Side-tracked by Jio Platforms? Tata Digital plans yet to get off ground

Mumbai/Bengaluru: The Tata Group’s ambitious digital plan that aims to tap its combined consumer base to build products and services has been stuck due to lack of a clear strategy, employee attrition and challenges in getting diverse group companies to collaborate for the project, people familiar with the development said.The plan is yet to get off the ground and will take several months to test the waters, officials said. The delay has led to criticism that Tata’s long-pending digital ambitions have been side-tracked by Jio Platforms, the subsidiary of Reliance Industries that delivers digital services to consumers across the country.The Tata digital plan was built around loyalty programmes, an app for consumers, and logistics. However, officials said building a consumer-focused app is a far-fetched reality.“We have yet to get the basic strategy right and then get it to first take off,” said a Tata official who did not want to be identified.Tata Sons chairman N Chandrasekaran had said earlier that the group will create many digital platforms and had already identified them. The group was to infuse Rs 1,000 crore in a vertical started last year, with Pratik Pal, a Tata Consultancy Services veteran, as its first CEO.Pal and Tata Sons declined comment to ET’s detailed queries.Last month, the Financial Times, citing Chandrasekaran, reported that the Tatas plan to launch a super app this year.“The app is still on the drawing board,” said a Tata Group official, adding that there have been many delays and several people have left the projectThe initial launch of Tata Digital was essentially a group loyalty programme to harness the strength of its captive consumer base.“Reliance has already marched and taken over that consumer space even as the Tata Group has been talking about it for some years now. Essentially, it’s about getting things done quickly in a technologically disruptive world. The Tatas had the might of TCS with it and yet say launch may happen next year,” said a former senior group official.Incorporated in 2019, Tata Digital’s directors include Modan Saha, Suprakash Mukhopadhyay and Aarthi Subramanian. It is not clear which platforms Tata Digital would operate and whether they include Tata Cliq, the e-commerce entity.One of the biggest challenges faced by Tata Digital is the hesitancy and reluctance of group companies to share consumer databases in order to find similar target audiences.“A Tanishq consumer may not be the target audience for Vistara. There are conflicting views around finding a commonality in the target consumer and sharing critical databases. The company has yet to come on a common ground,” a person said.Tata Digital is also tackling high attrition rates among younger employees who do not find a startup culture in the company. A few years ago, the Tata Group set up its group technology office that focused on new innovations in Bengaluru in a bid to overcome difficulties in getting tech talent.“We have been confused by a plan that’s constantly changing track. There is no clarity. There is a lot of TCS culture in the company, which is not the kind of startup environment that was promised to us,” said an ex-employee seeking anonymity.Unlike Reliance, which invested in startups and acquired technology and talent, Tata Digital, a startup within the group, is reluctant to tap the startup ecosystem.“It is not easy as it is not in the Tata DNA. It is time for it to adopt digital or gear for a huge amount of disruption,” said a person who has worked with the group.Experts said the Tatas may be looking at a super app that offers customers all its services and combined value. However, users may still need something compelling.“We have so many choices and have existing relationships with Amazon, Flipkart and BigBasket, there has to be a reason why one will use a Tata super app,” said Karthik Srinivasan, former national lead, social, at Ogilvy.He said such an app would be attractive if people see benefits of buying car insurance from Tata AIG and get rewards for servicing a Tata car, or get a priority seat or a small discount on a Vistara air ticket.“Building an app is the easy part. Each Tata brand across the group is a different company and putting everybody together is the challenge,” Srinivasan said. “The value they offer to their consumers is more important than the app itself.”According to Ankur Pahwa, India e-commerce and consumer internet expert at EY, most large companies have built huge databases of customers across multiple businesses.“They can offer a unified experience. Data is the smart way of building stronger business. That it is coming together now is as much about need but also being relevant to customers and business growth,” he said.

from Economic Times https://ift.tt/3bf6JQQ