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A secondary research based case study on implementation of Oracle based ERP system
Subsidiary of Suzuki Motor Corporation Leader of market for 20+ years
Sales 1.13 million
Largest sales and service network in India
300 strong dealer network scattered across India
Manufacturing and sale of motor vehicles and spare parts Added finance, leasing, insurance and pre-owned car businesses to its portfolio
MARKET SHARE OF MAJOR PLAYERS IN PASSENGER CAR SEGMENT(2010-2011) .
PRE ERP SCENARIO Deployed an extensive extranet to reach business partners in 1990 Small application running on the dealers' PCs to manage their daily activities Home-grown systems for managing various lines of business Different divisions followed different workflows preventing real-time access to critical statistics Reliance on rudimentary system and basic spreadsheets to manage the process Used mismatched systems to manage expanding workforce .
GROWING NEEDS OF MARUTI Addition of four new business sectors in 2002 Operations across hundreds of locations within India Disparate systems could not talk to each other Various lines of business were using homegrown systems Requirement to enter data multiple times Constant monitoring and human intervention .
GROWING NEEDS OF MARUTI Lack of control over processes Poor information quality Huge turn-around time Collaborate with global teams Streamlining the process of vehicle localization Enhancing quality and reliability .
WHY ORACLE ERP Open architecture of Oracle components made simplified integration with Suzuki‟s system possible Already had Oracle Database. Oracle Application server Used some of resource planning modules of Oracle EBusiness Suite With Oracle the company would be able to standardize the technology used .
IMPLEMENTATION: PHASED OR BIG BANG? Maruti chose a phased approach to make a shift from the legacy systems to the new ERP BIG BANG • No need for temporary interfaces • Limited need to maintain legacy • software • Cross-module functionality • No going back • Lower cost if no surprises PHASED • Smoothing of resource requirements • Able to focus on a particular module • Legacy system fall back • Reduced risk • Knowledge gained with each phase .
IMPLEMENTATION – PHASE 1 Project Team Project Governance Organization Readiness Project Organization Phase 1 Project Kickoff .
IMPLEMENTATION – PHASE 2 BUSINESS REQUIREMENT DOCUMENT A business requirements document (BRD) details the business solution for a project including the documentation of customer needs and expectations Objectives : •To gain agreement with stakeholders •To provide a foundation to communicate to a technology service provider what the solution needs to do to satisfy the customer‟s and business‟ needs •To provide input into the next phase for this project •To describe what not how the customer/business needs will be met by the solution Packaging the BRD: •Project charter information. scope. and objectives •Current environment assessment •Future process map •Process detail table •Overall project business rules and constraints •Impact assessment (fishbone for process functions) •Functional requirements •Schedule and budget •Approver information •Team information .
IMPLEMENTATION – PHASE 3 • Project Planning –Detailed implementation pla n. resource plan. financial plan prepared • Design & Development • Based on analysis of the existing process. simplifying or creating new ones where required • Configuration of the new systems. quality review plan. interfaces and supporting legacy systems • Setting up of business rules along with approval matrix • Controls – Regulatory. Statutory and Financial built into the system • Methodology of Implementation – Single Instance with Phased approach of implementation followed region wise .
IMPLEMENTATION – PHASE 3 Data Migration Identify the data Collate the data Consolid ate Clean & Verify Conditio n Create & Verify Migrate & Verify Unstructured Data Manual Forms Excel Files Legacy Systems Ledgers Word Documents • Identifying the owner of various data sources • Data collection and removal of redundant data • Checking for data integrity • Making suitable modifications to fit the standard format • Verification of data with original after migration .
IMPLEMENTATION – PHASE 3 Testing Developing scenarios as test cases based on users previous experiences Creation of testing team and development of the test environment Define all business transactions or business processes that use the system Define expected results for all testing scenarios Build tools for comparing results in the parallel test phase to match the ERP to legacy system data Unit Testing Integration Testing System Testing UAT Conference Room Testing .
Daily improving upon any Activities. Strategi & process Company Specific ones User Guides Scenarios Simple features such as ease of navigation to complex functionalities covered Pilot Simulation Making users aware of the impact of their operation of the system on related functions Retraining of users after a period of 1 week to ensure that there are no gaps in understanding of the system . Monthly gaps in training Activities.IMPLEMENTATION – PHASE 3 Training Comprehensive training provided to each stakeholder as per their usage of the system “Train the Trainer” program created to propagate the usage of the system and developing familiarity of its features Obtaining user Scenarios cover Walkthrough feedback and Operational.
teams and organizations from an Existing Current State to a Desired Future State • Goal – To provide a structure necessary to effectively prepare the Human Capital for Change • Hard Facts which were considered at Maruti• 42% Leadership Issues • 27% Cultural Issues • 23% Technology Issues .CHANGE MANAGEMENT Change management is a structured approach to transitioning individuals.
Institutionalize the change Create Urgency Build on the change Form a powerful coalition Change Management Model Create short term wins Create a Vision Remove obstacles Communicate the Vision .
RISK MITIGATION Phased stepby-step implementation approach and not „Big-Bang‟ approach Developing adequate Contingency plans Training of users and employees to uniform standards Reinforce • Celebrate success • Analyse feedback to manage resistance .
POST IMPLEMENTATION BENEFITS Single. in-strata system Smart and Process Oriented Workforce Tight integration for real-time performance Budget and credit checks completed online Lowering support and maintenance costs Easy upgrades for the future Provide end-to-end visibility . integrated.
WHY ERP PROVED SUSTAINABLE FOR MSIL .
WHY ERP PROVED SUSTAINABLE FOR MSIL .
WHY ERP PROVED SUSTAINABLE FOR MSIL .
FUTURE DIRECTION Appraise Oracle Advanced Supply Chain Management and Oracle Enterprise Asset Management Suppliers to be adopting cloud ERP A Cloud ERP to make the company truly integrated in the global sense video from Oracle consultancy: Maruti Suzuki Drives Business Growth on a Full Oracle Stack.flv .
high performing ERP system” “Maruti Udyog Limited: A bumpy road ahead”.REFERENCES The official website of Maruti Suzuki India Limited Oracle Consulting case study. (April 2009).M. oppapers. 2nd Edition Hammer. 2001 “E business strategy of car industry” Maruti Suzuki case study. Alexis. Harper Collins. K. (2008).. London Ford. Reengineering The Corporation: A Manifesto For Business Revolution. ERP Demystified. Majumdar. Vision. M. Gupta. Harvard Business Review ..P. ”Maruti supports business growth with scalable. Laurie W..J. 2008. Managing Yourself: Decoding Resistance to Change.com Leon . Jeffery D. Champy. and Ford.January 2006 S.the journal of business perspective Vol 10. (1993).
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