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

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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

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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

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Q/A

Thank you!!!