Simone Ahuja: Blood Orange's 'jugaad innovator' advises MNCs about adopting cheaper ways
There is a lot of difference between jugaad and jugaad innovation. While the former may be symbolic of sloppy the latter is about innovation.

She has an incredible ability to listen,” says Ellie Rogers, a Michigan, US-based marketing professional with Herman Miller, a maker of office furniture, about Simone Ahuja, founder of US-headquartered marketing and strategy advisory firm Blood Orange. Her firm advises US MNCs doing business in India to make high value products with lower costs. For Ahuja, an Indian-origin dental surgeon who grew up in Minnesota, what she does is called jugaad innovation or frugal innovation.
“The concept is a godsend to companies in the US, thanks to the ongoing economic meltdown. They are now learning to make do with lower resources,” adds Rogers.
In fact, the transformation from making products of high quality in a resource-rich environment to making them without compromising on quality in a resource-restrained situation isn’t easy, Ahuja notes. It is about the mindset, says the co-author of the best-selling book, Jugaad Innovation: A Frugal and Flexible Approach to Innovation for the 21st Century.
For a dental surgeon who had practised briefly back home in Minnesota, Ahuja has immense patience and an eye for detail, recalls Rogers who adds that “she has an uncanny ability to explain things in a very simple way”.
Mindset Over Matter
Payal Randhawa of Saket, Delhi-based Nand & Jeet Khemka Foundation, which promotes social entrepreneurship, says, “What sets Ahuja apart is that she comprehends things quickly.” She was referring to Ahuja’s sensibility to comprehend the use of minimum resources to achieve more. As someone who grew up and studied abroad, she had to change her mindset first in order to grasp the importance of frugal innovation.
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Business Edge
Ahuja vouches that frugal innovation gives MNCs an edge not only in competing against local players but also in offering Indians affordable products. “For example, we have helped pharmaceutical firms understand the logic of opting for cheaper ways to produce drugs to sell in the Indian market,” she says without elaborating. She says recession produced a necessity for MNCs to adopt cheaper ways and it has helped them change their mindsets faster than usual. Ahuja doesn’t want to give specific examples because that would violate confidentiality contracts she has entered into with clients.Ahuja, who admires PepsiCo CEO Indra Nooyi for the way she climbed the US corporate ladder and adores Mark Benioff, the founder of salesforce.com, for re-imagining what software looks like and for bringing cloud computing to the fore, insists that her clients go on a guided field tour to India’s country side to “really understand” the concept of frugal innovation.
Pleasure of Recognition
She also finds it heartening that Renault CEO Carlos Ghosn, who coined the phrase “frugal engineering” in 2006, agreed to participate in a panel discussion about her book. According to her, at the discussion, Ghosn, who runs two Fortune 500 companies — Renault and Nissan — said, “We don't only go to markets like India to sell, we go to these markets to learn.”
And learn they did, she vouches, adding that Ghosn understands that global consumers are demanding higher value, lower-cost products including cars. “He feels so strongly about this, he studied the Indian auto market and placed some of his senior leadership in India to better understand the principles of jugaad innovation — and how they can apply these principles in other markets. They’ve done so with great success, including Renault’s Dacia line, which uses fewer parts and a simplified design. The Dacia is becoming one of Renault’s bestsellers in Western Europe,” she avers.
Eclectic Tastes
A business leader she looks up to is Omar Ishrak, CEO of medical device company Medtronic Inc. “He not only has a deep understanding of the mindset and principles of value/jugaad innovation, but can also execute them as he did at GE Health with the Mac 400 and VScan,” she says. As an advocate of “localisation”, which she says is integral to the growth of any MNC in emerging markets such as India and China, many of her friends and clients look up to her, too. “She has great skills in explaining complex situations in a simple way,” Rogers sums up.
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