Mini Project

PES UNIVERSITY
(Established under Karnataka Act No. 16 of 2013) 100-ft Ring Road, Bengaluru – 560 085, Karnataka, India

Business Information Systems - Mini Project

‘A study on Digital Transformation and its

effectiveness at Maruti Suzuki’

Submitted by

Suhith Mahendra (PES1UG20BB123) Jan to May 2022

Submitted to
Prof. Nayana Nadhig

Assistant Professor

Department of Management and Commerce

PES University

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DECLARATION

I, Name of the student, hereby declare that the study report entitled,
‘Business Information Systems – Mini Project’, is an original work
done by Name of the student, under the guidance of Prof. Nayana
Nadhig, Assistant Professor, Faculty of Management and Commerce,
and is being submitted in partial fulfilment of the requirements for
completion of IV Semester course work in the Program of Study
BBA at PES UNIVERSITY.

PLACE: Bangalore

DATE: 14-04-2022

NAME: Suhith Mahendra

SIGNATURE OF THE CANDIDATE:

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Table of Content

Chapter No Particulars
Introduction Introduction pages
-Front page
-Student Declaration
Chapter 1 Introduction to the study
-Industry Profile
-Company Profile
-Background of the topic
-Need/Importance of the topic
-Recent trends related to the topic
Chapter 2 Research Design
-Secondary data collection about the topic
-Finding the limitations and problems
Chapter 3 Recommendations/Suggestions
Chapter 4 Learning Experience

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CHAPTER 1

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INDUSTRY PROFILE
The automotive industry encompasses a wide range of firms and organisations involved in the
design, development, production, marketing, and sale of automobiles. It is one of the most
profitable industries in the planet. It is also the industry that spends the most on research and
development.

India was the fifth-largest auto market in 2020, with 3.49 million units sold in the passenger
and commercial vehicle categories combined. It was the world's seventh-largest commercial
vehicle manufacturer in 2019. The two-wheeler category dominates the market in terms of
volume due to a growing middle class and a young population. Furthermore, the growing
desire of firms in expanding into rural areas has aided the sector's growth.

India is also a significant vehicle exporter, with strong development possibilities in the
foreseeable future. Furthermore, many government and private sector activities in India are
expected to catapult India to the forefront of the global two- and four-wheeler markets by 2020.

From FY16 to FY20, domestic automotive production grew at a 2.36 percent compound annual
growth rate (CAGR), with 26.36 million vehicles manufactured in FY20. Domestic automotive
sales increased at a 1.29 percent compound annual growth rate (CAGR) between FY16 and
FY20, with 21.55 million vehicles sold in FY20.The total number of passenger vehicles
produced in FY21 was 22,652,108.

The domestic Indian car market is dominated by two-wheelers and passenger automobiles. Small
and mid-sized cars account for the majority of passenger car sales. In FY20, two-wheelers and
passenger cars accounted for 80.8 percent and 12.9 percent of the market share, respectively,
with over 20.1 million vehicles sold.

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The premium car market sold 8,500 units in the July-September 2021 quarter.

From FY16 to FY20, total automotive exports climbed by 6.94 percent, reaching 4.77 million
units. Two-wheelers made up 73.9 percent of all vehicles transported, followed by passenger
vehicles (14.2 percent), three-wheelers (10.5 percent), and commercial vehicles (1.3 percent).

Indian automobile exports increased to 1,419,430 units from April to June 2021, up from
436,500 units in April to June 2020. EV sales in India, excluding E-rickshaws, climbed by 20%
to 1.56 lakh units in FY20, with two-wheelers accounting for the majority of the rise. According
to NITI Aayog and Rocky Mountain Institute, India's EV finance market is estimated to reach
Rs. 3.7 lakh crore (US$ 50 billion) by 2030. (RMI). The EV market in India is predicted to grow
at a CAGR of 36 percent until 2026, according to a poll by the India Energy Storage Alliance.
Moreover, throughout the same time period, the EV battery market is predicted to develop at a
CAGR of 30%.

Premium motorbike sales in India soared sevenfold between April and September 2019, reaching
13,982 units. Luxury car sales are expected to rise to 28,000-33,000 units in 2021, compared to
20,000-21,000 units in 2020. New manufacturers are projected to enter the market in 2021, along
with new product launches.

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COMPANY PROFILE

In India, Maruti Suzuki sells 3598 vehicles in 1816 cities. Maruti Suzuki was ranked 37th among
India's most trusted brands in 2013, and ninth in 2019. The Brand Trust Report released by Trust
Research Advisory, a brand analytics firm, ranked Maruti Suzuki 37th in 2013 and ninth in 2019.

Startup name Maruti Suzuki India Limited

Headquarters New Delhi, India
Industry Automotive
Founder 24 February, 1981
Founder Government of India
CEO Kenichi Ayukawa
Parent Suzuki Motor Corporation
Area Served India
Website www.marutisuzuki.com

Maruti Suzuki India Limited is a holding company for Maruti Suzuki India Limited. Motor
vehicles, components, and spare parts are manufactured, purchased, and sold by the corporation
(automobiles). Facilitating pre-owned car sales, fleet management, and auto financing are among
the company's other activities.

The domestic sector, which includes sales to customers in India, and the foreign segment, which
includes sales to consumers outside India, make up the company's geographical segment.

Maruti Finance, True Value, Maruti Genuine Parts, Maruti Genuine Accessories, Maruti Suzuki
Auto Card, and Maruti Driving School are among the company's services.

It has about five plants, with an installed capacity of over 1.5 million vehicles per year,
located in Palam Gurgaon Road, Gurgaon, Haryana, and Manesar Industrial Town, Gurgaon,
Haryana.

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Maruti Suzuki – Logo and its Meaning

Suzuki's current logo is a combination of red and blue. The colour red (the letter S of Suzuki)
denotes passion, honesty, and heritage, while the colour blue (the letter M of Maruti) represents
excellence and grandeur.

Maruti Suzuki – Founder and History

The Indian government formed Maruti Udyog Limited on February 24, 1981, only for it to be
combined with Suzuki, a Japanese vehicle manufacturer, in October 1982. Maruti launched its
first manufacturing unit in Gurugram, Haryana, in the same year.

With the purpose of developing a people's car for India's middle class, the company was created
as a government-owned enterprise with Suzuki as a junior partner. Over time, the company's
product line has expanded, ownership has shifted, and the client has shifted.

On October 2, 1982, Suzuki Motor Corporation Japan signed a licence and joint venture
agreement with the company. In 1983, the company began production and introduced the Maruti
800 model. Maruti Omni was introduced in 1984, and Maruti Gypsy was released the following
year. By delivering a batch of 500 autos to Hungary in 1987, the company made its first foray
into the foreign market.

In 1990, the business introduced India's first three-box sedan, the Sedan. Suzuki Motor
Corporation Japan extended their ownership of the company to 50% in 1992. The Maruti Zen
was introduced in 1993, and the Maruti Esteem was introduced the following year. In 1995, the
business began construction on its second plant. They established Maruti Service Master as a
model workshop in India in 1997 to handle after-sales services.

The third facility, which included additional press paint and assembly shops, opened in 1999.
Maruti Alto was introduced to the market in the year 2000. Suzuki Motor Corporation increased
its share in the company to 54.2 percent in 2002.

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BACKGROUND FOR DIGITAL TRANSFROMATION

Digital transformation is the process of incorporating digital technology into all aspects of a
company, fundamentally altering how it operates and provides value to customers. It's also a
cultural transformation that requires businesses to question the status quo, experiment, and
accept failure. It's tough to come up with an uniform explanation of digital transformation
because every company's will be unique. However, we define digital transformation as the
integration of digital technology into all parts of a business, resulting in significant changes in
how companies operate and provide value to customers. Beyond that, it's a cultural
transformation that requires an organisation to constantly challenge the existing quo, to
experiment frequently, and to tolerate failure. It may be necessary to jettison long-standing
company methods. The beginning point for digital transformation should be a problem
statement, a clear opportunity, or an aspirational goal. A corporation could decide to go digital
for a variety of reasons. The most likely reason is that they don't have a choice: it's a life or death
situation. In the aftermath of the pandemic, a company's capacity to respond fast to supply chain
disruptions, time to market problems, and rapidly changing client expectations has become
critical.

NEED AND IMPORTANCE OF DIGITAL

TRANSFORMATION

 It helps you save time processes, which results in cost savings.

 It promotes production decentralisation by facilitating mobility and remote
communication.
 It improves operational efficiency and productivity.
 It enables the development of new goods and services, as well as new income streams
and commercial opportunities.
 It boosts the market's capacity to react promptly to demand shifts.
 It provides a competitive edge by allowing the organisation to anticipate any disruptions.
 It drives the culture of innovation, preparing the company to anticipate any disruption.
 It improves internal cooperation and integration by making it easier for departments to
interact.
 It allows for greater in-depth data analysis (Big Data), which enhances decision-making.
 It attracts new talent by increasing system awareness and piquing the interest of specialist
professionals.
 Improving the consumer experience
 Additional data-driven insights
 Increased cross-departmental collaboration
 Increased agility and creativity

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RECENT TRENDS IN DIGITAL TRANSFORMATION

 This time, 5G will truly enter the mainstream!

For years, we've heard about the advantages of 5G, but it wasn't until this year that the
need for more bandwidth and more dependable connectivity became a real, practical
benefit that we could all grasp. Our reliance on phones, tablets, and other devices,
including an ever-increasing number of IoT sensors, highlights the need for the multi-
lane expressway that telecommunications companies predicted. Businesses can no longer
afford to stay disconnected, and 5G installations are now an essential part of the solution.
As we continue to work and operate schools from our homes, the value of 5G will
become increasingly popular in 2021.

Despite the fact that the pandemic briefly delayed work on new 5G network deployments
earlier this year, these efforts have now resumed, and major economies like China are
back on schedule to meet their 2020 deployment plans. Meanwhile, every major handset
maker in the world is already (or soon will be) delivering 5G phones in practically every
price tier, with Qualcomm — probably the leader in 5G technology — contributing in
making 5G as accessible as possible to as many smartphone users as possible next year.

 Eruption of CDP
•Customer Data Platforms (CDPs) have gained a lot of traction in recent months, and
with good cause. Data that has been fragmented from several sources is notoriously
difficult to organise, which is problematic for organisations that rely on timely, well-
curated data to perform. According to IBM, "dirty data" costs US businesses $3 trillion
each year, therefore resolving this issue has become a major priority for businesses of all
sizes. CDPs help solve this problem by collecting data from all relevant sources,
organising it, categorising it, and making it available to everyone who needs it. Adobe,
SAP, Oracle, Treasure Data, and Microsoft have all invested heavily in the development
of new CDPs for the market. Newcomers like Segment and ActionIQ have also dazzled
me with new CDP services that take novel ways to achieving the coveted 360-degree
consumer view.

In recent years, I've spent a lot of time discussing how analytics and big data are
becoming increasingly common. To be clear, this isn't going to stop any time soon. Data
is growing at a fast pace that shows no signs of abating. In 2021, the rise of the customer
data platform will catch fire, in part due to new work-from-home operational models, but
also due to the continuing acceleration of data collection across an ever-expanding
ecosystem of touchpoints; and now that business operations have become somewhat
more fragmented, in part due to new work-from-home operational models, but also due
to the continuing acceleration of data collection across an ever-expanding ecosystem of
touchpoints; and now that business operations have become somewhat more fragmente.

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 Cloud Hybrid The winning corporate architecture has been

revealed.
Businesses are progressively going toward a hybrid cloud infrastructure, something we've
known for a while. Hybrid cloud methods enable enterprises achieve the proper balance
for their particular cloud infrastructure demands, ranging from SaaS applications and on-
premise solutions to a combination of public and private clouds. Large public cloud
providers such as AWS, Azure, Google, IBM, and Oracle have made significant
investments in hybrid over the last year. OEMs such as HPE, Dell (VMware), and Cisco
are also investing more in developing solutions that make connecting on-premises
datacenters to the cloud easier. The goal of these efforts is to reach the client where they
are right now. Taking on the problems of exponential data expansion while
simultaneously being proactive on privacy, security, and compliance issues. The
modernized hybrid cloud model is going beyond traditional IT to include industrial
applications. Honeywell, for example, established its Forge IoT platform utilizing an
open source and hybrid cloud approach to better connect the industrial data it handles
with traditional cloud datacenters, apps, and workloads.

Even without the pandemic, hybrid cloud would have been on my list for 2021, but the
widespread, unexpected disruptions caused by the coronavirus have highlighted the
importance of having as agile and adaptable a cloud infrastructure as possible—
especially as we see companies around the world accelerate cloud investments to enable
faster change in times of uncertainty and disruption like we saw in 2020.

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CHAPTER 2

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SECONDARY DATA COLLECTION

DIGITAL TRANSFORMATION IN MARUTHI SUZUKI
Maruti launched its online sales platform two years ago as part of the automaker's digital
transformation initiative. The digital business of the world's largest automaker now spans over
1000 dealerships across the country.

According to Rajesh Uppal, Maruti Suzuki's chief information officer (CIO), who is also in
charge of technology development, the company has saved 25% on costs by investing in RPA.

Maruti Suzuki reportedly stated that its digital platform accounted for 95 percent of its sales.
Customers frequently conduct preliminary research on Maruti’s website before visiting the
dealership, according to them. Online platforms provide customers with comprehensive
information on the vehicle. Finally, the customer discusses the transaction with his trusted dealer
advisor.

Customer searches for Maruti Suzuki dealers have increased by double, according to Maruti
Suzuki. "We're investing on a hyper-local platform to help clients find and engage with local
dealers faster." In this digital transformation journey, we have connected over 1000 dealerships
across 3000 web touchpoints in the previous two years," Shashank Srivastava added.

The new digital sales experience is tailored to millions of Maruti Suzuki consumers for one-on-
one connection. The organization has developed a strong technology platform that aids in driving
synergy and strengthening localized messaging across OEM and dealer websites.

Online platforms like as Google and Facebook have teamed with the company to provide digital
knowledge to dealer teams. Maruti Suzuki provides training to its dealer partners in order to
improve their understanding of the vehicle.

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Maruti Suzuki has previously announced that it sold 393,130 automobiles in the second quarter
(July-September) of FY 2020-21, up 16.2 percent over the same period the previous year. The
Indian car market saw an increase of 18.6% in sales, to 370,619 units. Exports fell by 12.7
percent to 22,511 units.

During the first half of FY 2020-21 (April-September), the organization sold 469,729
automobiles, down 36.6 percent from the same time the previous year. In the domestic market,
437,646 units were sold. 32,083 units were exported.

MARUTHI SUZUKI DRIVING SCHOOL

Since 2005, Maruti Suzuki Driving School has been a leader in the field of driving instruction.
Maruti Suzuki Driving School has raised and redefined the standards of driving school in the
country, thanks to its world-class technology and training program.

Maruti Suzuki have recently introduced simulation training in their driving school program. In
this the trainee gets train using simulation, this helps them gain real-time experience of driving
on the roads. The simulator has all the required controls such as accelerator, break, clutch, hand
break, indicators, passenger seat, steering wheel, etc.

The simulator has a curved screen which helps the trainee to feel like they are driving a real car.

Need for simulator

According to the Motor Vehicles Act and the CMVR, a trainee must spend 10 hours on the road
to master driving abilities. It is difficult for a newbie to achieve the required skill level in such a
short period of time. As a result, Maruti Suzuki Driving School has developed and begun to use
simulators in order to save time.

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Benefits of Simulator
When students first use a simulator, they can select the control they want to practice with. The
simulator is in charge of the remaining controls.

The dimensions of a simulator are created in such a way that all controls resemble those of a real
Maruti Suzuki car. As a result, the trainee is aware of the exact location of the pedals. For
example, by simply laying one's hand on the gear level, one may identify the gear.

Once the controls are mastered, the pupil can concentrate on mastering more difficult moves.
Lane changes, overtaking, merging with traffic, and driving on roundabouts are just a few of
them. This improves the trainee's confidence while also improving the training experience.

Limitations and Problems of Digital Transformation in

Maruti Suzuki

 Lower customer traffic or footfall at the dealership:

Customers can browse vehicles online before visiting the showroom due to Maruti
Suzuki's digital or online portal. Customers visiting the showroom to inspect the
automobile have decreased as a result of this. This is a drawback for the dealership.
 Judging the automobile without seeing it:
Because of this, customers judge the car online and compare its features to those of
competing cars, and occasionally decide not to see the car in person. Customers suffer as
a result of this because they are unable to physically inspect the vehicle and experience
its characteristics, resulting in a decision being made without first seeing the vehicle.
 Increased price:
Maruti Suzuki introduced simulation training in it driving school programme. Due to this
they have to charge more fees compared to other driving school. This gives them a
disadvantage of losing customers due to higher fee.
 Budget Constraint:
It requires a lot of money to run an online platform of big companies. Maruti has to spend
more money than compared to expenditure before the introduction of online platform.
 Expense on technology:
Maruti franchises have to spend money to acquire technology or equipment to run their
driving schools, which might increase the expenditure and also have to spend money at
regular intervals for upgrades and software updates.

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CHAPTER 3

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Recommendations and Suggestions

 Increase the quality of cars
 Focusing more on how to attract customers to visit showrooms to view cars.
 Introducing options or choice at driving schools.
 Introducing more digital elements in the functioning of the company
 Focusing more on digital transformation.

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CHAPTER 4

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Learning experience
 Acquired knowledge of what digital transformation means.
 Acquired knowledge of the significance of digital transformation
 Discovered how digital transformation may benefit a business or industry.
 Discovered Maruti Suzuki.
 Gained knowledge of Maruti Suzuki's pre-digital transition state.
 Discovered how Maruti Suzuki used digital transformation to flourish and compete with
their competition.

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