Navi Radjou is an innovation and leadership advisor based in Silicon Valley. Navi is a regular contributor to Harvard Business Review online. Previously, he served as Vice-President at Forrester Research in Boston and San Francisco.
Navi talks of the Hindi concept of Jugaad – clever solutions born out of adversity or doing more with less (equivalent term in English would be a ‘hack’). This is important in developing countries, where less resources force them to find cheap and simple solutions. The talk is a list of examples of this:
- A potter in India has designed a fridge out of clay, needing no electricity.
- A bicycle-powered mobile phone charger
- Peru is a high-humidity area with limited fresh water. They developed a billboard to condense 90L water per day out of the air.
- In China a telemedicine solution is building easy-to-use medical appliances that can be used by nurses or technicians. This will make rural medicine cheaper to deliver.
- MPesa: a banking network based on phone transactions
- MPesa energy: a solar powered minimalist electricity kit including a panel, 3 lights and a phone charger. This can be bought in microtransactions over a year, so it can be made affordable.
- SMS powered internet: to let people connect to the internet without a wifi or mobile internet connection
- Traffic monitoring and optimization by using cheap low resolution webcams to gauge traffic conditions.
In the developed world people are spending a lot on R&D to charge more for products: more for more. However, natural resources are running low and the products are getting so expensive that more people are being left out of the market. The West could learn to make more with less. Some are doing this: for example a yoghurt factory that is 10% the size of a usual factory, and uses more manual labour in place of expensive automation. This greatly decreases startup costs. The West is also starting to use tools like mobile banking or simpler medical appliances to deliver services at lower costs.
3 ideas to help you innovate frugally
- Keep it simple
- Leverage off existing services eg SMS,
- Think horizontally – decentralised, rather than central operations / manufacturing.
A lot of examples. They build up to the big 3 points at the end – how to apply the principles. Also useful to point out that R&D can’t keep being an expensive process, at the expense of squeezing more and more consumers out of the market.
Tom Wujec studies how we share and absorb information. He’s an innovative practitioner of business visualization — using design and technology to help groups solve problems and understand ideas.
Asking people to draw how to make toast can reveal a lot.
- Most people draw a flow chart: images (nodes) connected with arrows (links). We intuitively know how to break a drawing down in this way.
- The details people go to can reveal more about them: whether the supply chain of bread, or engineers drawing the inner workings of a toaster
- people from different countries see toasters differently (Americans draw an electric toaster, Europeans a fry pan, or some draw fire).
- Number of nodes is usually around 5, and 5-13 is the best to describe the process. Fewer nodes are too simple, but more than 13 difficult to understand
The second step is to draw the nodes on sticky notes or cards. This lets you rapidly rearrange or change the nodes, to make it better faster. These diagrams tend to have more nodes than one drawn on a sheet of paper – making them richer.
The third step is for a group to draw on sticky notes and rearrange them together. This results in more nodes again, but map shock isn’t an issue because they all saw the process come together. They group automatically organises the nodes to group similar nodes or deal with contradictions.
Managers can use this simple process to map out their organisation or strategy – to break a very complicated entity into the working parts. They simply draw the nodes, then organise or refine them until the patterns emerge. These models can extend to hundreds or thousands of nodes. An executive team for a publishing company spent 3 days organising post-its, and their newfound understanding let them reclaim $50million of revenue and customers now rank them as an “A” – from a “D”.
Next time you are confronted with a complicated problem, try breaking it down in terms of visibly nodes – it is fun, simple and powerful.
A simple exercise, and definitely worth trying to understand a problem. However, having seen the exercises in business a few times, I’m not sure they always yield results. Ones I have been a part of tend to be too structured and quick (~1/2hr) – rather than the random self-organisation and iteration Tom suggests. These exercises tend not to result in an answer or clarity at all.
Having had the logic explained through this talk, I will try it alone though. Take an idea or problem and break it down, then see if it can be re-organised in a useful way.