LG Electronics (EIS)

Group 620071212 IME Dongkyu

Park20100182 IME Dabeen Lee

20100481 IME Jaeyoung Jang

2012-05-30 MIS TP-2 Prelim Presentation

Company and Environment

Overview

CONTENTS

Results and Further improvements

About EIS

Past EIS case in LG Electronics

Future of EIS in LG Electronics

About EIS

An IS which specializes in executives’ work processes

Defini-tion

A computerized user-friendly system spe-

cially designed to meet the needs of top ex-

ecutives and to eliminate the need for inter-

mediaries

Provide high-quality information

- timely

- relevant

- accurate

User-friendly Interface

MIS

EIS

DSS

ESS

Broad Concept EIS

New Concept EIS : ESS + EIS

Home Ent.

Mobile Coms.

Home Appli-ance

Energy Solu-tion

LG electronics is the global company makes All kinds of electronics From white & brown electronics to smartphone.

Brown electronics:From TV to home theater

Third smartphonemanufacturer in Korea

White electronics:From washer to fridge

World leadingAir conditionermanufacturer

Company Overview

LG Electronics has 110 local subsidiaries and 84,000 em-ployees all over the world. Now 15th company in Korea in terms of market capitaliza-tion.

Environment Overview

Sales of LG Electronics gradually increased, but revenue is in slump > New business innovation tool is needed

Their competitor, Samsung electronics is getting more and more powerful

Environment Overview

StrengthCompetence in white elec-

tronicsStable domestic market

sharePowerful subsidiary connec-

tionBrilliant design products

WeaknessLow-revenue business

Weak brand valueLack of killer product

Low-level informatiztion

OpportunityIncreasing market sizeGlobalized marketing

chanceLow exchange rate of wonGovernment’s support for

export

ThreatPowerful competitors

Increasing labor cost

Pursuit of China companies

Rapidly changing market

Situation of LG Electronics

System development method

When requirement is hard to define

Hybrid type of pro-totyping and SDLS

Complex and large system

Proto-typing RAD SDLS

What functions should be included?• Logistics• Financing• Sales and revenue

Quantifiable information is neces-sary!

LG Electronics utilized prototyping when it design EIS. Market has been continuously changing.

EIS design and development

Integrated information of OLTP Providing consistent and intuitive view Arrangement of information improving timeliness, relevance, accuracy

Past EIS implementation

EIS structure

This picture is a screen display of LG electronics EIS B2B pipe-line We can conduct what-if analysis in the system, then the result is graphically represented

Detailed example of EIS in LG case

Actual example

Information related to business situation and its performance are analyzed and displayed

At first, Raw data in numerical form is processed

EIS show the graphic result of processed data

We can change some values of variables, and check the follow-ing results

Detailed example of EIS in LG case

EIS use in business management and finance

EIS success factors in LG electronics

Experts recruit-ment

: LG recruited skilled IT experts instead of train-ing all of the employees

Outsourcing

: To successfully im-plement EIS, LG out-

sourced and got lots of information about EIS

Efforts of execu-tives

: They try to understand how to use and apply IT

New compensa-tion system

: Employees try to cre-ate explicit knowledge

to get better work eval-uationSuccessful

E I S imple-mentation

Result / Effect of EIS implementation

Time efficiency

Writing Reports on financial accounts & business performance re-

ports

Collecting financial books, Compiling statistics on the revenue by

hand

Employees can access all of the data and information through DB

Data standardization, compatibility, and smooth sharing

Improvement in collection and distribution process of reports

one week

one dayReduce time

Time needed to write, collect, distribute reports on company

Result / Effect of EIS implementation

Process and communication efficiency

Execu-tive

DB

Branch

Em-ployee

Integrated DB

Portal Business Intelligence

Portal

Manager

Manager

Ko-rea

USA Eu-rope

Simplified information system structure, simplified organization

Standardized process

Globalization, but integration - globalized human resource - global information sharing - global communication - globally integrated DB - global access

EIS establishment in Local branch such as factories, local shops

Global SCM, CRM, HR

Future implementation

Background

Data are jumbled in

IS

Not uni-fied inter-

face

Hard to col-lect data

B2B Piple-line Visibility

system

Need Consis-tent and in-tuitive view

AS-IS Repetitive manual collection of dataTO-BE Integrated and automatic collection of data

Future implementation

Future implementation

In accordance with WAN(Wide Area Network) implementation, LG electronics are

planning to expand its EIS system to local factories.

new EIS will be utilized in mobile coms. division, home entertainment product

monitoring, SCM.

Data form different divisions will be integrated.

EIS will provide just one common single view of business.

Online conference system

Q & A자유로운 질문 시간

Thank you very much