Can Supply Chains generate more with less by adopting “Jugaad Innovation”?
Jugaad as I understand it is a Hindi word that refers to using available and often limited resources together with a degree of innovation to solve ones problems. This may also be referred to as Frugal Innovation, Grass Roots Innovation or Do It Yourself Innovation.
As resources become constrained and businesses become more complex Jugaad innovation delivers value because it helps companies to generate more with less. Jugaad Innovation typically flows from the bottom-up rather than the typical top-down approach used in western business models. Jugaad is more customer-centric in that it seeks to solve customer problems first and then develop a suitable solution. In other words the solution begins with “Why are you doing it”, then “How are you doing it” ending with the resulting “What product or service will do it”.
As business conditions change and resources become constrained, Procurement/Supply Chains are being called upon to facilitate growth and continued savings for corporations. This could possibly lead to changes in not only existing business models but also lead to more responsible Procurement solutions.
I think Jugaad innovation is a concept organizations need think about. This kind of change could impact procurement’s role and encourage more cross-functional collaboration with suppliers, stakeholders and others to drive cost saving innovations in organizations.
Have any thoughts or examples of Jugaad frugal innovation in Supply Chains? I’d love to hear your views!