Jugaad: /jü-’gäd/

Hindi word meaning an innovative fix; an improvised solution born from ingenuity and resourcefulness. Also known as DIY in the US, Gambiarra in Brazil, zizhu chuangxin in China, and Systeme D in France.

Navi Radjou (Author), Jaideep Prabhu (Author), Simone Ahuja (2012). Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth. Jossey Bass

… Innovation is a major directive at corporations worldwide. But how do you drive innovation and growth as the global business landscape becomes increasingly unpredictable and diverse? Western corporations can no longer just rely on the old formula that sustained innovation and growth for decades: a mix of top-down strategies, expensive R&D projects, and rigid, highly structured innovation processes. Jugaad Innovation argues that the West must look to places like India, China, and Africa for a new, bottom-up approach to frugal and flexible innovation …

V. Govindarajan & C. Trimble (2012). Reverse innovation: Create far from home, win everywhere. Harvard Business Review Press.

(+ artículos de Vijay Govindarajan sobre innovación inversa)

… When it comes to innovation, the gap between the developed world and the developing world is closing. Understanding this fact—and knowing how to “reverse innovate” to stay in front of global demand—is critical for any business with growth in its future.

Enter Reverse Innovation, an important book that helps leaders and senior managers understand what it means to develop in emerging markets first, instead of scaling down rich world products, to unlock a world of business opportunity. Written by Vijay Govindarajan and Chris Trimble of the Tuck School of Business at Dartmouth, Reverse Innovation provides a needed next step for organizations looking to derive long-term value from emerging markets. The book highlights strategies from some of the world’s leading companies (General Electric, Deere & Company, Procter & Gamble, PepsiCo) that emphasize innovations that “flow uphill”—that is, successes that were adopted in the developing world first.

In the past, reverse innovations have been the rare exception to the rule, but the phenomenon is becoming ever more common, and the implications for multinationals are profound. In particular, thanks to the rise of reverse innovation:

  1. You must innovate, not simply export, if you want to capture the mammoth growth opportunities in the developing world.
  2. The stakes in emerging economies are global, not local. Passing up an opportunity in the developing world today may invite formidable new competition in your home markets tomorrow.
  3. Legacy multinationals must rethink their dominant organizational logic if they are to win in an era of reverse innovation.

There is no one industry that needs to reverse innovate; instead, all industries must have interest in the needs and opportunities in the developing world in order to thrive in tomorrow’s global marketplace …

reverse innovation, very simply, is any innovation likely to be adopted first in the developing world. Increasingly we see companies developing products in countries like China and India and then distribute them globally.

Organizing Principles

- Reverse innovation requires a decentralized, local-market focus

- Most if not all the people and resources dedicated to reverse innovation efforts must be based and managed in the local market

- Local Growth Teams (LGTs) must have P&L responsibility (this is a key hurdle for American multinationals)

- LGTs must have the decision-making authority to choose which products to develop, how to make, sell, and service them

- LGTs must have the right (and support) to draw from the companies global resources

- Once tested and proven locally, products developed using reverse innovation must be taken global which may involve pioneering radically new applications, establishing lower price points, and even cannibalizing higher-margin products.

- Reverse innovations can be, but are not always, disruptive innovations

… reverse innovation, este modelo invierte el proceso habitual de creación y comercialización de productos de una empresa, lo que implica desarrollar productos en y para los mercados emergentes y adaptarlos después a las economías más avanzadas. 

"La reverse innovation es el proceso contrario a la glocalización, que parte de una concepción global de un producto para adaptarlo después a un mercado local y que es lo que se ha estado haciendo en Estados Unidos y Europa. Ambas estrategias son necesarias en el seno de las multinacionales porque cada una responde a nichos, situaciones y oportunidades de negocios y mercados diferentes. Es necesario que convivan”

Self-building wind towers.

Porfirio Sanchez runs a center for sustainable living in a remote corner of Oaxaca, Mexico. They’ve been giving workshops to show people who live away from the electricity grid how to build their own wind generators.

Un ejemplo de potencial innovación frugal del tipo “del SMS banking a Wall Street”. Un producto y servicio creado en un lugar con escasos recursos que podría ser reconceptualizado y adaptado para generar un servicio de interés en países desarrollados. En este caso se trata de hacer aerogeneradores pequeños y baratos que puedan producir electricidad para unas pocas personas a pequeña escala. En Europa llevamos años pensando como podríamos hacer la energía eólica accesible a pequeña escala. Lo que muestra este video podría ser un primer prototipo de una solución atractiva para los mercados de países desarrollados.