`Midnight Hour`Why Indian Domestic Market

Is important Now?

Rajesh Uppal Chief General Manager

Information Technology and Sales & Distribution ruppal@maruti.co.in

Economic Downturn

Auto Industry

Financial sectorExports

Retail Industry

Telecom Industry

IT Services

IT Outsourcing

Manufacturing Industry

Construction Industry

Impact of Global Financial Crises in Asia

Transportation

CIO Priority in Economic downturn

• Investing on extracting business value – IT Budget to be cautiously optimistic– Facilitate leaner operating models– Increase business productivity– IT Metrics for quick decision making – Close analysis of Supply & demand data– Shared Services to gain efficiency of scales & greater controls

• Optimizing operational IT cost– Reviewing IT operating procedures and renegotiating the contracts– Evaluate the mix of fixed and variable IT costs– Outsourcing to reduce maintenance costs– Modernizing IT operations & infrastructure

IT new investments in light of how they will help reduce cost in the business overall, rather than chasing revenue growth

CIO strategies The need to reduce cost and improve performance

4

* Item not included this year * Source Gartner

CIO’s plan To harvest the value from core technologies

5

* Item not included this year * Source Gartner

IT Footprint of Maruti Suzuki

• Lean Inventory– Operates on less than one day domestic inventory

– Average FG inventory of 2~4 days

• Market Pulse– Connecting 798 dealers and service outlets

– Online sales

– Online Insurance

• Efficient Planning– 2100 cars a day, >300 suppliers, 11 models, variants, colours, ~300

locations, 400 transporters, >2000 trucks

• Faster processes – Time taken for material gate entry process at MUL- 4 sec -> compared

to may be few minutes in other cases

• Better Decision Making– Information Dashboard for Top management

Opportunities ‘Domestic Market’

• Scope of IT in SME segment– Niche products required– Revolutionary business models– Innovative solutions with high performance and low cost

• People Competency in India– Creative ideas– Optimization solutions

• Inherent cost conscious Approach– Cost effective solution– Easily configurable solutions

IT offering for Globe

• World-class cost effective solutions to gain the innovation edge in an increasingly competitive market

• Niche Product to run our businesses in diverse and rapidly changing environments and yet maintain its identity

• Innovative business model (SaaS) to provide cost effective IT to SME’s

World is convergingIT solutions can be augmented globally

Lifespan of an innovation is very short, rivals catch-up fast. To stay ahead in the

Race…

Keep the wheel spinning