Innovation In Tata Motors

Innovation is vital aspect for ongoing businesses. When a business wants to survive longer, changes should be achieved for the merchandise they may be producing or services they can be rendering from time to time based on the tastes and preferences of the clients. Those changes should reach the preferences and personal preferences of customers by progressive products and services offering by way of a business organization. When a business organization does not do so, it will be beaten up by the other group those who can do. Innovation is becoming increasingly more important in survival of the business organizations nowadays. [1]

Innovation isn't only to invent services, but also in expanding the existing products and services to obtain the upper side on the challengers. For example apple company introduced iphone numerous advanced features and that is been a influx in mobile phone sales, HTC, Sony Ericsson and Nokia released new model cellular phone with the features and i phone at low cost with in a nutshell time. If they're unable to innovate new model mobiles, they will be getting rid of their market show in mobile phones sales. Another example for importance of development is, 'Bajaj car' was producing scooters from 1970s' in India. They are the market market leaders for 3 ages in two wheeler creation industry by offering the same "Bajaj Chetak" scooter and neglected inventions. From mid 1990s' there's been change in the customers' choices to motor cycles, that is neglected by the Bajaj company, therefore 'the market head' became the 'tired industry' in the early 2000s'.

The procedure for development is not a fairly easy activity. Many businesses fail to innovate and create what their customers want. Many small and mid-sized industries are unsuccessful in innovating services and services. Because they overlook the near future customer preferences by being busy with the present day-to-day activities. Big business may also are unsuccessful some times in the development process by wrong assumption of customer tastes or wrong decisions in the process of creativity. [1]

In this statement I will compare TATA motors, the marketplace leader in manufacturing commercial vehicles in India and Volkswagen in the united kingdom. Both companies are in making and marketing of commercial vehicles in several ranges. Both of these companies operating their businesses internationally by acquiring other brands in various countries and/or through joint endeavors with other companies in different countries. Both companies are technologically sensible plus they have research and development centers in the different parts of the planet and they can compete in 'innovating new products' for his or her customers. The needs and requirements of customers in India and Britain will be differing in different conditions as a result of dissimilarities in the culture, climatic and financial conditions.

Introduction to companies:

TATA engineering and Locomotive company ltd were only available in the year 1945 to manufacture locomotives and other executive products. They may have introduced steam road roller in the year 1948 in cooperation with Marshall Sons (UK). The company setup a Research & Development department in the year 1959 in Jamshedpur. They setup a engineering research centre in Pune in the year 1966 to provide impetus vehicle Research & Development. The company became the major automobile maker in India by the entire year 2008-09 with consolidated earnings of 14 billion US Us dollars. The company became the world's second greatest bus maker and fourth major truck company. TATA motors stated in New York STOCK MARKET in Sept 2004 and place record as the first Indian Anatomist company stated in NYSE and it became to international vehicle company. [2]

TATA motors is major automobile manufacturer, who spends huge amounts on research and development. Before 1990s they used to be in producing heavy commercial vehicles with less amounts of total annual sales. They used to spend very less ratio of quantities on research and development. At that time Bajaj Automobile used to be market innovator in light commercial vehicles developing. From 1990s Tata motors started focusing on light commercial vehicles. They are suffering from their research and development departments with impressive engineers. Because of this they became the marketplace leaders in commercial vehicles and passenger car sections in the Indian automobile market. [2]

Volkswagen was found in the year 1937 as "The Modern culture for preparation of German people's car" by German Labor Front side. In the entire year 1938 the business was renamed as "Volkswagen Factory Limited Responsibility Company". Volkswagen is the greatest automobile company on the planet in terms of production of vehicles. It is a subsidiary of Volkswagen Aktiengesellschaft group. Volkswagen obtained a variety of brands worldwide, their subsidiaries includes popular brands like Skoda, SEAT, Bugatti, Lamborghini, Bentley and Audi. Their commercial vehicle making subsidiaries include Swedish vehicle, Scania AB and some managing stake in MAN SE. [2]

The company works worldwide, but its center market is European countries, the second largest market for Volkswagen is china. Volkswagen is major market shareholder in manufacturing and sales of commercial vehicles in the united kingdom. They have doing the business enterprise all over the world for long time, with this competitive good thing about the global business they may have set up their research and development departments all around the world exactly where they can get the best results.

Managing innovation:

Managing innovation can be split into three main steps. The first and basic an example may be Generation new ideas; this will come from the needs of the users, market demand, research results and competition on the market. Second is the selection on guidelines to put into action; this is very important step in the procedure of managing technology. Success of the selection of an idea is totally depends upon experience in guessing whether it is heading to be success or not. The third one in managing technology is the execution of idea; execution of new idea does something against the background of uncertainty. Even they can make changes according to the changes in the environment during the procedure for implementation it is not guarantee that it will be succeeded. [1]

The organizations must create good weather for technology to encourage of personnel in the business to think and act artistically, that can result in new inventions. The creative and impressive weather provides new ways of working, technology and consideration of new products and services. The environment for creativeness and innovation supplies the support for the development and utilization of new concepts, strategies and techniques. [1]

The progressive product should make the differentiation with the products in the market. Higher differentiation will results capturing high market share and higher rate of profits on return. There are different factors results the success of new product in the market.

Customer belief is the primary and key factor for the success of new product. Customer should be able to identify the differential benefit, getting unique benefits and high performance-to-cost ratio.

Vital home work should be done prior to going to the marketplace, very good market knowledge is essential for the success of new product. Complete market studies and primary specialized appraisals should be conducted. Assessment of the client needs and requirements is crucial for the success of the new product.

Clear positioning strategy, clear definition of targeted market segments, clear concept definition and benefits to be supplied, features and traits or use of important criteria list decided before development starts.

Project firm is also important factor for the success of new product. Multidisciplinary and cross-functional teams should be transporting their duties from needs to concluding of the job.

Sufficient resources should be provided for the success of the new job. The business must possess the mandatory technical skills for the look and development of new product. Sufficient human resources, finances and materials should be accessible for the success of the task.

Support of the most notable management should be available in every single aspect of the procedure of invention. Management must create an atmosphere of co-ordination, trust and control for the process of a new project.

Innovation in tata-motors:

Tata motors is basically gives huge desire to the creating and invention services. They says it is the part with their legacy. They have been innovating new products continuously over years starting from the steam street roller in the year 1948. The company designed different products that have improved market dynamics of the Indian auto market. [2]

The Products: The business designed model '407 platform' using Japanese technology which suits the Indian conditions in the 1980, that has been huge success. This model has been occupying the 2/3 of the marketplace even in the 3rd ten years of its living in the Indian car market. They presented 'indica system' in 1990, that been huge success which model improved many times and has been bettering even in the second decade of its lifetime. India was documented huge record sales in the Indian automobile mobile market which is unbeatable in forseeable future. Another example for the impressive capacity of the Tata motors is TATA - ACE, the India's first minuscule truck launched in the year 2005, which is documented huge success in the small commercial vehicles market. Another mile natural stone for the development of Tata motors is TATA - NANO, the peoples car/1 lakh car. When Tata motors declared that they are going to innovate car at the price of Rupees one lakh, many experts laughed at them said that it is impossible to make a car at the price. But with in a little time Tata motors innovated and launched the TATA - NANO, which show the progressive capabilities of Tata motors.

The process: Tata motors keep up with the sustainability along the way of innovation. They may have used Tata Business Excellence Model (TBEM), it has generated a culture of checking out various ground breaking models for brilliance in the many organizational procedures. In conditions of product development process, they may have adopted the Level Gate Process, which packages the standard for the development and advancement of right product for the market.

The people: Tata motors have adopted ground breaking ways to leverage its human resource capabilities to accomplish challenging goals. They may have discovered young and strong managers through assessment centers to execute as innovative leaders that have been effectively contributed in the success in terms of inventions by Tata motors. Including the young market leaders and engineers contributed in most exclusive inventions by Tata motors, the TATA - ACE and TATA - NANO. Tata motors says "While development is normally grasped as introduction of new and radical ideas in the area of products and services, our experience says there are other areas that also require development and tandem, to be able to effect an development in a corporation". They may have put in place 7Ps model that brings about innovation, those are;

When evaluating TATA motors and Volkswagen, the to start with factor is the product range. Both companies gone through the customers interests deeply and designed huge selection of products for different customer needs. TATA motors and Volkswagen both companies have spent more percentage with their finance in innovating new products. Their impressive research and development team designed a vehicle called 'Tata sumo' that is huge success searching for ten years. Volkswagen also given huge importance to creating new vehicles, they have established workshops for innovating new vehicles for the planet in various countries where they can find more resources for creativity. For example they founded Volkswagen research laboratory in China, Volkswagen specialized representative in Tokyo and Electronics research lab in California.

It has been noticed that the Tata motors have been largely depending on individual recourses because of their innovation. They have been identifying strategic market leaders and designers through different ways and providing them resources for improvements. Tata anatomist research center established with 3000 engineers in 1966 to innovate pioneering systems and products. Their progressive groups have been saving excellent results over a period of time. Every product designed by them has been huge success beginning with TATA-SUMO to recent TATA-MAGIC. Volkswagen has been adding its work to various facilities for inventions and specialized alliances with different other brands for the innovation of new products. They are usually with regards to the factors apart from recruiting, like finding different places for the invention of different segments where there is resources and facilities for specific segments. But Tata motors depending on human resources for their improvements apart from facilitative places and specialized alliances. Even they involve some complex alliances with other brands, the alliance is limited the country where in fact the other brand operating.

When we've a glance at the creativity strategies in both companies Tata motors follows the "customer draw strategy". For example when they have created TATA - SUMO in the entire year 1994, there is no 8+1 seating cars in luxury cars sections, except some public transport jeeps, Tata - sumo has been big success, when they have presented TATA - Ace, there is no other light commercial goods transportation vehicle, except some old generation three wheeler Bajaj vehicles. As an improvement to TATA - Ace, they unveiled Tata-magic for general population travel for semi-urban and rural areas. When we look at Volkswagen, they follow "market force strategy". They are introducing different rage of cars for different customers. Even in conditions of commercial vehicles they have presented vehicles in three ranges, large sized, medium sized and small commercial vehicles to draw in different customers.

In conditions of monetary concerns of creative imagination and invention, Tata motors have been spending more sum of money on research and innovating services when compared to Volkswagen. Tata motors have been spending two percent of its turnover for research and development to innovative technologies for the entire world.

Broadly it could be contrasted between Tata motors and Volkswagen that the Tata motors technology is people oriented and Volkswagen's advancement process is process oriented. Because Tata motors has been concentrating on the introduction of their human resources for the new inventions by using different methods like balance score cards and other tools. They are making technological leaders for invention within the business. Even they have existence all over the world in vehicle industry; they are getting familiarized with the civilizations of new countries and making ground breaking market leaders in those countries. They are not trying to implement the one country's technologies in other countries. Whereas Volkswagen's ground breaking strategy is process focused. They founded research centers at various areas of the world and making improvements and advancements from those centers all over the world. Their major focus is on finding the research and innovation facilities and improving the means of new improvements through different functions.


Cultural factors performs an important role in the creation of environment of creative imagination and technology. Below is the set of environmental factors that donate to stifling development, provided by Kanter.

Dominance of restrictive vertical associations.

Poor laterial marketing communications,

Limited tools and resources,

Top-down dictates,

Formal, constrained vehicles for change,

Reinforcing a culture of inferiority,

Unfocused progressive activity,

Unsupportive accounting routines.

These factors will inhibit the creativity and development by creating and reinforcing the behavioral norms in the organizations. Culture is actually equates the agreed norms which shape behavior, design of shared ideals and values. Broadly it can be said that 'the way to do things across the organization'. Culture is something shared by a social group and styles their patterns and perceptions. Culture can be described as collective encoding of the mind. Greet Hofstede called it as "software of your brain". This will likely distinguish the people of a cultural group from another group. [1]

Freeman & Brown (2004)'s three aspects of culture can make differentiation between India and UK. The three aspects he recognized are;

Values eg attitudes & norms.

Practices eg bureaucracy.

Institutions eg education and federal.

Attitudes and norms are broadly varied in between two countries India and UK. Indian frame of mind offers importance to are well as personal relationships and friendly connections, that causes the advantages of team work and that will help for the initiatives for innovation. But in great britain there will be limited relationships at the job place, everyone concentrates on their given work, but not look at others unless it is necessary. In these attitudes innovations can be done when there is certainly particular aim for to be achieved or specified product, service or technology to innovate. Bureaucracy is more controlled in the united kingdom than India, in this environment you will see lack of relationships between superiors and subordinates in the business. Low level employees may think twice to share their ideas using their superiors, which may be some damage for the innovation in the business. When there exists strict bureaucracy you will see barriers for low level employees to draw out their impressive ideas. UK is the greater educated than India, which provides more benefit for business and advancement in the united kingdom than India. Administration and organizations like colleges, business organizations will take initiations for enhancements, which lead to creation of more impressive technology and creation of impressive personnel.


Innovation is very important aspect for ongoing businesses. If a business wants to survive much longer, it will keep innovating new products and services because of their customers, regarding to changes and choices. If a business does not innovate services and services, it will be burning off their customers and the business will be out the game. Continues innovation is not an easy job for small and mid-sized businesses. They are really occupied in their daily business with limited resources. So, they cannot find time for new innovations and trends of the products and services they are providing. They will concentrate on new improvements or improvements when the existing product or service completely turned down by the marketplace. Large companies those who have good financial and human resources can do proceeds innovations and trends for their products and services.

An innovation can be done in three basic steps, the first one is making new ideas, from certain requirements of the markets and customers. Second some may be the selection of good notion from many ideas. Third some may be implementing the theory to innovate new service or product or even to develop the existing product or something. The implementation of new idea always uncertain, the innovation or development may are unsuccessful even the business put more initiatives onto it. If an organizations desire to be successful over a period of time, it must create good local climate for innovation and encourage of people in the business to believe and act creatively, that can result in new enhancements. The creative and impressive environment provides new ways of working, generation and thought of new products and services. The climate for creativity and innovation provides the support for the development and utilization of new concepts, methods and tactics.

A countries culture can be an important aspect in facilitating innovating in that particular country. Attitudes and norms in the people plays essential role when they will work in an organization. Culture decides just how of relationship between people in the organization, which leads to effective development in the organization. The level of education in the united states and the bureaucracy also decides the climate for creative imagination and innovation in a country.

Tata motors and Volkswagen both companies have been providing huge importance to creativity and invention. Both companies has been spending lot of cash on research and development to innovate new products and technologies. These two companies operating internationally and have their research centers in many countries. In contrast, Tata motors creativity strategy is people oriented; they give lot importance to recruiting development for enhancements. Whereas Volkswagen's invention strategy is process focused, they give importance to bettering research facilities then recruiting.

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