Case Analysis

Maruti Suzuki’s Business Intelligence

1. Background of Maruti Suzuki

Maruti Suzuki has been the industry leader in India's passenger automobile market, which
is the fastest-growing in the world, for the past 25 years. The company is increasing steadily by
15% per annum. And since July 2018, it accounted for 53% of the Indian passenger car market.
Moreover, the corporation recognized early on that India's business software applications were
mostly homegrown and ineffective. Maruti Suzuki is a market leader who has not refrained from
facilitating these developments and remains one of the country's leading passenger car
developers. Hence, making it the world's fastest-growing passenger car market. However, the
company faced the problem of database management and its integration before adopting Oracle.
To be "productive," organizations and managers must grasp what IT can accomplish and how it
works, play an active part in defining its use, and analyze its influence on sales and profitability.

2. Primary problems faced by Maruti Suzuki

These are the problems faced by Maruti Suzuki before adopting Oracle:
a. Diversification of business: Maruti Suzuki expanded from Insurance, finance, leasing
and pre-owned car business segments which made the networking and handling of
segments more difficult.
b. Lack of proper integration of information and geographical difficulties: Due to
dynamic growth and expansion, the company faced difficulties in managing data.
c. Human Resource Management: Maruti Suzuki faced difficulties in maintaining human
resources for collecting, analyzing and storing business data
d. Repetition of work and increase in costs on people: The staff had to enter data multiple
times due to lack of advanced software. The costs of recruiting, training and maintaining
staff had increased for the company.

3. Benefits and risks of working with a single vendor

Benefits Risks

Better quality control and product Higher cost for the company because of lack
understanding of negotiation power

Easily availability of information because of Overdependence on single centralized data

centralization location

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 Efficient and time-efficient while Switching costs can be higher
communicating

Smoothing transition by advising on Lack of efficiency in delivery due to lack of

changes and providing training competition

4. About Oracle and its services

Oracle Corporation is a global computer technology company based in the United States.
The firm provides database software and technology, cloud designed systems, and enterprise
software solutions, primarily database management systems under its branding. The corporation
also creates database software packages and middle-tier software systems, as well as enterprise
resource planning (ERP) software, customer relationship management (CRM) software, Human
Capital Management (HCM) software, and supply chain management (SCM) software. In terms
of sales and market capitalization, Oracle was the second-largest software firm in 2019.

The Oracle brand is well-known for its ongoing commitment to paving the way for the
future advancement of enhanced capabilities to better support organizations of all sizes with their
data management needs. The most recent Oracle versions are 11G, 12C, 18C, and 19C.

The transition from the old legacy systems to the newly implemented Oracle E-Business
Suite went smoothly. Oracle Consulting was chosen to identify the firm's needs, design the
system, prepare the project plan, deploy the software, and manage the parties involved.

5. Oracle’s Current Position and Services

Oracle, which was an antiquated business of on-premises database software licensing and
maintenance to a subscription-based software model, has begun to tap into the benefits of cloud
computing. Oracle Company is now valued at up to 293.68 Billion dollars which were 18 Billion
US dollars in 2007 A.D. The extension in its offerings and services for different industries is the
major reason behind the increase in Oracle valuation. Oracle is currently providing its services in
seventeen different industries. Further Oracle has extended its Product line in both Infrastructure
and Application. To name a few, Data lakehouse, MySQL heatwave, Advertising and Customer
experience are some of them. Moreover, those services that Oracle had provided to Maruti
Suzuki via software packages have now been shifted to cloud computing. Oracle uses Cloud
Application to provide services such as Enterprise Resource Planning, Enterprise Performance
Management, Supply Chain and Manufacturing, Human Capital Management and so on.

Besides this, in 2018 Oracle Launched the first autonomous database which was a self-
patching, self-tuning and self-managing database. In 2021, Oracle is helping government
agencies and medical communities to better understand and combat the coronavirus.

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 6. Approaches used to justify the solution to the raised problem

Below listed are some of the services provided by Oracle to Maruti Suzuki:

a. Implementing consistent processes throughout the organization

b. Making data immediately available online without the need for batches processing
c. Enterprise performance management system giving prompt data, improving turnaround
time
d. HR suite with greater managerial versatility
e. Analyzing budgets and consolidated accounts with Hyperion to gain a thorough
understanding of financial performance
f. Increased authority of HR personnel over recruiting, payroll, compensation, leave
management, competence evaluations, and staff development

7. Possible alternatives for solving the firm’s problem

Maruti Suzuki used UNIX based technology, with the adoption of Oracle real application
clusters Oracle Fusion Middleware Application Server and Oracle WebLogic Maruti Suzuki to
maintain the dealer management system. But we can also use offerings of companies such as
eMsys Autonet, AutoBoom, Cogxim for dealer Management systems. Moreover, Maruti Suzuki
also approached Oracle for Enterprise Resource Planning. The services come under the e-
business stream of Oracle and were promising in introducing standardized practices in the
enterprise. Further to extend the control over other areas such as in Accounting to analyze budget
and consolidate accounts, Maruti Suzuki also took assistance from Oracle Hyperion Enterprise.
We can also use an Accounting information system for the same purpose which is more specific
for financial activities and can also execute in an integrated form. But there are other alternatives
available too for ERP supplies such as Microsoft, SAP and SAGE which provide fully integrated
tools for different management functions.

Similarly, Maruti Suzuki implemented the Human Resources Module of the oracle e-
business suite extension. There are different cloud-based software available that appropriately
manage HR. Some of them are Saba, Softday and SkillSoft.

8. Conclusion

This case is significant and implicates database management in the current data-driven
world. It is significant in terms of a flexible database management system that lowers the
complexity of the Information Technology (IT) environment. Moreover, it helps us to understand
the importance of ERP, which can help to manage large amounts of information companies

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 generate from various stakeholders such as customers, employees, etc. In addition, such database
systems are implemented to make timely decision making.

We all acknowledge the importance of IT for creating a level playing field in this
competitive world. Maruti Suzuki uses Oracle's Products from database to middleware interface
to E-Business Suite at ERP level. This case helps us to understand the timely adaptation of
technology to sustain growth without compromising the quality of the service. For new
companies, there is a big lesson in the case that we start with the database system that gets the
job done and gradually we can make it more state of the art when required but step by step. Thus,
installing a flexible database system in the company helps to keep improving and upgrading its
management and make better decisions.

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 9. References

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