HONAM PETROCHEMICAL’S QUEST FOR BETTER MANAGEMENT REPORTS

1. HONAM PETROCHEMICAL’S QUEST FOR BETTER MANAGEMENT REPORTS

2. Headquarters : Seoul, South Korea • Industry :Petrochemicals • Revenue : US$7.3b (2011) • Employees : 1,700 • Company details : • - Makes and distributes a variety of petrochemicals • - Founded in 1976 • - Nine affiliate companies located throughout China, • Malaysia, Indonesia, the UK, and Pakistan. • - Overseas branches located in Beijing, Shanghai, • Qingdao, Guangzhou, Hong Kong, Moscow, and New • York City. COMPANY BACKGROUND

3. HPC needs reliable report to :- • - measure management performance • - provide information for increasing sales and reducing • cost • Existing system provided out-of-date and “sanitized” • reports. • Individual managers manipulated the data to make their • departments “look better” • The report data were stale and presented on a periodic • basis. ISSUES

4. Executives wanted :- • - anytime access to the most timely data but did not • want to be overloaded with unnecessary data so • they could focus on the “watch-up indicators” which crucial to business. • - up-to the minute date on their desk top • - access via the web or mobile device • - enterprise-wide data that could be accessed and • shared easily across various units and functions to s • upport expansion. ISSUES (Cont’s)

5. SAP Solution :- • - SAP ERP: • - SAP NetWeaver BW 7.0; and • - SAP Business Objects XI 3.1 • When IT stepped in and developed a new system based on SAP BusinessObjects solutions to provide executive-level access to updated business intelligence data, the impact was phenomenal. • Learn about not only the benefits, but also the strategy and implementation process behind the system.

6. Information requirements of new system involve identifying who needs what information, where, when, and how. • i. HRP needs reliable reports that are able to • accurately measure management performance and provide useful, accurate information for increasing sales and reducing costs. • ii. Executive wanted • To see current data to get a real view of what was • actually happening on the plant floor or in the sales • office. Q1. LIST AND DESCRIBE THE INFORMATION REQUIREMENTS OF HPC’S NEW MANAGEMENT SYSTEM

7. Anytime access to the most timely data, but they did not want to be overloaded with unnecessary data so they could focus on the “watch-up indicators” considered crucial to the business • Up-to-the-minute reports that they could see quickly • on their desktops. • The data can be access via the Web or their mobile • devices. • Enterprise-wide data that could be accessed and • shared easily across various business units and • functions to support the company’s expansion • geographically and by product line. CONT’S

8. HPC’s existing systems provided managers with reports to guide their business decisions, but in many cases the data in the reports were out-of-date and “sanitized”. • Individual managers were processing and manipulating the data to make their departments “look better” to senior management. • The report data were also somewhat stale and presented only on periodic basis. WHAT PROBLEMS THE NEW SYSTEM DESIGNED TO SOLVE?

9. WHAT WERE SOME OF THE MANAGEMENT ORGANIZATION, AND TECHNOLOGY ISSUES THAT HAD TO BE ADDRESSED BY THE NEW SYSTEM

10. In many cases, the existing HPC’s systems provided out-of-date and “sanitized” data in the reports. Moreover, the reports data are presented only a periodic basis. • It really affecting the management decision making because the systems allow the individual managers to process and manipulate the data to make their departments “look better” to senior management. • As a result, the decision making are made based on the inaccurate, manipulated, inconsistent and untimely data (based on last quarter’s number). Q2. TO WHAT EXTENT WERE “PEOPLE” PROBLEMS AFFECTING MANAGEMENT DECISION MAKING AT H[C?

11. In order to determine the right set of reports and dashboards for HPC’s executives, the information systems team started by: • - asking the executives to list existing reports, and • - assess the usefulness of each reports • Then, a highly intuitive Web-based user interface was created to make the system very accessible and required little training for users to use the system. • The information systems team visited various manufacturing plants to encourage users to start working with the systems as well as had in-dept discussion with executives about the system’s benefits and how to use it. HOW DID THE SYSTEM’S DESIGNERS MAKE THE SYSTEM MORE “PEOPLE-FRIENDLY?

12. User information requirements drive the entire system-building efforts. • End user must have sufficient control over the design process to ensure that the system reflects their business priorities and information needs, not the biases of the technical staff. • End user of HP’s played role to help the project information systems department by providing them the existing report that they already used. Q3. WHAT ROLE DID END USERS PLAY IN DEVELOPNING HPC;S NEW SYSTEM

13. Once HPC’s project team determined the business intelligence tools for the solution, its focus turned to determining which data and reports were required by the company’s 200 high-level users of the new system. • The team started by asking executives to list existing reports they were already receiving and to assess the usefulness of each. • The list was cut to more manageable size and the executives were asked if there were any additional reports or data from which their organization groups could benefit. HOW DID THE PROJECT TEAM MAKE SURE USERS WERE INVOLVED?.

14. The project team make sure the user are attended the training on how to use the new system or to access data and reports. • To encourage users to start working with the system, members of the information department conduct a discussion with the user about the benefits as well as how to use the new system. • Information systems department also to run campaigns to ensure that user are using the system with most effective way. CONT’S

15. The users involved are very important in developing new systems to make sure that the information's or users needs that was determined were fulfilled. • If that is not happened, the new systems were plan to develop might be failed and not achieved the management objective. • Eventually, the project might be ‘white elephant’ and result in wasting of time and money as well. WHAT WOULD HAVE HAPPENED TO THE PROJECT IF THEY HAD NOT DONE THIS?

16. Phased approach – HPC used a phased approach in implementing the new system. HPC waited until the company was experienced with ERP software and confident in its data quality and its data collection and processing methods. • Benchmarking – HPC CIO, Jong Pyo Kim also emphasized the important of benchmarking with other companies in the industry before designing and implementing an executive-facing system. Most manufacturing will want access to similar data and performance indicators. Q4. WHAT OTHER STEPS DID HPC TAKE TO MAKE SURE THE SYSTEMS WAS SUCCESSFUL?

17. SAP BusinessObjects Dashboards • SAP BusinessObjects is a drag-and-drop visualization tool designed to create interactive analytics for powerful, personalized dashboards based on SAP’s BusinessObjects business intelligence platform. • BusinessObjects software can be used for performance management, planning, reporting, query and analysis, and enterprise information management, and provide self-service access to data from database and Excell spreadsheets. Q5. WHAT TYPES OF SYSTEMS-BUILDING METHODS AND TOOLS DID HPC USE FOR BUILDING ITS SYSTEM?

18. 2. SAP BusinessObjects Web Inteligence • SAP BusinessObjects Web Inteligence is an ad hoc query, reporting, and analysis tool that is used to create queries or use existing reports, format retrieved information, and perform analysis to understand trend and root causes CONT’S

19. Timelier Decisions : Reduces time needed to collect, process, and track data for decision making. Supports faster decisions with quicker and more thorough analyses. Delivers timely information and various analytics to end users. Personalized Delivery Of Information : Provides option for Early Warning System of data alerts, allow for differentiated or personalized delivery of information for executives, managers, and front-line employees. Q6. WHAT WERE THE BENEFITS OF THE NEW SYSTEM? HOW DID IT CHANGE THE WAY HONAM RAN ITS BUSINESS? HOW SUCCESSFUL WAS THIS SYSTEM SOLUTION?

20. Measurable Watch-Up Indicators Across All Business Areas: Ensures consistency of information and establishes structure for global sharing of information, increases business competitiveness through increased use of global information systems. 4. Improved Accessibility: Displays data via management cockpits, dashboards, or widgets, provides unstructured details and causal analysis, leverages visual graphics to improve readability. CONT’S

21. Executives not longer are limited to sanitized, stale data in an outdated presentation format. • Management discussions and decisions are based on timely, consistent, and accurate company-wide data. HOW DID IT CHANGE THE WAY HONAM RAN ITS BUSINESS?

22. The system is very successful to solve the problems occur at HPC. • The system reduces the time required to collect, process, and track the data, executive decision making takes place more rapidly. • HPC’s information systems are now ready for global information-sharing as the company expands. HOW SUCCESFUL WAS THIS SYSTEM SOLUTION?