CASE 3 Maruti Suzuki Business Intelligence and Enterprise Databases case

CASE 3 Maruti Suzuki Business Intelligence and Enterprise Databases CASE SUMMARY “For the past 25 years, Maruti Suzuki has been the industry leader in India’s passenger car market, the fastest growing in world. Since 1995, Maruti Suzuki has built its IT infrastructure on Oracle database and technologies including Oracle Real Application Clusters, Oracle Fusion Middleware Application Server and Weblogic. Maruti Suzuki has built its Enterprise Resource Planning (ERP) system on Oracle E-Business Suite and added Hyperion Enterprise to further enhance financial consolidation and reporting efficiency.” VIDEO LINK http://www.youtube.com/watch?v=aZWAzbRm-ms CASE CASE Oracle Corporation is a database software company that specializes in developing and marketing enterprise software products. The company was co-founded in1977 by Larry Ellison, a Chicagoan with little formal training in databases but some practical experience working with the nonrelational databases of the period. Through organic growth and a number of high-profile acquisitions, Oracle enlarged its share of the software market. By 2013 Oracle ranked third on the list of largest software companies in the world, after Microsoft and IBM. It has a market capitalization of $166 billion, placing it in the top 20 IT firms in the United States, just behind Coca Cola and JPMorgan Chase bank. Its main competitors in enterprise software today are SAP and IBM. Ellison took inspiration from a 1970 paper written by Edgar F. Codd on relational database systems named “A Relational Model of Data for Large Shared Data Banks.” IBM was developing its own relational database software known as DB2 that operated on IBM mainframes. Ellison and Oracle began developing their relational database software on UNIX and later Windows operating systems. You may find some of the terms used in the video are new and refer to specific elements of Oracle’s suite. Oracle’s Real Application Clusters (Oracle RAC), is an option to Oracle Database 11g Enterprise Edition. RAC supports the deployment of a single database across a cluster of servers located throughout the firm providing fault tolerance, performance and scalability with no application changes necessary.

Oracle’s Fusion Middleware is a set of software services (applications) that enable multiple applications in a firm (often from different vendors) to work together by sharing information. Socalled “middleware” can be purchased from many large vendors like IBM, HP, Microsoft as well as from thousands of smaller suppliers. The software consists of a set of enabling services that allow multiple processes running on one or more machines to interact across a network. This technology evolved to provide for interoperability in support of the move to coherent distributed architectures, which are used most often to support and simplify complex, distributed applications. It includes Web servers, application servers, and similar tools that support application development and delivery. Middleware is especially integral to modern information technology based on XML, SOAP, Web services, and service-oriented architecture. Most important, middleware enables a firm to retain older legacy systems and put them to use in a modern, distributed, TCP/IP communications oriented environment.” Hyperion is a performance-oriented management software, sometimes also called business intelligence software. It is an application that works with Oracle databases and Oracle data warehouses to provide real-time data, as well as periodic MIS reports to managers. Hyperion supports near real-time transaction reporting, graphics and summaries of data, and management dashboards. Together these tools make up Oracle’s “E-business suite.” Tugas Anda 1. Membuat Summary didalam bahasa indonesia yang baik dan benar tentang kasus ini 2. Menjawab pertanyaan kasus dibawah 3. Mengumpulkan melalui canvas menggunakan single file pada tanggal 11 Mei 2014

Pertanyaan Kasus 1. What were the business challenges facing Maruti Suzuki management prior to adopting the Oracle suite? 2. What advantages does Maruti Suzuki derive from working with a single vendor, Oracle? 3. What are the possible risks of working with a single vendor? 4. What were the important business factors which management used to evaluate Oracle’s database offerings? 5. Why was it important that a vendor’s products be able to integrate with legacy systems? 6. What are the business benefits reported by management to using the Oracle suite of products?

) 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 providing training programs.

The main risk of working with a single vendor is to become dependent to him, especially in the “ERP” field are switching costs are high. If he knows that without him you are facing a critical situation, you lose your negotiation power and will be vulnerable to increasing price for example. 3) What were the important business factors which management used to evaluate Oracle Database offering? First, 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 product be able to integrate with “legacy system”? Oracle was able to achieve a seamless integration with the legacy system. In this case, Maruti Suzuki managers were happy because Oracle had been able to integrate their various systems without interruption thanks to the modular structure of Oracle suite (for example for E-Business or Hyperion). For such a big and diversified company, which deals with volumes, having an interruption could have led to a huge loss of time and accuracy which would have been translated into financial losses. 5) What are the business benefits reported by management to using the Oracle suite of product? * Introducing standardized practices across the enterprise * 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 will be able to responds to Maruti Suzuki future needs step by step * Gained deep insight into financial performance by using Hyperion to analyze budget sand consolidated accounts * Provided HR staff with greater control over recruitment, payroll, compensation management, leave management, competency assessments, and staff development

Di era industri mobil yang sudah cukup lama ini dimana perkembangannya tdak dapat di prediksi dan diperkirakan. Pada tahun 2007 perkembangan mobil penumpang stabil pada angka 50% menjadikannya sebagai jenis mobil dengan presentase perkembangan yang paling cepat. Maruti Suzuki adalah anak cabang dari perusahaan Suzuki Di jepang . perusahaan ini adalah sebagai pemimpin pasar pada segmen mobil penumpang. Untuk tetap dapat mempertahankan posisinya dan untuk memperbaiki layanannya maka Maruti Suzuki bekerja sama dengan Oracle’ untuk dapat mengendalian bisnisnya. Maruti Suzuki bukan hanya sebagai pabrik manufaktur namun juga sebagai perusahaan perawatan dan pemeliharaan kendaraan nya. Oleh karena itu sangatlah diperlukan sebuah system yang dapat mengatur segala hal tersebut. Maka maruti bekerja sama dengan Oracle. Perusahaan Maruti Suzuki pun mengadopsi system yang dimiliki oleh Oracle’ seperti : Oracle Real Application Cluster ( Oracle RAC ) , adalah pilihan untuk Oracle Database 11 Enterprise Edition . RAC mendukung penyebaran database tunggal di cluster server di seluruh perusahaan memberikan toleransi kesalahan , kinerja dan skalabilitas tanpa perubahan aplikasi yang diperlukan . lalu ada pula Oracle Fusion Middleware adalah satu set layanan perangkat lunak ( aplikasi ) yang memungkinkan beberapa aplikasi di sebuah perusahaan (sering dari vendor yang berbeda ) untuk bekerja sama dengan berbagi informasi dengan perusahaan. Dengan software tersebut maka dapat dipastikan Maruti Suzuki dapat membangun sebuah system jaringan dengan skala besar yang bekerja secara online untuk dapat memantau segala kegiatan di perusaan tersebut. Untuk mengendalikan dan mengimplementasikan bisnisnya Maruti Suzuki pun menggunakan Oracle E-Business Suite sebagai basis system ERP yang lebih mudah untuk digunakan dan lebih fleksibel. Dengan menggunakan Oracle Suite terdapat beberapa manfaat antara lain :memudahkan control dalam produksi. Sistem manajemen kinerja perusahaan segera memberikan data, mengurangi waktu penyelesaian dalam memproduksi rekening konsolidasi Fleksibilitas manajemen Lebih dengan HR Suite, Oracle akan dapat membantu Maruti Suzuki dalam perencanaan masa depan melaui langkah demi langkah. Dan pada kenyataanya Oracle telah membantu Maruti Suzuki dalam menjalankan Bisnis tersebut.