This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Jugaad to Help Fight Economic Sharks

 

How did you go about achieving this objective?
Radjou: We decided to look for that new model in emerging markets like India and China.

 

Why emerging markets?
Radjou: Because we had noticed that (throughout the 2000s) emerging economies had grown at double-digit rates despite the sheer complexity and resource scarcity that characterize their societies. We intuited that if entrepreneurial companies in India, China, Brazil and Africa are able to grow fast in such adverse and resource-limited environment, then they must be using some "secret formula."

 

Did you find that formula?
Radjou: Alas, after spending several years meeting and interacting with dozens of entrepreneurs in EM we realized that these innovators didn't rely on any special "technique" -- rather they all share a unique mind-set. It's a resilient mind-set that enables them to turn adversity into opportunity and do more with less in resource-constrained settings. That frugal and flexible mind-set is what (for the lack of a better word) we labeled as "jugaad." Jugaad is a Hindi word that means an "innovative fix--an improvised solution born from ingenuity and cleverness".

 

Jugaad denotes the ability to improvize a solution in an unpredictable setting and demonstrate resourcefulness when resources are scarce. We found that jugaad is not restricted to India: there are similar terms to convey the spirit of jugaad in other emerging markets -- like the word "jeitinho" in Brazil or "jua kali" in Kenya. We came to conclude that Western companies would greatly benefit from adopting the jugaad mind-set so they could learn to create affordable and sustainable solutions in an increasingly complex, unpredictable, and resource-scarce economic environment. So we wrote the book Jugaad Innovation as a way to show how Western companies can inculcate the jugaad mind-set in their organisations and learn to become nimble andfrugal.

Also see: The Wild West of Pay Loans for Joe College

In the West, people talk more about minimalism. Would people in West prefer jugaad or minimalism?
Radjou: I think 'minimalism' and' jugaad' go hand in hand. Minimalism is a lifestyle choice made by a growing number of Americans who are "downshifting" their hectic, complex lifestyle and choosing to lead a simple but more meaningful life. Studies show that 15% to 28% of Americans have already voluntarily adopted simplified lifestyles. Unfortunately existing products and services sold in the West are too complex and expensive to cater to this growing market of "minimalist" consumers. That's where jugaad can come in handy. When leveraged cleverly -- using a jugaad approach -- technologies like mobile devices can actually help "simplify" people's lives.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,678.70 +6.10 0.03%
S&P 500 2,057.09 +5.27 0.26%
NASDAQ 4,771.7630 +13.8840 0.29%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs