Jugaad Innovation - Jugaad King

Jugaad innovators are able to get more from less by applying frugality in every activity they perform at every step along the value chain. Their frugality shows up not only when they utilize the natural resources and limited finance, but also when they save time and energy by relaying on their partners to do the work rather than trying to do everything by themselves. Some of the frugal approaches employed by Jugaad innovators to gain more from less are listed and explained below. Reuse and Recombine Rather than creating something entirely new from scratch, Jugaad innovators are more likely to reuse or seek new combinations of existing technologies or resources. Zhongxing Medical, a Chinese medical device maker, borrowed Digital Direct X-ray equipment from its parent company Beijing Aerospace. It was use in everyday application like chest X-rays. Similarly Jugaad innovators in African countries are leveraging existing cellphone networks to devise frugal business models that

Jugaad Innovators face many kinds of scarcity; this is not the problem but the cause of Innovation. Scarcity is what differentiates the Jugaad entrepreneurs from entrepreneurs. Jugaad Innovators are always looking to do more with less. While Silicon Valley entrepreneurs typically operate in a resource-rich environment, Jugaad entrepreneurs face scarcity of every possible thing. Some of the major kinds of scarcities faced by these Jugaad entrepreneurs are listed and explained below. 1. Finance: Quite simply, the finance available in the emerging markets is limited. Banks are conservative, venture capital and angel investor networks are underdeveloped. Jugaad innovators cannot afford to invest in capital-intensive R&D equipments. This partly explains why a country like India spends only 0.8% of its GDP on R&D, compared to 3% spends by developed nations. 2. Natural Resources: Not a Jugaad specific problem but it just makes it more difficult to establish a setup in emerging

Gustavo Grobocopatel is a fourth generation Argentinian farmer of Russian-Jewish extraction. For three generations his family pursued a small scale, subsistence model of farming in Argentina. Grobocopatel’s dream was to break out of this mold and do something more ambitious. But doing business in Argentina was not very easy and he faced problems right from the very beginning. First problem faced by Grobocopatel was in getting access to large lands for agriculture. Although Argentina is a vast country, endowed with rich soil and a favourable climate, farmland is actually hard to come by. Only 10% of the land is arable and that is controlled by few owners who are reluctant to part with it. Second problem Grobocopatel faced was the shortage of skilled labour that was needed to scale up his business. Farming is a labour intensive business and without skilled and adequate man power Grobocopatel could not achieve his goals. Labour was required at all levels of farming, fertilize, sow, t