Case Study: Knowledge Management Of TCS
This overall report will be carried out based on the company, named, TCS which is the Indian IT company. There are some issues regarding properly captured the knowledge within the organization that is faced by TCS currently. These issues, therefore, need to be identified properly. However, this report could help the researchers to identify the proper issues and in which way it could be overcome across the organization. This whole study also helps to specify different tools as well as techniques through which the problem could be solved. Again, the insight of this report would help the researchers to gain some knowledge regarding the internal process of knowledge management of TCS India under different situations.
The Case Study Organisation
In a wider viewpoint, “India” has developed as a “top-hole offshore destination for global IT and BPO services over the past decade”. Thus, it has made the nation to establish an anticipated “1.5 trillion USD global markets for IT and related services”. Moreover, NASSCOM, which is the leading trade organization of IT services along with “Chamber of Commerce” for “IT software & services in India”, has computed that only based on IT services, India annually exports 18 Billion USD. Moreover, it can be further noticed “1.6 million IT engineers” contribute to “28% of the total talent growth of knowledge workers globally”.
Thus, as per Morgan Stanley, TCS along with its major competitors like; “Infosys” and “Wipro” have become “top-notch IT services providers” throughout the world both for revenue generation and knowledge processing. In this context, it can be seen that Tata Consultancy Services Limited or better known as TCS is India’s largest IT Company that has emerged as Asia’s largest unconventional software as well as a services organization. TCS has reported earning approximate earn approximate 20.9 Billion USD as consolidated revenue in FY 2019 which has made TCS 7th largest IT company among the top 10 global IT firms in terms of revenue earning by the fiscal year 2019. Thus, it can be said that it is much more poignant in a marketplace where company size along with global existence significance for service worth 100 Billion USD multinational organizations.
The vision of TCS defines to accomplish being amongst 5 highest admired IT solution providers globally by leadership and major focus on products as well as solutions and services. However, to accomplish the vision, TCS needs to operate constantly by maintaining “Disruptive Growth” of a “minimum of 35% year to year”. Interestingly, this target has been met by the company ever since it became public in FY 2004. Thus, in this regard, it can be further stated that the case study strives for understanding whether “effective knowledge management strategy”, as well as its “pragmatic incorporation”, can enhance TCS to achieve its objectives or not.
The KM Problem faced by the Organisation
The key KM challenges faced by TCS are the significant pursuit of all-around sustainable ways of growing which will contribute further in the expansion of the business process. (Hislop, Bosua & Helms, 2018) stated that the marketplace for IT services is widely dynamic. Thus, TCS might upshot the value chain regarding the higher value of BPO and consulting services and projects. However, this upshot two major strategic questions arise regarding TCS’s KM issues and challenges. These are such as; TCS’s inability to ‘Co-create’ to take major advantages of remaining knowledge to enhance new capabilities. Along with that another major KM problem faced by TCS is the uncontrolled attrition rate.
It can be significant to the “management of TCS” that, there wouldn’t be any option except pursuing all major feasible growing avenues. Thus, in this context, it can be said that the “key KM challenges for TCS” is to develop a ‘Co-Create’ capability that will take the benefits of remaining knowledge to increase new capabilities. According to (Liebowitz & Frank, 2016) higher attrition rate within the IT industry is also a major challenge of KM for every IT company in India. Thus, in this regard, it can be said that in the case of TCS the prevailing belief of not having excellence in continuous knowledge sharing, as well as organic growth, might be the major challenge.
Again, (Akhavan et al. 2016), stated that talent derivation constantly requires management attention. Moreover, certain evaluation regarding the question of revenue headcount equation defines the major challenge of the KM process for TCS. More specifically, it arises certain an issue that defines whether a growing percent of delivery executive might enhance continual turnovers along with profits by not occurring decreasing returns. Apart from these KM issues (Barley, Treem & Kuhn, 2018) have pioneered other challenges that might occur within the knowledge sharing process of TCS. Thus, the dilemma of balancing knowledge exploration can be identified as another major confrontation for TCS’s knowledge-intensive process.
In this regard (Donate & de Pablo, 2015) further opined that misalignment of business along with the integration of knowledge strategies is a common cause of poor performance. More specifically, in the case of TCS, it might create an issue in terms of lack of knowledge regarding the business’s value creation process and not organizing themselves for further continual exploitation of the value. (Inkinen, 2016) has performed more extensive investigation regarding knowledge flow in multinational organizations and stated that the discrepancy among source and target of knowledge flow. Thus, in the case of TCS when knowledge covey is not done accurately then it leads toward severe ineffectiveness of TCS’s knowledge-intensive process. Thus, it can be said that preliminary inspiration for developing a “specific Knowledge Management” platform could be the comprehension that defines the “concept of knowledge” is frivolous unless it is not shared and processed along with utilization at the time when opportunities for certain exploitation occurs.
This has been already identified that the management of TCS has been faced with different kind of issues regarding knowledge management. However, like every issue, there are also some solutions to these different issues in this situation. According to (Kianto, Vanhala & Heilmann, 2016) this is also important for the management of the company to develop some ideas regarding different tools as well as techniques to solve the KM issues under different circumstances. This is important for TCS to operate efficiently throughout its reliable industry; hence this is also important to capture valuable knowledge within the organization. There are different methodologies as well as techniques and tools through which this kind of issues could be resolved. This overall process would be more understandable for the researchers if they could possess some knowledge regarding these different methodologies or tools and technologies and in which way they could help. Thus, these different methodologies, as well as technologies, could be as follows:
SIGMAR: This method has derived its name from the mathematical word ‘Sigma’ which helps the organization to successfully initiates, conceptualizes, designs as well as executes the overall process of KM across the organization (Mäntymäki & Riemer, 2016). This method also sheds its light on the factors for critical success as well as expected deliverables which could help TCS for continuous improvement in terms of knowledge management under different circumstances. TCS could successfully use this method to plan, executing as well as monitoring of different situations. The company could be beneficiated in terms of continuous growth as well as less management conflict as their result in this situation. This overall process also helps the organization to increase its knowledge properly and positively captured them within the company.
5iKM3: This is considered as one of the best methods which could be used as a “maturity assessment model”, developed by Chand and Mohanty in 2005 (Nowacki & Bachnik, 2016). This model could help TCS,
- To evaluate the acceptance state as well as assess the KM initiative maturity
- This model specifies as well as defines the usage of KM for the benefits of the business
- This model therefore easily could use by the business throughout the industry
Also, three key pillars of the KM approach within the organization, such as, process, technology as well as people could be systematically approached in this situation which could give the positive result within the company regarding the KM initiative.
Techniques and tools:
There are different techniques as well as tools through which TCH would be able to solve the issue like “inability to “Co-create” to take major advantages of remaining knowledge to enhance new capabilities” in this situation. However, the major techniques in this area could be,
ECM: This has been found out that the management of TCS tried to cooperate with the leading vendor of ECM which could help them regarding providing an excellent solution to this kind of issue. This whole process is backed by the process of strong domain knowledge. [Referred to appendix 2]
Ultimatix: This technique is considered as the largest platform where TCS could easily serve a “larger functional audience”, such as “pre-sales” as well as “sales activities” (Omotayo, 2015). This “oracle-based system”, therefore, presents the cross-cultural capabilities which could promote the cross-cultural situation as well as constantly working together within the organization. This overall process, therefore, could enhance different capabilities regarding their issue.
At the early stage of their “corporate growth”, “management of TCS” identified the inculcation “aspects of KM” within organization like, in terms of straightforward documentation as well as the formulation of templates, process-intensive practices and effective coaching along with mentoring. In this regard (Girard & Girard, 2015), stated that present attrition along with acquisition climate forms it a more critical issue for training as well as indoctrinate nearby “half of TCS’s consultants” could be with company’s knowledge management process for less than 3 years. More specifically, they face a disadvantage in terms of conforming towards collaborative as well as cooperative knowledge sharing process and culture.
On the contrary, through the field study organized by (Landaeta Olivo et al. 2016) this can be found that the outcome of incorporation of tools and technologies as a one-stop KM platform has created a disadvantageous situation for TCS in terms of ineffectual use of the myriad tools. Most notably, in terms of delivery knowledge management leadership within TCS has approved this publicly. As the consequences of such contemplation, KNOWMAX is the present corporate advantage targeted at assisting about know-how challenges.
However, (Wang & Tarn, 2017) argued that the implementation of KNOWMAX and other KM tools and strategies might bring major drawbacks that give a push to the rise of certain questions in specific areas of the KM process of TCS. These are such as; whether KM can majorly assist in the growth and higher sustainability of TCS or not, whether KNOWMAX can efficiently plunge over competition based on the consideration of winning as well as executing projects. Thus, in this regard (Kushwaha & Rao, 2015) commented that as multinational top IT firm like TCS is significantly mature in terms of KM enterprise then it would not be the major drawback to have middle of the road KM Readiness Assessment.
Apart from that, in terms of addressing issues regarding the incorporation of KM tools and strategies, it can also be identified that challenges might occur as social in nature. According to (Hajir et al. 2015) issues might occur about sustainable people’s progress along with incentive schemes which will assist TCS KM to become more successful. Along with that, a question regarding KNOWMAX, which as a platform can effectively help in convergence of human capital towards structural capital or not can further arise. Thus, in this context, (mdx.ac.uk, 2019), stated that an all-inclusive knowledge audit can be incorporated which will fundamentally include recognizing a specific type of knowledge that is required. Although auditing socio-cultural inconsistencies would be tough and perhaps far away from the claims of TCS’s KM strategy, however; addressing complexities of international as well as intercultural communication can be advantageous. Furthermore, (Braga, Marques & Serrasqueiro, 2018) opined that it should be moderated through master relationship management along with training and staffing as a holistic approach.
Thus, at the end of this report, this could be easily stated that TCS has encountered a specific problem that could negatively affect the knowledge management system. This has been found out throughout the report that this organization couldn’t capture the proper knowledge to use it efficiently; hence this kind of issue could be aroused within the organization. However, this report also states about different tools as well as techniques through which the problem could be easily solved and knowledge within the organization could be properly utilized in this situation. Thus, this could be concluded that if the management of TCS could operate through discussed tools as well as technologies then the process of controlling this issue could be easier to handle.