Study Case Knowledge Management And Collaboration At Tata Consulting Services

INTRODUCTION

The Tata group’s core purpose is to improve the quality of life of the communities it serves globally, through long-term stakeholder value creation.

Founded by Jamsetji Tata in 1868, the Tata group is a global enterprise headquartered in India, and comprises over 100 operating companies in seven business sectors: communications and information technology, engineering, materials, services, energy, consumer products and chemicals. Tata companies have operations in more than 100 countries across six continents, and export products and services to over 150 countries. The revenue of Tata companies, taken together, was $96.79 billion (around Rs527,047 crore) in 2012-13, with 62.7 percent of this coming from businesses outside India. Tata companies employ over 540,000 people worldwide.

Good corporate citizenship is part of the Tata group’s DNA. Sixty-six percent of the equity of

Tata Sons, the promoter holding company, is held by philanthropic trusts, thereby returning wealth to society. As a result of this unique ownership structure and ethos of serving the community, the Tata name has been respected for more than 140 years and is trusted for its adherence to strong values and business ethics.

Each Tata company or enterprise operates independently and has its own board of directors and shareholders, to whom it is answerable. There are 32 publicly-listed Tata enterprises and they have a combined market capitalisation of about $126.62 billion (as on June 19, 2014), and a shareholder base of 3.9 million. Tata companies with significant scale include Tata Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

Many Tata companies have achieved global leadership in their businesses. For instance, Tata Communications is the world’s largest wholesale voice carrier and Tata Motors is among the top five commercial vehicle manufacturers in the world. Tata Steel is among the top 10 best steelmakers and TCS is amongst the top 10 global IT services companies. Tata Global Beverages is the second-largest player in tea in the world and Tata Chemicals is the world’s second-largest manufacturer of soda ash. Employing a diverse workforce in their operations, Tata companies have made significant local investments in different geographies.

QUESTION 1 : Analyze the knowledge management efforts at Tata Consulting Services (TCS) using the knowledge management value chain model. Which tools or activities were used for managing tacit knowledge and which ones are used for explicit knowledge?

Using the value chain model, the knowledge management efforts at TCS can be divided into the following activities:

Knowledge Acquisition: Over the years, TCS had acquired a vast body of knowledge and experience in several fields through on-shore and off-shore projects for its clients across the globe including GE Insurance, GE Health, Hewlett Packard, Prudential, Standard Chartered Bank etc. In addition, TCS regularly rotated people across various functions and within other Tata Group companies to gain cross-industry experience. Employees were also encouraged to be part of outside bodies like the IEEE, and go in for certifications.

Knowledge Storage: TCS had developed various repositories and databases for knowledge storage such as KBases, Process Asset Libraries, KnowMax, and Ultimatix.

Knowledge Dissemination: Knowledge was disseminated using a variety of techniques such as Ultimatix – a web based electronic knowledge management portal; propel sessions that brought together employees with similar interests; Live Meeting and Knowledge Transition sessions at the project level; and  “Tip of the Day” email comprising technical, conceptual or human skills tips were shared within the organization daily.

Knowledge Application: Students should visit the TCS website to explore the new capabilities developed by TCS and how it relates to the knowledge they have accumulated over the years about the customers, markets, systems development, and technologies.

To manage explicit knowledge, TCS had used KBases, Process Asset Libraries, KnowMax, and Ultimatix.

Tacit knowledge was managed through redesign of development centers, Propel sessions, Knowledge Transition Sessions, and communities of practice.

QUESTION 2: Describe the growth of knowledge management systems at TCS? How have these systems helped TCS in its business?

The concept of knowledge management (KM) was introduced in TCS in 1995 and a dedicated KM team called “Corporate Groupware” was formed in 1998. This group launched the KM-pilot in mid-1999. At that time, KM in TCS covered nearly every function, from quality assurance to HR management. The employees could access the knowledge repository that resided on the corporate and branch servers through the intranet, with a browser front-end or a Notes client. The knowledge repository, also called KBases, contained a wide range of information about processes, line of business, line of technology, and projects.

The next step was to create Process Asset Libraries (PALs) which contained information related to technology, processes, case studies for project leaders which were made available to all development centers through the intranet. The same thing was done through the web-based electronic knowledge management portal called Ultimatix, of which PAL was the precursor. The PAL library and KBases, which were hosted on the intranet, were merged with Ultimatix, which had sub-portals for quality management system, software productivity improvement, training materials, and tools information. In 2007, TCS developed Knowmax, a knowledge management system, using Microsoft sharepoint portal server that gave TCS consultants access to nearly 40 years of experience and best practices arranged by type of engagement, the technology in use, and customer requirements. It supported more than 60 knowledge assets and was accessible via Ultimatix to all TCS associates. Any associate could contribute to the K-Bank and Knowledge officers were made responsible for maintaining the quality of content.

  

QUESTION 3 : Describe the collaboration tools used at TCS? What benefits did TCS reap from these tools?

TCS used a variety of collaboration tools – Infinity that includes instant messaging, IP telephony, and video conferencing; blogs and wikis; IdeaStorm, TIP, and Mysite.

As a result of adopting Infinity, collaboration of  overseas and local offices improved as instant messaging (IM) got rid of cultural and pronunciation differences that could occur on the phone. Furthermore, corporate communications was able to run a 24-hour internal news broadcast to all TCS offices in the world. In addition, travel and telecommunications costs were reduced by 40 percent and 6 percent respectively.

The other tools improved collaboration, communication, and knowledge sharing among the employees.

QUESTION 4 : How did Web 2.0 tools help TCS manage knowledge and collaboration among its employees?

Blogs, wikis, and other tools were used to boost communication and productivity among the employees.  Wikis were used for collaborating on materials related to project, supporting brainstorming sessions, and developing presentations. Employees used blogs as a means to gather inputs on problems that they faced on a project. JustAsk System allowed employees to pose a question and in turn get answers from other colleagues, sometimes leading to a detailed discussion. If someone often answered questions on a particular domain, the relevant specialist group invited that person into the domain group and thus gave the visibility to talent within the company. The IdeaStorm, used by the management, helped in generation of ideas on topics posted by the corporate team. TIP was used as a portal for product innovation and new ideas. It helped the management to garner ideas related to product/service innovation and helped in solving problems. TCS also used social networking like MySite to help employees communicate better with each other. 

QUESTION 5 : How do you think KM tools have changed some key operational processes at TCS, such as bidding for new projects, project development and implementation, customer service, and so on?   

TCS aims to move up the value chain and to continue to bid for higher-level projects, beyond those of maintenance and development.  By accumulating knowledge, it has built capabilities to understand how to service clients through consulting and in other strategic areas. So KM has enabled TCS to continue to move higher-up and to bid for more strategic projects.  KM repositories that capture best practices in the projects it has undertaken make the company more efficient in servicing clients. This means it can execute better.  Thus, systems development and implementation activities are more likely to be done by TCS in a manner that is timely, effective, and cost efficient.  The same for customer service – by knowing customer requirements and also taking ideas from other industries that are stored in the KM databases, the company can provide new and innovative solutions to resolve customer queries.

 
Overall, KM tools have become a key strategic resource at the company and all hires are required to learn them as a part of their orientation.  These tools are also the first go-to before starting any project or approaching a client.  Knowledge in these databases allows TCS consultants to quickly gather intelligence about the client or similar projects and thus align themselves better with what the client might want. This has led to a higher success rate in bidding and in project execution.