Honam Petrochemical's Quest for Better Management Reports

Presentation for a Case Study in "Introduction to Information Systems" course.

Transcript

1. Çağrı Sarıgöz Honam Petrochemical’s Quest for Better Management Reports
2. Lotte Chemical Corporation • Incorporated on March 16, 1976 with name “Honam Petrochemical Corp.” • Headquartered in Seoul (South Korea) • Overseas branches in Hong Kong, Russia, and USA, along with the sales corporation in China • 4,556 employees at 2015, was 1,700 at 2011 • Market Cap: $6.8 Billion as of May 2015 Had 2 mergers & 6 acquisitions in last decade: • 2004 - 2010: Acquired 6 companies from Korea, UK, and Malaysia • On January 1, 2009, the Company merged with Lotte Daesan Co., Ltd. • On December 27, 2012, the Company merged with KP Chemical Corp. ◦ Changed its name to “Lotte Chemical Corporation” Sources: http://english.lottechem.com/contents/financial/annualreport.asp http://www.forbes.com/companies/lotte-chemical/
3. Overseas Branches & Sales Locations of Lotte
4. Market Performance of Lotte - Lotte Shares in KRW vs USD/KRW Rate Source: http://www.bloomberg. com/quote/011170:KS
5. Financial Metrics of Lotte Source: http://english.lottechem.com/contents/financial/summaryFinance_01.asp
6. The problem - Need for Management Reports • The company was expanding globally in the beginning of 2010s • Needed reliable reports to ◦ Measure management performance ◦ Provide useful, accurate information to increase profitability
7. The problem - Existing System • Data in the reports were out-of-date • Individual managers were manipulating performance data to “look good” ◦ The biggest “people” problem about the system (*Q2 - Part 1) • Data were presented only on periodic basis
8. The problem - What Executives Wanted ★ Q1 - Information Requirements • Anytime access to ◦ Accurate ◦ Timely ◦ Relevant data • Cross platform access to data via ◦ Web ◦ Mobile devices • Enterprise-wide data accessed and shared easily across business units ◦ to support global expansion
9. The Solution - New Reporting System Integration of New Technologies on already used SAP’s ERP system • SAP BusinessObjects Dashboards ◦ Performance management, planning, reporting, query and analysis, and enterprise information management ◦ Provide self-service access to data from databases and Excel spreadsheets • SAP BusinessObjects Web Intelligence ◦ Ad hoc query, reporting, and analysis tool ◦ Used to create queries or use existing reports, format retrieved information, and perform analysis to understand trends and root causes. ★ Q5 - Tools
10. The New System - Issues to be Addressed ★ Q2 - Part 2 • Management ◦ Developing new business processes ◦ Monitoring implementation of the system ◦ Allocation of human and financial resources • Organization ◦ Training end-users of the system ◦ Cultural changes: Faster, Data-driven • Technology ◦ Building the system according to Information requirements ◦ Making it user-friendly
11. The New System - User Friendly Design ★ Q2 - Part 3 • Highly intuitive web-based user interface ◦ very accessible system • Required little training on how to use the system
12. The New System - End Users & Other Steps ★ Q3 - Involvement of End Users • Interview and discuss with involved departments ◦ Processing and reporting the relevant data • Run campaigns to make sure managers are using the new system Without involvement of end users, the new system could have • Less refined & less relevant data for decision making • Inaccurate or untimely data appearing on executives’ dashboard ★ Q4 - Other Steps • Benchmarking with other companies ◦ Similar data and performance indicators
13. The New System - Phased Approach ★ Q5 - Methods • Phased Approach ◦ Waited for gaining experience on the new system ◦ Making sure that data is accurate and timely ◦ Then push the new system on executives’ dashboards
14. Impact - Benefits & Changes ★ Q6 Immediate benefits • Executives no longer were limited to sanitized, stale data in an outdated presentation format. • Management discussions and decisions are based on timely, consistent, and accurate company- wide data. Changes in the way company operates • Personalized and differentiated dashboards and reports for ◦ High-level executives ◦ Middle Managers ◦ Front-line employees • Data-driven decision making supporting global expansion
15. Thank You