Monday, 22 September 2025

How the digital operating model at Mahindra and Mahindra company can be improved

 Here’s how I’d approach improvement at M&M digital operating model, which by the way already has an impressive digital maturity—cloud-first strategy, GenAI pilots, and the Mahindra Digital Engine—but its operating model can evolve further. The improvements fall into three categories: sharpen focus, tighten orchestration, and amplify impact.


1. Sharpen Focus – From “Many Experiments” to “Scalable Bets”

  • Prioritize a handful of enterprise-wide “digital moonshots.” Right now, each business runs its own digital agenda. M&M could pick 2–3 cross-cutting platforms (e.g. connected vehicles, precision agriculture, mobility-as-a-service) and fund them at scale, instead of spreading efforts thin.

  • Link to financial ambition. Tie digital goals directly to EBIT/ROCE improvements for each business unit; this makes digital less about “experimentation” and more about measurable value.

  • ESG-linked digital agenda. Double down on sustainability-driven digital plays (e.g., smart farming ecosystems, EV supply chain traceability) that reinforce brand equity and regulatory readiness.


2. Tighten Orchestration – From “Federation” to “Orchestrated Federation”

  • Central governance upgrade. Today, MDE acts as an innovation hub, but the group could add a Digital Operating Council chaired by CXOs. This would set shared KPIs, cybersecurity norms, AI ethics, and architectural guardrails across businesses.

  • Shared data backbone. Create a single “Mahindra Data Fabric” so that automotive, farm, finance, and hospitality arms can share customer, product, and supplier insights securely. The current siloed approach limits network effects.

  • Talent mobility. Institutionalize “digital fellowships” where top tech talent rotates across businesses, preventing talent islands and seeding best practices everywhere.


3. Amplify Impact – From “Digital Tools” to “Digital-First Business Models”

  • Platformization of core businesses.

    • Tractors → precision agriculture platform (IoT, drone partnerships, credit + advisory marketplace).

    • Automotive → connected car services, predictive maintenance, and subscription ownership models.

    • Finance → embed lending/insurance into digital platforms for farmers, SMEs, EV buyers.

  • AI-first operations. Move beyond GenAI pilots: embed AI in supply chain forecasting, demand planning, warranty analytics, and dealer management. Standardize reusable AI models across units.

  • Customer ecosystem plays. Instead of digitizing only internal operations, design open digital ecosystems where customers, dealers, and suppliers co-create value (e.g. digital farm cooperatives, EV charging marketplace).


4. Execution Backbone – The “How”

  • Digital P&L dashboards. Every BU should publish digital’s impact quarterly—new revenues, productivity savings, CX metrics. Transparency drives accountability.

  • Change management muscle. Shift focus from technology rollout to frontline adoption. Incentives, training, and culture-building need the same investment as platforms.

  • Partnership leverage. Current partnerships (Google, Dassault, etc.) should evolve into co-innovation labs with shared IP and commercial models, not just service contracts.


✦ Punchline

M&M doesn’t need more digital—it needs focus, federation with discipline, and bold new platform business models. The leap is from “digital as enabler” → “digital as revenue engine.”

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