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CASE-STUDY-LG-ORACLE

This case study examines LG Electronics' implementation of Oracle's E-Business Suite (EBS) as a cloud-based ERP solution to enhance operational efficiency and decision-making across its global operations. The study highlights the challenges LG faced, such as data silos and scalability issues, and how the successful integration of Oracle ERP improved data accuracy and supply chain management. Recommendations for future improvements include leveraging AI and machine learning, expanding cloud usage, and ensuring continuous employee training to maintain adaptability in a rapidly evolving digital landscape.

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Karl Rafael De Villa
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47 views

CASE-STUDY-LG-ORACLE

This case study examines LG Electronics' implementation of Oracle's E-Business Suite (EBS) as a cloud-based ERP solution to enhance operational efficiency and decision-making across its global operations. The study highlights the challenges LG faced, such as data silos and scalability issues, and how the successful integration of Oracle ERP improved data accuracy and supply chain management. Recommendations for future improvements include leveraging AI and machine learning, expanding cloud usage, and ensuring continuous employee training to maintain adaptability in a rapidly evolving digital landscape.

Uploaded by

Karl Rafael De Villa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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“CASE STUDY: LG ELECTRONICS USING ORACLE ERP”

Submitted to:
Mary Grace T. Mandane

Submitted by:
Bruce, Ralion Lenard M.
Calingasan, Sean Paolo C.
De Villa, Karl Rafael C.

SEPTEMBER 2024
EXECUTIVE SUMMARY

In this case study, we look at the cloud implementation project of LG Electronics and
Oracle for a cloud-based Enterprise Resource Planning (ERP) solution. The purpose of this
study is to investigate the transformation process that LG went through in its operations by
implementing Oracle's E-Business Suite (EBS) into its global operation and what impact it
had on the company.

The study discusses LG case challenges with operations scalability and data silos
among its international branches, undermining right decision-making. The successful Oracle
ERP implementation not only brought operational efficiency within LG but, also enabled the
company to better predict demand while managing an efficient supply chain. The action plan
envisions continued investment in Oracle technology along with a long-term contract for
employee training and system integration to better LG's operational efficiency and strategic
capabilities.

INTRODUCTION

LG Electronics Inc. is one of the largest consumer electronics companies in the world.
Its diverse product range encompasses air conditioners, digital media, laptops, mobile
phones, PC monitors, refrigerators, televisions, and more. LG has implemented Oracle E-
Business suite on their offices worldwide to boost their HR management systems. The
implementation of the ERP was expected to increase efficiency of HR practices and in turn
reduce costs and increase return on investments.

ERPs can improve management of huge companies which often have thousands of
employees to manage. The implementation of an ERP system helps an organization to get a
chance to re-engineering business processes, consolidate data and empower users by giving
them access to the company's data with security. In this case the research aims to understand
the use of Oracle ERP and how it affects LG Electronics Inc.’s management and its benefits
on the company.
METHODS

The researchers used documentary analysis in combination with a virtual observation


strategy to gather specific data to LG Electronics execution of Oracle’s E-Business Suite.
This involved virtual observations made through the monitoring of online interactions on
industry forums, corporate discussion platforms and business review sites. This kept the
researchers informed as to what experts and stakeholders were saying about the ERP system
but without involvement. The researchers examine comments, reviews and posts on how
Oracle’s ERP impacted LG's global operations such as supply chain management, finance
and human resources.

Alongside virtual observations, the researchers conducted extensive documentary


analysis. Looking through official reports of Oracle and LG, and industry papers are very
useful in exploring some key aspects in the implementation of the ERP system. The
researchers wanted to get an insight on how the system was integrated across various
functional areas, patterns it exhibited and overall impact on operational efficiency. The
researchers combined the information from different sources and opinions, which represented
as much information as possible about LG's implementation of its ERP.

SOLUTIONS & ASSUMPTIONS

LG’s transition to Oracle Cloud Infrastructure was not just about migrating systems—
it was about solving real problems:

1. Cloud Migration: Oracle helped LG move its legacy systems to the cloud, providing a
more flexible and scalable infrastructure. This made it easier for LG to manage its data and
applications across its global operations.

2. Enhanced Data Analytics: By adopting Oracle’s cloud-based analytics tools, LG gained


access to real-time insights, which drastically improved decision-making. No more waiting
for outdated reports, the data was now available instantly.
3. Business Process Integration: With Oracle’s solutions, LG streamlined its operations.
Different departments and business units could now collaborate more effectively, breaking
down the silos that had previously slowed things down.

We assumed that these solutions would not only resolve the immediate issues LG faced but
also future proof its operations by providing a scalable and adaptable IT framework.

RECOMMENDATIONS

Based on the outcomes of this cloud migration, LG might continue to take the
following actions in order to build on their success:

1. Use AI and Machine Learning: In order to adopt an even more creative strategy, LG could
potentially make use of Oracle's advanced AI and machine learning skills to predict the future
of the products it offers. For example, its AI-driven analytics may be able to foresee
consumer demand, which would enable LG to more effectively manage its inventory.

2. Expand Cloud Use: Although Oracle's cloud solutions were initially focused on core
business activities, LG may potentially use them for different areas, like supply chain
management and product creation. That would promote more innovation and increase
productivity.

3. Continuous Training and Support Technology is only as good as its users. LG has to utilize
the most of Oracle, and in order to do so, it should provide the workers with the necessary
resources and training. This guarantees that the company retains its ability to adapt while
adopting advanced digital technology through the use of methods for changing management.

LG should keep an eye on evolving data privacy regulations and ensure its cloud-based
operations remain compliant as it continues to expand its digital footprint.
CONCLUSION

This case study underscores the transformative impact of implementing Oracle ERP
on LG Electronics’ global operations. The integration of Oracle's E-Business Suite has
facilitated improved data accuracy, operational efficiency, and enhanced decision-making
capabilities. Each of these factors plays a critical role in enabling LG to remain competitive
in the fast-paced consumer electronics market.
Although steps have been taken with the implementation of Oracle EBS, future
research is needed to consider downstream implications of such a digital transformation and
how emerging technologies like AI and machine learning will support LG´s innovation in
operations. The research findings also indicate the need to further study employees adapt
levels amidst significant changes in organizations which may imply some sort of knowledge
gap on this peculiar stage.

REFERENCES & APPENDICES

MarketScreener. (2009). Oracle Corp. - LG Electronics Adopts a Global Single


Instance with Oracle E-Business Suite Release 12. Retrieved from
https://www.marketscreener.com/quote/stock/ORACLE-CORPORATION-4892/
news/ORACLE-CORP-LG-Electronics-Adopts-a-Global-Single-Instance-with-
Oracle-E-Business-Suite-Release-12-13092789/

InformationWeek. (2009). Global CIO: LG Transforms Global Operations with


New Oracle ERP. Retrieved from https://www.informationweek.com/data-
management/global-cio-lg-transforms-global-operations-with-new-oracle-erp#close-
modal

Top 10 ERP. Oracle E-Business Suite Case Study - LG Electronics. Retrieved from
https://www.top10erp.org/case-study-library/oracle-e-business-suite-lg-electronics

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