Professional Documents
Culture Documents
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b Every )car, t$o British orga iz3liolls, Teleos and the KNOW Network, choosecornpanies
'Most Admired KnowledgcEntcrprise' (MA(E) auards. 'leleos is ai independenl
11 for their
cDmpallyvhich condrcts researchon knowledgenanagenrent,lvlile tie KNOW network is
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a virtual global connunity of orgarizations dedicatedto networking, bcnclmarliing and
sharingof beslknowledgepractices.
- Will b€ discussedlater jn the cnse.
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Tala Steel'sKM initiativesw€rc successful
andlhenumb€rof hits at lhe KM sitesof -
Tata Steelin 2001-02was ll00 comparedto Shell's(secoodmostadmiredcompany
in Euope) 1000hitq even thoughTata Steelhad only 3000 rcgister€dusersas -
comparedto Slrcll's 10000registeredusers.ThroughTata Steel'sKM initiatives,
exp€nskillsbecameavailablethroughoutt]rcorgarizationandproductivityincreased. -
As employeeswere encoumgedlo come out with ifilovative ideas, then job
satisfactionincreased.
Anolherbenefitwasa reductionin theR&D erDetrditue.
BACKGROUNDNOTE s
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Tata Steelwasestablished in 190?by J N Tata5at Jamshedpur in Bihar, hdia The
companycomrnenc€d produciionitr 19ll with a capacityof o.lmn tonneof mild 3
steelo.By 1958,its capacitylud increased to 2 Irm tomes.Ove.the years,TataSteel
acquiredseveralcompanies. In 1973,it tookoversomeflux minesandcollieriesnear :
Jharia,WestBokaroT.In 1983,it acquir€dttte]ndianTub€Co.Ltd., a manufacturer of
seamless andweldedtubes.In 1991,it acquiredthefero-chromeunit of OMC Alloys
Ltd., nearBamnipalin Orissa.
Today,Tata Steelproducesa rride rangeof products(ReferExhibit I) includinghot
rolled/coldrolled (IWCR) coils' andsheetqtubes,constuctior bars,forgingquality
st€el,rods, structurals,strips ard b€arings.It also manufactures
nate.ial handling :
equipmen!ferro alloys,and otherrninerals,providessoftwarcfor processcontols, S
ard alsoprovidescargo-handling services.
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In t]rc early1980s,fte companyidtiated a modemizationpiogramfor its steelplants
(ReferExhibit II). Explainingthe needfor modemization,J. J. Irani, $en nuiaging
directorof Tata Steel,said,"We would llavebeeofinishedothenvise....you cainot
fight a nodem-dayirar with weaponsof the Malabharara.We would have been s
anlrihilatedhadwe not modemized. Werealizedthis andembarkedolr thefour phases s
of modamization.We addrcssed our drawbackslike the ste€lmaking prccess,our
weaKest [nK. '' s
F
s
Jamshedji NusserwEriiTata(J N Tata)wasthefounderof theTata(houp of companies.
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Steelwith lessthan0.15%carbonis knownasMild Steel.It is alsoknown as lo\ir'-carbon
steelandsolt caststeel. !!
Bokarovas thei in Bi.har.It is Dowpat of Jharkhan4thenewstat€carvedout ofBihar in
2000.
Hot rolled coil is a coil of steellolled on a hot-stripmill Oot-rclledsteel).It canbe soldin
this formto customers or beproc€ssed fu h6 i to otherlmishedproducts.Cold rolling is a
Focesswherethe shapcandstructureof thesteelcanbechanged by rollirg, hannering, or
stsetchingit at a low tempemhfe(oftenroomteDperatire). s
Lnterviewwith J.J. Irani,ldv ertising& MaAehtg,sdptffib€r 15,2001. S
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KnowledgeManagement@TataSteel
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lT & Systems
Erhibit II . -
Tata Steel'sModernizationProgram -
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s
Blendirg plantfor rav rnaterialsto improvethe sinterquality
S
s
first in India. s
. Wasterecyclingplantof I Mtpacapacityfor ecologicalconsider:ations' r\
. Coa.linjectionin blastfrtmaces- hrsl in Ildia - to reducecokeconsumptiol
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Phase- m (1992-96i Rs.36billion)
. Installationoffwo morestampchargedcokeovel batteries
. Installationof a newI MFablast imac€ - tlrcbestblastfilrllaceir India :-
So rce: '/'}v\).tatasteel.com.
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Source: r'1t)w.taIasteel.cotrt.
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KM INITL{TIVES AT TATA STEEL \
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The KM Drosamal TataSleclwasslaied in l999 The aim oI tle programwasto- S*
tle aburidan'rkno\vledgebase in llle lorm of tacit knowledge'' and e\?l'crl
knowledger5tlBt waslying unused,and makeit availablefot use acrossthe company \
The KM-orocesswassarted by bringinglogedtera goup ofpeople wlth ex?osue^rn
iiii".rt i"iit, ltt i"*ptetety ine$rlenceatn impletnenting
thatKM wasa-cultural transfonnatian
KM Thecompany felt
of
rathertlt2na projectThusmvolvinga gr-o0p
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oeoDle fiomwithinfie compaDy wilh thesupporlofthelop maiagemenl wasu(elyIo '.\
FigureI: Knowledge
System
Feedbacks
Knowledge
Knowledge
Kanowledge
Knowledge
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lT & Systems
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Adapted-[romw)r'w.talasteeIca t.
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In May 2000, Tata Steel adopted a Jefined str'rtegyfor KM It staJt€d-orga zing S
serninarson Ktrl and idenirying and recognizing somesuccessfirl[M q{ol:-I"d" :r
bv ernDlovees in tlte organi-/ationln dle sameyc . rhe companylrrreclMcKlnsc)
lo, ad\ice ;n comnlMitiesof practice.Communiticsof praclice\\ere
"6nsulronir
established to work towad capturingthe tacit kno$ledgeof experls.imptoving the
quufiry oi rf" knorrlcdgercposiLorl.and encouragnguse of.the rcpos orl Thcse o\
comrnuniricsincluded Inelnbersplaying..five impoflanl roles vlz CDtunplon
Conreneio.PracticeLeader', LeadExpcrt".andPracllljoner' "\
The commuities focused on 2l areasincluding iron making steel making, rolling'
rnaillteflance,fiining, waste management,cost engin€€ring'and energy management
Employeeswere free to join any ol the communities,irresp€ctive of the area they
belonsedto.
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KnowledgeManagement@TataSteel
Exhibi{V
KM Implementation
FactorsRequiredfor Successful
l. ConDectivily
KM Dracticecanbe a successfirl only tlrough theb€stof useof technology.The
technology provides the infiaslructure for knowledgesbaring, aod this KM
'l archjlectureshould be available thoug.hour theorganizatio[
2. Content
The intemal and erlerMl koowledgebaseof the organizatioomust be assessed
beforeis launcheda fonnal KM system.This way,an organizationcanassessthe
knowlcdgecontentavailablewith theorganization
3, Community
:
Corfinunitiesofpracticeo. groupsof peoplewith similarioterestscontributein a
majorwayto thesuccess ofa KM system
- 4. Culture
Suppoflandvision from the top mamgementa sharedseNe of directiorLbust,
oDenness. excitement,and a rdfingnessto continuallyleam from peeIsare key
components of KM cdture.
5. Co-operation
Co-operatioois a key successfactor, esp€ciallyin ordei to overcomecultual,
linguistig andotherbanierstllatariseh companies operatingacrossthe globe.
6. Capacity
In additionto havinga willingnessto shareandleam,an organizatiolmust have
the "intellectualcapitalgovemance" capacityto tale KM to a hi8herstage This
govcrnincecapacilymust be deployedto bdld fte necessary skill setsand
ivstcrnadcallv er€culea KM slmtegy. Somelimes, the in-housecapacity for KM
n;edsto beassessed by anoulside KM consultancy.
7. Commerce
Commercidandotherincentivesto embrace changein a ktrowledgeeconomymust
- b€ implemented,and systemsof appraisal and rewards for outstanding
contributionstluoughthe repositoryanduserallss€rsin a I(lV systemteed to be
introduc€d.
8. Capital
AII tlle aboreneeda hugecapitalintestmentby the company.The capitalto be
deploygdis decidedon tbe basis of the rctums expgcted,computedusing
appropdate i$€sllDentmetrics.
destinali onkm,cor.
: wtaw.
Source
In sDitc of all thesechugcs. only 2'10usersin 2000-01 felt that dle available
Lnoriledqe$rs useful rd couldbe eppliedin iheir areaof l\ork, and in 1999-2000,
onl\' 100 feedbackfrom use6 1YasreceivedCompanyofficials werc of the opinion
thai thcsenurnbcrsrvastoo snall for a conpanyofthe sizeofTata Steel The needof
the houl was to improve the quality of kno$ledge available and to inculcate among
tlreenployccsthelubit of browsing,so that tiey couldacquie tle knorvl€dgestored
anouserL
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I KnowledgeManagement@TataStee
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Source: ICFAI Centerfor lulanagementResearch.
tlf @ ICFAI Center for tr'latnaementResea,ch..4 ishts rcsened. This case was written bv
4jay K,,,w, ur.ler the.lircctio ofsa,iib D !1q-
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|.' r- *rwv tatasteel.
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