The challenges facing Maruti Suzuki management prior to adopting the oracle suite is India at the time was one of the largest car markets in the world and Maruti Suzuki was the leader of that market. Maruti Suzuki then began diversifying their market by adding financing, leasing, insurance and pre-own car business to it. Due to the size and complexity of their organization, Maruti Suzuki was having a difficult time maintaining their explosive growth and was not able to efficiently managed their information management systems.
Part of their challenge stems from the fact that a lot of their information systems came local home-grown systems in India and they were not able to communicate in sync which each other leading Maruti to have extra staff in order to coordinate data. 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?
The advantages that Maruti Suzuki derive from working with a single vendor is when buying information systems, they will have a unified software that will be able to communicate and cut out the need for additional staff for coordinating data. Oracle also has a consulting service that can provide Maruti Suzuki managers with any information or knowledge during the implementation in order to have the transition smoothly switch over from the old information system without any interruptions.
The possible risk of working with a single vendor is that you becoming totally dependent on their services. If down the road you find out that their product is not exactly what you wanted the cost of having to switch things out can be quite expensive. Not to mention the single vendor can also raises their fees over time since you are already bought into their program you don’t have much choice but to pay the new prices or risk interruptions in your services.
What were the important business factors which management used to evaluate Oracle’s database offerings? The important business factors which management used to evaluate Oracle database offering are they evaluated Oracle’s suite’s capacity to integrate their systems without interruption. Then, managers were able to quantify their benefits in flexibility and time. 4. Why was it important that a vendor’s products be able to integrate with legacy systems?
It was important that a vendor’s product be able to integrate with legacy systems because Maruti Suzuki had several different systems before they switched over to Oracle so it was of the upmost importance that Oracle had been able to integrate their various systems without interruption thanks to the modular structure of Oracle suite. Since Suzuki having such a big and diversified company, they are dealing with huge volumes of business everyday so by having any interruptions which have a devastating effect on their business. 5. What are the business benefits reported by management to using the Oracle suite of products?
The business benefits reported by management from the use of the Oracle suite of product are standardized practices across enterprises, making data immediately available online without needs of batches processing, the enterprise performance management system provides immediately data, decrease the turnaround time in producing consolidation accounts, more management flexibility with the HR suite, Oracle responds to Maruti future needs step by step, and provided the human resources staff with greater control over recruitment, payroll, compensation management leave management competency assessments, and staff development.