TATA MOTORS

Technological Resources
R & D establishments at Jamshedpur, Pune & Lucknow over 1400 engineers. Indias only certified crash test facility for cars and hemi anechoic chamber for testing of noise and vibration.

Tata Motors European Technical Centre (TMETC) set up in 2005

primarily involved in design engineering and development of products, supporting Tata Motors skill sets.

Tata Daewoo Commercial Vehicle Co. has its R&D facility in

Gunsan, South Korea. Hispano Carrocera has its R&D facility at Zaragoza in Spain.

Organizational Resources
Process Approach EPM (derived from APQC processes and TBEM model.

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The Enterprise Process Model

Value Chain & Value System

Transporters, Convoy Drivers Association Dealer Network, Marketing Research Firms, Vehicle Financing

SAP , VCM Inbound Operations Logistics Logistics SAP , CRM - DMS Outbound

Marketing

Service

Suppliers , Contractors

Regional Warehouses, Dealer Workshops, Distributors, TASS

Strategic Alliances
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Marketing & Sales

Structured approach to

understanding the requirements of individual customers QFDs conducted at regular intervals. Clear identification of product requirements, leading to development of innovative products Tata 207 DI, Tata Ace Pan India presence and global footprint. Independent teams for addressing the requirements of institutional customers Defense, State Transport Units Helping to augment the scarce resources Fiat selling vehicles through Tata dealerships, in return Tata has access to Fiats technology and unutilized capacity. Quick assessment of the changing market dynamics and consumer preferences Tata 407 LCV Large network of dealers use of technology : DMS. 6

Service
Easy availability of spare parts.
Efficient collection of data from field and communication to the respective plants. Pan India presence, as well as global presence. Large network of workshops Dealer workshops and TASS.

Training facilities for dealer end and TASS personnel.

Technology Development
Approximately 2% of the annual profits of the company invested in research and development. Knowledge portal helps employees keep abreast with the latest technologies.

Extensive prototype building and testing facilities.

Strategic partnerships MDI (France), Fiat etc. Formal benchmarking process.

Technology Day organized across all plant locations.

Human Resource
Vast pool of technically competent engineers and managers. Focus on development of technical capabilities Technical

Training Centers, Alliance with technical Institutes

Focus on development of managerial capabilities MTCs , TMTC, executive training programs at premier business schools

Career advancement schemes ESS, FTSS

Leveraging the resources

How did TATA create initial resource complement to overcome the disadvantage of being newcomers in passenger car business?
STRATEGY
R&D
Strategic partnerships Joint ventures Acquisitions Intensive management development Government support (10Year Plan)
New institutions for trade promotion, technology upgradation, quality enhancement (ACMA: Automotive Component Manufacturers Association, SIAM: Society of Indian Automobile Manufacturers )
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INSTITUTIONS

Key Strategies
International strategy based on the competitive advantage:
New product (eg. Tata Nano, the cheapest car in the World). Acquisitions (eg. Land Rover and Jaguar brands from Ford Motors). Partnership with established companies (eg. Alliance with Fiat since 2006) to enhance the product portfolio and knowledge exchange. Facilities for learning from other companies. Developing programmes for intensive management development.

Consolidate position in India by exploiting opportunities:

New mobility of young Indians. Governments substantial road-building program GDP growth
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Process Benchmarking
Optimize the value chain using distributed Manufacturing The power of IT has been extensively leveraged State-of-the-art CAD and CAM services integrated design across multiple disciplines IT helped the company shrink the design cycle time BSM tools from BMC Software played a key role

TML decided to adopt IT service management concepts outlined in the ISO 20000:05 international standards, as well as best practices outlined in the IT Infrastructure Library (ITIL) Version 3
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Process Benchmarking
service-oriented management architecture that treated services as assets and managed them on a life cycle basis. In-house manufacturing capability with CNC manufacturing operations have implemented Six-sigma, Kaizen & TPM.

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Strategic Benchmarking
Objective: Innovation across the value chain leading to
affordable products that can grow the market

Product innovation needs to be complemented with innovation in other parts of the value chain
Co- location of suppliers On- line bidding by suppliers Reduction in the number of suppliers Partnerships with vendors Dedicated Suvidha service network in small towns
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Achievements
The sole winner of the JRD QV Award 2005 was the commercial vehicle business unit, or CVBU, of Tata Motors PCBU's business excellence initiative has come into its own. Serious Adoption Award in 2004 Active Promotion Award in 2005 Tata Motors have crossed the level of 60% to win the JRD-QV award in 2001, 2004 & 2005 respectively
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Technological Framework
Attribute: Innovation around cost globally recognized technological capabilities '50s and '60s technical collaboration with Mercedes Benz to design and manufacture its chosen line of projects Strong R&D at ERC Possess capability to develop and test durability, engine performance, emission, safety, design and style, noise, hydraulics, tracks, and instrumentation. Opportunity to experiment and learn from mistake
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Technology Capability Hierarchy

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Achievements
The company has the only world-class crash facility in Asia outside Korea and Japan Developed an A-ECU (Electronic Control Unit) and low-cost accessories that would effectively manage critical engine and vehicle systems without calling for a full-fledged and expensive conventional ECU Striding towards new emission standards Equipping vehicles of the future with technologies for improving communication, navigation and entertainment- OneCat conceptual car with fiber glass powered by air and emission free.
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Diversification
1977 First CV from Pune plant. 1983 First HCV rolled out. 1986 First LCV (Tata 407) launched followed by Tata 608. 1991 First passenger car Tata Sierra launched. 1992 Tata Estate launched. 1994 Launch of Tata Sumo.
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Diversification
1995 Mercedes Benz car E220 launched 1997 Tata Sierra Turbo launched. 1998 Indias first SUV launched. 1998 Indias first indigenous Passenger Car Indica launched. 2001 Second Generation Indica v2 launched. 2008 Launch of Suma Grande 2008 Launch of Nano at ninth Auto Expo
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HR Philosophy
Caring, show respect, compassion and humanity for colleagues Work cohesively with colleagues across the group Encourages self-sufficiency Employees' relatives at Pune have been encouraged to form various industrial cooperatives The Tata Motors Grihini Social Welfare Society caters to employees' women dependents'
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HR Policies
Executive Selection Scheme (ESS) - fast track programme for accelerated growth In-house vocational training and apprenticeship programme trains the technicians Rotational assignments and cross-functional mobility allow employees to grow

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Blue Ocean Strategy

Red Ocean Compete in the existing market place

Blue Ocean Create unconsolidated market space

Beat the competition

Make the competition irrelevant

Exploit existing demand

Create and capture new demand

Make the value cost trade off Differentiation or Low cast

Break the value-cost trade off Differentiation and Low Cost

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Focus on the non-customers

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Thank you
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