Group Member Name:

Haji Nasseruddin Bin HJ Abdul Jabar P13D142P

Haji Zulkifflee Bin HJ Sofee P13D136P

Chong Min Fatt P13D154P

Lotte Chemical Corporation Company Profile

Honam Petrochemical manufactures a variety of petrochemical products from two facilities in South Korea. Its primary product is ethylene, and Honam ranks among the country's leading producers of polyolefins like high density polyethylene (HDPE) and polypropylene as well as other downstream chemicals like ethylene glycol. The integrated company also operates a naphtha cracker, which supplies the raw materials for its other products. Honam Petrochemical was established in 1976 and is a part of Japanese conglomerate Lotte's Korean network. In 2010 Honam acquired Malaysia's Titan Chemicals for $1.27 billion. While it's publicly traded, various Lotte companies own a majority share in Honam Petrochemical.

Information system problem statement

In old management system of Honam, the reports or detailed document generated were outdated. Previously, the Honam’s management was working on SAP’s ERP system.

In order to increase its business to overseas Honam implemented a new management system. This management system includes SAP Business Object Dashboard and SAP Business Objects Web Intelligence.

1. List and describe the information requirements of HPC’s new management system What problems was the new system designed to solve?

Honam needed reliable reports that could accurately measure management performance and provide useful, accurate information for increasing sales and reducing costs. Executive decision-makers wanted up-to-the-minute reports that they could view quickly on their desktops. They wanted access via the Web or their mobile devices. They also wanted access to enterprise-wide data that could be shared easily across various business units and functions to support the company's expansion geographically and by product line.

The problems Honam wanted to solve included outdated and “sanitized” reports. Individual managers were processing and manipulating data to make their departments “look better” to senior management. The report data were also outdated and only presented periodically. Executives also did not want to be overloaded with unnecessary data.

2. To what extent were “people” problems affecting management decision-making at HPC? What were some of the management organization, and technology issues that had to be addressed by the new system? How did the system’s designers make the system more “people-friendly?”

Management: Managers were sanitizing data to make their departments look better to executive managers. Executives didn’t want each department’s own interpretation of reports. Instead, they want to see current data to get a real view of what was actually happening on the plant floor or in the sales office.

Organization: Executive decision-makers were working with data that were up to three months old. The report data were stale and only presented only on a periodic basis.

Technology: Report data were outdated and inaccurate. Technology was not preventing managers from manipulating data. Some reports included too much data and not enough information. Executives could not access data through mobile computing devices. Executives wanted enterprise-wide data that could be accessed and shared easily across various business units and functions.

The system designers made the system more “people-friendly” by creating interactive analytics for powerful, personalized dashboards in the SAP ERP platform. The software tools can be used for performance management, planning, reporting, query and analysis, and provide self-service access to data from databases and Excel spreadsheets.

3.What role did end users play in developing HPC’s new system? How did the project team make sure users were involved? What would have happened to the project if they had not done this?

End-users appear to have had quite a lot of input into designing the new reporting system. The information systems team asked executives to list existing reports they were already receiving and to assess the usefulness of each. Executives were asked if there were any additional reports or data from which their organizational groups could benefit. The findings were very useful in determining the right set of reports and dashboards for Honam executives.

To encourage users to start working with the system, the information systems people visited various manufacturing plants where the system was being rolled out and had in-depth discussions with executives about the systems' benefits as well as how to use it.

Because the information systems team involved users at the beginning and asked for their input, executives were much more likely to adapt to and use the new information reporting system.

4. What other steps did HPC take to make sure the system was successful?

A very intuitive Web-based user interface was created to make the system accessible. The interface was so simple and well-designed that users required minimal training on how to use the system or access data and reports.

Even after the system was up and running, the information systems department continues to run campaigns to ensure that executives are using the system in the most effective way.

5.What types of system-building methods and tools did HPC use for building its system?

HPC used a phased approach in its system implementation. Rather than pushing a new system onto executives in a direct cutover strategy, HPC waited until the company was experienced with ERP software and confident in its data quality and its data collection and processing methods. According to HPC CIO Jong Pyo Kim, nothing would sidetrack an executive-level system more quickly than inaccurate or untimely data flowing into an executive’s dashboard.

6. What were the benefits of the new system? How did it change the way Honam ran its business? How successful was this system solution?

A highly intuitive Web-based user interface was created to make the system very accessible. The interface was so simple and well-designed that users required minimal training on how to use the system or access data and reports. After the system went live, executives immediately began accessing reports and dashboards on a daily, weekly, and monthly basis. The data are available on mobile devices as well. Delivery of the information is personalized and differentiated for high-level executives, middle managers, and front-line employees.

Executives no longer receive “sanitized,” stale data in an outdated presentation format. Discussions and decisions are based on timely, consistent, and accurate company-wide data. Executive decision making takes place more rapidly.