Case Study Of ERP Implementation At LG Electronics Inc

ERP IMPLEMENTATION AT LG ELECTRONICS INC.
1 ERP IMPLEMENTATION AT LG ELECTRONICS INC. | Diego Litmanovich
Enterprise Resource Planning - often called ERP - solutions enable organizations to get an integrated view of core business processes. It consists of a system that companies use to administer their financials, human resources, manufacturing, and other operations. All these benefits that ERP systems provide are only possible with a successful implementation which requires thorough planning, consideration, and involvement from all of the functional areas that are concerned with the project.
LG Electronics Inc. (LG) is a global technology company that employs 83,000 people in
128 locations around the globe. LG reported USD 55.91 billion for

Expenditures for HR decreased, owing to the all-new single system that is now managed centrally, reducing maintenance expenses considerably. The HR department is now able to work on recruitment processes with full transparency, so employees are rewarded based on their actual performance as well as simplifying the hiring procedures.
ERP IMPLEMENTATION AT LG ELECTRONICS INC.
2 ERP IMPLEMENTATION AT LG ELECTRONICS INC. | Diego Litmanovich
The office workers at HR are now able to report any problem or issue they encounter to managers in real time, making it easier to analyze what problems are affecting LG’s operations so that clear objectives can be defined. The fact that all the data are available on a central server that can be accessed from anywhere made decision making more knowledgeable. Basically, all HR processes were centralized which eases the process of making changes such as introducing a new program or updating the operative system
(OS). This facilitates the performance of recurring tasks that would also require additional personnel otherwise. Many systems could be removed from LG’s premises as they are not needful anymore as most of these systems tried to help create an

This resulted in the removal of some departments that worked exclusively to provide support to other subdivisions. Last but not least, the new system simplified the bureaucracy in which LG was submerged, the ERP system renovated LG’s image and motivated its workforce, that is now more productive and active. A rather wide time margin was required in order to carry through a successful, hasslefree
ERP implementation. It took LG and Oracle five years to put the ERP system into effect. The project started in 2002 featuring five clearly defined phases with crystal clear objectives for each of the five milestones. LG’s success at implementing its ERP solution can be attributed partly to this meticulous planification. We cannot be dismissive of other key factors such as people readiness that translate into motivation and training.
The benefits of ERP systems can be of the utmost importance for a company to stay afloat in a globalized world where fierce competition is soaring at an ever-increasing pace. Word Count: 817 words
ERP IMPLEMENTATION AT LG ELECTRONICS INC.
3 ERP IMPLEMENTATION AT LG ELECTRONICS INC. | Diego Litmanovich