tata group innovation forum
TRANSCRIPT
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Tata Group Innovation Forum
26th ISPIM innovation conference –Budapest: June 15, 2015
Ravi Arora
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About Tata
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OneofIndia’slargestbusinessgroups,forover140years.Over 540,000 employees from over 110 nations
Tata Group“When we go to places, we arouse hopes in people.” - JRD Tata
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Businessesin
7 sectors,
operationsinover 80 countries;
withproductsand
servicesavailablein
over 85 countries
Revenue of over $100bn
Tata Group: Leadership with Trust
Tea, Coffee, Water, Salt: 2nd largest tea in the worldAutomotive: India’s largest, Top 5 in Global CVSoftware: Asia’s largest, Global top 10Steel: Top 10 globallyTelecom: Globally # 1 in wholesale voicePower: India’s largestChemicals: Globally 2nd largest soda ash
Watches, Jewellery: India’s largest
Hotels: One of Asia’s largest
Apparel, Shoes, RetailFertilizers, PesticidesAirlines, Financial services, Insurance, Infrastructure, Housing, Air conditioning, DTH, Logistics, Ceramics
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66% of Tata Sons shares are with the TrustsTata Sons is the holding company
Public Trusts66%
Vision
To improve the quality of life of the communities we serve….
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The context of innovation is important
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Innovations by Tata Group: 1900 – 2000Pioneering businesses and Industrial practices
Context: Social and Industrial developmentResponse: Innovations by Tata Sons
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Context in early 2000: Economy opened in IndiaIncrease the innovation intensity in Tata companies
Encourage Companies create an innovative
environment
Advise Companies on improving innovation
capability
Create a Group wide community of
‘Innovation Evangelists’
TGIF (2007):Inspiring, enabling and
creating a positive change in Tata Companies for fostering innovation
Tata Group Innovation Forum (TGIF):
Inspiring, enabling and creating a positive change in Tata Companies for fostering
innovation
Response
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TGIF: Enabling programs for Tata companies
Ideas Select & Develop Innovations
Prof Henry ChesbroughHaas School, Berkeley
Prof Clayton Christensen Harvard Business school
Julian Birkinshaw London Business School
Prof Jean-Philippe Deschamps, IMD Prof Bill Ouchi, UCLA
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Creates an urgency to work on innovation
CreativeTension
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TataA TataB TataC
Quicklyletsthecompany/teamsknowthehealthoftheirinnovationecosystem…Generatecreativetension
InnoMeterAdapted from the research of Prof Julian Birkinshaw, LBS
II IO CP S D D
90th percentileTotalQuality
Industryleader
StrategicFocus
ConducivenessofAmbience(Culture)
Robustnessof Process
InnoMeter
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2.Conversion1.IdeasGeneration
ProcessB
3.Monetisation
Inside Crosspollination Outside
Development
Selection
CultureC
StrategicFocusA
Driveinorganization
StructureforManaginginnovation
InnovationPortfolio
Innovationoutcom
esInnoMeter - Dashboard
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Challenge, Ideate and Collaborate
Progressive method to practice OPEN INNOVATION
CreativeTension
Ideation&Selection
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ConductedPilotinCY13ReadyforScaleup
e.g. DuPont,Corning,FraunhoferOILevelII (2010)
ShareproblemswithsomeknownbutnonTataentities…Controlled
OILevelI (2010)SharechallengeswithintheTataGroup;withpeoplewhomwedon’tknow
OILevelIII (2012)Shareproblemswith
unknownpeople..Uncontrolled
Open Innovation:Expanding the ‘openness’ progressively
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Need:
Plentyofideas
Speedtospotthebestones
WISDOMOFCROWD
Challengetrifferedideas
Gamification• Newidea
• Vote/commentonideas• Bettingonideas• ExpandSocialNetworking• Implementationideas
Recognition
Dashboards at CEO and Senior
levels for HOT/POPULAR
ideas
Tata Innoverse: Marketplace to augment the Front End of innovation
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concerted
CWS is biannual
• Wicked challengesbyCEOs• 72hourstogenerateideas• Ideas awardedbytheCEOs
creative problem solving short bursteffort
Challenges Worth Solving
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Challenges
People
Selection
CWS: A fusion of creative and logical mind
Wicked
RiskyDifficult
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42% ideasforarefromoutsidethechallengingcompany
17Companies
55,000+Users
22,500Ignited
47,000+Ideas
4,70,000+Impressions 2000+
Ideasselected
350+ Ideasimplemented
Comment
Bet
Rate
Post
650challenges
Tata Innoverse & CWS:Tata companies are learning Open Innovation
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CreativeTension
Ideation&Selection
Recognitionforsuccessandfailures
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Tata Innovista – Objectives Building a movement in Tata Group through awards
1. Capture Innovations to build Self confidence amongst Tata managers
3. Recognize Teams in ALL stages of Innovation
Lifecycle
2. Build a Vocabularyon the subject of Innovation
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New Product
Innovations
New Service
Innovations
Design Honour
Service Enabling Customer Innovations
Core Process Innovations
Support Process Innovations
Dare To Try (Unsuccessful attempts)
TRL-3
TRL-5
TRL-7
TRL-9
TRL-1
Increasing visibility to external worldIdeas
Ideas
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3
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5
6 7
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Valley of death
Tata Innovista Awards Obvious and some not so obvious
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150 Citiesin27 Countries
Tata InnoVistaGrowing participation…..an indication of culture
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1580
2006 2015
SuccessfulInnovations
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314
2007 2015
DaretoTry
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Impact of Tata Innovista
Estimatedannualizedfinancial
benefit:
Euro 1.0 bn
Touching livesofover
51 million peopleinthenext5years
Top 60 successful innovations of 2015
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Tata Group: Revenue Growth
610
FY92 FY04 FY06 FY08 FY10 FY11 FY12FY00 FY02
22
67
$Bn
5
FY96 FY13
103
FY14
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Thank You!