NNOVATION

Experiences @ TATA

1990: India & Tata

India
Economy: Closed, Insulated (Peak import duties down from 125%) Market: Supplier dominated

Tata Group
Low stakes in major companies Tata Power 4%, Tata Steel 8% etc. Low revenues (6 billion)

Customer: Limited choice

Education: Doing things right

No Group logo, various versions of T

GDP per capita growth rate:

4.4%

3.4% 2.8%

Early Innovations by the Group

1.8% 1.6%

Started by Tata 1912 1928 1920

Enforced by Law 1948 1946 1948

8 hour working day Maternity Benefit

1950

1960

1970

1980

1990

Leave with pay, Workers Provident Fund Scheme

The Mantra in the 90s: Improve fast

Initiatives: Cost cutting (Big 5 consultants), Benchmarking, Knowledge Management, Competitive Intelligence

Focus: Tight integration and alignment towards Vision and GoalsLearning missions to USA Extensive use of The Tata Business Excellence Model (Malcolm Baldrige)

Traits: Humility to learn and Copying fast without failing

What was missing?

The attitude of Lookup or Look around vs Look ahead: Can you tell me who else is doing?, Show me how it is done?

Risk averse culture: Failure-a stigma for managers; Improvement projects with 100% chances of success.

Cost reduction the dominant theme for innovation

You could at best be the 2nd and never be the leader

Inspiration
What I would like to see is innovation that perhaps

leads to disruptive technologies, that basically comes

from creating the environment that we live which allows

our

people

to

dream,

giving

those

people

the

encouragement to convert that dream into reality, motivating those people to have that happen and not to

slap them down because it has not been done before.

Great innovation has been built on that -- questioning

the unquestioned and dwelling in areas which others

had considered impossible. I have really come to believe that given the right circumstances nothing really

is impossible.
- Mr. Ratan N Tata, 2007
5

TGIF Charter in 2007

Building Capability
Workshops and Training: 5000+ Managers

Open Innovation: Prof Henry Chesbrough, Haas School at Berkeley

Disruptive Innovation: Prof Clayton Christensen, Harvard Business School

Innovation Value Chain: Prof Julian Birkinshaw, London Business School

The Innovators Mindset: Dr James Canton, CEO & Chairman futureguru.com

InnoMissions

Research and Publications

Adopted from Prof Julian Birkinshaw

Objective: To quickly let the companies/teams know the health of their innovation ecosystemgenerate creative tension
1. World-class system that measures the health of innovation ecosystem
Robustness of Process

Conduciveness of ambience (Culture)

Strategic Focus

2. Benchmark of 121 companies across geographies and sectors

4.5 4.5 4.5 4.5 4 4

Sample Innometer
3.1 2.9 2.8 2.8 2.8

Result

II

IO

CP

10

Three parts of Innometer

Process
Idea Generation
(Inside, Outside, Cross Pollination)

Idea Execution
(Selection, Development)

Monetisation

Culture
Direction Space and Time Rules and boundaries Support systems

Constraints

Chaos

Strategic Focus
Senior Managements Role Empowerment Agility Trust Silos Bureaucracy Inhibitions R&R Measurement

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Overall Innometer Outcomes

A

Strategic Focus

Process

Drive in organization

1. Ideas Generation

2.Conversion

3.Monetisation Innovation outcomes

Selection

Business Focus

Innovation Portfolio

Inside

Cross pollination

Outside Development

Structure for Managing innovation

Culture

Measure health of innovation ecosystem

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Innovation Portfolio

The Catalyst

Adopted from Prof Clayton Christensen

Objective: To help companies identify Opportunities for Innovation and generate CREATIVE THEMES for targeting innovations No process can replace CREATIVITY required for Ideas
Balanced Innovation Portfolio Break-through Innovation Incremental Innovations Improvement Product / Services Process Business Model

Ideas

Ideas

Creative Themes

Employees

Employees

13

Tata InnoVerse
Connecting Tata Companies Powering the idea engine

We need plenty of ideas We need speed to locate the most promising ones

But How?

Idea Market similar to Stock Market

USE WISDOM OF CROWD

Buy/sell idea

Why participate? Material benefits, Social Esteem

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Tata InnoVerse: Early results

11 Companies 24,400+ users

Bet

Post

26,900+ Ideas

2,83,000 impressions

1600+ ideas selected

110+ ideas implemented

14,750+ logged in

Comment

Rate

43% ideas are coming from outside An indication of positive culture of OPEN INNOVATION
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Initiate Collaborative Innovations

Academic Institutions
Israel

Country

MIT
Fraunhofer Jusco

TCS Tata Motors Tata Chemicals

Rallis

Titan

NDPL

Voltas

Tata Steel
Corning
3M DuPont P&G Tata Power Tata Beverages CMC

NanoTech

Water

ICT

Design

Corporates

Theme
16

Group level process to capture, showcase and stimulate Innovations

17

11000 Innovation Projects 6000 New Ideas

18

TGIF Initiatives: Integrated View

InnoMeter
Mirror: How good you are on Innovation

External InnoClusters
DuPont, Siemens, Corning, 3M, P&G, IBM Israel Fraunhofer
300 2006 2007 2008 2009 2010 2011 3239

InnoMultiplier
Develops and identifies opportunities for Innovation

InnoVista

Tata Innoverse
Effectively engages managers in generating and selecting ideas

Capture, recognize and stimulate 10 regions, 10,000 people

Internal InnoClusters
Water, Nanotechnology, ICT, Design

To invite new ideas The Leading Edge category of Tata Innovista

Failures at any stage Dare to Try category of Tata Innovista

Successful Innovations: Promising Innovations category of Tata Innovista

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NNOVATION
Thank You

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