1. INFORMATION SYSTEMS MANAGEMENT FOR BUSINESS
REPORT ON:
Submitted by-
DM|C – 1st Year Group 7
Ojasvi Bhartiya (17DM155)
Pallavi Singh (17DM156)
Rishabh Agarwal (17DM185)
Rishabh Malhotra (17DM186)
Sandeep Bansal (17DM207)
2. INTRODUCTION OF THE COMPANY
Maruti Suzuki was established in 1982 in Gurgaon, Haryana with a belief of “small cars big future”. It
entered the automobile industry with it’s hot selling product, Maruti Suzuki 800 and at present Maruti
Suzuki makes 1.5 million family cars every year i.e., 1 car every 12 seconds. Team of over 13,200
employees have contributed in making 15 cars with 150 variants. It provides nationwide service network
to over 1500 cities and towns. And its Sales network is spread across 1471 cities.
The ultimate aim and mission of Maruti Suzuki is to become the leader of the Indian Automobile Industry,
and Creating Customer Delight and Shareholder’s Wealth. Maruti Suzuki has very strong and stable values
mentioned below:-
• Customer Obsession
• Fast, Flexible & First Mover
• Innovation & Creativity
• Networking & Partnership
• Openness & Learning
ORGANIZATIONAL CULTURE
Maruti Suzuki has a very detailed and well defined organizational culture just like most of the companies
in the industry.
Top management of the company consists of CEO, Managing Director and Joint Managing Director. They
directly manage two of the most important departments of the company, Administration (HR, IT, Finance)
and Marketing and Sales department. To extend the structure further, Marketing and sales heads various
departments in the company like Engineering, Quality Assurance, Supply Chain and Production.
SEGMENTATION, TARGETING AND POSITONING
Maruti Suzuki caters to the needs of all the segments b manufacturing all the car variants required by
different segments. Out of all the segments, its target market is Indian urban and semi-urban middle class
and upper middle class and has positioned itself as No.1 automobile brand with strong legacy
PRODUCTS
With a total of more than 15 products manufactured by Maruti Suzuki as on date, it has managed to
diversify itself in many segments of the industry. Starting with the inexpensive and mass product like Omni
and Alto 800 to a luxury segment of cars with the range of Ciaz and S-Cross.
3. SERVICES
Maruti Suzuki has expanded its market share with the help of a number of services provided to car
enthusiasts. With a service network of more than 1800 outlets in 1471 cities in the country and 3145
service stations, Maruti has successfully created the largest service network in the country. Another
innovative service provided by the company is of Express service stations wherein on road assistance is
provided to the customers.
Most important part after the purchase of car was to get its insurance cover and seeking this opportunity,
Maruti Suzuki came up with its own insurance policy schemes in 2002. Capitalizing on the opportunity of
finance availability for customers, Maruti tied up with multiple financial institutions like ABN Amro, HFDC,
ICICI and Kotak Mahindra to provide finance schemes to the prospective customer and saving the
customer’s hustle of looking for finance in other institutions.
Another service provided by Maruti Suzuki is True Value which is set up to create a market for used Maruti
Suzuki vehicles. It provide a ready market to the owners and the prospective owners of used cars which
helps the customers to purchase a used car under the name of Maruti Suzuki. With services like Maruti
driving schools and genuine accessories available in the market, it has helped Maruti in overcoming many
challenges and giving the best experience to its customers.
COMPETITORS
Maruti Suzuki, being in a competitive industry has to face challenges and competition from many other
companies. Its competitors include Honda Motors, Toyota Motor Corporation, Nissan Motors, Hyundai
Motors, Fiat, Mitsubishi Motor Chevrolet, Tata Motors, Skoda Auto, Volkswagen, Ford Motor Company.
Due to such a high number of competitors in the market, Maruti Suzuki has to keep itself up to the mark
with the technology available in the industry and the technologies used by the competitors.
PROBLEMS BEFORE THE IMPLEMENTATION OF TECHNOLOGY
Before the implementation of technology, company used traditional systems which posed many
challenges and limitations discussed below:
1. Systems were inefficient and were not able to communicate with each other which led to multiple
entries of same data and increased redundancy and the need of manual work.
2. Lack of control over processes which hampered the staff in generating results and reports.
3. Company added 4 new business lines in 2002, which required proper heed, thus making it difficult
to manage the entire business processes efficiently.
4. Company also faced poor information quality and huge turnaround time as there was no real time
access to information.
TECHNOLOGICAL INNOVATION
In order to integrate the information and processes of Production, Finance and other supply chain
departments, Maruti Suzuki deployed Oracle E-business suite 11 for Finance, HRMS and indirect
4. procurement related modules, which have been thoroughly integrated with the other systems pertaining
to production, supply chain and sales etc.
Maruti Suzuki also invested in Hyperion which is used to analyze the budgets across Maruti’s 9
subsidiaries. It also helped the company to conduct financial reporting in compliance with the GAAP
(Generally Accepted Accounting Principles) in India. With the use of Hyperion, Maruti Suzuki improved its
forecasts and also started responding quickly to the changes in the market conditions thus enhancing their
competitiveness. It also deployed Operational as well as Analytical CRM applications.
With the implementation of ERP, Maruti Suzuki was able to centralize its data and made it accessible to
all the departments and divisions ensuring consistency and accuracy.
Maruti Suzuki adopted Oracle Business Suite and Hyperion Enterprise to build its EPR and financial
accuracy and aimed at achieving business excellence through IT innovations
ADOPTION OF CRM
Company adopted various kinds of CRM applications to improve its efficiency. It focused mainly on 2 types
of strategies, namely: Analytical and Operational. Strategic and Philosophical views of the company
helped them to develop successful applications which in turn helped the company to avoid data
redundancy and inconsistency. Data mining and text mining was possible post implementation of CRM
applications.
Foremost need for any CRM application is the database. For any analysis of data, we need a strong and
authentic database. Analytical CRM focuses on creating database through applications like ATM (Any Time
Maruti), which is a toll free call center. All kinds of information is received through this including Sales
queries, existing customer queries and service complaints. Data collected from these queries is
automatically exported with respective operational CRM software modules.
DMS (Dealer Management System) is an application connected with the central server of Maruti Suzuki
through Extranet. All the dealer queries are logged onto the DMS portal and the same data is migrated to
the MS Dynamics software at Maruti.
Direct Marketing Data Analysis is a way of profiling, segmenting and scoring a customer before pitching
in the marketing strategies. It also includes predictive modeling. These techniques reduce the marketing
costs as only the authentic and genuine prospects are chosen from a large database.
Cross Selling of Various Value Added Services is also a part of Analytical CRM as it helps in customer
retention and increase sales by selling co-related products. Like, in case of Maruti, They sell car accessories
along with the car, which helps the customers to purchase both at one place.
Customer Retention for Service at Dealers can help in increasing the customer satisfaction and thus
retaining customers.
5. OPERATIONAL CRM
Operational CRM provide a support to all the business processes and department to manage and bind
database of its customers in the most effective manner possible.
Campaign management on MSD CRM 4.0 was used to launch the SX4. This helped the company to
position the product in the sedan segment in competition with Honda City. The goal of the marketing was
to select actual and relevant prospects for the actual launch in the upcoming period.
Insights for Dealer Development Division (DDD) and True Value Division were benefitted with the use of
operational CRMs by providing recommendations based on the data received from DMS or Maruti e-site
portal.
Loyalty Card Implementation was an innovative design created for the owners of Maruti cars. Every
referral gets loyalty points in their card which encourages the customer to refer more people. MSD CRM
4.0 helps the loyalty program to track customers and their purchase benefits so that it can recommend
one-to-one marketing through SMSs and e-mails.
SWOT ANALYSIS
STRENGTHS:
Maruti Suzuki is a dominant player in the automobile industry having 45% of the market share. It has
employed over 12000 people and is known for its extra-ordinary advertising and wide product portfolio.
It has a wide distribution network across countries selling its product ensuring minimum lead time and
customer satisfaction. It has created a strong brand image in the market adhering to its values and
commitments. It has a very strong presence in second hand car market. It also have different revenue
streams like Maruti finance, Maruti Insurance and Maruti driving schools. In order to cater to needs of
premium car market, Maruti Suzuki has launched NEXA showrooms.
WEAKNESS:
One of the major weaknesses of Maruti Suzuki is its inability to penetrate into the international market
and make cordial relations with its workers and employees which has tremendously affected the Maruti’s
brand image.
OPPORTUNITY
One of the opportunities at the disposal of Maruti Suzuki is to develop the market for hybrid cars and
more fuel efficient cars.
THREATS
One of the major threat posed, not only to Maruti Suzuki but to the entire automobile industry is
increasing fuel prices and intense competition from global companies.
6. CONCLUSION
In the nutshell, we can say that application of technology, ERP, CRM, Hyperion and related
software have proved to be beneficial for Maruti Suzuki in various aspects. With the
implementation of technology, Maruti Suzuki has been able to effectively integrate all the data
scattered in different divisions and made seamless access to the data possible. Implementation
of CRM has enabled healthy relation between the company and its customers, integrating all the
business processes efficiently.