Maruti Suzuki1) What were the business challenges facing Maruti Suzuki management prior to adopting the oracle suite?
India is now one of the largest car markets around the world, and Maruti Suzuki is the leader of this market. In the early 2000’s, Maruti Suzuki diversified: this car manufacturer and dealer added finance, leasing, insurance and pre-own car business. Maruti Suzuki was facing a big challenge: the explosive growth and the diversification were creating an information management challenge.
Moreover, India is a very large country and the growth of Maruti Suzuki had to be followed by a better integration of the information management whereas it used various home-grown systems which were unable to communicate together and so needed huge staff to coordinate data.
So to tackle these 2 related challenges – growth and efficiency- Maruti Suzuki chose to change its information management system and called Oracle.
2) What advantages does Maruti Suzuki derive from working with a single vendor, Oracle? What are the possible risks of working with a single vendor?
Only on supplier: if the core business doesn’t rely on the IS, if it is a supportive activity
The core of your competition is Is, you have to have many suppliers in order to stimulate competition and keep your competitive advantage.
Working with a single vendor like Oracle has 3 main advantages:
* You buy a complete suite and you know that all the components of your information system are able to communicate, assuring transparency and efficiency.
* Oracle has also a consulting service. Consultants perfectly know the product and are able to assist managers during implementation to avoid any problems and prevent the company of any interruption. Moreover, they are a links with the development team, which will create improvement and new modules when Maruti Suzuki will expand, diversify or have new needs.
* Oracle consulting also ensured a smooth transition by advising on process changes and...