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Maruti Suzuki India Limited Ebs Case Study

Maruti Suzuki India Limited Ebs Case Study

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Oracle Customer Case Study
Maruti Supports Business Growth with Scalable,High-Performing ERP System
 
Maruti Suzuki India LimitedNew Delhi, India
Copyright © 2008, Oracle. All rights reserved.Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. Published June 2008
 
Industry:
Automotive
Annual Revenue:
US$3.35 billion
Employees:
More than 5,000
Oracle Products & Services:
Oracle FinancialsOracle PurchasingOracle Human ResourcesOracle Self-Service HRHyperion Enterprise 5.5.1
Implementor:
 Oracle Consulting
“The open interfaces of Oracle E-Business Suite offered the bestintegration with our legacy systems. Standardizing on Oracle technology and applications would also lower support costs and ensure easy upgrades in the future.” – Rajesh Uppal, Chief General Manager, Information Technology, Maruti Suzuki India Limited 
Maruti Suzuki India Limited has led India’s car market for morethan a quarter of a century. First established in 1981, the companyis now a fully-fledged subsidiary of the Suzuki MotorCorporation. Its principal activities include the manufacture andsale of motor vehicles and spare parts via a 300-strong dealernetwork scattered across India.The year 2002 saw Maruti add finance, leasing, insurance, andpre-owned car businesses to its portfolio, increasing the scale of its operations and prompting a review of its processes andsystems.Oracle Consulting was engaged to install a number of Oracle E-Business Suite modules and integrate them with Maruti’s existingsystems. The eight-month project involved managing up to 50people, including Maruti staff, Oracle consultants, and employeesof third-party organizations. Oracle also assisted Maruti withchange management, a critical part of the process to ensure quick user acceptance.Thorough project management by Oracle Consulting enabledMaruti to go live on the Oracle applications without anyinterruptions to its business. By standardizing on a single Oracleplatform, the company achieved better control of its finance,procurement, and human resources functions. It also gained amore manageable and scalable platform to support its rapidlyexpanding business.
The Need to Strengthen Management Control
Prior to employing Oracle, Maruti used a number of home-grownsystems to manage its various lines of business. Many of thesedisparate systems could not talk to each other, requiring staff to
 
 
Oracle Customer Case Study
Key Benefits:
 
Strengthened management byconsolidating on a singlefinancial platform
Gained deep insight intofinancial performance by usingHyperion to analyze budgetsand consolidated accounts
Lowered procurement costs bystreamlining purchasingprocess
Copyright © 2008, Oracle. All rights reserved.Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. Published June 2008
 
Provided HR staff with greatercontrol over recruitment, payroll,compensation management,leave management,competency assessments, andstaff development
Ensured a smooth rollout byengaging Oracle Consulting tosupervise the design anddeployment of the solution, andmanage the implementationteam
Achieved seamless integrationwith legacy systems, ensuringsenior managers have visibilityinto business performance
Promoted user acceptance bydeveloping extensive trainingprograms to help staff transitionto the new system
enter data multiple times and consolidate information to generatemanagement reports.The addition of four new business sectors in 2002 created furtherpressures, requiring constant monitoring and human interventionto keep the system operating across the hundreds of locationsMaruti serves within India. To support this growth and improveefficiency, the company decided to revamp its informationtechnology systems to provide end-to-end visibility into theorganization.
 
“We were looking for a flexible, expandable system that was easyto manage,” said Rajesh Uppal, chief general manager,information technology, Maruti Suzuki India. “This would reducethe complexity of the IT environment and our reliance on certainpeople to maintain the systems. And because our business isundergoing a period of rapid expansion, it was important to have asystem that could scale easily.”To minimize the impact of the system change on its business,Maruti decided on a phased migration to Oracle E-Business Suite.As a first step, the company decided to replace its financial,purchasing, and human resources systems with Oracle Financials,Oracle Procurement, and a range of Oracle Human Resourcesapplications.Oracle Consulting was selected to supervise the implementation,including determining Maruti’s requirements and developing aproject plan, designing the system, deploying the software,managing the various parties involved, and providing post-implementation support.
Standardization Improves Financial Insight
The problem with using multiple systems to manage finances wasthe lack of control over processes and information quality. Eachoffice followed different workflows, which often meant onedivision lagged behind another in delivering information.Differing data formats required tedious consolidation, preventingreal-time access to critical statistics.With Oracle Financials, Maruti was able to standardize on a singlefinancial management platform. According to Uppal, the companyachieved tight control over accounts payable and accountsreceivable, and gained a comprehensive general ledger that assistsin the management of all financial information.
 
 
Oracle Customer Case Study
“The Oracle application can be used by accounting and financestaff, as well as senior managers,” he said. “We establishedstandardized data formats and processes for staff, resulting ingreater efficiency and less confusion. Financial management ismore disciplined as a result.”Month-end closing is completed within two days, without the fussthat usually accompanies the task. Uppal added that auditing isalso in better shape.“We completed our year-end close on time in March this year,which was fantastic as we had initially been worried that thesystem would not be able to handle the load,” he said. “WithOracle Consulting on site to provide support, the whole procedurewas completed without a hitch.“As our business continues to expand, it is also reassuring toknow that the Oracle system can scale to meet our needs, and canbe easily integrated with other applications in the suite.”
Drilling Down to Details with Hyperion
Maruti has used Hyperion business performance managementsoftware for the past two years to analyze budgets, consolidateaccounts across nine subsidiaries, and conduct financial reportingin compliance with generally accepted accounting principles(GAAP) in India. The system is integrated with Oracle Financialsand is currently used by around 10 budgeting staff in Maruti’sfinance department.“We use Hyperion to complete scenario- and project-basedanalytics,” said Uppal. “The system supports all types of reportingand analysis, giving staff and senior management deeper insightinto our performance as and when they need it. It alerts us topossible problems before they impact our operations and hashelped improve the accuracy of our forecasts. We are able torespond faster to changing market conditions, which boosts ourcompetitiveness.”Oracle’s acquisition of Hyperion in April 2007 is good news forMaruti.“When we implemented Oracle Financials, we found that theapplication integrated easily with the Hyperion system, so therewere no interruptions to the business when we cut over to Oraclefrom our legacy financial system,” Uppal said. “Now that
Copyright © 2008, Oracle. All rights reserved.Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. Published June 2008
 

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