Hyundai Capital - OLAP (presentation date : 6/20) Group Chunghan Park Modeum Lee Taekbeom Yoo [IMEN381] TP2- Final presentation

1 1.Company and Environment Overview 2.Problems that the firm is faced with 3.OLAP (Online Analytical Processing) 4.OLAP of Hyundai Capital 5.Results and Further Improvements Contents

Company and Environment Overview 2 ■Corporate History –Founded Hyundai Auto Finance Co. Ltd ( ) –Changed company name to Hyundai Capital Services, Inc. ( ) –Domestic credit rating upgraded to AA+ ( ) –JCR credit rating upgraded to A(S) ( ) –S&P credit rating upgraded to BBB+(S) ( ) ■One of the most successful finance companies in Korea ■Achieve stable financial results with operating profit of KRW 181 billion and net income of KRW 129 billion (1Q12) ■Market share of Hyundai Capital is larger than 50%

Problems that the firm is faced with (1/2) ■The characteristic of capital business –High risk in capital business –Business cycle frequency is reducing and volatility is increasing –Capital company has to predict the risk factors and control them ■The case of Long Term Capital Management –LTCM made a pricing model tried to predict the return of finance product –LTCM failed to predict the market  Bankruptcy ■Prediction is Important, but the more important point is accuracy and risk considering 3 ?

Problems that the firm is faced with (2/2) ■Background for importing new solution –There was analysis demand about every loss prediction for high profit –They sold many types of capital product Many types of demand analysis Accuracy analysis Real time risk factors monitoring Fast and easy risk management 4

Analysis Request Decision Making ■Definition –Approach to enable end-users to interactively analyze multidimensional data from multiple perspectives for their decision making ■Characteristics ■Structure Meta Data Management & Configuration Data Warehouse Data Mart OLAP (Online Analytical Processing) 5 CharacteristicExplanation Multidimensional dataStoring data using multidimensional structure Direct accessAllowing end-users directly access and use the data Interactive analysisAnalyzing data through interaction with users Decision makingSupporting users in decision making Data Repository OLAP Server OLAP Client Users

Importance of OLAP ■Infrastructure for BI (Business Intelligence) –Analysis Function –Integration of reporting, mining, statistic functions ■Practical Use of Information ■Ultimate Objective of OLAP –Helping users understand the overall situation of the company and support their decision making 6 Needs for Possession of Information Established DW (Data Warehouse) Needs for Effective use of Information OLAP tool

OLAP of Hyundai Capital ■Multidimensional OLAP(MOLAP) –Classic form of OLAP –Stores this data in an optimized multi-dimensional array storage ■MOLAP Solution of Hyundai Capital 7 Source Data CRMS Monthly Close Daily Risk LLC Retrieval Data Warehouse PMS Data Mart ESS-Base 7X Block type ASO Type User Interface Dashboard Monitoring Supervisor Information Analyst ESS-base MOLAP Excel add-in

Results and Further Improvements ■Result –Easily analyze risk factors without additional education Excel spreadsheet Add-in function of ‘ESS-Base 7x’ –Manage risk by using visual aids such as screen –Identify the progress from the present to the future –Increase the work efficiency Before: 80% of analysis was made by hand After: only 20% of analysis is made by hand ■Further Improvements –Diversification of evaluation ☞ Plan for raising usefulness by using multidimensional criteria –Adapting MOLAP in other department for the realization of integrated system 8

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