Tata Nano: Not Just a Car but Also a Platform

In a recent workshop for senior executives from multinational companies, we asked people to share their interpretations of what the Tata Nano stands for. The vast majority talked about the Nano, the $2,500 "People's Car" that the Indian automaker launched in 2009, in terms such as the world's cheapest car, a car for India's masses, an example of how innovation in the auto industry is shifting from the West to the East, and a car that could choke India's already clogged roads.

Interestingly, not one person talked about the Tata (TTM) Nano as not just a product for an identified market need today but also as a platform for tomorrow. This oversight can be a serious mistake. Every product or service represents many things. It is an intended solution to the perceived needs of certain customers. It is a bundle of features and attributes. It is the core element of a business model that may or may not be economically viable. Importantly, in addition to all of these truisms, it also is the first step on a possible journey whose destination may bear little resemblance to the starting point.