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Submitted by: J.S. Aditya Priya Sharma Sargam Singhal Tarun Aggarwal Soumitra Khandpal
TATA MOTORS
COMPANY PROFILE
Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 23,000 employees are guided by the vision to be "best in the manner in which TATA Motors operate, best in the products TATA Motors deliver and best in the value system and ethics." Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing a new plant at Sanand (Gujarat). The companys dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India. The foundation of the company's growth over the last 50 years is a deep understanding of economic stimuli and customer needs, and the ability to translate them into customer-desired offerings through leading edge R&D. In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has been subsequently launched, as planned, in India in March 2009. Besides product development, R&D is also focussing on environment-friendly technologies in emissions and alternative fuels. Through its subsidiaries, the company is engaged in engineering and automotive solutions, construction equipment manufacturing, automotive vehicle components manufacturing and supply chain activities, machine tools and factory automation solutions, high-precision tooling and plastic and electronic components for automotive and computer applications, and automotive retailing and service operations. True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations. With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.
LITERATURE REVIEW
The Market Situation
Helped by economic reforms over the past decade, the Indian economy has expanded rapidly and seen dramatic increases in competition. In the automotive sector, all of the largest players worldwidesuch as General Motors, Ford, Toyota, Honda, and Mercedes Benz are competing for a share of the market consisting of more than 950 million consumers. This competition, along with the cyclical nature of demand in Indias automotive industry, has made it more difficult to grow revenue and sustain margins.
seamless management between channels, and leverage shared customer information to create rewarding experiences and to develop and execute highly targeted marketing campaigns. Inefficient demand chain planning and high associated IT cost - Cost reduction is an ongoing competitive requirement. Just as supply chain management must be supported by a sophisticated information infrastructure, effective demand chain management also requires the right supporting infrastructure, enabling car companies to fully leverage each customer relationship through exceptional customer service, efficient lead generation and management, and effective promotions and campaigns. In addition, global automotive enterprises operate a wide variety of IT systems in their various business units and functional groups. Rationalizing these systems offers significant cost savings. Lack of effective information sharing - Car companies must integrate global operations in order to achieve the benefits of consolidation -cost reduction, effective communication, and true integration of core competencies. In addition, internal alignment between business units and functional groups is required to create a unified view of consumers, products, and services. Currently, each business unit, functional group, and brand operates through independent systems, programs, and touch points. As a result, there is limited synergy across the ecosystem, leading to significant inefficiencies, lack of coordination, and most important, an inability to maximize "share of wallet "from every customer through well-targeted marketing and cross-selling. Synergy between traditionally independent business units such as captive finance companies and between functional groups such as sales, service, and marketing is more critical now than ever before. Only by sharing customer information can customer lifetime value be maximized among different groups. Complex data governance requirements - Global automotive enterprises have large, complex information technology ecosystems. While customer information must be shared within this ecosystem in order to fully maximize global operations, it must also be protected. Proper management of customer information requires a sophisticated capability to manage a variety of access rules and to accommodate legal restrictions that can change very quickly. The trust required for successful collaboration between groups in the automotive enterprise must be built by demonstrating that customer information can be shared while observing these complex requirements.
Difficulty managing employee relationships - In today 's fast-paced business environment, automotive companies need to ensure that their most valuable asset -their employees -have immediate access to the critical information, services, and applications required to be productive. Organizations must enable employees to make better decisions, work collaboratively, enhance customer relationships, and maximize productive time. Global automotive enterprises must be able to enact and enforce consistent policies across business units, instil a common corporate culture across a geographically dispersed and diverse workforce, equip employees with effective search tools to access corporate knowledge bases, and provide employees with the training necessary to service customers in a volatile and demanding market.
For 2003
For 2005
JD Power survey which reflected upon the customer satisfaction levels in automobile industry for 2003 and 2005. This gave us an insight so as to which aspects were given importance by the customers. It was seen that Tata Motors has consistently been ranked quite low in terms of its performance in this field leading to its work in the CRM department. Following are the results of J. D. Power survey: The 7 factors here actually were made up of 42 individual factors, which gave a complete insight into the mind of the customer. Thus having identified the important parameters which affect customer satisfaction, Tata Motors identified the following challenges that it faced to provide better service and be more customer centric.
Business Challenges:
Needed a centralized customer database and standardized business processes Needed to communicate better with more than 1,600 dealer locations and respond promptly to customer requests Required better feedback on product quality and more effective measurement of campaigns and programs
To satisfy these it launched its CRM initiative to become more customers centric and improve its service so that it could retain its customer.
STRATEGIC LEADERSHIP
Leadership System Leadership Role Set direction Organise and allocate resources Review to achieve plans Develop Employees Innovate and improve
Figure 8: BSC Assessment Chart CVBU Tata Motors, the first and the only Indian Company, awarded with the BSC Hall of Fame in 2003 by Balanced Scorecard Collaborative from the creators of Balanced Scorecards Drs. Kaplan and Norton - Also, TATA Motors are in the company of only 29 other companies in the world who have won this award
Focus on Customer
Market Development Process
Figure 9: Market Development Process Customer Touch Points - One every 900 sq. km.
Execution Excellence
Customer Relationships
HR Focus
Attract the GOOD Advance the BETTER Retain the BEST
HR Vision and Mission Enhance and maintain Human Capital, which will make the Organisation a world class player and further the interests of all stakeholders Source, develop and maintain Human Capital, which will drive the culture of customer focus, high performance and seamlessness. Create, learn and implement best in class HR practices and processes in pursuit of excellence. Retain and attract the talent by improving the brand through employee delight and loyalty. Improve Community friendliness.
Work Structures Concept of Factories and Centres of Excellence (CX) Cross-Functional Teams Self-Directed Teams
Employee Development Focused Leadership Development through o Fast track schemes o Development Centres o Technical Specialist Scheme o Talent Management Scheme Focused Employee Training aligned with Business Needs Evaluation of Training Effectiveness
Employee Welfare Policy on Safety, Health, Security & Ergonomics o Business Risk Management o Employee Welfare Services o Employee Satisfaction Surveys
Manage Processes
Enterprise Process Model
EL11-Manufacturing
Figure 15 : EL11-Manufacturing
Operational Improvements
Achieved through TPM Poka Yoke Kaizen 5-S
Organisational Learning
Training to excel
TBEM Champions TBEM Champions are CHANGE AGENTS Three-tier Structure: Business Excellence Champions Business Excellence leaders Business Excellence Mentors
Experts in Business Excellence Concepts Coordinate BE activities in their divisions/ work areas Leaders/ Members of External Assessment teams
Knowledge Management
This has posed numerous challenges, as it involves working with 250 dealer organizations and more than 1,600 locations staffed by more than 10,000 salespeople across India. In conjunction with its reengineering effort, TATA has deployed a robust technology platform to improve the flow of information across the enterprise. The platform consists of an innovative Dealer Management System, which helps individual dealerships with everything from inventory management and credit reporting to calculating commissions, and Siebel Automotive, a comprehensive Customer Relationship Management (CRM) solution designed specifically for companies in the automotive industry. By tightly integrating Siebel Automotive and its dealer management system, TATA has streamlined transactions and ensured that dealers capture customer data as a part of their normal operations. The solution provides a 360-degree view of customers to the extended organization, with appropriate visibility controls to ensure that one dealer is not privy to information from another. To further enlist dealer support, Tata Motors involved dealers
throughout the solution, configuration and deployment process. Integrating Siebel Automotive with their dealer management system ensured that dealers would immediately see the value in the solution. This has helped the company overcome the usual resistance to change and gain rapid acceptance from dealers. Distributor Login Page
Implementation of CRM
Tata Motors has taken a phased approach to the implementation, with the goal of achieving success in each phase before moving forward. Phase 1: Focus on capturing customer and vehicle data and automating routine tasks. Phase 2: Focus on leveraging data to improve customer interactions and streamline product development and planning. Phase 3: Focus on tuning the system and delivering additional value-added services to customers. Siebel Automotive has been closely integrated with a wide array of SAP backoffice applications.
ELEMENTS OF CRM
CRM Vision
TATA Motors has more than 15,000 Tata Motors dealer personnel in over 1,000 dealer locations. Its endeavor is to get closer to its customers by obtaining a 360 degree view of the customer and design better offerings based on customer demands and feedback. The objectives of the CRM program are: Improve its management effectiveness To meet increasing competition from global players Overcome the difficulties of a widely dispersed dealer network
CRM STRATEGY
of the way to apologize for the error. Simultaneously they provide technician who visit their home place in order to attend the issues and rectify them to satisfaction level. Follow up calls are made to ensure that how efficiently their problems were resolved.
corporation. Apart from the various state transport corporations the company also supplies many busses to many private bus operators. Passenger Vehicles Tata motors is also a very important player in the passenger vehicle segment of the automobile sector. The company entered the passenger vehicle segment in late 1990s and enjoys around 16 % share in this segment. In the passenger vehicle segment the main customer segmentation is based on the price of the cars. Indian customers are highly discerning, educated and well informed. They are price sensitive and put a lot of emphasis on value for money. Cars priced below Rs. 500,000 account for nearly 80% of the market. Vehicles priced between Rs. 300,000 500,000 form the largest segment in the passenger car market. The data about the sales of the cars in various segments is shown in the adjoining graph. Tata motors also segments the customers based on the type of vehicles they buy. They offer their customers a wide variety of choices from worlds cheapest car the Rs. 1 Lakh Tata Nano to the super luxury brands Jaguar and Land Rover. Even passenger segment there in the car are
some big customers. Tata Indica is very popular among taxi operators because of its good fuel
efficiency. The SUVs from Tata Motors are also very popular with call centres to ferry their employees as they are very spacious and comfortable. The taxi operators and call centres are major customer segment for Tata Motors.
such as logistics, supplier relations management, customer relationship management, human resources (HR), and finance. IT is an integral part of every business process from design to delivery and the power of IT has been extensively leveraged for the Nano project. The design processes used more digital content than ever before. State-of-the-art CAD and CAM services integrated design across multiple disciplines, making it possible for our designers to harness and benefit from their inherent ability to innovate. IT helped the company shrink the design cycle time. BSM tools from BMC Software played a key role in tracking and controlling all components of IT services and automating the management of the IT infrastructure which is vital to the design and planning for manufacture of the Nano as well as running day-to-day business processes.
EXCELLENCE IN OUTSOURCING
Following its strategy of outsourcing noncore activities, TML has outsourced its IT applications to Tata Technologies Ltd. and its IT infrastructure to IBM. The outsourcing decision has proven to be a wise one. TML reaped significant benefits through the outsourcing initiatives. TML was recognized in 2007 and conferred the SAP Ace award for its SRM & Warehouse Management implementations. It also received the Uptime Championship Award at the CIO 100 event in the same year. Initially, the outsourcing approach posed several challenges. Technology silos were performing adequately. However, a flexible service-oriented management framework was required to link the silos and provide a comprehensive a view of the IT landscape underlying a given business process. To make this framework a reality, TML decided to adopt IT service management concepts outlined in the ISO 20000:05 international standards, as well as best practices outlined in the IT Infrastructure Library (ITIL) Version 3. In addition, the company decided to establish a service-oriented management architecture that treated IT services as assets and managed them on a lifecycle basis.
the support groups managing the IT infrastructure underlying business services. A serviceoriented organizational structure was designed and configured in the BMC Remedy applications. Mitra worked with two vendors to recast processes to achieve a business service orientation. A major innovation in the configuration is the use of logical architectural definitions for the support group infrastructure. Logical role names for technical support staff login allowed uniformity of definitions across the entire support community regardless of whether the employee is internal to TML or outsourced. The naming convention encompasses competency levels that enable the incident coordinator to assign tickets based on complexity. This feature has real value in a multisite support group where names by themselves mean very little. Service managers can now plan staffing on the basis of competencies and have a transparent view of support staff effort and load across locations.
platforms enabling the company to get this exciting new offering to market faster and at a lower cost.
LOYALTY PROGRAMS
Indigo Prime Circle
Tata Motors Privileges Program Indigo Prime Circle At Tata Motors, it is endeavour to spoil you with superior quality of vehicles and value-added services. With this in mind, TATA Motors have made an effort to enhance your experience with your Indigo beyond the road. The benefits of becoming a member of the Indigo Prime Circle range from getting special offers and discount coupons, interacting with the Indigo community on a regular basis and being part of a group where you can share your views, experiences and more. Tata Motors offers you more than just a car. TATA Motors offer you an experience that will spoil you for more. Accessories for your car, world-class workshops with state-of-the-art equipment and high-priority service by extremely qualified engineers are just steps towards giving you a complete ownership experience. TATA Motors provide you with a lot of valueadded services and timely information on what needs to be done to keep your car in the best condition and looking new. We also reward our customers with points made on purchases with the Empower Card - a card that gives you several exclusive benefits from Tata Group companies and select partners. Other privileges available to our customers include receiving information about the latest happenings, service alerts, and special events. Our customers also have a chance to get exclusive benefits such as loyalty, exchange and referral bonuses. At Tata Motors, TATA Motors ensure our services and products are delivered courteously, quickly, efficiently and to your satisfaction. TATA Motors hope you have a great experience with us. TATA Motors promise to do our best to satisfy your needs to the best of our abilities.
Indica Club
At Tata Motors, it is our endeavor to change the relationship youve had with your car. With this in mind, TATA Motors have made an effort to enhance your experience with your Indica beyond the road. The benefits of becoming a member of the Indica club range from getting special offers and discount coupons, interacting with the Indica community on a regular basis and getting to be part of a group where you can share your views, experiences and more.
Tata Motors offers you more than just a car. TATA Motors offer you an experience that will change the way you look at your car. Accessories for your car, world-class workshops with stateof- the-art equipment, and high-priority service by extremely qualified engineers are just steps towards giving you a complete ownership experience. TATA Motors provide you with a lot of value-added services and timely information of what needs to be done to keep your car in the best condition and looking new. We also reward our customers with points made on purchases with the Empower card - a card that gives you several exclusive benefits from Tata Group companies and select partners. Other privileges available to our customers include receiving information about the latest happenings, service alerts, and special events. Our customers also have a chance to get special benefits such as loyalty, exchange and referral bonuses. At Tata Motors, TATA Motors ensure the best of services and products are delivered courteously, quickly, efficiently, and to your satisfaction. TATA Motors hope you have a great experience with us. TATA Motors promise to do our best to satisfy your needs to the best of our abilities.
Empower Card
As a Tata car owner, you get a complimentary membership to the Empower Program Indias first multi-brand loyalty program. The Empower Program is a unique growing alliance of leading brands, including Tata Motors that you regularly use. It offers you the privileges of several loyalty programs all packed into one card. Now as a participating brand in Empower Program, Tata Motors offers Indigo Customer a Gold and Indica Customer a Blue personalized Empower Card which comes with preloaded 100 points. The Empower card rewards Indigo customers with two points and Indica with one point for every Rs.100 spent on Services - labour charges, spares, consumables, branded accessories, select value added services at Tata Motors authorized dealers and service centers. Thats not all, you can additionally earn up to 4 Empower Points (1 Empower Point = Re. 1) for every Rs 100 spent across 20 partner outlets (in select cities) including Westside, Titan, Tanishq, Tata Indicom, Taj, etc. and redeem them instantly. Thus, you can now pay for your purchases at any of the 20 partner brands, settle your bills in part or full instantly by redeeming your Empower points balance instantly. Empower Card holder can also avail an upfront discount of 2% for Indigo Prime Circle member and 1% for Indica club members across India at Tata Motors dealerships and service centers on spare parts, accessories and services. This is not all, the Empower Card holder receives host of other offers and schemes from Tata Motors like special discounts to our customers from time to time. Customer will also receive information, newsletters and invites for the Service Camps, free checkups, chance to attend special events etc. All new and existing car holders are eligible to be a part of this club. If you are a new customer, all you have to do is to fill in this form at the time of delivery of the vehicle and hand it over to the Dealer sales executive. If you are an existing Indigo or Indica customer, please collect the application from your nearest dealership, fill in your details and submit it at the Dealer reception. Your card will reach you within next twenty days.
Accessories and Service Coupons Apart from the various accessories and service packages you will also receive several offers and discounts on accessories and services. An offer coupon booklet is enclosed along with this booklet. Privileged Offers We also run attractive retail offers for our car owners from time to time, in addition to retail schemes applicable to others. These may include loyalty or exchange bonus on additional purchase of Tata cars, or referral bonus if you convince a friend to purchase your favorite car. We look forward to a relationship that gets stronger with time. TATA Motors constantly endeavor to change the ownership experience of every Indica owner and your suggestions and feedback would not just encourage us, but also help us improve our service standards in times to come. Were sure youll enjoy the experience of owning and driving one of the finest cars on the road, the Indica. Happy driving!
CRITICAL ANALYSIS
Benefits Obtained
Integrating Siebel Automotive with dealer management system ensured that the dealers would immediately see the value in the solution. This has helped overcome the usual resistance to change and gain rapid acceptance from dealers. Further, the user-friendly interface has simplified the process of training Tata Motors 10,000-plus dealer sales force. Tata Motors links its 1,600 customer touchpoints with its centralized data center in Mumbai using a combination of VSATs and high-speed virtual private networks. Siebel Automotive has transformed the organization and made it truly customer centric. The organization has overcome the challenges of relying on disparate sources of information, as well as having inconsistent business processes. Employees and dealers are much more responsive and can serve customers more efficiently and effectivelydrawing upon real-time, centralized customer and vehicle data. Convenience to dealers as they can view their entire stock of vehicles and see how inventory was ageing, thus improving control. Siebel Automotive has also helped dealers respond to customer queries regarding vehicles that arent in a dealers stock, but which can be ordered directly from Tata Motors.
SUGGESTIONS
Focus on the non-customers
Services such as pick and drop, on-road service, should be provided at TATA service station, which are common in other companies.