KT ERP story with EAI 2006. 06. 15. Team 6 Kim Dae-sik, Lee Byung-gu, Kang Sun-pyung, Lee Han-gyul...
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Transcript of KT ERP story with EAI 2006. 06. 15. Team 6 Kim Dae-sik, Lee Byung-gu, Kang Sun-pyung, Lee Han-gyul...
KT ERP story with EAIKT ERP story with EAI
2006. 06. 15.
Team 6
Kim Dae-sik,
Lee Byung-gu,
Kang Sun-pyung,
Lee Han-gyul
Management Information System
Management Information System
Contents
1. Introduction of KT
2. The background of ERP implementation
3. The purpose of ERP implementation
4. The process of ERP implementation
– Technology / User
5. BPR through ERP system – Finance / SCM
6. Implementation effect
7. Conclusion
Management Information System
1. Introduction of KT
Established in 1981
The largest provider of high-speed internet, local, long-distance and international call services in Korea
Completely privatized in 2002
Selected as top company in corporate governance excellence for Asia in 2003
Management Information System
2. The background of ERP implementation
Transferred to a privatized company (in 2002)
1st project - Implemented ERP on the Financial departments (Integration failure)
2nd project - Expand the ERP system from finance into other functional department
- including EAI system
* EAI (Enterprise Application Integration): A software used to
connect & integrate major e-business applications like CRM and ERP
Management Information System
3. The purpose of ERP implementation
to reduce the lead time of closing accounts
to establish the user-oriented finance process
to integrate the supply chain and procurement systems
Purpose
Management Information System
4. The process of ERP implementation - Technology (1)
5 Key success factors
1. Select Oracle ERP through an open tender
2. A thorough preliminary examination for the solution
3. Positive supports from other systems around ERP
4. Risk management through Quality Assurance (QA)
5. a formulated data standardization
Management Information System
4. The process of ERP implementation - User (2)
The original users’ ignorance & resistance
against the new ERP system
Conducting workshops for about 36,000 system-users in the company
Encouraging & inducing directors’ voluntary participations
Management Information System
5. BPR through ERP system – Finance (1)
1. Improving the budget management process
2. Reducing the lead time of closing accounts
3. Developing a new closing account systems
4. Implementing an electronic approval (signature) system
provided financial data quickly & supported fast decision-making
Management Information System
5. BPR through ERP system – SCM (2)
1. Sharing information with suppliers
2. Implementing the Internet Procurement (iP) system
3. Improving the warehouse & transportation system for the distribution channel
4. Implementing a Bar-code system
Integrated the distribution channel, increased the productivity of the process & reinforced the mutual relations with suppliers
Management Information System
6. Implementation effect
Increased the value of the company at about 270 billions won for 5 years
SCM
Finance
Inventory
Reduced the lead time from 45 days to 17 days
Reduced the time for closing accounts from 15 days to 5 days
Increased the annual inventory turnover from 6 to 10 times
Management Information System
7. Conclusion
KT ERP implementation projects with EAI
1. Expanded financial ERP into distribution
2. Integrated departments and functions across a company into one computer system with ERP
3. Successfully integrated all the applications for an entire enterprise with EAI
4. Increased the flexibility of the system for implementing a new system in the future
Management Information System
7. Reference
KT ERP implementation projects with EAI
1. http://www.oracle.com/global/kr/customers/profiles/kticis.html - KT case from ‘Oracle Corporation’ website
2. ‘KT ERP Story’, KT ERP Project team, 2005
3. Hong, Jung-gi, ‘EAI implementation strategies and cases’, SISA computer, 2002
Management Information System
Q/A
Thank you!!!