In April 2010, V.R. Ferose became the managing director of SAP Labs India, one of fifteen global R&D centers of the German software giant SAP. At 35 years old, Ferose was the youngest-ever managing director of a global multinational firm in India — overseeing a staff of 4,000.

Ferose was keen to infuse into his organization the mindset and principles of jugaad — a cost-effective and flexible approach to creating affordable solutions using limited resources. To that effect, he set up AppHaus — an open space within the SAP Labs India campus where designers, engineers, and marketers work collaboratively and intensively on new products — compressing the whole concept-to-market cycle to 90 days (versus the 2 years it would typically take SAP to develop a new product using the linear and structured software development processes).

By leveraging rapid prototyping and continuous customer feedback, the cross-functional teams that operate in the AppHaus are able to innovate faster, better, and cheaper — managing each project as if they were running a startup. To date, the AppHaus has successfully designed — or redesigned — and launched several software products in global markets — including SAP Collections Insight, a software suite that enables frontline employees such as sales reps to make informed decisions rapidly. AppHaus truly embodies SAP’s frugal innovation philosophy.

In addition to serving the company’s commercial needs, SAP Labs India is using AppHaus to serve a larger purpose by creating socially relevant applications. For instance, a small 10-member team worked in the AppHaus using limited resources to quickly develop a social networking site called Charitra (short for Charity Transformation), a first-of-its-kind portal for driving positive social impact. The web site connects people with needs (NGOs or volunteers driving a social cause) to people who can give (volunteers who can donate their time, skill, or resources).

SAP HQ has taken note, and is now shifting more strategic R&D projects and even global product ownership to SAP Labs India — an acknowledgment of the lab’s ability to innovate faster, better, and cost-effectively for local and global markets.

Ferose stands out among global corporate leaders: he didn’t graduate from a prestigious university nor does he have a MBA. However, empathy and a high emotional quotient (EQ) enabled him to provide the wise leadership that amplifies and leverages other people’s intelligence to drive innovation and revenue growth while also serving the greater good. Ferose was recently promoted to become the head of SAP’s Globalization Services organization.

Adapted from the book Jugaad Innovation: A Frugal And Flexible Approach To Innovation For The 21st Century (Random House India, 2012) by NAVI RADJOU, JAIDEEP PRABHU, SIMONE AHUJA Navi Radjou is a Silicon Valley-based strategy consultant and a Fellow at Judge Business School, University of Cambridge where Dr. Jaideep Prabhu is the Jawaharlal Nehru Professor of Indian Business and Enterprise. Dr. Simone Ahuja is the founder of Blood Orange. Radjou, Prabhu, and Ahuja are co-authors of Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth.