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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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2

3

4

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

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67

$Bn

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FY96 FY13

103

FY14

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Thank You!