JUGAAD - INNOVATI

ONR & D IN JUGAADU

STYLE

Presented By: Suhag Mistry

OBJECTIVE• TO SHARE CONCEPT OF JUGAAD• TO SHARE LEARNING FROM THE BOOK• TO SHARE IMPLEMENTATION STAGES AND PROCESS OF

JUGAAD PROCESS.

• 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

WHAT IS JUGAAD?

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

•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

HONEY BEE NETWORK

JOURNEY BEGINS

• VISIT TO WANKANER • COLD WATER FROM FRIDGE• NO ELECTRICITY • MITTICOOL: FRIDGE FOR VILLAGERS

MITTICOOL• EARTHQUAKE IN 2001: PICTURE OF BROKEN EARTHEN POT

• “POOR MAN’S FRIDGE BROKEN!” – FIRST EUREKA MOMENT

• 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)

MANAGEMENT FUNDAS

• 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.

MITTICOOL

•SELLING MITTICOOLS ACROSS INDIA• BIG BAZAAR

•AND THEN INTERNATIONALLY

SALES GROWTH

• PHASE OF SYSTEMS AND PROCESSES:• TRANSFORM POTTERY FROM AN ARTISANAL

CRAFT TO AN INDUSTRIAL PROCESS BUT HOW?

GROWTH NEEDS MANAGEMENT -

PROCESSES

• 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

4M

PRODUCT RANGE

• 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

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.

ACHIEVEMENTS

First grassroots

innovator who received

this recognition

• 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.

DREAM AHEAD

• LANGUAGE OF "MISSED CALLS“

• USA FREE CALLS WITHIN SOME KM

JUGAAD IN OUR LIFESTYLE

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

SEARCH FOR SOLUTION• STARTED EXPERIMENTING:• DIFFERENT KIND OF BOILERS• DIFFERENT KIND OF POWER GENERATORS AND• COMBINATION OF BOTH

• DEPENDENCY ON:• FUEL, GAS, OR OIL

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

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”

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

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)

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)

CHALLENGES OF INDIAN BUSINESSES• SHORTAGE OF RESOURCES:• NATURAL• HUMAN (SKILLED) AND• FINANCE (RAISE CAPITAL)• VENTURE CAPITAL AND ANGEL INVESTOR NETWORK ARE

UNDERDEVELOPED

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.

FIRST STRATEGY TO FINDING OPPORTUNITY IN ADVERSITY• REFRAMING OR CHANGING THE LENS THROUGH WHICH

THEY PERCEIVE THE SITUATION THEY FACE.

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

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

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

RESULT

• INCREASED MARKET SHARE FROM 16.5% TO 19%• DOUBLED ITS STOCK PRICE• BOOSTED CUSTOMER SATISFACTION• WON MANY INTERNATIONAL AWARDS FOR ITS

PERFORMANCE.

SECOND STRATEGY TO FINDING OPPORTUNITY IN ADVERSITY• MAKING CONSTRAINS WORK FOR THEM RATHER THAN

AGAINST THEM

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.

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

SOLUTION

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

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.

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?

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”

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

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.

WHAT NEXT

• SOLUTIONS FOR MANUFACTURING AND PUBLIC SERVICE SECTORS

• ENERGY SAVING MARKET IN MEXICO ALONE IS:• ESTIMATED $ 7 BILLION

• AROUND 35,000 CRORE

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.

• 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’

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

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.

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.

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

FOLLOW YOUR HEART

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.

JUGAAD IN 18 MINUTES

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