES OF INDIAN
BUSINESSES
• OPENING NEW BUSINESS:
• TAKES 165 DAYS
• IN US IT IS 9 DAYS
• WANT LICENSE FOR SETTING WAREHOUSE?:
• FOLLOW 34 PROCEDURES OF AROUND 227 DAYS.
• BHURA BUSINESS
• PROPERTY RIGHTS ARE UNCLEAR THAT’S WHY ACQUIRING LAND IS FRAUGHT
• TATA NANO IN SINGUR
• SURAT BURSH
25. CHALLENGES OF INDIAN
BUSINESSES
• LABOUR LAWS:
• RESTRICTIVE AND COMPLEX
• 47 NATIONAL LAWS AND
• 157 STATE REGULATIONS AFFECT INDIA’S LABOUR MARKET
• HIRING AND FIRING OF WORKERS
• NEW TAXES MAY BE INSTITUTED AND APPLIED AT ANY TIME
• GOVERNMENTAL POLICIES:
• CAN BE REPLACED ANY TIME. (BUSINESS VS. ANY OTHER)
26. CHALLENGES OF INDIAN
BUSINESSES
• POOR INFRASTRUCTURE:
• WHAT IS BASIC FOR OTHER COUNTRIES IS A LUXURY IN DEVELOPING COUNTRIES
• 40% VILLAGES DO NOT HAVE ACCESS TO ALL WEATHER ROADS
• EDUCATION AND TRAINING SYSTEMS ARE NOT PROPER
• SKILLED PERSONNEL ARE HARD TO COME BY
• HEALTHCARE SERVICES:
• STAYS OUT OF WORK FOR MORE TIME (PRODUCTIVITY LOSS)
27. CHALLENGES OF INDIAN
BUSINESSES
• SHORTAGE OF RESOURCES:
• NATURAL
• HUMAN (SKILLED) AND
• FINANCE (RAISE CAPITAL)
• VENTURE CAPITAL AND ANGEL INVESTOR NETWORK ARE UNDERDEVELOPED
28. ADVERSITY IS OPPORTUNITY
• BECAUSE OF ADVERSITY:
• JUGAAD INNOVATORS CAN’T AFFORD TO INVEST IN CAPITAL-INTENSIVE
EQUIPMENT
• JUGAAD INNOVATORS TYPICALLY SERVE A MAKET THAT IS ECONOMICALLY POOR
• 26% BRAZILIANS LIVE BELOW THE POVERTY LINE
• 23 CRORE AFRICAN HOUSEHOLDS ARE UNBANKED
• NEARLY 40% OF RURAL CHINESE CAN’T AFFORD BASIC MEDICAL TREATMENT.
• EXTREME EXTERNAL CIRCUMSTANCES HEIGHTENS INTERNAL RESOLVE TO
SUCCEED
• FOR JUGAADU ENTERPRENIOUR: ADVERSITY EXISTS LARGELY IN THE MIND
AND IT IS AN OPPORTUNITY TO BE EXPLORED.
29. FIRST STRATEGY TO FINDING
OPPORTUNITY IN ADVERSITY
• REFRAMING OR CHANGING THE LENS THROUGH WHICH THEY PERCEIVE THE
SITUATION THEY FACE.
30. SBI: MR. O.P. BHATT
• APPOINTED AS A CHAIRMAN IN 2006
• MORE THAN 2 LAKH EMPLOYEES
• 20,000 BRANCHES ACROSS INDIA.
• ADVERSITY:
• PARTIALLY OWNED BY GOVERNMENT OF INDIA
• VIRTUALLY IMPOSSIBLE TO FIRE ANYONE
• WILL NEITHER “GET THE RIGHT PEOPLE ON THE BUS NOR GET THE WRONG PEOPLE OFF THE
BUS”
• LACK OF RESOURCES:
• TO FINANCIALLY MOTIVATE HIS MANAGERS TO TAKE RISK AND DRIVE INNOVATIVE
PROJECTS
31. JUGAAD APPROCH TO IGNITE THE
GENIOUS WITHIN SBI
• FIRST:
• COMMUNICATION TO REAWAKEN ENMPLOYEES FEELINGS OF TAKING PRIDE
ABOUT SBI
• 200 YEAR OLD HISTRY
• SECOUND:
• IN HOUSE TRAINING “PARIVARTHAN”
• FOR INSTILLING NEW SENSE OF COMMITMENT
32. ADVANTAGES:
• EMPLOYEES FELT MORE EMPOWERED, DEMONSTRATED GREATER CREATIVITY
AND TOOK CUSTOMER SERVICE AT NEW HIGHTS
• STARTED DEVELOPING BOLD AND INGENIOUS SOLUTIONS TO PROBLEMS THEY
ALWAYS FACED BUT NEVER FELT THE DESIRE OR HAD THE SUPPORT TO
ADDRESS
• MR. SIVAKUMAR (HEAD OPERATIONS) AT HYDERABAD
• LAUNCHED SMS BASED CUSTOMER COMPLAINT UNIT OF 4 PEOPLE TO DEAL WITH
• SEVEN THOUSAND COMPLAINTS
• HELPED IN BUILDING A LOYAL CUSTOMER BASE
33. RESULT
• INCREASED MARKET SHARE FROM 16.5% TO 19%
• DOUBLED ITS STOCK PRICE
• BOOSTED CUSTOMER SATISFACTION
• WON MANY INTERNATIONAL AWARDS FOR ITS PERFORMANCE.
34. SECOND STRATEGY TO FINDING
OPPORTUNITY IN ADVERSITY
• MAKING CONSTRAINS WORK FOR THEM RATHER THAN AGAINST THEM
35. KANAK DAS
• FROM MORIGAON. A VILLAGE IN ASSAM
• DAS RIDES A BICYCLE TO WORK
• ROADS ARE FULL OF POTHOLES AND BUMPS (ADVERSITY)
• GIVEN HIM BACK PROBLEM AND
• SLOWED HIM DOWN CONSIDERABLY
• WAS LITTLE OR NOTHING HE COULD DO TO IMPROVE THE QUALITY OF THESE
ROADS.
36. SOLUTION
• “WHAT IF I CAN ACTUALLY FIND A WAY TO MAKE MY BIKE RUN FASTER ON
THESE ROADS?”
• CONVERTING THE ENERGY IN A MAKING HIS BICYCLE TO RUN FASTER ON
BUMPY ROADS.
• ‘MAKING THE BUMPS WORK FOR YOU’
• CYCLISTS ALLOVER THE WORLD MAY BENEFIT FROM IT
38. QUICKLY ACT IN RESPONSE TO
OPPORTUNITY THEY SEE.
• QUICKLY ADAPT THEIR MODELS AND STRATEGIES TO THE OVERCOME
CHALLENGES.
• FOCUSES ON FUTURE THAT’S WHY:
• CONSTANTLY ADAPT AND REINVENT THEM SELVES AND ORGANIZATION.
• SWAMI VIVEKANANDA: TRY AND TRY UNTIL YOU SUCCEED.
• ABHEEJIT : LEARNING SPEED BY REPETITION OF TASK
39. ENRIQUE GOMEZ JUNCO
• 1988: VISION: CREATE A SUSTAINABLE ENERGY BUSINESS
• CELSOL: THERMO SOLAR PANELS TO MEXICAN BUSINESSES
• HIGHLY REGULATED
• SUBSIDIZED
• AND DOMINATED BY MONOPOLIES
• SOON RUN OUR OF CAPITAL.
• SHIV KHERA: SUCCESSFUL PEOPLE DON’T DO DIFFERENT THINGS, THEY DO
THINGS DIFFERENTLY.
40. OPTIMA ENERGIA - 2000
• TO SELL ENERGY TECHNOLOGIES TO BUILDING OWNERS AND FACILITY MANAGER
TO HELP THEM IN:
• USING ELECTRICITY MORE EFFICIENTLY AND
• SAVE ENERGY COST.
• ADDED ADVANTAGE:
• ENVIRONMENTAL BENEFIT THROUGH REDUCTION OF:
• PERCENTAGE OF MANMADE CARBON DIOXIDE EMISSIONS (7%)
• ADVERSITY:
• UPFRONT LARGE INVESTMENT
• NOT YIELD SIGNIFICANT RETURNS IN SHORT TERM.
• MARU SU AND MARE SU?
41. LOVE TOWARDS TECHNOLOGY
• BUSINESS MANAGEMENT NEED FOCUS ON SEVERAL FUNCTIONS AT A TIME
• FOCUSING ON LOVING DEPARTMENT VS. REQUIREMENT OF ALL THE DEPARTMENTS. (SIR)
• MR. JUNECO’S LOVE TECHNOLOGICAL SOLUTIONS FOR ENERGY
• FORGOTTEN REQUIREMENTS OF CUSTOMERS.
• CUSTOMER DIDN’T CARE ABOUT:
• HOW GOOD THE TECHNOLOGY IS
• CUSTOMER CARE ABOUT:
• SAVING THE MONEY
• SHIFT OF POSITIONING:
• FROM HIGH-RISK, NICHE TECHNOLOGY VENDOR TO “LOW RISK, END TO END BUSINESS
SOLUTION PROVIDER”
42. WHAT YOUR CUSTOMERS
WANT
• CHANGED VALUE PROPOSITION OF THE ORGANIZATION:
• SIGNING PERFORMANCE BASED CONTRACT WITH A CLIENT
• POTENTIALLY SAVE THE CLIENT UP TO 50% ENERGY COST.
• INVESTMENT BARRIER:
• PARTNERSHIP WITH LEADING FINANCIAL INSTITUTIONS
• BIG LEAP: WORLD BANK’S INTERNATIONAL FINANCIAL CORPORATION
• INSTALLMENTS: (WORLD WIDE FUNDA)
• UP TO 10 YEARS
• SAVE FROM SOLUTIONS AND PAY THE ENERGY SAVING COST AS INSTALLMENT.
• BENEFIT WILL SPLIT BETWEEN
• CLIENT AND OPTIMA
43. CURRENT STATUS OF OPTIMA
• CONSULTED MORE THAN 120 CLIENTS AS A TURN KEY PROJECTS IN HOTELS.
• SAVED
• CUSTOMER’S $ 100 MILLION
• AROUND 500 CRORE
• 1.6 CRORE CUBIC METRES OF WATER
• 23 CRORE KILOWATTS OF ELECTRICITY
• 4.1 CRORE LITRES OF NATURAL GAS AND
• 1.4 CRORE LITRES OF DIESEL.
• JUNECO WAS SELECTED BY THE WORLD ECONOMIC FORUM AS
• ONE OF THE 100 GLOBAL LEADERS OF TOMORROW.
44. WHAT NEXT
• SOLUTIONS FOR MANUFACTURING AND PUBLIC SERVICE SECTORS
• ENERGY SAVING MARKET IN MEXICO ALONE IS:
• ESTIMATED $ 7 BILLION
• AROUND 35,000 CRORE
45. TO SUM UP:
• JUGAAD INNOVATORS ARE:
• EXPERTS AT REFRAMING CHALLENGES AS OPPORTUNITIES
• MAKING CONSTRAINTS WORK FOR THEM AND
• ADAPTING TO CHANGING CIRCUMSTANCES BY IMPROVISING SOLUTIONS ALONG
THE WAY
• CONSISTENCY BRINGS ACCURACY AND IMPROVISATION.
46. • REUSE AND RECOMBINE
• M-PAISA: MONEY TRANSFER FOR NON ACCOUNT HOLDERS THROUGH SMS
• REMAIN ASSET LIGHT
• RENT/SHARED VS. OWNED ASSETS
• AIRTEL: IBM (IT INFRA)
• LEVERAGE EXISTING NETWORKS FOR DISTRIBUTION
• COLGATE PALMOLIVE: ‘MICRO-STORES ON WHEELS’
47. KEEP IT SIMPLE
• STEVE JOBS: INNOVATION EMERGES WHEN SAYING NO TO THOUSANDS OF
THINGS TO ENSURE THAT WE DO NOT TAKE THE WRONG PATH OR TRY TO DO
TOO MUCH.
• IPHONE AND IPOD (SIMPLICITY)
• OVER LOADED FUNCTIONS CONFUSES CUSTOMERS, SIMPLICITY
• 50% PEOPLE POSTPONED TO BUY DIGITAL CAMERAS: PHILIPS
• MM: MICRO PLANNING
48. INCLUDE THE MARGIN
• SALES GROWTH THROUGH 3U’S: USAGE, USES AND USERS
• REACHING TO MASS: SERVING SPECIFIC GROUP OF PEOPLE.
• ZONE V PHONE FOR BLIND PEOPLE IN EUROPE
• 6800 CR. CELLPHONE MARKET WORLD WIDE
• MOBILE INDUSTRY:
• INCOMING CALLS CHARGED TO 1 PAISA PER SECOND.
• 1 CRORE CELLPHONE SUBSCRIBERS ON MONTHLY BASIS.
49. SCALING UP PERSONALIZED
SOLUTIONS WITH TECHNOLOGY
• REUTERS MARKET LIGHT BY THOMSON REUTERS INDIA:
• CUSTOMIZED AND LOCALIZED SMS FOR WEATHER FORECASTS, LOCAL CROP
PRICES, AGRICULTURAL NEWS.
• RS. 250 FOR 3 MONTHS.
• MORE THAN 2,50,000 FARMERS FROM 15,000 VILLAGES
• 2,00,000 ADDITIONAL PROFITS TO 4,00,000 SAVING IN A YEAR BY MANY FARMERS.
50. FOLLOW YOUR HEART
• HARISHCHANDRACHI FACTORY
• WALMART TO BIG BAZAAR (INDIAN FEEL)
• VENKAT RANGAN: FATHERS COMPLAINT OF STOCK TRANSACTIONS TIME BY
BROKERAGE FIRM.
• INXS TECHNOLOGIES: ONE OF THE WORLDS LARGEST MOBILE TRADING
PLATFORMS.
• MUHAMMAD YUNUS BANKER TO THE POOR
52. HOW TO IMPLEMENT
• DEDICATED TIME: 3M (15%)
• CURRENT PRODUCTS/SERVICES (BHURIA BHAI)
• NEW PRODUCTS/SERVICES DEVELOPMENT (MMBDP)
• UNRELATED DEVELOPMENTS
• GIVE IT A TRY (SMALL IS BIG)
• PRODUCT FROM TEAM BUSINESS FROM MANAGEMENT.
• CONVERTING EMPLOYEES IN TO ENTREPRENEURS.
• CREDIT OF DEVELOPMENT.
• SHARE IN EARNING.
53. JUGAAD IN 18 MINUTES
• HTTP://WWW.YOUTUBE.COM/WATCH?V=LNHGBFLJTQ0