Tata Group: Knowledge Management Strategy

Athanasia Daskalopoulou

Ngozi Eke

Christian Erler

Apurva Gade

Muntaka M. Gambo

Yahya El Katafany

1 • Tata Group: Background Information

2 • KM Overview and Models

3 • Knowledge Management Success Factors

4 • KM Strategy: Codification / Personalization

5 • Evaluation of KM efforts

Founded by J. N. Tata in 1868

Has over 100 global operating companies

Operates in various different sectors › Communications and information technology,

engineering, materials, services, energy, consumer products and chemicals

The major Tata companies are: › Tata Steel, Tata Motors, Tata Consultancy

Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

1. Background 2. Overview 3. Success 4. Strategy 5. Evaluation

› “The Tata Group is recognized in the 2012 Global MAKE study for transforming enterprise knowledge into shareholder value. The Tata Group is a six-time Global MAKE Winner.” (Teleos, 2013a)

› “The 2012 Asian MAKE panel has recognized Tata Steel for transforming enterprise knowledge into stake holder value. Tata Steel is an eight-time Asian MAKE Winner (including 2008 Overall Asian MAKE Winner).” (Teleos, 2013b)

› “The 2012 Asian MAKE panel has recognized Tata Consultancy Services for creating value from customer knowledge, and transforming enterprise knowledge into stakeholder value. Tata Consultancy Services is an eight-time Asian MAKE Winner.” (Teleos, 2013b)

Tata Steel

TCS

Tata Group


Tata Steel

› Established in 1907 by J. N. Tata

› Integrated steel producer (from iron ore to

finished steel)

› In 1980 initiated a modernization program

Motivation for KM


Establish intellectual

assets

Growth driver for the

company

Source of

competitve

advantage

TCS (Tata Consultancy Services)

› Started in 1968 as a division of Tata Sons Ltd.

› Wide range of interests in engineering,

energy, financial services etc.

› Operating in 33 countries

Motivation for KM

Being among top

ten IT companies in

the world

Staying ahead of

competition

Need for proper

communication

strategy


Experts

Authors

User Online Training Internet Journals,

Vendors

Knowledge Manager

Communities

Knowledge Repository

Knowledge

Knowledge

Feedbacks

Problems

Knowledge

Knowledge

Adapted from www.tatasteel.com


Modernisation program over several years & phases


Continuous, long-term efforts to improve KM


Socialisation

Knowledge Communities

Ask Experts

PROPEL

Internalisation

Training

Combination

TBEM

PAL

Ultimatix

Externalisation

CoPs

Corporate groupware

KBases

Web of Participation

Tac

it

Tacit

Ex

plic

it

Explicit

FR

OM

TO

Adapted from Nonaka and Takeuchi (1995)

Factors for successful Knowledge Management

- Adapted from Conley &

Zheng (2009)

Knowledge Management Strategies: Personalization / Codification

- Adapted from Hansen et

al. (1999)


Adapted from Conley & Zheng (2009)

Organizational Factors

Top management/Leadership

support

Technology Infrastructure

Strategy Org. Culture + or -

KM Initiative Factors

+ or -

Process Measurement

KM Team Incentives

Training and Education

+ or -




support



Compulsory for all its employees

to participate actively in its KM

program

Innovations were encouraged

Viewed KM as a cultural

transformation

Hiring McKinsey consultants for

advice

Networking with retired

employees

Knowledge repository on

intranet



+ or -

Process Measurement

KM Team Incentives


Employees performance was

linked to KM

Recognition of successful KM

efforts (Launched a formal rewards

and recognition system for KM)

Establishing communities of

practice

Organising seminars on KM

E-learning using KM repository and

KM communities

Online training



+ or -

Process Measurement

KM Team Incentives


KM Index

› Measure’s the performance of the system

› Tallied the points achieved by each employee

› Gave the employees a benchmark for their participation

› Employees were encouraged to

experiment with new ideas, for which they were rewarded

› Scoring system was expecting to evolve along with the company


Senior management drove the

change and encouraged

knowledge sharing

Change needed to be holistic:

people, process and technology

Changed its organizational

structure involving everyone in

order to become a distributed

and empowered organization

Appointed a CTO

Increased value of intellectual

capital by constant learning

Strong investment in human

capital and training



support






support



Cultural values

People are most important factor

Optimal resource utilization

Self-appraisal, self-discipline and

self-initiative

Entrepreneurship, innovativeness

and open dialogue

Global outlook

Continuous change and constant

learning

Job rotation across projects,

functions and Tata companies




support



Ultimatix

› Digital KM platform with aim to:

Speed up the process of

decision making

Digitize the organization

› Connected all the employees

around the globe

› Helped TCS become a

“paperless organization”

› PAL & other earlier knowledge

bases became part of it

PAL: Information about

technology, processes and

case studies

› KBases: Communication

network and Knowledge

repository



+ or -

Process Measurement

KM Team Incentives


Communication / Collaboration

› CoPs

Online platforms

Conversations between teams across the organization

Repositories of organizational memory

Documented best practices,

problems and solutions

› Propel

Movement, consisting of conferences and camps

Brought together employees

with similar interests

Improved the social skills of employees

› Corporate Groupware



+ or -

Process Measurement

KM Team Incentives


TBEM (Tata Business Excellence Model)

Tata group initiative since 1995

Applied in many group companies

urging best practices to be shared

among them

Addresses all aspects of quality e.g.

Leadership, Strategy, KM, HR, etc.

Helped employees learn about:

› Managing data

› Process orientation

› Motivating people

TCS was assessed by trained TBEM

people from other Tata group

companies for knowledge sharing



+ or -

Process Measurement

KM Team Incentives


5iKM3 (KM Maturity Model)

Model that measures the maturity

level of KM in an enterprise

Assessed the clients’ readiness to

adopt KM initiatives

Benchmark to evaluate the

acceptance and maturity of KM

Helped customers formulate a KM

vision and strategy

Suggested a KM “roadmap”:

explaining policies and processes,

conducting awareness and training

sessions


5iKM3 (KM Maturity Model)

5 stages of KM maturity:

1. Initial stage (no formal process to use the organizational knowledge)

2. Intent stage (organization realized benefits of employing knowledge)

3. Initiative stage (business processes are knowledge enabled and

impacts/benefits are seen)

4. Intelligent stage (considerable amount of knowledge collab. and

sharing, organiz. intelligence)

5. Innovation (process optimization, securing a business edge)

Roadmap to KM results

(O’Dell et al. 2003)

1. Stage 1 KM is a topic of interest. A high level rationale is in place.

2. Stage 2 A steering committee and funding for KM pilots

3. Stage 3 Designed KM pilots. Implementation strategies are in

place.

4. Stage 4 Expand KM pilots across organisation

5. Stage 5 KM is part of the business model. Knowledge sharing is the

norm. Rewards are aligned with KM


Adapted from Hansen et al (1999)

• In 1990s, KM started to gain strategic management relevance

• 2 Different KM Strategies were identified by Hansen et al. (1999):

1. Codification Strategy: Knowledge is codified & stored in

databases / repositories and made independent of the

person so that it can be easily accessed & used by anyone

2. Personalization Strategy: Knowledge is tied to the person who developed / gained it & is shared through person-to-

person contact and build network of people.

• KM is the core asset of consultancies (TCS) but strategies apply

to other companies as well



CODIFICATION Categories PERSONALIZATION

• Modernization program (four phases)

COMPETITIVE STRATEGY • BSC

• Vision 2007(EVA positive) ECONOMIC MODEL

• KM index • Performance ethic program

(PEP) (5th phase) • Knowledge repository

• CoP(hire McKinsey for advice)

KNOWLEDGE MANAGEMENT

STRATEGY

• Knowledge piece(KP) or Query • Knowledge communities • Seminars

• Plans to link E-learning with KM repository and KM communities

INFORMATION TECHNOLOGY

• KM index HUMAN RESOURCES


• Based on the table we can say that Tata Steel rely more on the

codification strategy

• They use personalization as a support

• This is in line with the Hansen’s observation that effective firms

excelled by focusing on one of the strategies and use the other

one in a supporting role

• Tata Steel might not have as many KM initiatives as other

companies (e.g. TCS), but in their industry they were the first to

use KM on a strategic and operational level

• However, Tata Steel needs to link its KM initiatives to all employees



CODIFICATION Categories PERSONALIZATION

• TBEM • EVA

• Web of participation structure

COMPETITIVE STRATEGY • BSC

ECONOMIC MODEL • Proactive investment in multiple technologies

• KBases • CoPs • PAL

KNOWLEDGE MANAGEMENT

STRATEGY

• Team approach • Fishnet model • PROPEL • TMTC

• Training & Library Automation • Ultimatix • iQMS

INFORMATION TECHNOLOGY

• multiple technologies to cross-train people

• Corporate Groupware

HUMAN RESOURCES • CTO • Experts from various fields to

provide strategic & operational solutions

• Rigorous training of new recruits


• Based on the table we can say that TCS has a mixed approach

• Balance between both strategies

• This is not in line with the Hansen’s observation that effective

firms excelled by focusing on one of the strategies and use the

other one in a supporting role

• So, without a doubt TCS is successful but focusing more on one approach and using the other as a support can prove to be

more beneficial.

• Globally, TCS always gets recognized in MAKE awards, but in

2012 the winner was Apple

• Technology is a major success factor for KM implementation


- Productivity

- Employee satisfaction

- Loss of intellectual capital - Costs by not repeatedly solving the same problem - Redundancy of knowledge-based activities

Adapted from Turban et al. (2011)

Increase

Reduce


- Productivity

- Employee job satisfaction

- Employee engagement/participation

- Irrelevant contributions

- Loss of intellectual capital

- R&D costs

- Costs by not repeatedly solving the same problem


Increase

Reduce


- Employee job satisfaction

- Employee engagement

- Overlapping initiatives

- Overload of information

- Employee attrition rates

- Loss of intellectual capital

- Creativity, Learning


Increase

Reduce



• Culture of ongoing change, constant learning, personal development and open dialogue

• Web of Participation, Fishnet structure, Propel

• Job rotation across projects and even companies

Supportive Learning

Environment

• Communities of Practice

• TBEM

• 5iKM3

• Extensive training for all employees

Concrete Learning

Processes

• Senior Mgmt. drives change, encourages knowledge sharing and values intellectual capital

• High investments in training and development

• Leadership program

Leadership Reinforces

Training

Adapted from Garvin, Edmondson and Gino (2008)

3 pillars of the learning organisation

Conley, C. A. and Zheng, W. (2009) Factors Critical to Knowledge Management Success. Advances in Developing Human Resources, 11 (3), pp. 334 – 348.

Garvin, D. A., Edmondson, A. C. and Gino, F. (2008) Is Yours a Learning Organization?. Harvard Business Review. 86(3), pp. 1-10

Hansen, M., Nohria, N., and Tierney, T. (1999), What‘s Your Strategy For Managing Knowledge?, Harvard Business Review, 77(2), pp. 106-116.

ICMR Center for Management research (2006), Knowledge Management Initiatives at TCS, India: ECCH Publications.

ICMR Center for Management research (2004), Knowledge Management @ Tata Steel, India: ECCH Publications.

Nonaka, I. and Takeuchi, H. (1995) The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. New York: Oxford University Press, p. 284.

O’Dell, C. et al. (2003) Successful KM Implementations: A Study of Best-Practice Organizations. In: Holsapple, C. W. Handbook of Knowledge Management 2: Knowledge Directions. Berlin: Springer-Verlag, pp. 411-442.

Rao, N. (2012) Bringing it all together. Tata Review. June, pp. 14-18.

Tata Consultancy Services (2010) 5iKM3© Knowledge Management Maturity Model. Business Intelligence and Performance Management, [Online], Available: http://www.tcs.com/resources/brochures/Pages/Knowledge_Management_5iKM3.aspx [26 Mar 2013]

Tata Consultancy Services (2010) Knome - TCS’ Knowledge Ecosystem Solution. Innovation labs, [Online], Available: http://www.tcs.com/resources/brochures/Pages/Knome_TCS_Knowledge_Ecosystem_Solution.aspx [26 Mar 2013]

Tata Steel (2013) Knowledge System, [Online], Available: www.tatasteel.com [25 Mar 2013].

Teleos (2013a) 2012 Global Most Admired Knowledge Enterprises (MAKE) Report. Executive Summary, [Online], Available: http://www.knowledgebusiness.com/ [02 Apr 2013].

Teleos (2013b) 2012 Asian Most Admired Knowledge Enterprises (MAKE) Report. Executive Summary, [Online], Available: http://www.knowledgebusiness.com/ [02 Apr 2013].

Turban, E., Sharda, R. and Delen, D. (2011) Decision Support and Business Intelligence Systems. 9th edition. New Jersey: Prentice Hall.

http://www.tcs.com/resources/brochures/Pages/Knowledge_Management_5iKM3.aspx

http://www.tcs.com/resources/brochures/Pages/Knome_TCS_Knowledge_Ecosystem_Solution.aspx

http://www.tatasteel.com/

http://www.knowledgebusiness.com/



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