Radjou f00.tex V2-02/13/2012 6:09P.M. Pagei PraiseforJugaadInnovation ‘‘Weareenteringanagewhenhumanity’sgrandchallengesarebeingsolvedby anewgenerationof‘do-it-yourself’innovatorsemployingjugaad-stylethinking. Todaytheentrepreneurialspiritofyourveryownemployees,customers,and partners—empowered by new technologies—can literally change the world. XPRIZEhasproventhevalueofjugaadbyleveragingthisbottom-upapproach of‘better,faster,cheaper’tothepointofsendingamanintospaceforafraction ofwhatNASAspends.Thiscompellingnewbook,JugaadInnovation,articulates how you can start to accomplish amazing things on a shoestring. It is a vital read.’’ —PeterH.Diamandis,founderandchairman,XPRIZEFoundation ‘‘JugaadInnovationthrowscoldwaterinthefacesofCEOs,remindingthemofthe immensepowerofgrassroots,do-it-yourself,cheap,quick,simpleinnovation. Thisisoneofthemostimportantlessonsthatemergingmarketsareteaching theWest.’’ —GeorgeF.Colony,CEO,ForresterResearch ‘‘Jugaad Innovation goes farther than conventional business books that chart consumergrowthinBrazil,Russia,India,andChina.Itexplainshowemerging economiesarepioneeringtheartof‘frugalengineering,’thenprovidespractical tipsonhowWesterncompanies—fromtechstartupstomultinationalindustrial corporations—canlikewisedomorewithless.Aprovocativeandentertaining readfor21stcenturybusinessleaders.’’ —CarlosGhosn,CEO,Renault-Nissan ‘‘Theauthorshaveitright:highlystructuredinnovationprocessescan’tdeliver 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—andeveryforward-thinkingleaderinyourcompany—needrightnow.’’ —CharleneLi,founder,AltimeterGroup;bestsellingauthor, OpenLeadership i Radjou f00.tex V2-02/13/2012 6:09P.M. Pageii ‘‘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 importantbookforanyonewhowantstocompeteinthefuture.’’ —MarcBenioff,chairmanandCEO,salesforce.com;bestsellingauthor, BehindtheCloud ‘‘CEOs tend to manage innovation like an orchestra conductor—with a tra- ditional, hierarchical, and prescriptive approach. Jugaad Innovation shows how toinnovatelikeajazzband—withimprovisation,creativity,andagility.Both stylesarenecessaryontoday’sglobalstage.’’ —DoreenLorenzo,president,frog ‘‘I’velongarguedthattheroleofbusinessistomaketheworldabetterplace. Intheneweconomy,thisrequirestrueinnovation—boldideas,gutsypeople, andextraordinaryactions.Needanewroadmap?Freshinspiration?Accessible tools?It’sallinthisremarkablebook,JugaadInnovation.Getacopyforyourself andeverymemberofyourteamtoday.’’ —KevinRoberts,CEOworldwide,Saatchi&Saatchi;bestsellingauthor, LoveMarks Radjou f01.tex V2-02/21/2012 6:35P.M. Pageiii JUGAAD INNOVATION THINK FRUGAL, BE FLEXIBLE, GENERATE BREAKTHROUGH GROWTH Navi Radjou Jaideep Prabhu Simone Ahuja Forewordby KevinRoberts CEOWorldwide,Saatchi&Saatchi Radjou f01.tex V2-02/15/2012 5:12P.M. Pageiv Copyright(cid:2)c 2012byNaviRadjou,JaideepPrabhu,andSimoneAhuja.Allrightsreserved. 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LimitofLiability/DisclaimerofWarranty:Whilethepublisherandauthorhaveusedtheirbest effortsinpreparingthisbook,theymakenorepresentationsorwarrantieswithrespecttothe accuracyorcompletenessofthecontentsofthisbookandspecificallydisclaimanyimplied warrantiesofmerchantabilityorfitnessforaparticularpurpose.Nowarrantymaybecreatedor extendedbysalesrepresentativesorwrittensalesmaterials.Theadviceandstrategiescontained hereinmaynotbesuitableforyoursituation.Youshouldconsultwithaprofessionalwhere appropriate.Neitherthepublishernorauthorshallbeliableforanylossofprofitoranyother commercialdamages,includingbutnotlimitedtospecial,incidental,consequential,orother damages.ReadersshouldbeawarethatInternetWebsitesofferedascitationsand/orsourcesfor furtherinformationmayhavechangedordisappearedbetweenthetimethiswaswrittenand whenitisread. Jossey-Bassbooksandproductsareavailablethroughmostbookstores.TocontactJossey-Bass directlycallourCustomerCareDepartmentwithintheU.S.at800-956-7739,outsidetheU.S.at 317-572-3986,orfax317-572-4002. Wileyalsopublishesitsbooksinavarietyofelectronicformatsandbyprint-on-demand.Some materialincludedwithstandardprintversionsofthisbookmaynotbeincludedine-booksorin print-on-demand.IftheversionofthisbookthatyoupurchasedreferencesmediasuchasCDor DVDthatwasnotincludedinyourpurchase,youmaydownloadthismaterialat http://booksupport.wiley.com.FormoreinformationaboutWileyproducts,visit www.wiley.com. LibraryofCongressCataloging-in-PublicationData Radjou,Navi. Jugaadinnovation:thinkfrugal,beflexible,generatebreakthroughgrowth/byNaviRadjou, JaideepPrabhu,andSimoneAhuja.—1sted. p.cm. Includesbibliographicalreferencesandindex. ISBN978-1-118-24974-1(hardback);ISBN978-1-118-28323-3(ebk); ISBN978-1-118-28347-9(ebk);ISBN978-1-118-28600-5(ebk) 1. Technologicalinnovations—Casestudies. 2. Adaptability(Psychology)—Casestudies. I. Prabhu,JaideepC.II.Ahuja,Simone.III.Title. HD45.R2452012 658.4(cid:3)063—dc23 2011050766 PrintedintheUnitedStatesofAmerica FIRSTEDITION HBPrinting 10 9 8 7 6 5 4 3 2 1 Radjou f01.tex V2-02/15/2012 5:12P.M. Pagev To our parents, who taught us to be frugal and flexible, and encouraged us to follow our hearts Radjou f01.tex V2-02/15/2012 5:12P.M. Pagevi CONTENTS Foreword ix byKevinRoberts CEOWorldwide,Saatchi&Saatchi 1 Jugaad:ABreakthroughGrowthStrategy 1 2 PrincipleOne:SeekOpportunityinAdversity 29 3 PrincipleTwo:DoMorewithLess 57 4 PrincipleThree:ThinkandActFlexibly 85 5 PrincipleFour:KeepItSimple 109 6 PrincipleFive:IncludetheMargin 131 7 PrincipleSix:FollowYourHeart 159 8 IntegratingJugaadintoYourOrganization 181 9 BuildingJugaadNations 201 Notes 229 Acknowledgments 259 AbouttheAuthors 261 Index 265 vii