Honam Petrochemical ‘s Quest For Better Management Reports

1. G S T 5 0 8 3
INFORMATION SYSTEMS & ELECTRONIC COMMERCE
Group Members
HONAM PETROCHEMICAL’S QUEST
FOR BETTER MANAGEMENT REPORTS

2. Company Background
• 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.

3. Company Background - Issues
• 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• Existing system provided out-of-date and “sanitized”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.

4. Company Background - Issues
• 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
support expansion.

5. Company Background - Solution
• 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 Business Objects 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. • 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

7. CONT’S
• 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 ?

8. CONT’S
MANAGEMENT ORGANIZATION TECHNOLOGY
• Develop new business
process
• Monitoring the
implementation of the
new system.
• Allocation of human
and financial resources
• Conduct employees
training
• Change of corporate
culture
Accessible of data (via
Web-based and mobile
devices)
Determine the right set of
reports and dashboards
Extracting data from SAP
NetWeaver Business
Warehouse
The Management Organization, And Technology Issues That Had To Be
Addressed By The New System

9. • Information requirements of new system involve identifying who needs
what information, where, when, and how.
- HRP needs reliable reports that are able to accurately measure
management performance and provide useful, accurate information for
increasing sales and reducing costs.
- 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.
Question 1 :
List And Describe The Information Requirements Of HPC’s New Management
System

10. Question 2 :
To what extend were “ people” problems affecting management decision
making at HPC? What were some of the management, organization and
technology issued that had to be addressed by the new system? How did
system's designer make the system more 'people- friendly'?
To what extend were “ people” problems affecting management decision making at
HPC?
• Individual managers were processing and manipulating the data to make their
departments look better to senior management. The report data were
somewhat stale and presented only on periodic basic.
• Executives at the chemical firm wanted access to the data before they went
through manipulation or processing. They didn’t want each department’s own
interpretation report thus delay the report to management. The executives
wanted anytime access to the timeliest data but they did not want to be
overloaded with unnecessary data so they could focus on the “watch-up
indicators”

11. CONT’S
What were some of the management, organization and technology issued
that had to be addressed by the new system?
• Up to date information can be shown during the meeting to ensure all
discussions and decision making are based on the consistency and timely
view of the data. An executive can access the data at anytime to get a
more accurate and timelier picture of how their organization is
performing without any outside interpretation.
• No longer do top level decision makers i.e. to send their staff members on
data-hunting excursions. The staff should know data is available and how
to get it to expedites their decision making process.
• The system should be more users friendly.

12. CONT’S
How did system's designer make the system more 'people- friendly'?
• Web access from multiple location
• Required little training on how to use the system
• Well designed– user friendly screen and data entry forms
• Simple and easy to updates
• Easy to troubleshoot
• Efficient

13. Question 3 :
What role did end user play in developing HPC's new system? How did the
projects team make sure users were involved? What would have happened to
the project if they had not done this
a) Interview and discuss with department involved
• IT organization started by asking executives to list existing report they were
received and to access the usefulness of each.
• To list existing reports
• Executives were asked if there were additional report old data from which of
their organizational group were benefit. The dialogue proved very helpful in
developing the right set of reports and dashboard for executives
• Meeting with executives at different location where the system was being
rolled out to received any user’s requirement.

14. CONT’S
b) Campaign
• Project team encourage users to start working with the new system
• Discussion and explain with executives regarding the system benefit.
• Continuous campaign and awareness program to executives to
ensure their use the system effectively
c) Benchmark with others and develop strategy
• Benchmarks with other companies in the industry that can provide a
good look at the data brings to most value.
• Project team visited the various manufacturing plants when the
system was being rolled out and had in depth discussion with
executives about benefits of the new systems as well as hoe to use it

15. CONT’S
What would have happened to the project if they had not done this?
• Less refine data as required by the users and for management
decision making.
• It will create unpleasant experience for three end user should there
is any hick up.
• Inaccurate or untimely data flowing into executive’s dashboard.

16. Question 4 :
What other step did HPC's take to make sure the system was successful ?
• Phase approach - Rather than pushing a new system onto executives in
the ERP life cycle ERP software and confident with the quality of the
report.
• Emphasized benchmark - Emphasized the important of bench marking
before designing and implementing an executive facing system
• Modern interface & mobile access
Executives can immediately accessing report and dashboards on daily,
weekly and monthly basic
Mobile devices providing anytime, anywhere access to the new systems

17. Question 5:
What types of system-building methods and tools did HPC use for building its
system?
TYPE OF SYSTEM-
BUILDING METHODS
TOOLS DID HPC USE FOR BUILDING ITS SYSTEM
SAP Business Objects
Dashboards
• A drag and drop visualization tool designed to create
interactive analytics for powerful, personalized
dashboard.
• To make the data easily accessible, the system displayed
a very intuitive web-based user interface.
• Used for performance management, planning, reporting,
query and analysis and enterprise information
management.
• Provide self-service access to data from databases and
excel-spread-sheets.
• An ad hoc query, reporting and analysis tools that is used
to create queries or use existing reports, format retrieved
information and perform analysis to understand trends
and root cause.

18. Question 6
What was benefit of the new system? How did it change the way Honam ran
its business? How successful was this system solution?
Benefit Change the way Successful system solution
Unbiased Data Executives no longer are limited to
sanitized scale data in an outdated
presentation format.
Accurate data
Timelier decisions Reduce time to collect, process and
track data for decision making.
Delivers timely information and various
analytics to end users.
Efficient result & right
decision making
Improved business
competitiveness
Ensure consistency of information and
establishes structure for global sharing
of information.
Increase business competitiveness
through global used of information
system.
Improved
accessibility
Display data via management, cockpits,
dashboard or widgets.
Provides unstructured .to ensure
readability
Get up to date data
and easy to prepare a report

19. THANK YOU