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Nishchay Ailani

Nupur Bhatia
Rashi Jalan
Deepanshu Jeswani
Anuj Kamra
Raman Manchanda
AGENDA

INTRODUCTION
INNOVATION: CHALLENGES & PRACTICES
ORGANISATION DEVELOPMENT &
LEADERSHIP
STRATEGIC RISK TAKING
CROSS CULTURAL IMPLEMENTATION
DIGITAL STRATEGY
Tata Group Profile

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise, headquartered in
India, comprising over 100 independent operating companies

Group operates in more than 100 countries across six continents

Mission 'To improve the quality of life of the communities we serve globally, through long-
term stakeholder value creation based on Leadership with Trust

Tata Sons is the principal investment holding company and promoter of Tata companies

Companies collectively employ over 660,000 people

There are 29 publicly-listed Tata enterprises with a combined market capitalization of


about $116 billion

Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy
Services, Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata
Communications and Indian Hotels
TATA: VISION & MISSION

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Introduction Innovation: Challenges Cross Culture Digital
& Practices & leadership taking Implementation Strategy
TATA ALL SECTORS

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Introduction Innovation: Challenges Cross Culture Digital
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BCG Matrix of Tata Group

Industry
Hotel
Growth TATA Motors
Communication
Tele Services
TCS Voltas
High Titan Steel
Power

Questio
Stars n
Marks

Cash
Dogs
Cows
Tea Housing
Low Chemicals
Salt

High Low
Relative Market Share

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Introduction Innovation: Challenges Cross Culture Digital
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SWOT Analysis of Tata Group

STRENGTHS WEAKNESS
Strong Brand Image High Attrition Rate
Comprehensive dealer and service network Limited International Presence
Large shareholder base

SWOT
THREATS
OPPORTUNITIES Presence of a strong competitor base
Large Untapped Market Rising price of steel, aluminium (Automobile
Distinguished Product Class Industry)
Mergers and Acquisitions Socio political Environment (Cap on mining
activity)

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Introduction Innovation: Challenges Cross Culture Digital
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INNOVATION BEST PRACTICES

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IntroductionInnovation: Challenges Cross Culture Digital
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THE EDGE PORTAL

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IntroductionInnovation: Challenges Cross Culture Digital
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Tata Interactive Systems

TIS Best Practices


Problem:
Refined and
institutionalised their
Less than two-thirds
processes
of projects meet their
Created tools such as
goals, 17 per cent fail
Project Management
outright
and Collaboration
Portal
Proprietary rapid
Results: development tool
LearnX
Successfully TIS partnership with
completed project customer organisation
rejected by 16 Provides coaching and
companies taking best practice guidance
only 11 weeks out
of 16 given

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Tata Business Excellence Model

Covers business aspects that range from strategy and


leadership, to safety and climate change
Deliver strategic direction and drive business
improvements
Used for the organisational self-assessment of Tata
companies, recognition and awards and feedback
TBEM methodology comprises a set of questions that
applicant Tata companies have to answer

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Motivating Workforce

Year of the Associate


Year of the Associate Plus
Special Thanks and Recognition System (S.T.A.R.S)

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Addressing Climate Change

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IntroductionInnovation: Challenges Cross Culture Digital
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Corporate Innovation Strategy An Overview

Provides high-level direction and support while allowing significant room for
creativity and autonomy to individual companies to devise their competitive or
functional innovation strategies
Innovation as part of transformation agenda initiatives such as Tata Business
Excellence Model and globalization
Set up the Tata Group Innovation Forum in 2007 to plan and roll out group-
level initiatives to help Tata companies innovate
Forum comprises CEOs/CXOs and innovation leads from Tata companies and
meets quarterly to review progress
Focused on building capabilities for innovation through workshops, learning
missions (also called InnoMission), and dissemination of concepts
Improved leadership communications, integrated innovation into the TBEM
assessment, and implemented the InnoMeter and InnoVista programs

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IntroductionInnovation: Challenges Cross Culture Digital
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Creating Capacity for Innovation

Organizes workshops with leading innovation experts to introduce the


concepts of and tools for innovation
Organizes innovation missionsvisits to some leading firms outside India to
understand their innovation processes
Dissemination effortsfacilitated by the Tata Management Training Centre
through research and trainingfocus on innovation culture and tools in
executive programs

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IntroductionInnovation: Challenges Cross Culture Digital
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Measuring innovation

Uses a questionnaire called InnoMeter to measure the as-is state of


innovation covering three areas: process, culture, and strategic focus
Respondents to indicate their assessment of strategic clarity, resource
availability, extent of empowerment, expectations, and processes for tracking
and rewarding innovation efforts
Generates creative tension and lets the company identify areas it must
address to make its innovation funnel and processes more robust

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IntroductionInnovation: Challenges Cross Culture Digital
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Facilitating Innovation

Uses IT to fuel its innovation efforts and


improve idea generation and selection
Tata InnoVerse is an in-house social
networking platform to augment the
innovation life cycle that starts from
idea generation
Engages employees in creative problem
solving and idea evaluation 643
17
companies
challenges 54,970+ 470,000+
enrolled
46,390+ impressions 344+ ideas
users
ideas implemente
2,345+ ideas
selected

12,972
participated

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Recognizing and Rewarding Innovation

In 2006, Tata Group initiated the process of celebrating innovations in Tata


Group through a program called Tata InnoVista
To recognize innovators and encourage innovations, share the levers
companies use to identify and execute innovation projects, and create a
culture of risk taking
Categories: Promising Innovations, Dare to Try, Leading Edge Proven
Technologies, Design Honor
Increased cohesiveness across multiple levels

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IntroductionInnovation: Challenges Cross Culture Digital
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ADROIT Framework

The ADROIT framework aligns closely with the fundamental equation for
economic value of innovations:
(EV) = volume (A) margin (differentiate, reduce costs) + optimize risk +
innovate/improve industry structure + transform
Add volume or growth
Differentiate or increase willingness to pay (WTP)
Reduce costs (operating costs, post-merger integration costs, capital costs)
Optimize risk (systematic, idiosyncratic, downside): reduce volatility of cash
flows and reduce competitive risk
Innovate by generating knowledge and other resources and capabilities, and
improve industry attractiveness
Transform industry, products, services, or business models

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IntroductionInnovation: Challenges Cross Culture Digital
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Challenges Faced during Innovation

Innovation needs a long term view which may not necessarily impact the
quarterly results
One Group, Multiple ideas needs proper filtering and selection
Firms needs to find a way to commit right resources to innovate
Budget needs to be allocated
Employees should be involved to reduce resistance

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LEADERSHIP & DEVELOPMENT

OVERVIEW TAS TMTC SECOND CAREER IP

enhancing the knowledge and TAS is an entry-level set in a lush campus in Pune
The Second Career
leadership quotient induction programme in western India,
Grooming the managers of young managers multiple professionals add to their Internship
Programme is a
today into the leaders of opportunities for knowledge bank.
unique initiative
tomorrow professional growth its goal is to provide training
maximizing the potential of its makes them part of a talent which creates
to high performers and act as
opportunities for
pool of managers pool that could be tapped by a cradle of change.
women returning to
cross-functional exposure and companies across the Tata
organization the job market after a
by making cross-company
break
mobility an integral aspect of
all leadership
development efforts.

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
LEADERSHIP & DEVELOPMENT- TGeLS
The Tata Group eMerging Leadership Seminar

The TGeLS, a part of the three-tier leadership


developmentframework
designed for high-potential employeestransitioning into general
management roles,
helps participants tounderstand and appreciate the inter-linkages
impact of variousbusiness functions on the overall strategy of the
organization.
About the Seminar
This is a 20 day seminar delivered over two modules

Module 1 is spread over 11 days


and covers core Module 2 is spread over 9 days
businessfunction inputs such as and covers inputs in the area of
Macroeconomics, Finance, personal Behavioral
Operations,Marketing, Effectiveness and Strategy.
Management of Services and
Innovation.

Theseminar also provides participants opportunities to build a


networkwith peers from group companies and to learn from
experiencesshared by senior Tata Leaders.

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Introduction Innovation: Challenges Strategic risk Cross Culture Digital
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LEADERSHIP & DEVELOPMENT- TAS
TATA ADMINISTARTIVE SERVICES

An intensive 12-month programme to impart a macro view of business,


aims to nurture talent and create a pipeline of young budding managers
and leaders who will serve as a valuable resource for theTata group
Takes both In-house and from B-Schools

No electricity. No cable TV. No internet. No comfortable bed


Imagine todays 20-somethings spending 40 days in a village in India
without the amenities and communication devices that have become
an inseparable part of their lives
This life-changing experience in a rural setting is now a mandatory
element of theTAS training programme
Going international
Desirable diversity
TAS has, just this year, started the Tata
The value on diversity also
China Management Programme (TCMP),
means that TAS is looking
a TAS clone that also aims to generate
for people with diverse
highly qualified professional, flexible
capabilities and for more
talent for businesses operating in China
women recruits.
and in the region.
This years batch saw two
need for similar programmes in the
economics graduates join
larger markets in which they operate,
the overwhelming crowd
like South Africa and maybe even South
of engineers
America and UK

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
LEADERSHIP & DEVELOPMENT- SECOND CAREER INTERNSHIP PROGRAMME
The Second Career Internship Programme (SCIP) is aimed at professional
women who have taken a career break and are looking to return to the
job market.
offering live business projects with flexible schedules and project-based
employment
Described as a career transition management programme, it focuses
on developing alternative talent pools in traditional and non-traditional
formats.
This pioneering programme was launched on International Women's
Day in March 2008
In 2012, the application process was taken online, making it more
convenient and accessible
Using this facility, Tata companies can post projects throughout the
year
aspirants, select and apply for live business projects, online, just like
any other job portal
selected candidates get the opportunity to work on business projects
offered by Tata companies with approximately 500 hours of
engagement
The projects are spread over five to six months on a flexi-time basis.
The programme currently offers opportunities in India in Mumbai, Pune,
Bengaluru, Chennai, Hyderabad and NCR (National Capital Region

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
MERGERS AND ACQUISTIONS

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Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
STRATEGIC RISK TAKING

Strategic risks

risks that affect or are created by an organizations


business strategy and strategic objectives

Operational risks

major risks that affect an organizations ability to


execute its strategic plan

Financial risks

areas such as financial reporting, valuation,


market, liquidity, and credit risks

Compliance risks

relate to legal and regulatory compliance.

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
STRATEGIC RISK TAKING

How do you combat strategic risks

Collaboratio Communicat Business Tools and


n ion Case Techniques

Creates
Challenges Helps
processes
Bring the decision Develops risk-
that channel
judgment into assumptions makers based
risk
high-level risk underlying understand scenario
information to
decisions business emerging planning
key decision
plans risks
makers

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
STRATEGIC RISK TAKING

STRATEGY INVOLVED: TATA GROUP WANTED TO


BECOME A GLOBAL ORGANISATION

A few acquisitions
that involved
strategic risk!

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
STRATEGIC RISK TAKING - TATA CORUS DEAL

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Introduction Innovation: Challenges Strategic risk Cross Culture Digital
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STRATEGIC RISK TAKING - TATA CORUS DEAL

The FATE of the deal?


Why did Tata want
this?

To grow, gain access Saturated Market in


to the European Europe

Why did Corus want to be


Market Decline in market
To Increase sales, share and profit
decrease costs and Corus needed to
have access to other extend its global
assets reach to survive
Threat of Industry Markets in India-
going out of Fastest growing

taken over?
business economies, Low cost
Overcome entry materials, Indian ore
barriers, Lower risks, reserves , very new
Synergies market for steel

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
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STRATEGIC RISK TAKING - Tata-jaguar-Land Rover deal

In June 2008, India-based Tata Motors Ltd. announced that it had


completed the acquisition of the two iconic British brands - Jaguar and
Land Rover (JLR) from the US-based Ford Motors for US$ 2.3 billion
It would help Tata Motors get a global footprint and enter the high-end
premier segment of the global automobile market

Reasons Behind Ford Motors How would Tata gain from the deal?
help the company to enter in to the high-end
Decision to Sell JLR premier segment of the global automobile market
Jaguar was not performing well as Cost competitive advantage as Corus was the main
it was unable to provide any profit supplier of automotive high grade steel to JLR
for Ford due to high manufacturing Tata Motors access to latest technology which
would also allow Tata to improve their core
costs in United Kingdom products in India

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
STRATEGIC RISK TAKING - Tata-jaguar-Land Rover deal

Problems faced by Tata Motors due The FATE of the deal?


to acquisition
Global financial
crisis has severely
Lack of access to
impacted the
credit to repay the
global automobile
bridge loan of
industry especially
US$3 Billion
the luxury cars
segment

Increasing
materials and fuel
prices have slow
the demand of
vehicles

Organization development
Introduction Innovation: Challenges Strategic risk Cross Culture Digital
& Practices & leadership taking Implementation Strategy
CORPORATE CULTURE

Corporate culture is influenced by two factors- external and internal


External factors include social, political, cultural, industry & institutional factors
Internal factors are viewed from the bottom up & top down perspective
Corporate culture allows companies to adapt to the environment and become
more integrated
Culture can be imposed upon by management through a system of hierarchical
control with rigid rules and limits or a system of trust and openness can be put
in place in order to create self organization based on social control
Corporate culture is very important to identify company identity
It allows employees to identify themselves with a set of values, conduct and
objectives
It influences communication, management styles, decision making processes
and learning

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Introduction Innovation: Challenges Cross Culture Digital
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CONTRASTING CULTURES

CULTURE AT JAGUAR & CULTURE AT TATA


LAND ROVER UNDER very strong culture giving much
importance to ethics and moral values

FORD
Very hierarchical and bureaucratic structure
extend social welfare activities to
communities around their industrial units
People had very defined jobs and little room for Very strong employee relationships
movement Building a strong and committed top team
competition for promotion was very high, and Role - modelling desired mind-sets and
depended more on ties and acquaintances, behaviour
rather than actual performance Relentlessly pursuing goals
Managers focused too much on their career and
too little on customers
Very little information sharing between
departments, and problems were often hidden,
since looking good was the most important thing
Managers usually attacked each other, looking
for ways to gain an advantage over each other
Objectives was self-preservation, and nothing
was usually solved
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CULTURAL IMPACT IN THE M&A

Apart from sharing designs, knowledge and skills as well as reducing competition in
the market, the acquisition of JLR also reduced the cost of production thanks to the
synergies with other Tata Companies such as Corus
According to a survey performed by the company in 2010, workers at Jaguar Land
Rover described their environment as being friendly and helpful
Hierarchy structure seemed to be very flat. Senior managers were always working on
the side of younger ones and were ready to help with suggestions and advices
80% of employees declare that they are proud of working there
In order to get feedback on employee satisfaction, JLR yearly runs surveys with all
workers in order to understand job satisfaction, training and benefits
To increase employee satisfaction employee magazine Team Talk, performance
rewards and internet facilities and access
92% of the workforce is represented by men, while only 8% of the workforce isnt of
Caucasian origin. In management roles, women represent 12%, ethnic minorities 5%

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Introduction Innovation: Challenges Cross Culture Digital
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POST M&A RESULTS

In the period between the 1st of April 2011 and 31 of March


2012, profits increased of 445 million

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Introduction Innovation: Challenges Cross Culture Digital
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CULTURAL PYRAMID AT JLR

To think entrepreneurially -
Everybody is encouraged to think
about the company as their own
and act accordingly

To pursue excellence - Jaguars To focus on performance -


cars must be as good as they can Energy must be focused on Jaguar
possibly be, and for this to be Land Rover in such a way that it
possible employees must apply performs to the maximum as a
high standards to everything unit
involved in their work

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Introduction Innovation: Challenges Cross Culture Digital
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Embracing IT to Drive Innovation

Tata Group uses IT for innovation in the following ways:


Learning - by disseminating other companies
innovation approaches
Measuring- deploying the InnoMeter tool
Facilitation- through Tata InnoVerse to build a
community of innovation evangelists and facilitate the
discovery and development of new ideas
Recognition- through InnoVista competitions that are
managed using an IT platform

The use of IT by Tata Group to sustain corporate


innovation programs suggests that an enterprises
digital, innovation, and global strategies should be
viewed as part of its broader portfolio of
interdependent strategic choices to transform itself
and to meet the product, process, and business model
innovation needs of its customers across the globe

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Introduction Innovation: Challenges Cross Culture Digital
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Enablers for sustainable Digital strategy as proposed by TATA

creation of
creation of deployment of
unique financial
diversification intellectual robust risk
consumer flexibility to
of profit pools, property management
insights, seize
rights, processes
opportunities
USP OF TATA
Brand name and the Credibility around
the brand
the omni-channel strategy to be
adopted by the Tatas will effectively
tackle the issue of touch and feel that
e-commerce lacks today
As part of its Big Data push, the Tata group has already built a data warehouse
that will help it make sense of the massive amount of structured and
unstructured data captured by systems provided by group firm TCS
Tata Consumer Analytics Division (TCAD), the new division of Tata Industries
Ltd, will soon be made into a subsidiary company with an independent board.
They will be a analytics consulting group for Tata Group companies, across
industries.
Employees of this division will work as consultants for Tata Group companies,
help each of these companies make sense of Big Data, unstructured data sets
and will also create infrastructure under which will analyse data sets and offer
solutions
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Introduction Innovation: Challenges Cross Culture Digital
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