Tata Steel:

Forging the
Future through
Digital
Transformation
GROUP 1
Strategy Implementation
 How it All Started:
Unveiling Tata Steel's
Intended Strategy:

 Traditional Beginnings: Tata Steel faced inefficiencies as Narendran

took charge. He envisioned a future-ready Tata Steel.
 Future-Proofing Objectives: Safety, sustainability, and agility drove
Tata Steel's transformation.
 Responding to Challenges: Global steel demand collapsed, prompting
strategic reassessment.
 Closure of 100-year-old mines : Closure of 100-year-old iron-ore
mines reduced EBITDA margins from 30-40% to 15%Narendran's
Shikhar program aimed for 25% EBITDA margins.
 Financial Resilience: Tata Steel targeted debt reduction amidst
economic uncertainties.
 Charting a New Course: Diversifying revenue streams, Tata Steel
aimed for 10% from new materials by 2025.
 Digital Transformation Vision: Narendran conceived the idea during
his 2014 visit to Davos, where digital and technology were prominent
themes. In 2016, he launched a drive to improve efficiency and
performance.
 Economic Logic:
o Tata Steel's digital transformation initiative aims to enhance
operational efficiency and profitability.
Market Positioning and o Addressing challenges like declining margins and volatile market
Competitive Strategy conditions.
- Strategy Diamond Framework
o Aligning with long-term financial objectives for sustainable growth
and value creation

Staging:
o Tata Steel categorizes digitalization projects into
five stages, from ideation (D0) to completion
(D4)
o iron ore mines in Jharkhand and Odisha
Implementing digital solutions to optimize
production and streamline supply chains
Differentiation:
o Differentiating through quality, innovation, and
sustainability.
o Focusing on product quality, lead time reduction,
and improved service levels.
o Delivering value-added products and services
using digital technologies.
Arenas:
o Tata Steel operates plants in Europe, India, and
Southeast Asia
o The company has two captive coal mines and four
Vehicles
o Utilizing traditional sales channels and digital platforms
for distribution.
o Enhancing distribution network with real-time inventory
tracking and efficient logistics.
o Leveraging digital channels for marketing, sales, and
customer service to drive revenue growth.
 7S Framework: Leadership and
Organizational Structure for Digital
Transformation

Strategy:
o Clear vision set by leadership for digital transformation
aligned with the goal of enhancing operational
efficiency and profitability.
o Strategic focus on leveraging digital technologies to
address challenges such as declining margins and
volatile market conditions.
o Implementation of the Shikhar program aimed at
achieving 25% EBITDA margins, indicating a strategic
approach to improving financial performance.
o Introduction of the B2C Aasiyana Digitalization
strategy, aimed at enhancing customer engagement and
satisfaction through digital channels
 7S Framework: Leadership and
Organizational Structure for Digital
Transformation

Structure:
o Adoption of an agile organizational structure to facilitate rapid
decision-making and implementation of digital initiatives.
o Integration of digital teams across departments collaborations.
o Tata Steel made strategic leadership appointments to drive specific
aspects of its digital transformation journey. Sanjeev Paul was
appointed as the Vice President of Safety, Health, and
Sustainability.
o Debashish Bhattacharjee was appointed as the Vice President of
Technology and New Materials Business.
o Jayanta Banerjee, recruited as the Chief Information Officer (CIO)
from TCS, brought extensive experience in digital technology and
transformation, contributing to the company's digital initiatives.

https://theorg.com/org/tata-steel
 7S Framework: Leadership and
Organizational Structure for Digital
Transformation

Skills :
o Investment in upskilling and reskilling employees to equip them
with digital competencies required for the implementation of
digital initiatives.
o Recruitment of top talent with expertise in digital technologies and
transformation to supplement existing workforce capabilities.
o CEO Narendran initiated an agility project in collaboration with
McKinsey to enhance the company's responsiveness and
adaptability to market changes, showcasing a proactive approach
to organizational transformation.
o Educational initiatives were prioritized to upskill employees and
drive digital adoption across the organization, emphasizing the
importance of building capabilities to support the digital
transformation agenda

Source:
https://sharedservicesforum.in/dare-to-dream-digital-steel-making-by-2025scripting-the-digital-journey-of-tata-steel
 7S Framework: Leadership and
Organizational Structure for Digital
Transformation

Style :
o Tata Steel's leadership style promotes openness, collaboration, and
adaptability, which are essential for driving digital transformation.
Leaders actively champion digital initiatives and empower
employees to innovate and experiment.
o Leadership style characterized by visionary leadership,
empowerment, and openness to change.
o Encouragement of experimentation and risk-taking to foster
innovation and creativity among employees.
o Foster transparency and communication to ensure alignment of
leadership vision with digital transformation objectives.
Integrated Tata Steel Process Flow
 7S Framework: Leadership and
Organizational Structure for Digital
Transformation

System:
o Upgrade technology: Tata Steel is enhancing its technology
infrastructure, including IT network, computing, and
cybersecurity capabilities, to align with industry standards.
o Increase digital investment: Tata Steel aims to boost digital
spending to meet global benchmarks, ensuring adequate
resources for digital transformation.
o Build foundational infrastructure: Prioritizing foundational
elements like WiFi in mines and plants, Tata Steel lays the
groundwork for successful digital initiatives.
o Implement digital platforms: Tata Steel deploys digital systems
Integrated Tata Steel Process Flow
like the Aashiyana e-commerce platform and IoT devices for
process optimization.
o Strengthen cybersecurity: Tata Steel invests in cybersecurity to
safeguard digital assets and maintain data privacy.
 7S Framework: Leadership and
Organizational Structure for Digital
Transformation

Staff :
o Tata Steel leveraged new awareness and tech for business value,
prioritizing sustainable improvements. Embracing a hybrid
approach, the company fostered innovation through diverse
perspectives—bottom-up, top-down, and outside-in.
o CEO Narendran emphasized the empowerment of every employee
to contribute to the firm's vision, highlighting the significance of
both accelerating growth through top-down and bottom-up
initiative
o Tata Steel has a diverse workforce with a mix of digital natives
and experienced professionals. The organization values diversity
and inclusion, which contributes to a rich talent pool for driving
digital transformation.
o Encourage knowledge sharing and collaboration among employees
to leverage collective expertise in driving digital initiatives.
 7S Framework: Leadership and
Organizational Structure for Digital
Transformation

Shared Values:
o Tata Steel's shared values emphasize innovation, customer-
centricity, and sustainability, which align with its digital
transformation goals. These shared values serve as guiding
principles for decision-making and behavior within the
organization.
o Tata Steel instilled a culture of innovation and excellence,
encouraging employees to think big, start small, and scale fast in
their digital initiatives.
Source:
o The company promoted a culture of benchmarking against global https://sharedservicesforum.in/dare-to-dream-digital-steel-making-by-2025scripting-the-digital-journey-of-tata-steel

best practices, leveraging insights from industry leaders to drive

continuous improvement and maintain competitiveness.
o With a commitment to long-term success, Tata Steel balanced
short-term performance goals with investments in digital
transformation, ensuring alignment with the firm's strategic
priorities and fostering a culture of adaptability and resilience
Strategy Map:

o Tata Steel's digital transformation program has resulted in a significant annual revenue increase of over €10 million ($13.8 million). By leveraging
digital technologies and process optimization, Tata Steel has enhanced its revenue generation capabilities, positioning itself for sustained growth and
profitability.
o Implementation of a robust supply chain design system has empowered Tata Steel to intervene and act faster on deviations, leading to enhanced
supply chain efficiency. By leveraging digital tools and analytics, Tata Steel has streamlined its supply chain operations, reducing costs and
improving overall productivity.
o Tata Steel now relies on analytics to drive critical business decisions across various functions, including sales and operations planning, demand
forecasting, stock management, and maintenance planning. By harnessing the power of data analytics, Tata Steel has improved operational
efficiency and cost savings, enabling better resource allocation and strategic planning.
o Tata Steel has achieved significant operational improvements through its digital transformation initiatives. By reducing order backlogs, improving
delivery performance, and optimizing stock levels, Tata Steel has enhanced its agility and responsiveness to market demands. These operational
enhancements have strengthened Tata Steel's competitive position and customer satisfaction.
o As a result of its digital transformation journey, Tata Steel has undergone a profound organizational transformation. The company has transitioned
towards becoming a less hierarchical and more agile organization, embedding decision-making into teams and fostering a culture of innovation and
adaptability. This organizational shift has enabled Tata Steel to navigate market dynamics better and drive sustained growth in the digital era.
Strategy Map:
 Outcome:

•Revenue Increase:
• Tata Steel experienced a revenue increase of over €10 million ($13.8 million) annually since initiating its digital transformation program.
•Supply Chain Optimization:
• Implementation of a robust supply chain design system enabled Tata Steel to intervene and act faster on deviations, enhancing supply chain efficiency.
•Analytics-Driven Decision Making:
• Analytics now drive sales and operations planning, demand and capacity forecasting, stock management, and maintenance planning, leading to improved operational
efficiency and cost savings.
•Operational Improvements:
• Tata Steel reduced its order backlog, improved delivery performance significantly, and reduced stock levels by 19%, resulting in enhanced agility and responsiveness to
market demands.
•Recognition by World Economic Forum:
• Tata Steel received recognition from the World Economic Forum in 2018 as one of the lighthouse manufacturing sites, acknowledging its advancements in commercial and
manufacturing practices through the application of advanced analytics and digital tools.
•Organizational Transformation:
• Tata Steel underwent a shift towards becoming a less hierarchical and more agile organization, embedding decision-making into teams and fostering a culture of innovation
and adaptability.
Conclusion:

o Tata Steel's digital transformation journey exemplifies a strategic shift towards embracing technology and
innovation to drive business excellence. Through visionary leadership, strategic investment, and
organizational alignment, Tata Steel has successfully navigated challenges, capitalized on opportunities, and
positioned itself for long-term success in the digital age.

o By leveraging digital technologies such as data analytics, IoT, and e-commerce platforms, Tata Steel has
enhanced its operational efficiency, customer engagement, and revenue generation capabilities. Furthermore,
Tata Steel's commitment to continuous improvement, employee empowerment, and innovation culture has
enabled the company to adapt to evolving market dynamics and maintain its competitive edge.

o Looking ahead, Tata Steel must continue to prioritize digital innovation, investment in technology
infrastructure, and talent development to stay ahead of the curve and drive sustained growth. Tata Steel is
well-positioned to forge a prosperous future in the digital era by embracing a future-forward mindset and
remaining agile and responsive to change.
MEET THE TEAM

Name Roll No

Sanket Sunkad EPGP-15B-080

RAJIV DUBEY EPGP-15C-067