rishikesha t krishnan presentation at thinkers50 india

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

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


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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


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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


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CREATE A CHALLENGE BOOK

STEP 2


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Build a Pipeline

2. Create a Challenge Book

Feel the Pain

Sense the Wave

See the Waste


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Why was the Bajaj Pulsar successful?


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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


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Examples

Role model

Community of practice

Innovation catalyst

Rewards & recognition


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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


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EXPERIMENT WITH LOW COST AT HIGH SPEED

STEP 4


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4. Experiment with Low Cost at High Speed


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itchidea

demoimpact

Feasibility Loop Viability Loop

2 months

Sep2003

Nov2003

Feb 2004

3 months 2 months

Apr 2004


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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


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5. Go Fast from Prototyping to Incubation


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ITERATE ON THE BUSINESS MODEL

STEP 6


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6. Iterate on the Business Model


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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


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Increase the Batting Average7. Build an Innovation Sandbox


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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


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Increase the Batting Average8. Create a Margin of Safety


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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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mailto:[email protected]

http://jugaadtoinnovation.blogspot.in/

http://www.iimb.ernet.in/~rishi

http://www.8stepstoinnovation.com/