Chapter 4, Problem 2.1ASC

Jugaad, Design for the Times

India has a Hindi slang word that describes their mode of innovation, jugaad (pronounced “joo-gaardh”). Roughly translated, it means “invention on the fly,” an improvisational style of innovation based on the immediate and affordable needs of customers. It works well in environments of scarce resources where workable options that are inexpensive and quick to implement are valued. Tata, Infosys, and other Indian corporations have used jugaad for years. Now Best Buy, Cisco Systems, and Oracle, among others, are following suit.

One example of jugaad, which is shown in the photo, is Tata Motor’s Nano mini-car, a bare-bones product that sells for $2800 to consumers who had heretofore been priced out of the automobile market. Best Buy holds jugaad workshops to generate new product ideas that can be added easily and inexpensively to existing stores (e.g., home healthcare equipment). Cisco likes the Indian approach of affordability and scale. Repurposing existing ideas and technologies in simple ways helps to reduce R&D spending and adds to high-margin products.

This is similar to the micro-financing success in third-world countries, where small loans applied to basic needs can make a big difference. In fact, there is a reversal in the trend in design from multinationals who would typically “trickle down” ideas and products from affluent Western nations, to “trickling up” ideas and solutions from third-world countries. GE, Procter & Gamble, Nokia, and others are watching how Asian and African consumers handle medical equipment, foods, and cell phones. Designing for these markets gives insight for home markets that respond favorably to reduced size, cost, and complexity, and increased sharing and connectivity.

For example, in healthcare, GE offers a portable baby warmer that uses hot water and costs 99% less than traditional infant incubators. Johnson & Johnson sponsors a Text4baby messaging service for new mothers where they can get advice on caring for their babies. Philips offers hospital beds with fewer adjustment options, which are actually easier to use, at half the price.

Frugal innovation and low-priced no-frills products are right for the times, and they are changing the very process of design.

What products do you own that perform their function simply and inexpensively? What products or services would you like to see redesigned by a jugaad process?