INNOVATIVE COMPANY:TATA MOTORS

Submitted By: Piyali Bhattacharjee Nilabjwa Chowdhury.

Innovative Products:

The innovative products that best exemplify Tata Motors Innovation are the Indica , the Ace and the Nano.

TARGET SEGMENT
There are several innovative Products being launched by the Company. Let us concentrate on TATA NANO, the most innovative among them all. TATA NANO TARGET SEGMENT: Target the masses. Target the family people who risk it on scooters or bikes.

 Target people who has small budget cars like MARUTI 800 or prefer to buy low priced cars. Mainly focuses on semi urban areas.

POSITIONING OF TATA NANO

Tata Nano should try and attract customers who own cars at the entry level. They should mainly target middle class people.

Target people who owns scooters or bikes.

Value Proposition of Tata Nano Providing car to prospective customers at a much cheaper rate. Ensuring that the car conforms to safety standards and measures. The customer value proposition is to get families of twowheelers.

Business model for Tata Nano: Tata Nano is priced at a significantly lower rate than other cars. Open up a new market altogether. Mainly cater to the middle class people and people who has cars at the entry level.

Will also entice two wheeler customers.

 They plan to sell more , attract to a larger customer base and thus generate revenue. Tata Motors also had to think of a plan to cut down on its production cost so as to enable them to provide car at such a cheap rate. Tata used lighter steel for Nano. Small engines were used.

 Long term sourcing agreement with part suppliers. Innovative distribution system.

So all these ensured TATA MOTORS incurred less cost.

Ensured greater profitability.

FINANCIALS:
Mar '11 Mar '10 12 mths Mar '09 12 mths Mar '08 12 mths 4,178.28 2,644.39 704.92 1,939.47 1,033.87 144.03 2,829.54 0.00 2,196.52 12.50 2,240.08 6,626.23 0.00 859.05 132.89 Mar '07 12 mths 1,723.10 3,764.69 471.56 3,293.13 874.54 51.17 1,013.76 15.29 2,829.54 547.55 1,001.26 4,898.16 0.00 311.61 34.09 12 mths 3,030.52 3,700.89 455.75 3,245.14 652.31 64.35 2,576.47 0.00 1,029.05 660.37 2,028.92 4,805.58 0.00 578.43 81.25 2,586.51

Operating Profit 4,771.31 PBDIT 4,807.45 5,111.28 Interest 1,143.99 1,103.84 PBDT 3,663.46 4,007.44 Depreciation 1,360.77 Other Written Off 106.17 Profit Before Tax 2,196.52 Extra-ordinary items 0.00 PBT (Post Extra-ord Items) Tax 384.70 589.46 Reported Net Profit 1,811.82 Total Value Addition 8,561.20 Preference Dividend 0.00 Equity Dividend 1,274.23 Corporate Dividend Tax 192.80 Per share data (annualised) Shares in issue (lakhs) 6,346.14 Earning Per Share (Rs) 28.55 Equity Dividend (%) 200.00 Book Value (Rs) 315.31

586.29 85.02 2,573.83 -0.07 2,576.47 1,913.46 4,547.86 0.00 578.07 98.25

2,573.76

5,705.58 39.26 150.00 262.30

5,140.08 19.48 60.00 240.64

3,855.04 52.63 150.00 202.70

3,853.74 49.65 150.00 177.59

INNOVATION INITIATIVES Sustainability of innovation in products needed to be complemented with innovative changes in the organizational processes too. Some examples are: Adoption of the Tata Business Excellence Model (TBEM): It is based on Malcolm Baldridge Award for business excellence and Balance Score Card. This has created a culture of exploring various innovative ways to achieve excellence in all the organizational processes. Tata Motors in the past has received the Hall of Fame award for BSC, JRQV award, CII-EXIM award and many other such awards which prove the effective deployment of the model.

 Use of IT systems has been a benchmark and highly leveraged in the organization throughout the VALUE CHAIN. Supply Side Free-Markets/ ARIBA for e-Sourcing, Supplier Relationship Management (SRM). Design PLM, Advanced Computer Aided design (CAD), etc. Enterprise Resource Planning SAP for enhancing transaction effectiveness. Demand side -(CRM) with SIEBEL , a comprehensive Customer Relationship Management program, enabling it to gain market insights by exploiting the huge online customer transaction database. It is the largest deployment of a customer management tool across the automotive world till date

 PEOPLE: The changing business environment and increasing complexity of business posed a huge challenge in achievement of business plans. Tata Group, of which Tata Motors is a part of, is well known for identifying and nurturing leaders. Tata Motors in the past has adopted several innovative means to leverage its human resource capabilities for achieving extremely challenging goals. Identifying leaders through assessment centres This process has been effectively utilized by Tata Motors to identify young managers with very high potential. This process was started some 20 years back and has progressively created a pool of very strong and effective leaders who have proven their capabilities in some very challenging assignments given to them. This process has now been replicated by many other organizations too.

 Putting them into challenging assignments and giving them International exposure Key projects like ACE and NANO are examples of some challenging projects which constituted of young leaders and engineers.

Breaking the functional silos by shifting from a hierarchical organization to a more CFT approach.

How value is created and delivered Two concepts are implemented. One is Target Pricing. The other one is Target Cost.

Target Pricing attempts to determine what features a customer wants in a car.

Once the features are set target costs are assigned to each component.

 Parts are bought from customers in bulk. Thus allowing suppliers to provide parts at a cheaper rate. Thus value is createdand delivered...providing a safe , reliable car at an affordable rate.