KT ERP story with EAI Team 6 Kim Dae-sik, Lee Byung-gu, Kang Sun-pyung, Lee Han-gyul Management Information System

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

Management Information System 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

Management Information System 2. The background of ERP implementation  Transferred to a privatized company (in 2002)  1 st project - Implemented ERP on the Financial departments (Integration failure)  2 nd 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

Management Information System 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

Management Information System 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

Management Information System 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

Management Information System 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

Management Information System 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

Management Information System 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

Management Information System 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

Management Information System 7. Reference KT ERP implementation projects with EAI 1. es/kticis.html - KT case from ‘Oracle Corporation’ websitehttp:// es/kticis.html 2.‘KT ERP Story’, KT ERP Project team, Hong, Jung-gi, ‘EAI implementation strategies and cases’, SISA computer, 2002

Management Information System Q/A  Thank you!!!