Diversified Business

Business process improvement in IT

Tata Strategic studied the organisation’s strategic thrust areas to identify imperatives in IT. Benchmarking of IT architecture and organisation was done against that of comparable organisations and industries. The options relating to IT architecture going forward were evaluated. In this regard, the upgradation of existing systems, replacement of existing systems with a new packaged solution and a hybrid approach were considered. The options for IT outsourcing and in-house activities were evaluated, and the role of the in-house IT department going forward was defined. Based on this, capability requirements and appropriate organisation structure were laid out. An appropriate IT governance mechanism was developed.

The IT architecture recommended is in the process of being deployed. The organisational changes and governance mechanisms are being put in place.

 

Strategy Deployment: Institutionalising strategic planning

Tata Strategic first developed a strategic business planning process for the client. To institutionalise the process, Tata Strategic worked closely with the various SBUs of the company through the first planning cycle. Several workshops were conducted and the necessary exposure and skills were passed on to the client organisation. A planning calendar was also developed, identifying timeline and milestones to be adhered to on an annual basis.

The strategic planning process has since taken root in the company. The process and calendar are being followed regularly. The process has led to greater discipline in factoring in essential elements of the strategic plan. The business performance of several SBUs has improved considerably following stabilization of the planning process. The process has also enabled the corporate management to involve itself appropriately in planning and effectively monitor business performance.

 

Turnaround plan for a diversified company

Tata Strategic worked with a joint client team to identify business opportunities and estimate resident capabilities in the client organisation. Several brainstorming sessions were conducted with the client’s senior management to explore business adjacencies for revenue growth and generate ideas for cost reduction. The business case for each short-listed idea was evaluated and a business plan incorporating the most promising prospects prepared. A corporate restructuring plan integrating right-sizing, investment plans for profitable businesses and closure/sale of unprofitable ones was prepared. A medium-term implementation plan with periodic review milestones and enablers, and a tracking mechanism to monitor progress against plans were also put in place.

The client has achieved substantial performance improvement in the recent past and is on the path to recovery.

 

Entry strategy for new business: Business Process Out-sourcing

Tata Strategic studied the business environment and identified opportunities in the BPO space. Based on this, a business plan for setting up an independent BPO outfit catering to captive and third party requirements, was developed. Target segments and offerings were identified and the business model enabled competitive pricing and quality service. Additionally, operating strategies were formulated and a detailed project plan drawn up.

The new venture launched operations as per schedule. It is projected to be one of the largest BPO firms of its kind in India in the coming years.

 

Strategic plan for a diversified auto ancillary group

Tata Strategic assessed the market potential for the various offerings. Detailed models were developed to forecast the demand from various segments in the automotive industry and hence the demand for components. Key customer segments were identified and their buying patterns and service requirements mapped. Based on this, a growth plan in terms of customer segments and offerings was drawn up, and areas of improvement to address critical customer concerns were identified. Targets with respect to volumes and market shares and a capacity enhancement plan to meet the forecasted demand and market shares were also drawn up. Essential enablers to the strategy were laid out in terms of key business processes and organisation structure.

The recommendations were acted upon and the client has significantly strengthened its position in the domestic as well as international markets. Today, it has become one of the most profitable and respected automotive groups in India.