Every week a business school professor, an expert in his or her field, defines a key term on FT Lexicon, our online economics, business and finance glossary.
Prof Bobel has chosen to define the term jugaad innovation.
Why Prof Bobel believes it is important to understand jugaad innovation
“Jugaad innovation, or frugal, or improvised innovation, is a real eye-opener – not only for those living at the bottom of the pyramid in the developing world but also for firms operating both in a resource-constrained environment and in fast-expanding markets,” says Prof Bobel, adding that companies are increasingly being forced to rethink their business models and provide solutions beyond pure cost-effectiveness and competitive advantage.
Companies need to find new ways to create value by offering affordable goods and services with limited resources and they need to learn to adapt faster, says Prof Bobel.
All these things make a good jugaad innovator, according to Prof Bobel.
To learn more about jugaad innovation, click on any of the hyperlinked terms.
Full article available on the FT.com