KT ERP story with EAI

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KT ERP story with EAI
Management Information System

• 2006. 06. 15.
• Team 6
• Kim Dae-sik,
• Lee Byung-gu,
• Kang Sun-pyung,
• Lee Han-gyul

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Contents

• Introduction of KT
• The background of ERP implementation
• The purpose of ERP implementation
• 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
Purpose
to reduce the lead time of closing accounts
to establish the user-oriented finance process
to integrate the supply chain and procurement
systems
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4. The process of ERP implementation -
Technology (1)

• 5 Key success factors
• Select Oracle ERP through an open tender
• A thorough preliminary examination for the
  solution
• Positive supports from other systems around ERP
• Risk management through Quality Assurance (QA)
• a formulated data standardization

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4. The process of ERP implementation - User (2)

Conducting workshops for about 36,000
system-users in the company
The original users ignorance resistance
against the new ERP system
Encouraging inducing directors voluntary
participations

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5. BPR through ERP system Finance (1)

• Improving the budget management process
• Reducing the lead time of closing accounts
• Developing a new closing account systems
• 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)

• Sharing information with suppliers
• Implementing the Internet Procurement (iP) system
• Improving the warehouse transportation system
  for the distribution channel
• 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
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
SCM
Finance
Inventory
Increased the value of the company at about 270
billions won for 5 years
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7. Conclusion

• KT ERP implementation projects with EAI
• Expanded financial ERP into distribution
• Integrated departments and functions across a
  company into one computer system with ERP
• Successfully integrated all the applications for
  an entire enterprise with EAI
• 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
• http//www.oracle.com/global/kr/customers/profiles
  /kticis.html - KT case from Oracle Corporation
  website
• KT ERP Story, KT ERP Project team, 2005
• Hong, Jung-gi, EAI implementation strategies and
  cases, SISA computer, 2002

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Q/A

• Thank you!!!