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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
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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
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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
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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
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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
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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
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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
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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
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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
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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!!!
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