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1. Rishikesha T. Krishnan
Professor & Area Chair, Corporate Strategy & Policy, IIM
Bangalore
Going Beyond Jugaad:
Can India Create a Systematic Innovation
Capability?
August 30, 2013

2. India: A Comparative Snapshot
Source: NESTA, Our Frugal Future: Lessons from India’s Innovation System, 2012
India is placed at #66 on Global Innovation Index (INSEAD & W
Lost two places in the last year.
2

3. Why does India fail to do well on
innovation in spite of having creative
people?3

4. Barriers to Innovation in
Indian Organisations
Originate from Indian society and culture
• Poor teamwork
• Enduring importance of upward hierarchical
progression
• A brahminical attitude that gives brainwork a
superior position over physical work
• A weak systems and strategic orientation (and the
resulting paucity of appropriate change paradigms)
• Low tolerance of failure
• A lack of confidence in innovation capabilities
• A failure to positively reinforce innovation efforts
• A strong need for control that comes in the way of joint
working with other organisations. Source: From Jugaad to Systematic Innovat
The Challenge for India
4

5. Innovation by
Firms
Inputs
People
Funding
Knowledge
Infrastructure
Capacity to Innovate
Incentive to
Innovate
Benefits
Competition
Appropriability
Rewards
Social
Environment
Political
Environment
Economic
Environment
Technology
Environment
Government Policy
International
Environment
Improved since
1991
Remain areas
of concern
5

6. We have a homegrown
approach called Jugaad…
For transportation… ……or making lassi!
Source: From Jugaad to Systematic Innovat
The Challenge for India
6

7. The Problems with Jugaad
 Based on individual ingenuity
 Inadequate scientific or engineering base
 More craft than science
 Difficult to solve complex problems
 Not scalable
Source: From Jugaad to Systematic Innovat
The Challenge for India
7

8. Indian Companies & MNCs
have different challenges!
Too improvisational & ad-hoc?
Too slow & deliberate?
Embrace
Systematic
Innovation
Be more
entrepreneurial

9. 9

10. 8 Steps to Innovation:
Building a Systematic Innovation
Capability
1
Build a
pipeline
3 Improve
Batting Avg
2 Improve idea velocity

11. Build a Pipeline
1. Lay the Foundation
2. Create a Challenge Book
3. Build Participation
Source: Dabholkar & Krishnan 8 Steps to Innovati
11

12. LAY THE FOUNDATION
STEP 1
8 Steps to Innovation Excellen
Source: Dabholkar & Krishnan 8 Steps to Innovati
12

13. Titan: The 3M of India?
Karatmeter resulted in transformation of jewellery
business
“Anyone can be an Innovator”
Innovation School of Management
Process innovations result in 100s of crores savin
13

14. Buzz Creation (creative
campaigns)14

15. Some Titan Innovation
Campaigns
 2004: “What is new?”
 Identification and implementation of 5 new ideas
by every supervisor on the shopfloor
 2006: HOD Fund
 Every head of department authorised to spend
upto Rs. 1 lakh on an idea without any approvals
 2008: “Simplify & Automate”
 Most successful theme at Titan
 2009: “Innovation School of Management”
 Making every employee an innovator
Source: Dabholkar & Krishnan 8 Steps to Innovati
15

16. Build a Pipeline
 Lay the Foundation
 Create Innovation Program
 E.g. Jeff Immelt “Imagination Breakthroughs” - $1B
potential
 3 Key Processes
 Idea Management
 Buzz Creation
 Training & Development
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17. Training & Development
 Titan Innovation School of Management
 “Everybody an innovator by 2015”
Focus area Techniques
Design thinking Immersive research, rapid
prototyping, brainstorming
Systems thinking TRIZ
Systems archetypes
Theory of constraints (TOC)
Lateral thinking Edward de Bono’s six thinking
hats
Source: Dabholkar & Krishnan 8 Steps to Innovati
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18. CREATE A CHALLENGE
BOOK
STEP 2
8 Steps to Innovation Excellen
18

19. Build a Pipeline
2. Create a Challenge Book
 Feel the Pain
 Sense the Wave
 See the Waste
Source: Dabholkar & Krishnan 8 Steps to Innovati
19

20. Why was the Bajaj Pulsar
successful?
Source: Dabholkar & Krishnan 8 Steps to Innovati
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21. Why was the Bajaj Pulsar
successful?
Pain: New generation
of bike riders wanted
more than transportation:
power & style at a
reasonable cost
Wave: Young, male
employees with
disposable income far
away from home
Waste: Powerful bikes
consumed too much fuel
(solved by DTSi
21

22. BUILD PARTICIPATION
STEP 3
8 Steps to Innovation Excellen
22

23. Examples
 Role model
 Community of
practice
 Innovation catalyst
 Rewards &
recognition Source: Dabholkar & Krishnan 8 Steps to Innovatio
23

24. Improve the Idea Velocity
4. Experiment with Low Cost at High Speed
5. Go Fast from Prototyping to Incubation
6. Iterate on the Business Model
Source: Dabholkar & Krishnan 8 Steps to Innovati
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25. EXPERIMENT WITH LOW
COST AT HIGH SPEED
STEP 4
8 Steps to Innovation Excellen
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26. Improve the Idea Velocity
4. Experiment with Low Cost at High Speed
Source: Dabholkar & Krishnan 8 Steps to Innovati
26

27. itch
idea
demo
impact
Feasibility Loop Viability Loop
2 months
Sep
2003
Nov
2003
Feb 2004
3 months 2 months
Apr 2004
Source: Dabholkar & Krishnan 8 Steps to Innovati
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28. Creating a Climate for
Experimentation
 Failure plays a critical role in innovation
 Post-It Notes & failed adhesives
 Create infrastructure, give resources for
experiments
 Have a high trial rate: fail fast, learn fast
 Can you do the “last” experiment first?
 Marico, Mahindra & Galaxy Surfactants have
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29. Avoid the “Failure Fallacy”
29

30. GO FAST FROM
PROTOTYPE
TO INCUBATION
STEP 5
8 Steps to Innovation Excellen
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31. Improve the Idea Velocity
5. Go Fast from Prototyping to Incubation
Source: Dabholkar & Krishnan 8 Steps to Innovati
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32. ITERATE ON THE
BUSINESS MODEL
STEP 6
8 Steps to Innovation Excellen
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33. Improve the Idea Velocity
6. Iterate on the Business Model
Source: Dabholkar & Krishnan 8 Steps to Innovati
33

34. Theme 3: Increase the Batting
Average
7. Build an Innovation Sandbox
8. Create a Margin of Safety
34

35. BUILD AN
INNOVATION SANDBOX
STEP 7
8 Steps to Innovation Excellen
35

36. Increase the Batting Average
7. Build an Innovation Sandbox
Source: Dabholkar & Krishnan
8 Steps to Innovation
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37. The Power of
Platforms
7 Themes
 Digital consumers
 Emerging economies
 Sustainable tomorrow
 Smarter organizations
 New commerce
 Pervasive computing
 Healthcare economy
WalletEdge
Platform Offering
http://jugaadtoinnovation.blogspot.in/2012/04/infosys-innovation-to-build-tomorrows.html
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38. Open Innovation
As one of the biggest players
in the water purification market,
Eureka Forbes is a natural
partner for new technologies.
EFL keeps itself open to new
ideas from all over the world
E.g. : Nanoceram technology
developed by Argonide Corp.
USA – takes care of viruses
without chemicals
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39. CREATE A
MARGIN OF SAFETY
STEP 8
8 Steps to Innovation Excellen
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40. Increase the Batting Average
8. Create a Margin of Safety
Source: Dabholkar & Krishnan 8 Steps to Innovati
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41. Could a premortem have prevented
Dreamliner problems?
A premortem might have
surfaced important failure
modes such as problems with
the Lithium-ion battery
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42. My Contacts:
 Phone: +91 9845022710
 Email: rishi@iimb.ernet.in
 Blog: http://jugaadtoinnovation.blogspot.in
 Web: http://www.iimb.ernet.in/~rishi
 Book: http://www.8stepstoinnovation.com
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