In my last post I explored the way in which GE was placing innovation bets based on its size. Sometimes, not matter how large you are, size doesn’t give you the kind of advantage you seek. If you look at some of what were termed “category killers” in the marketplace, (such as, Barnes & Noble, Netflix, and Office Depot) they are struggling to find new business models that can ensure long-term growth. They require wholesale business model innovation in order to remain king of their heaps. Or, they need to create entirely new heaps to lord it over.

Rather than waiting until they are gathering pace down the slope of falling revenues and declining profits some companies recognize they need to be constantly vigilant for new opportunities. They wire that vigilance into their mission, vision and operating practices so that they are not easily caught off-guard. One such company is Tata ― India’s powerhouse conglomerate ― which is placing innovation bets on the power of its own divergent internal network combined with the valued perspective from external connections.

Tata Group regularly conducts innovation-focused events in which academics and other experts in the field deliver workshops and seminars which introduce new innovation concepts and tools and stimulate innovative thinking among Tata leaders. These leaders work within over 90 member companies operating in more than 80 countries across six continents. The innovation work within Tata is performed under the direction of a coordinating body called the Tata Group Innovation Forum. The senior executives of Tata note that:

Innovation — in thoughts, processes, approaches and strategies — has become a critical factor for Tata companies as they chart course for a future in a business world without boundaries. The objective is to consistently deliver breakthrough products and services and Tata sees innovation as the means to achieve this [end].

In order to capture and disseminate the learning from various initiatives, the Tata Management Training Centre in Pune and the Group Publications unit at Tata Sons deliver internal publications that feature innovation case studies from across the world, while also covering the Tata Innovation Missions to the US, Japan, and Israel. This is vital as the each member company of the Tata Group operates as an independent entity

Bringing together technologists and researchers from different Tata companies, Tata Group Innovation Forum mapped the technology across the entire affiliated network, so that companies could gain by sharing their research and technology roadmaps, infrastructure, skills and competencies. Key innovation projects were identified where many companies could collaboratively contribute.

Subsequently, clusters were formed, in which are several collaborative projects were fostered. These projects were also supported by Tata Group’s additional investments in building centralized, state-of-the-art facilities for innovation and research. These facilities conduct research in pharmaceuticals, steel, chemicals, motors, and information technology, and in order to capitalize on the best global thinking are located all around the world, not only in Pune, India.

Lastly, to celebrate this widespread innovation and recognize innovators in the Tata group, Tata Group Innovation Forum organizes an annual awards function called Tata Innovista. These awards (and innovation competition) recognize the tenets that anchor Tata’s networked innovation approach: recognition of innovative ideas and efforts, facilitation of cross-company learning, and collaborative research and partnerships. All of which seem to be paying off for this 125 year old, $83.5B company.