BUSINESS EXCELLENCE MODEL

LEARN FROM TATA NANO

( The presentation is collection of
comments from Media & my own
perception of this Glorious modern day
success by Indian Enterprise )
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 Tata Nano- Business
excellence Model
• We see all the ingredients of
Business Excellence indicated above
in TATA NANO

• “Innovation”,
Over 40 International Patents filed.
Many Innovations is bound to exert
Pressures from Customers for Other
Automotive Companies offering higher
cost models.

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 Tata Nano- Business
excellence Model

• “Leadership”,
Tata was exhorting the team to dream
of building a low-cost car that would
cost only marginally more than a two-
wheeler and revolutionize personal
transport in India. Only in a country like
India or Pakistan can a low-cost car be
made he insisted. After the Launch at
Delhi Pargrathi Maidan Rata Tata Said

‘A promise fulfilled and a Dream realized ‘

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YOUTH POWER: The average age of the 600-member
team that delivered the Nano is a mere 30
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Tata Nano- Business excellence Model

• ” Agreed Direction”
A car for the common man in not
more than USD 2500 –
RS 1 LAC
“ Mr Tata was present at every
testing and he made all the
decisions. He was very focused on
what the customer would like’’.

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Tata Nano- Business excellence Model

• “ Partnership with Vendors” –

LEAN PRINCIPLE IN ACTION – Long term
collaboration with all vendors , suppliers,
service providers and working in partnership
with them to realize the Goals

• “ Aligned People / Team”

‘Make me also part of the team. I am one of
you and I will be happy to assist you in
whatever way I can ‘ -- Ratan TATA

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 Tata Nano- Business
excellence Model

• “ Team Work “
Team of Over 900 Engineers, Managers,
Vendors, other service providers worked as a
very close knit and harmonious team to realize
this great achievement.

When Tata engineers began making the Nano, it

was seen as an act of faith
What they have accomplished is an act of
courage
• NANO is the making of a Modern Classic -
Times Of India
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 Tata Nano- Business
excellence Model

• “People Focus”
Top TATA Management personally
ensuring people focus for all those
directly or indirectly associated with
TATA NANO Project and resolving all
related issues.
“ People are our key assets and I have
utmost faith in them that they will
achieve our dream “ RT

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Tata Nano- Business
excellence Model

• ” Processes and Systems”

Processes and System driven by
the Team responsible for ‘ TATA
BUSINESS-PROCESS-EXCELLENCE
MODEL ‘

• “ Culture”
Of course the CORE TATA
Professional Management Culture
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 Tata Nano- Business
excellence Model
• “ Efficiency”
A direction pursued across all TATA Enterprises

• “ Lean Principles “
Lean In Action! What else!! Ingredients of LEAN
MANAGEMENT are seen as
1) Long Term Thinking,
2) Concern for Social Welfare,
3) Top Management Commitment,
4) Team Based approach
5) People Empowerment,
6) Partnership with Vendors,
7) RESPECT for people,
8) INNOVATION
9) Aim for Perfection
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 Tata Nano- Business
excellence Model

• “ Knowledge Management Principles”

KM approach pursued for the NANO Project with all
Partners ,Vendors, Service providers in an environment
of Knowledge Sharing Culture , creating Knowledge
Repository, enabling effective REUSE where
applicable…….This Process is driven by TATA
BUSINESS PROCESS EXCELLENCE MODEL…

• “ CSR – Corporate Social Responsibility “

CSR is a Core Policy across all TATA Enterprises .
MORE EMPHASIZE in TATA NANO with clear policy
statement ‘ Our aim in TATA Nano shall be more
towards SHARING WEALTH and social well being than ,

profit making ‘
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Financial Times U K reports ……..
TATAs have shown the world what Indian
engineering is truly capable of….
.

Tata had told a Financial Times correspondent on the sidelines

of the Geneva Auto Show that he was thinking of making a car
that would cost about € 2,000. Adjusted against the then
exchange rate of the rupee, that translated to Rs 1 lakh. Tata
says he had never really defined the project in his head
exclusively by its pricing. “It was the media that said it,” says
Tata. “But we decided to accept the challenge….” With that
resolution, Tata imprisoned himself and his engineers in a
promise to fulfil which they would have to all but rewrite the
principles of automotive engineering.

“ A promise fulfilled and a dream realized “ said TATA when

our Correspondant met him …….

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UNION MINISTER FOR COMMERCE AND
TRADE Mr KAMALNATH at the Launch of
TATA NANO at AUTO EXPO DELHI ……..

“ This day will go down as a red-letter

day in Indian automotive history. We
should be proud on our achievement
and what we have shown to the
World…”
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 “ There is a lot of Learning from Tata's
Nano. It is an excellent show piece of Indial
low cost Engineering Skills

The innovations of the $2,500 car carry

important lessons for the Western
executives “

BUSINESS WEEK during launch of TATA

NANO at AUTO EXPO

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BUSINESS WEEK during launch of TATA NANO
at AUTO EXPO reports…

More fundamentally, the engineers

worked to do more with less. The car is
smaller in overall dimensions than the
Maruti, but it offers about 20% more
seating capacity as a result of design
choices such as putting the wheels at
the extreme edges of the car.

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BUSINESS WEEK during launch of TATA NANO
at AUTO EXPO reports…

The Nano is also much lighter than comparable

models as a result of efforts to reduce the
amount of steel in the car (including the use of
an aluminum engine) and the use of lightweight
steel where possible. The car currently meets
all Indian emission, pollution, and safety
standards, though it only attains a maximum
speed of about 65 mph. The fuel efficiency is
attractive—50 miles to the gallon.

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LONDON TIMES during launch of TATA
NANO at AUTO EXPO reports…

This new car TATA NANO represents real

innovation and Indian Engineering Skills
Too often, when we think of innovation, we focus on
product innovation using breakthrough technologies;
often, specifically, on patents. Tata Motors has filed for
about 36 patents associated with the design of the
Nano, which contrasts with the roughly 280 patents
awarded to General Motors (GM) every year.

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Business Week Report
A Modular Design Revolution in TATA NANO

The most innovative aspect of the Nano: its

modular design. The Nano is constructed of
components that can be built and shipped
separately to be assembled in a variety of
locations. In effect, the Nano is being sold in
kits that are distributed, assembled, and
serviced by local entrepreneurs

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Business Week Report
A Modular Design Revolution in TATA NANO

As Ratan Tata, chairman of the Tata group of

companies, observed in an interview with The
Times of London: "A bunch of entrepreneurs
could establish an assembly operation and Tata
Motors would train their people, would oversee
their quality assurance and they would become
satellite assembly operations for us. So we
would create entrepreneurs across the country
that would produce the car.
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A Modular Design Revolution in TATA NANO

“ We would produce the mass items and ship it

to them as kits. That is my idea of dispersing
wealth. The service person would be like an
insurance agent who would be trained, have a
cell phone and scooter and would be assigned
to a set of customers."

In fact, Tata envisions going even further,

providing the tools for local mechanics to
assemble the car in existing auto shops or even
in new garages created to cater to remote rural
customers.

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What are the broader lessons that Western
executives should learn from this TATA
NANO innovation story?

Emerging markets are a fertile ground for

innovation. The challenge of reaching dispersed,
low-income consumers in emerging markets often
spurs significant innovation. Western executives
should be careful about compartmentalizing the
impact of these innovations on the edge of the
global economy.

What's initially on the edge soon comes to the

core
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What are the broader lessons that
Western executives should learn
from this TATA NANO innovation
story?

Find ways to help customers and others

on the edge to tinker with your products.
Modular and open product designs help
engage large numbers of motivated users
in tailoring and pushing the performance
boundaries of your products, leading to
significant insight into unmet customer
needs and creative approaches to
addressing those needs.

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What are the broader lessons that
Western executives should learn
from this TATA NANO innovation
story?

Pay attention to institutional innovation.

Western executives often become too
narrowly focused on product or process
innovation. Far higher returns may come
from investing in institutional innovation -
redefining the roles and relationships that
bring together independent entities to
deliver more value to the market. Tata is
innovating in all three dimensions
simultaneously.
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What are the broader lessons that
Western executives should learn
from this TATA NANO innovation
story?

Rethink distribution models. In our

relentless quest for operating efficiency,
we have gone for more standardisation
and fewer business partners in our efforts
to reach customers. As customers gain
more power, they will demand more
tailoring and value-added service to meet
their needs. Companies that innovate on
this dimension are likely to be richly
rewarded.
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