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For modern organization across all industry verticals, ERP systems have a crucial role to play in providing a window

of truth in terms of pertinent information across all operational and management levels. Having established its presence in India in ay !""#, $%EI$ initially relied upon a manual system that was both tedious and time&consuming. 'he company found it hard to provide the correct mi( of products for India)s diverse regional mar*ets+a particular model that was popular in the east wouldn)t do as well in the north. 'he other constraint was time. $%EI$ had to supply products at the right time to its dealers, for which it needed better control of its supplier networ*. It also had strict cost innovation targets that had to be met in order to compete successfully in the price&sensitive Indian mar*et. ,rindam -ose, head I', $% Electronics India $imited says, ./e felt that we were selling our products at a relatively higher price in India.0 /hen the company set up its production plant at 1oida near 2elhi in early 3444, it was dealing with a limited number of suppliers. However, as the company went in for mass production, the number of suppliers with whom the company interacted rose substantially. $%EI$)s personnel ended up spending a considerable amount of time negotiating with suppliers scattered across the country. /orse, there was a mismatch of account declarations with the suppliers. In order to solve such accounting disputes, $%EI$ employees had to go and physically meet the supplier. 'he hunt for an appropriate pac*age $% Electronics has a structured I' set&up in the #5 countries where it operates. ERP and supply chain software solutions are often pre&determined. $% Electronics prefers to use in&house solutions such as the $%&E26&7 ERP system. 'he evaluation process to select an appropriate pac*age for its Indian arm started in 6eptember 3444 and lasted for a month. -ose says, ./e evaluated 8racle because we have a very strong relationship with it as our in&house ERP system runs on the 8racle database.0 ,fter the evaluation e(ercise, $%EI$ finally decided to go in for the its own 7I6 97ustomer Information 6ervices: pac*age. 6tandardised systems were too generic $%EI$ found that off&the&shelf 67 pac*ages were too generic and customising them to suit the company)s uni;ue re;uirements would be a considerable challenge. 'he 7I6 pac*age, on the other hand, was already tailor&made. It has two modules+lgesource.com, which addresses suppliers, and lgdealernet.com, which caters to distributors. ,s the modules are lin*ed to the ERP system, suppliers can access production plans and find out about the amount of physical stoc* at $%EI$)s 1oida manufacturing plant through lgesource.com. 'he module also helps *eep trac* of ;uality of goods that arrive at the plant and is updated regarding re<ected material. 6uppliers are intimated about re<ections when they log in. 'his helps suppliers maintain ;uality and replenish re<ected material at short notice. -ose says, .'he supplier is automatically able to *now the gap between the

production plan and the physical stoc* of the raw material through lgesource.com. It lets him plan his own production accordingly to meet demand as and when it arises.0 lgdealernet.com lets $%EI$ *eep tabs on secondary sales, i.e. sales to final customers. 2istributors and area managers now enter secondary sales figures into the module on a wee*ly basis. ,rea managers also do sales forecasting every month. 'he module has the ability to calculate the final indent 9the re;uirement of the final product: by subtracting the stoc* in trade lying with dealers from the sales forecast. 'he revised final indent then becomes the procurement plan. Implementing 7I6 'he implementation e(ercise began towards the end of 3444 and the demand&side module 9lgdealernet.com: was rolled out in two months+by =an 5!, 344!. 'he final roll&out, which included the supply&side module 9lgesource.com: was rolled out by ,pril 344!. 'he implementation programme also involved pilots where the company assessed the real&time feasibility of the system. 'he 7I6 pac*age, which was developed in 6outh >orea, was customised to Indian conditions by the $% 6oft India team. , total of !? people were involved in the e(ercise. -ose says, .'he main challenge for us was to convince suppliers and distributors that they were going to benefit from the pac*age. , lot of training programmes, lasting for a day each, were conducted to motivate them.0 'he company spent around Rs @4 la*h to customise the 7I6 solution to Indian conditions and it incurs Rs !? la*h towards maintaining and hosting the 7I6 pac*age. 'he solution uses an 8racle database that runs on a 6un E@34 server, which sits at A61$ umbai. $%EI$ reaps 7I6)s benefits ,lmost all the issues that $%EI$ was facing before the 7I6 implementation have been solved now. In the two years since the implementation too* place, $%EI$)s suppliers are able to get faster realisation of their money from the company as everything is online. $%EI$)s communication costs have come down, as its personnel don)t have to repeatedly get in touch with suppliers, as the production plan and re;uirements are both available online. 'he decrease in communication costs on account of lgesource.com has resulted in a saving of Rs ? la*h annually. Productivity increases as a conse;uence of manpower savings contribute to a saving of another Rs ? la*h per annum. -ose says, ./e have been able to solve the problem of model mi( which we had been facing and have been able to deliver appropriate models as per regional re;uirements ever since the implementation. 'his directly contributes to increased sales for the company and contributes immensely to the annual sales turnover.0 -esides this, $%EI$ has also been able to meet its cost innovation targets by selling products at a much lower price than before. $gesource.com has resulted in improving the accuracy of the -ranch Rolling 6ales Plan, which is estimated to have resulted in savings to the company to the tune of Rs @.? crore on an annual basis. It is estimated by $%EI$

that the consolidated savings as a result of implementing lgdealernet.com in terms of manpower, transportation, communications and stationary are as high as Rs ! crore on an annual basis. In addition to this, the reduction in bad debts which is a direct result of the monthly e&confirmation that $%EI$ does with its dealers is also estimated to be very high. e&learning, the ne(t step 'he company is conducting a pilot pro<ect on e&learning for its distributors and suppliers. ,s part of the programme, $%EI$ aims to build a *nowledge sharing relationship with its partners by providing them with information regarding the Bni;ue 6elling Points 9B6Ps: of the company)s products. Product presentations and other related information will also be shared with distributors, helping them sell better and thereby boosting product sales. 'he e&learning pro<ect should be up and running across the country by arch 344@.

abhinavCe(presscomputeronline.com IntroD $% Electronics India is one of the leading technology innovators in the I' and mobile communications business. $% is ac*nowledged as a trendsetter in the Indian consumer durables industry. 2aya Pra*ash, head, I', $% Electronics India, tal*s to A8I7EE2,', about the companyFs investments in technology infrastructure and green initiatives. E(cerpts What are the investment plans to improve your telecom infrastructure?

$%EI$Fs operations are spread across the country with operations at two manufacturing plants, thirty&nine branch offices, forty&si( stoc* points, and over fifty&four offices. $%EI$Fs sales channel includes around @,444 direct dealers and distributors and appro(imately !3,444 sub&dealers. $%EI$ provides services to its customers with the help of third party service providers called authorized service centers 9,67:. It has @#4 service centers for consumer electronics and home appliance and G44 service centers for the mobile division. 'here are over ?,444 service engineers wor*ing across service centers. /e are using diverse technologies to leverage growth, and support the $%EI$ business E operations, including& P$6 used for /,1 connectivity across all $%EI$ locationsH IP6ec AP1 Internet connectivity ensuring secure Internet usageH hosting of websites in 2 I using dual Internet leased lines having border gateway protocol 9-%P: with load balancing to ensure connectivity at all timesH multiple 265 connectivity for disaster recovery of ERP database between 1oida and Pune factory using Hitachi Bniversal replicator. /e are planning to consolidate and upgrade our servers, and at the same time, weFre loo*ing forward to optimize our bandwidth. /e are also positive about storage upgradation, implementation of Jo6 on /,1 connectivity, and 7isco 1,7 implementation planned for networ* access control and security. Are technologies like 3G and WiMax helping your business needs? /e are very much e(cited about the new upcoming technologies li*e 5% and /i a(, which will revolutionize the bandwidth penetration in remote areas where connectivity options are not available. /i a( and 5% will provide robust connectivity options and smooth communication channels. ,t our end, we have /,1 P$6 infrastructure connecting manufacturing plants at 1oida and Pune with branches, warehouses and remote area offices. 7urrently, there are remote offices where connectivity infrastructure is not up to the mar*, because we had to rely on traditional radioKA6,'s for bac*haul connectivity. /i a( architecture would be a viable option resulting in lower networ* costs&both cape( and ope(&and with efficiency resulting in more throughput and higher speeds than radioKA6,' options. /i a( is scalable providing fle(ibility to optimize bandwidth usage as per the needs of the business. 5% is a cellular technology which would help us streamline and strengthen communication between dealers, distributors, services centers, and consumers across countrywide locations. However, we are yet to witness and harness the upcoming 5% technology, which can deliver e(pected outcomes. What are the green initiatives taken by LG Electronics ndia?

$% has ta*en several initiatives in the past that minimize impact on the environment by reducing waste and emissions, and creating awareness among employees through energy conservation programs at regular intervals. 'he organizationFs increased attention to green initiatives have resulted from a number of factors including&our strong commitment towards corporate social responsibility, rising energy costs, and increased legislation. 8ur green initiatives include minimizing I' wasteH scraping E disposing I' e;uipments by reselling components, server consolidationH and virtualization, hence minimizing the number of servers used and electrical consumptionH efficient data center design concepts. /e use RoH6 compliant hardware in data center. $%EI$ is also engaged with our peers to advance smarter energy practices. !o" do you cope "ith connectivity challenges in your branches#centers in remote area? 8ur communication infrastructure networ* comprises P$6 connectivity to all branches, warehouse and remote area offices with central connectivity at corporate office at %reater 1oida from multiple service providers to ensure high up&time and redundancy. 'he P$6 networ* is spread across the length and breadth of the country, and presently integrates over !?4 locations of the company. 7onnectivity challenges in branches, warehouses and remote areas are being currently tac*led by having dual connectivity from multiple service providers with different last mile options. What is the $% spend as a percentage of your turnover? !o" "as it affected during the do"nturn? I' spend is 4.?L of the total turnover. 2uring the downturn, the impact was negligible at our end. 7urrently, the team consists of over !44 s*illed resources as per business re;uirements at $%EI$. !o" is telecom making business more competitive? 'he telecom sector represents one of the fastest growing sectors in the Indian economy. $aunch of 5% services by leading operators will boost collaborative computing, IP'A, video and voice multi&casting, which will enhance co&ordination between distributors, dealers, service centers and consumers to a greater e(tent. 7urrently, we are using multi&point videoconferencing across all our regional locations and branches using P$6 connectivity with a central hub at corporate office, using 5% technologies will help and optimize bandwidth costs and ;uality of videoKvoice transmission.

,nother e(ample on the application side, we at $%EI$ developed 761E' 9web based application: which provides platform to integrate communication and co&ordination between dealers, authorized service centers 9,67:, call centers and consumers. 5% infrastructure will strengthen mobility of applications ensuring greater collaboration and e(change of information on real&time basis. What are the key trends in enterprises communications? >ey trends in enterprises communications include cloud computing and cloud&based services, which will be an important part of any large enterpriseFs I' infrastructure strategy moving forward. 'he top five technologies that are going to ma*e a mar* in the future are&cloud computing, virtualization, communication enabled business processes, mobility, and software as a service 96aa6:. Wireless has gro"n rapidly in the past fe" years& What issues and challenges have cropped up' especially in terms of net"ork security and management? Proliferation of wireless has been phenomenal in the last few years, creating new business opportunities, but it has posed increasing security ris*s as well. /ireless networ*s are insecureH they are prone to attac*s from outsiders. -luetooth enabled devices are a threat to wireless networ*s. Are you satisfied "ith the (o) provided by communications services provider? Mes, we are very much satisfied with the Jo6 provided by communications services provider. /e have regular monthly meetings with service providers to ensure that downtime is minimal and we ta*e pro&active approach to have recommended solutions in place. In the last one year, we have maintained less than 4.?L of total downtime with prompt support from communications service providers. 'he only challenge relates to installation and commissioning of circuits. /henever there is business urgency for e(pansion to have new circuits in place which is lin*ed with dynamic nature of business needs.

LG Electronics Adopts a Global )ingle nstance "ith *racle E+,usiness )uite -elease ./
)ubsidiaries of LG Electronics World"ide En0oy mproved 1isibility of $ritical ,usiness 2ata and )ignificant -eductions in Account $losing %ime and 3rofitability Analysis %ime
Redwood 6hores, 7, N 2ecember !?, 344O

4e"s 5acts
8racle >orea today announced that $% Electronics has successfully implemented the 8racle E&-usiness 6uite Release !3 in G countries worldwide. -y integrating its regional operations onto a unified 8racle&based system, $% Electronics is able to optimize collaboration, standardize global processes, ma(imize competitiveness and better respond to customer in;uiries. /ith this successful global enterprise resource planning 9ERP: implementation, 8racle >orea further demonstrates the ability to provide customers with the most advanced global single instance.

ncreased 3roductivity' Lo"er Maintenance $osts


/ith 8racle ,pplications, $% Electronics replaces legacy ERP systems and has significantly cut worldwide account closing time, and greatly shortened profitability analysis time. It also realized an increase in productivity and a reduction in system maintenance costs. -usiness processes and systems across four main business areas were integrated to ensure smooth flow of information through the company. -y adopting identical processes across the world, $% Electronics has minimized confusion and enabled staff to collaborate on significant pro<ects such as global mar*eting programs and year&end account closing. $% Electronics has currently completed the implementation of global ERP system in its >orea offices and its overseas offices in ,ustralia, England, %ermany, Indonesia, and =ordan. -y 34!4, $% Electronics will complete the worldwide integration into a global single instance.

)upporting (uotes

./e realized we had to respond ;uic*ly to ta*e advantage of technological advancements and we decided to implement a single global instance of the 8racle E&-usiness 6uite Release !3 as our business management platform,0 said >im 'ae >eu*, 7I8, $% Electronics. 08racle offers comprehensive support and ensures the success of the deployment, and the new system will allow us to better compete in the global mar*et.0 .,s corporations continue to drive towards globalization, there is greater emphasis placed on the streamlining of operations and management controls for subsidiaries worldwide.0 said /on oon >yung, Aice President, ,pplication E 6ales, 8racle >orea. .'his global ERP pro<ect of $% Electronics is the first worldwide deployment of the 8racle E& -usiness 6uite Release !3 in a multinational enterprise. 'his case will be a good reference for companies that see* to leverage I' systems for global competitive edge.0