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Rishikesha T. KrishnanProfessor & Area Chair, Corporate Strategy & Policy, IIM Bangalore
Going Beyond Jugaad:Can India Create a Systematic
Innovation Capability?
August 30, 2013
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 & WIPO),Lost two places in the last year.
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Why does India fail to do well on innovation in spite of having creative people?3
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 Innovation: The Challenge for India
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Innovation byFirms
Inputs
PeopleFunding
KnowledgeInfrastructure
Capacity to Innovate
Incentive toInnovate
BenefitsCompetition
AppropriabilityRewards
Social Environment
Political Environment
Economic Environment
TechnologyEnvironment
Government Policy
InternationalEnvironment
Improved since1991
Remain areasof concern
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We have a homegrown approach called Jugaad…
For transportation… ……or making lassi!
Source: From Jugaad to Systematic Innovation: The Challenge for India
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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 Innovation: The Challenge for India
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Indian Companies & MNCs have different challenges!
Too improvisational & ad-hoc?
Too slow & deliberate?
Embrace Systematic Innovation
Be moreentrepreneurial
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8 Steps to Innovation:Building a Systematic Innovation Capability
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Build a pipeline
3 ImproveBatting Avg
2 Improve idea velocity
Build a Pipeline
1. Lay the Foundation2. Create a Challenge Book3. Build Participation
Source: Dabholkar & Krishnan 8 Steps to Innovation
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LAY THE FOUNDATION
STEP 1
8 Steps to Innovation Excellence
Source: Dabholkar & Krishnan 8 Steps to Innovation
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Titan: The 3M of India?
Karatmeter resulted in transformation of jewellerybusiness
“Anyone can be an Innovator”Innovation School of ManagementProcess innovations result in 100s of crores savings
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Buzz Creation (creative campaigns)
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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 Innovation
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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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Training & Development
Titan Innovation School of Management “Everybody an innovator by 2015”
Focus area TechniquesDesign thinking Immersive research, rapid
prototyping, brainstormingSystems thinking TRIZ
Systems archetypesTheory of constraints (TOC)
Lateral thinking Edward de Bono’s six thinking hats
Source: Dabholkar & Krishnan 8 Steps to Innovation
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CREATE A CHALLENGE BOOK
STEP 2
8 Steps to Innovation Excellence
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Build a Pipeline
2. Create a Challenge Book
Feel the Pain
Sense the Wave
See the Waste
Source: Dabholkar & Krishnan 8 Steps to Innovation
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Why was the Bajaj Pulsar successful?
Source: Dabholkar & Krishnan 8 Steps to Innovation
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Why was the Bajaj Pulsar successful? Pain: New generation
of bike riders wantedmore than transportation:power & style at areasonable cost
Wave: Young, maleemployees withdisposable income faraway from home
Waste: Powerful bikes consumed too much fuel (solved by DTSi technology)
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BUILD PARTICIPATION
STEP 3
8 Steps to Innovation Excellence
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Examples
Role model
Community of practice
Innovation catalyst
Rewards & recognition
Source: Dabholkar & Krishnan 8 Steps to Innovation
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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 Innovation
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EXPERIMENT WITH LOW COST AT HIGH SPEED
STEP 4
8 Steps to Innovation Excellence
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Improve the Idea Velocity
4. Experiment with Low Cost at High Speed
Source: Dabholkar & Krishnan 8 Steps to Innovation
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itchidea
demoimpact
Feasibility Loop Viability Loop
2 months
Sep2003
Nov2003
Feb 2004
3 months 2 months
Apr 2004
Source: Dabholkar & Krishnan 8 Steps to Innovation
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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 imbibed the culture of quick experimentation
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Avoid the “Failure Fallacy”29
GO FAST FROM PROTOTYPE TO INCUBATION
STEP 5
8 Steps to Innovation Excellence
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Improve the Idea Velocity
5. Go Fast from Prototyping to Incubation
Source: Dabholkar & Krishnan 8 Steps to Innovation
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ITERATE ON THE BUSINESS MODEL
STEP 6
8 Steps to Innovation Excellence
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Improve the Idea Velocity
6. Iterate on the Business Model
Source: Dabholkar & Krishnan 8 Steps to Innovation
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Theme 3: Increase the Batting Average
7. Build an Innovation Sandbox8. Create a Margin of Safety
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BUILD AN INNOVATION SANDBOX
STEP 7
8 Steps to Innovation Excellence
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Increase the Batting Average7. Build an Innovation Sandbox
Source: Dabholkar & Krishnan 8 Steps to Innovation
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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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Open Innovation
As one of the biggest playersin the water purification market,Eureka Forbes is a natural partner for new technologies.
EFL keeps itself open to newideas from all over the world
E.g. : Nanoceram technologydeveloped by Argonide Corp.USA – takes care of viruseswithout chemicals
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CREATE AMARGIN OF SAFETY
STEP 8
8 Steps to Innovation Excellence
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Increase the Batting Average8. Create a Margin of Safety
Source: Dabholkar & Krishnan 8 Steps to Innovation
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Could a premortem have prevented Dreamliner problems?
A premortem might havesurfaced important failure
modes such as problems withthe Lithium-ion battery
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My Contacts:
Phone: +91 9845022710 Email: [email protected] Blog:
http://jugaadtoinnovation.blogspot.in Web: http://www.iimb.ernet.in/~rishi Book:
http://www.8stepstoinnovation.com
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