According to Bocij et al, Oracle puts forward an implementation policy and clear business that concedes with LG Electronics’ mode of business. The system implementation collaborates disparate ventures infrastructure operating systems and business operations to enable a unified, high-performing Information Technology environment that suits LG Electronics’ kind of business.
Although the company was unwilling to implement the new technology since other firms in the industry had not implemented the system, LG Electronics found the Oracle E-Business Suite R12 more viable as it offered it a higher competitive ground in the industry and eased its operations. Oracle E-Business suite was almost been put in place, by the time LG Electronics was reviewing and standardizing its operations and examined the new hardware.
So it had to determine if to proceed with the current v115.5.10 or put in place a new version of the operating system. The first stage involved reviewing the business processes, defining raw materials for entry into the main database, and performing initial system design and development. The internal systems (EAI, legacy systems) were integrated into the external systems (EAI, CRM, SCM) to make sure that information flowed smoothly throughout the firm’s channels.
LG Electronics has adopted identical processes throughout its worldwide operations to enable the employees to collaborate on important projects, for example, worldwide marketing strategies of year-end account closing and also to reduce uncertainty in its operations. With the successful implementation of the new Oracle system in more than thirty subsidiaries, the aim of LG Electronics is to increase the reach of the application to all its worldwide operations by 2010.
LG Electronics implemented Oracle Real Application Clusters 10g (RAC) to enable a secure, reliable, and guaranteed technical base for the firm’s worldwide operations. The company utilizes a four-server cluster configuration. Verma observes that the server, storage, and network infrastructure are reduced to guarantee systems perform optimally and reduce chances of system failure. LG Electronics always allows key business consumers of its products to test and reassure that the system meets their specifications.
With the new system in place, LG Electronics had to commit resources to train its employees and on how to use and maintain the new system and adopt a new management program to ensure that the consumers are acquainted with its system. The subsidiaries also invite other business partners to engage in testing and monitoring the application to attain its optimization. During the implementation, the firm advocates for a phased rollout to reduce the risk involved in any complexities to the system. The company advises that the consumers should keep in contact to ensure that they are supported by the management, implementation affiliates, the internal project workforce, and the retailer.
As stated by Forbes, LG Electronics should focus on increasing its productivity by twenty percent, shorten the global account closing time from six to three days, cutting profitability survey from three to six weeks to five days, cut down the ERP module maintenance overheads by 36 percent, acquiring the flexibility to organize business processes and gain more visibility into worldwide stock and marketing and sales costs. The company should manage a phased level to minimize risk and diversify its market.