Published on May 07, 2022
On April 27, 2022, Rohit Mantri, General Manager, ImpACT, Tata Motors (TML), conducted an EDGE webinar on TML's initiative that aims to achieve sustainable and profitable growth through strategic transformations. The company is currently focusing on four key areas – product portfolio, brand building, sales & distribution network and production system.
TML is one of the largest automobile manufacturers in India. It is a part of the Tata Group, one of India's biggest conglomerates. TML has been around for over 60 years now, and it has constantly been transforming itself to stay competitive in an ever-changing automotive industry.
Strategic transformation initiatives are a series of efforts taken towards transforming an organisation. These initiatives aim to change how an organisation operates and how it interacts with its stakeholders. They can also be considered a way to change a company's business model or operating model.
TML is a company that has been in the news for its transformation initiatives. The company has been on a transformation drive since 2014 to improve its financial performance and become a more agile organisation. The first step towards achieving this goal was by making their business leaner by reducing their manufacturing costs to compete with other players at a lower cost level than them.
These initiatives were based on four core drivers:
- Technological Innovation & Agility
- Customer Centricity
- Supply Chain Excellence
- Financial Stability
It was time for TML to transform itself into a globally competitive company from its traditional Indian market-focused business model to an agile, customer-oriented organisation. This meant making changes across all levels of the organisation — from the top management down to the shop floor level.
TML wanted to evolve from a predominantly Indian company to a global organisation with a significant presence in international markets as part of this journey. The key areas where TML needed to improve its performance included design and innovation, manufacturing cost reduction, operational excellence and customer satisfaction.
TML approached this challenge through three key levers:
- Creating a performance culture: This involved introducing best practices across all functions, which resulted in an increased focus on productivity and process improvements.
- Globalising the organisation: A team was created to drive the globalisation agenda, and related initiatives were rolled out across functions.
- Standardising processes: Best practices were identified and standardised across different geographies.
To ensure that all employees are on the same page and working toward the same goal, there must be clear communication throughout all levels of the organisation—from leadership down to front line associates. All managers should be able to articulate their team's role in the changes being made and how those changes will positively impact the result.
The company has also changed its manufacturing facilities by investing in new technologies such as robotics and automation. These changes are expected to reduce costs as well as increase productivity.
Today's competitive business environment is forcing companies to transform themselves to stay ahead of their competitors. Tata Motors, too, embarked upon the Strategic Transformation Initiatives that aim to improve operational efficiency and reduce costs through initiatives like smart sourcing, operational fluidity and waste reduction, standardising processes and tools, optimising the supply chain and logistics improving quality.
The highly interactive and engaging webinar unravelled a range of insights and concluded with a Q/A round.