Maruti Suzuki

Presenters --AB

Summary Of Case Study

Maruti Udyog Company got established in 1981Tied up with Japanese car-maker Suzuki in 1983For 25 years-leading manufacturer of cars and

automobiles in the countryIn August 2013, the company recorded a 61% increase in

salesProfits increased by 49% at Rs. 632 croresBeaten rivals like Hyundai and Tata Motors

Maru

ti Suzu

ki

Hyundai In

dia

Tata Motors

GM In

dia

Ford

India

Volkswagen In

dia

Toyota Kirl

oskar

HondaM

&M0

10

20

30

40

50

60

FY-11 FY-12 FY-13

Market Share %: Q1 FY 2013-14

Maruti Suzuki Hyundai Mahindra & MahindraTata Toyota General MotorsRenault Ford VolkswagenNissan Skoda FiatHindustan Motors Force

Summary

1995-Maruti Suzuki chose to develop an IT infrastructure with the help of OracleUse of databases-Oracle Real Application Clusters,

Fusion Middleware Server and moreThe ERP (Enterprise Resource Planning) model was

built using Oracle E-Business Suite and Hyperion Enterprise

Q1- What business challenges was Maruti Suzuki facing, prior to adopting Oracle?

Diversification of Business-Insurance, finance, leasing and pre-own car business segmentsLack of proper integration of information due to

dynamic growth Geographical difficulties owing to size of the countryDifficulties in maintaining a staff for collecting,

analyzing and storing information

Other Challenges

Required staff to enter data multiple times

Increasing costs on people for maintaining and updating information

Efforts for development of new products and services to meet growing market needs

Collecting and analyzing information about new markets

Q2- What benefits did Maruti Suzuki derive from working with a single vendor?

Minimized compatibility problemsAccommodated new features easilyEasily available information in centralized databasesEasy access to expert consultants and development teamAdvice and guidance on processes and training programsBetter quality control and product understanding

What are the risks of working with a single vendor?

Higher costs and expenses due to lack of competitionMay not get best individual applicationLack of variety in technological resources for scaling

and expanding businessLack of efficient delivery of services due to lack in

competitionOverdependence on a single centralized data

location

Scaling

Expansion

Q3- What were the important business factors which management used to evaluate Oracle database offering?

Ease of use and flexibilityScalability and expansion of activitiesRelevance of information in financial and strategic

decision-makingApplication in resource planning and project

managementCompatibility with ‘legacy’ system

Q4- Why was it important that a vendor’s product be able to integrate with ‘legacy system’?

Consistency in provided products and servicesConsistency with the principles and business practices

of MarutiConsistency with brand imageProviding equal assistance and guidance for future

needs and requirementsMore accuracy and speed

Q5- What are the business benefits reported by management to using the Oracle suite?

Standardized business practices

Easy availability of data for decision-making

Flexibility In Management

Future Needs Foreseen And Taken Care Of

Other Benefits

Easy Financial analysis before budgets

Better control over HR tasks like recruiting and training

Planning of resources for activities

Better project management

Learning OutcomesDigital integration of information

Scalable and flexible

Easy to retrieve information

Project planning

HR management

Lower procurement costs

Smooth staff transition to new system

THANK YOU!