Ahsan Ahmad Baba

FRUGAL INNOVATION

• IN SIMPLE WORDS FRUGAL INNOVATION IS THE PROCESS OF

REDUCING THE COMPLEXITY AND COST OF GOODS AND ITS

PRODUCTION. FRUGAL INNOVATION IS KNOWN BY THE NAME

JUGAAD IN INDIA.

FRUGAL INNOVATIONS OF INDIA

High End Fridge which Costs about Rs1,80,000

Mitti Cool Fridge Costs Rs1,800 uses properties of Clay

And Water to keep vegetables fresh for at least 5 Days

EXAMPLE TWO

Baby Incubator costing Rs12,00,000Baby Warmer Does 80% of Job

that a Incubator does costing

Rs12,000

SIX PRINCIPLES OF FRUGAL INNOVATION

• THINK AND ACT FLEXIBLY

• KEEP IT SIMPLE

• INCLUDE THE MARGIN

• FOLLOW YOUR HEART

• DO MORE WITH LESS

• SEEK OPPORTUNITY AND ADVERSITY

THINK AND ACT FLEXIBLY

JUGAAD REQUIRES IMPROVISATION RATHER THAN STRATEGIC

PLANNING AND FORECASTING. THESE ENTREPRENEURS JUMP IN WITH

A PROTOTYPE, AND CORRECT THEIR COURSE AS THEY GO ALONG.

WHEN THINGS GO WRONG, THEY ADAPT. THEY START WITH SMALL

BUDGETS, TAKE SMALL RISKS, AND CAN QUICKLY CORRECT AND

REBOOT AFTER SMALL FAILURES.

WHAT WAS INNOVATIVE IN TATA NANO ?

• IT HAD A UNIQUE DESIGN AND FIRST TIME TWO CYLINDER GASOLINE

ENGINE HAD BEEN USED IN A CAR.

• SAFE AND CONVENIENT FOR ALL WEATHERS.

• AFFORDABLE ( CHEAPEST CAR OF WORLD)

• ECO FRIENDLY

KEEP IT SIMPLE

JUGAAD INNOVATORS ARE LOOKING FOR LOW-TECH “GOOD ENOUGH”

SOLUTIONS THAT ARE SIMPLE TO MAKE, USE AND REPAIR.

“CREATIVE SIMPLICITY IS JUGAD KEY PRINCIPLE”

WHAT WAS INNOVATIVE IN GINGER GROUP OF HOTELS?

• THE TARIFF OF THE HOTELS IS ONE THIRD OF THE OTHER HIGH END HOTELS

IN THE SAME CATEGORY.

• LOW INVESTMENT COSTS (100 ROOM GINGER HOTEL CAN BE MADE ON

40,000 SQ. FT. WHICH IN CONSIDERABLY LESS THAN THE AREA REQUIRED

FOR LUXURY HOTEL.

• PARTICIPATING IN SPECIAL ECONOMIC ZONES.

• ADAPTING THE MODEL FOR MIXED DEVELOPMENT IS MALLS.

INCLUDE THE MARGIN

JUGAAD INNOVATORS CAN SEE, FIRST-HAND, WHAT THE UNSERVED OR

UNDERSERVED MARKET NEEDS. THEY ARE DRIVEN BY A SENSE OF

FAIRNESS, THAT EVERYONE IS ENTITLED TO BASIC SERVICES LIKE

EDUCATION, INFORMATION, HEALTH CARE, BANKING AND ENERGY.

WHAT WAS INNOVATIVE IN TATA HOUSING?

• TATA SONS REALIZED THE TREMENDOUS OPPORTUNITY IN

AFFORDABLE HOUSING SEGMENT.

• IT LAUNCHED “SHUBH GRIHA” ALSO KNOWN AS NANO HOUSING.

• THE APARTMENTS IN NANO HOUSING RANGED FROM RS. 90,000 TO

6,70,000 WHICH WERE AFFORDABLE FOR PEOPLE IN LOWER INCOME

RAGE.

• IT STARTED IT FIRST MUMBAI IN INDUSTRIAL AREA HAVING

POPULATION MORE THAN1,25,000

• IT OFFERED FEATURES LIKE TOP QUALITY LIGHTING, VENTILATION,

OPEN SPACE, NURSING CARE, SCHOOL, COMMUNITY HALL ETC

FOLLOW YOUR HEART

JUGAAD INNOVATORS DO NOT RELY ON FORMALIZED MARKET

RESEARCH AND FOCUS GROUPS TO DECIDE WHAT PRODUCT TO MAKE.

NOR DO THEY WORRY ABOUT HOW INVESTORS WILL REACT TO A NEW

PRODUCT STRATEGY THEY KNOW THEIR CUSTOMERS AND FOLLOW

THEIR HEARTS.

WHAT WAS INNOVATIVE ABOUT TATA GOLD PLUS?

• TATA LAUNCHED A UNIQUE TOOL CALLED KARAMATER WHICH

MEASURES THE PURITY OF THE GOLD BEING SOLD.

• ITS WAS THE FIRST COMPANY TO INTRODUCE BRANDED JEWELRY IN

THE COUNTRY.

• IT INVESTED IN THE HIGH END JEWELRY DESIGNS. THUS CUSTOMER

WAS NOT CONFINED TO TRADITIONAL DESIGNS.

• IT GAVE PROTECTION TO THE CUSTOMERS BY GIVING THEM

GUARANTEE AGAINST PURITY OF THEIR GOLD PRODUCTS.

END OF SLIDE

THANK YOU