LG electronics & ERP solution PDF

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ERP process helps to ensure that everyone has the data they need, all neatly managed from a central source. In this article, we will discuss LG Electronics success upon using ERP system

LG electronics and ERP system enterprise resource planning systems (ERP)

Name: Mohamed Abdulmohsen Alshurayhi Student No: 218120146

BY SHOBHIT SETH Updated Jun 5, 2018

LG Electronics When the global giant LG Electronics – with 114 subsidiaries, and more than 82,000 employees across 40 countries – tried to harmonize its Human Resources (HR) functions, the challenges were of a similarly giant scale. High maintenance costs, local controls lacking transparency, inefficient decision-making, under-utilization of resources, manual processes, etc. made it difficult for LG to operate as a global company. So it decided to take the ERP route. The challenges for LG included location-specific multiple systems leading to unclear top-level reporting, lack of optimum resource utilization, Location-specific processes lacking transparency and automation needs for a global reporting, disengaged employees, limited outlook, no room for information or best-practices sharing, limited localized resources for employee learning and training, and Difficulties with decision-making. With significant business impact, LG’s familiarity with Oracle technology made it easier to finalize a solution. It offered large data hosting, seamless migration of old data, easy scalability, multiple modules addition as needed and centralized access and control. LG hired Oracle Consulting to build a single centralized system that integrates available Oracle HR modules for uniform use at global level, thereby replacing location-specific system dependency. The Achieved Benefits was the ERP solution, which included a data mart, performance management system, staff portal and e-learning application, enabled the following benefits for LG:  

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Centrally managed single system with minimal maintenance costs Transparency in the recruitment and employee appraisal processes, which hiring, engaging and rewarding performance based on the right competencies and proven performance Real-time reporting for higher management and tracking of set goals and objectives Informed decision-making due to readily available real time reports

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Centralized control over HR processes, with flexibility for regions to implement localized changes Efficiency improvement for HR functions Cost savings Easy sharing of best practices across the various centers Easy-access, self-service function for employees Facilitated learning for common tasks through document sharing and online tutorials, resulting in time and cost savings Increased employee morale, productivity and engagement

It was not a cakewalk, given the large and distributed scale of ERP system implementation. Spanned over five years (2002-2006) in five planned phases with a clearly set objective, the ERP solution enabled LG to mitigate the challenges posed by vastly spread global centers, for its Human Resource Management System requirements. Today, LG continues to benefit with the automated ERP solution, and continues to enhance it further as needed.

Summary LG Electronics Company was lacking of operating their activity, which lead to a huge process pain, so they faced many challenges to compete with like unclear reporting data, which directly affected making the right decisions, ambiguity of employee’s development and training plan etc.., on the other hand the Company was familiar with Oracle technology which helped to migrate their existing data to the new ERP solution which was an essential key to include a data mart, performance management system, staff portal and e-learning application which lead to spectacular benefits such as transparency in the recruitment, Cost savings and increasing staff productivity. Eventually it was very challenging to implement the ERP solution, but it made a solid understanding about the importance of the information systems and how it really help in managing all business applications from one central system to manage the back office functions....