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Week 6 power point slide -2-case study 2-honam petrochemical corp.
Group Member Name:
Haji Nasseruddin Bin HJ Abdul Jabar P13D142P
Haji Zulkifflee Bin HJ Sofee P13D136P
Chong Min Fatt P13D154P
Lotte Chemical Corporation Company Profile
Honam Petrochemical manufactures a variety of
petrochemical products from two facilities in South Korea.
Its primary product is ethylene, and Honam ranks among
the country's leading producers of polyolefins like high
density polyethylene (HDPE) and polypropylene as well as
other downstream chemicals like ethylene glycol. The
integrated company also operates a naphtha cracker, which
supplies the raw materials for its other products. Honam
Petrochemical was established in 1976 and is a part of
Japanese conglomerate Lotte's Korean network. In 2010
Honam acquired Malaysia's Titan Chemicals for $1.27
billion. While it's publicly traded, various Lotte companies
own a majority share in Honam Petrochemical.
Information system problem
In old management system of Honam, the reports
or detailed document generated were outdated.
Previously, the Honam’s management was
working on SAP’s ERP system.
In order to increase its business to overseas
Honam implemented a new management system.
This management system includes SAP Business
Object Dashboard and SAP Business Objects Web
1. List and describe the information requirements
of HPC’s new management system What
problems was the new system designed to solve?
Honam needed reliable reports that
could accurately measure
management performance and
provide useful, accurate information
for increasing sales and reducing
costs. Executive decision-makers
wanted up-to-the-minute reports that
they could view quickly on their
desktops. They wanted access via the
Web or their mobile devices. They
also wanted access to enterprise-wide
data that could be shared easily across
various business units and functions
to support the company's expansion
geographically and by product line.
The problems Honam wanted to solve included
outdated and “sanitized” reports. Individual
managers were processing and manipulating data
to make their departments “look better” to senior
management. The report data were also outdated
and only presented periodically. Executives also did
not want to be overloaded with unnecessary data.
2. To what extent were “people” problems
affecting management decision-making at HPC?
What were some of the management
organization, and technology issues that had to be
addressed by the new system? How did the
system’s designers make the system more
Management: Managers were sanitizing data to
make their departments look better to executive
managers. Executives didn’t want each
department’s own interpretation of reports.
Instead, they want to see current data to get a
real view of what was actually happening on the
plant floor or in the sales office.
Organization: Executive decision-makers were
working with data that were up to three months
old. The report data were stale and only
presented only on a periodic basis.
Technology: Report data were outdated and
inaccurate. Technology was not preventing
managers from manipulating data. Some reports
included too much data and not enough
information. Executives could not access data
through mobile computing devices. Executives
wanted enterprise-wide data that could be
accessed and shared easily across various business
units and functions.
The system designers made the system more
“people-friendly” by creating interactive analytics
for powerful, personalized dashboards in the SAP
ERP platform. The software tools can be used for
performance management, planning, reporting,
query and analysis, and provide self-service access
to data from databases and Excel spreadsheets.
3.What role did end users play in developing HPC’s
new system? How did the project team make sure
users were involved? What would have happened
to the project if they had not done this?
End-users appear to have had quite a lot of input
into designing the new reporting system. The
information systems team asked executives to list
existing reports they were already receiving and to
assess the usefulness of each. Executives were
asked if there were any additional reports or data
from which their organizational groups could
benefit. The findings were very useful in
determining the right set of reports and
dashboards for Honam executives.
To encourage users to start working with the
system, the information systems people visited
various manufacturing plants where the system
was being rolled out and had in-depth
discussions with executives about the systems'
benefits as well as how to use it.
Because the information systems team involved
users at the beginning and asked for their input,
executives were much more likely to adapt to
and use the new information reporting system.
4. What other steps did HPC take to make sure
the system was successful?
A very intuitive Web-based user interface was
created to make the system accessible. The
interface was so simple and well-designed that
users required minimal training on how to use
the system or access data and reports.
Even after the system was up and running, the
information systems department continues to
run campaigns to ensure that executives are
using the system in the most effective way.
5.What types of system-building methods and
tools did HPC use for building its system?
HPC used a phased approach in its system
implementation. Rather than pushing a new system
onto executives in a direct cutover strategy, HPC
waited until the company was experienced with
ERP software and confident in its data quality and
its data collection and processing methods.
According to HPC CIO Jong Pyo Kim, nothing would
sidetrack an executive-level system more quickly
than inaccurate or untimely data flowing into an
6. What were the benefits of the new system?
How did it change the way Honam ran its
business? How successful was this system
A highly intuitive Web-based user interface was
created to make the system very accessible. The
interface was so simple and well-designed that
users required minimal training on how to use the
system or access data and reports. After the system
went live, executives immediately began accessing
reports and dashboards on a daily, weekly, and
monthly basis. The data are available on mobile
devices as well. Delivery of the information is
personalized and differentiated for high-level
executives, middle managers, and front-line
Executives no longer receive “sanitized,” stale
data in an outdated presentation format.
Discussions and decisions are based on timely,
consistent, and accurate company-wide data.
Executive decision making takes place more