Jugaad Innovation - Jugaad King

Advantages of simplicity to larger companies The demand for simplicity is growing in many parts of the world and there are reasons why a large firm may also benefit by being simple. Some of the benefits are mentioned below: Customers are demanding simplicity: Any company, be it a large MNC or a local store has to provide what the consumers demand. The customers are now demanding simple products that serve the purpose. 65 percent of Americans complain that they are overwhelmed with the technology driven complex products. Change in the lifestyle of consumers: More and more people around the world are downshifting their lifestyles. Some are doing it by choice some unwillingly. This change in lifestyle makes it important for the large companies to give simple solution to keep serving this audience. Over-engineered products cost a lot of R&D and time: In a time of scarcity, companies can no longer afford to invest lavishly in R&D to come up with complex products. S...

In the new era of scarcity, large companies must learn how to produce higher value with fewer resources. Despite the benefits of doing more with less, large companies face significant obstacles in adopting this approach. Some of the major reasons are mentioned below. Mindset (Top Management) The top management is in many large companies are wedded to a previously successful ‘more for more’ strategy. However this ‘bigger is better’ approach is no longer sustainable as large companies face an increasing resource crunch and a growing number of aspirational but relatively low-income consumers seeking value-for-money offerings. Low cost would ideally mean low income and that in return will mean low profits. They typically think that each unit sold for Rs.100 will yield them a profit of Rs.10 and if this unit is sold at Rs.80 they will earn a profit of Rs.8. Instantly reducing the profits by Rs.2 per unit. They fail to understand that the consumer is no more ready to pay Rs.100 for t...