Efficiency is one of the central elements that facilitate the growth and relevance of a business entity. Through efficiency, an organization can produce goods and offer services as demanded by its consumers promptly while maintaining the product quality. However, to achieve an effective production process, an organization, through its management, needs to coordinate and integrate the distinct organizational processes to ensure a smooth flow and monitoring of the distinct operations. In other terms, an organization needs to embrace an enterprise system, a cross-functional information system that facilitates the coordination and integration of an organization's primary operations and data, thus establishing an elaborate overall picture pertaining to the organization's performance ("Enterprise Systems and Its Benefits Management Study HQ"). As such, an organization can make sound and firm decisions based on the overall performance of the distinct departments. This essay analyzes how LG's information and technology department implements the company's enterprise system, and the methodologies used to actualize the entire process.
LG is a renowned brand majoring in the production of electronics with its headquarters in Seoul, South Korea. Over the years, the company has invested heavily in the production of quality electronics, an aspect that has facilitated its global presence, growth, and relevance. The company has over 114 subsidiaries in different parts of the globe and employs at least 82000 individuals ("LG Electronics Adopts Global ERP System"). While the company continues to grow through the production of quality goods, it has, in the recent past, faced quite an enormous challenge primarily because of its giant production and supply scale in its subsidiaries. Specifically, the electronic giant struggled with the harmonization of its organizational functions in the distinct parts of the world, thus incurring high maintenance costs, lack of transparency, underutilization of the company's resources, ineffective decision-making processes, and increased manual operations.
The failure to harmonize its primary functions in the different parts of the globe meant that the electronic giant suffered inefficiency, and it became quite difficult for the company to operate as a global brand ("LG Electronics Adopts Global ERP System"). The company, through its information and technology department, worked towards the establishment of a system that would harmonize the company's functions in the distinct parts of the world. As such, the IT department proposed the embracement of the enterprise system, considering its effectiveness in coordinating and integrating functions of the company's functions in its subsidiaries ("Enterprise Systems and Its Benefits Management Study HQ"). Specifically, the information and technology department used Oracle technology as an enterprise system that would facilitate the coordination and integration of the company's functions.
Notably, since the company did not have an integrated system, the IT department had to establish an effective way of implementing the newly found enterprise system. The first step of the implementation process is the assessment of the company's performance through the collective data of the company's respective departments. The IT department then evaluates the effectiveness of the company from the collected information, thus establishing issues affecting the company's operations. Consequently, upon the identification of the issues affecting the company's operations in different parts of the world, the IT department then identifies an integrated system that could resolve the issues and, more importantly, optimize the company's operations.
In this case, LG's information and technology department upon the assessment of the company's data established that the company suffered inefficiency due to several issues ("LG Electronics Adopts Global ERP System"). First, the company embraced location-specific processes, thus lacking a transparent and automated transfer of the company's production and sales reports. Secondly, the company embarked on location-specific multiple systems that made it quite complex for the company's management to utilize resources.
Thirdly, the company did not have an elaborate system that engaged its vast and diverse pool of employees, thus lacking the ability to share best practices that would promote the actualization of the company's core objectives. Also, due to the lack of an integrated employees' platform, the company allocated limited resources for employees' learning and training. Ultimately, owing to the various challenges affecting LG's operations, the company did not make sound decisions, an aspect that further worsened its production processes ("LG Electronics Adopts Global ERP System"). Therefore, at the end of the implementation process, the IT department ensured that the adopted Oracle technology integrative system could address the issues affecting the company's operation while maximizing its return.
The implementation process requires an elaborate methodology that would facilitate a systematic approach to the issues affecting LG's operations. The LG information and technology department embarked on a methodology that aided in the integration of the company's data while upholding its operations in the distinct production bases. The IT department ensured that the Oracle technology enterprise system was sufficient enough to hold and host the company's operation data ("LG Electronics Adopts Global ERP System"). In other terms, LG's IT department ensured that it adopted an extensive data hosting system that documented the company's data and, more importantly, eased its accessibility not only by the management but by the company's subsidiaries.
Also, the IT department facilitated the effectiveness of the Oracle system by migrating the old company's data from the distinct production lines and subsidiaries into the new system ("LG Electronics Adopts Global ERP System"). The IT department also ensured that the integrated data was easily scalable and, more importantly, ensured that it was easy to control, assess, and analyze the data as formulated by the system. Finally, LG's information and technology department ensured that the company's old and new data was centralized and suited a global level use ("LG Electronics Adopts Global ERP System"). Overall, the implementation of the Oracle technology enterprise system positively influenced LG's operations in its different production lines in the various parts of the world by eliminating and replacing the location-specific data modules and dependency.
In conclusion, LG is a renowned global electronic brand that has, over the years, build its global presence and market relevance through the production of quality goods. However, the company has, in the recent past, struggled with the issue of data management due to the absence of an integrated cross-functional data management system. Considering its challenges, the company, through the information and technology department, embarked on an enterprise system, Oracle system that facilitated the coordination and integration of the company's data, thus easing accessibility and management of the company's production processes. Enterprise systems are, therefore, a critical part of a company's operations and management, considering their effectiveness in coordinating a company's primary functions, thus contributing to its growth and market relevance. Also, ES facilitates a seamless flow of information in the various company's departments and production lines regardless of their geographical location. Usually, ES operates with the help of software that supports the essential functions of a business enterprise and the data stored in a database that is easily accessible at any time, thus eliminating and replacing the location-specific data modules and dependency. Overall, organizations should embrace enterprise systems to coordinate and integrate their primary functions and, more importantly, centralize their data for decision-making purposes.
"LG Electronics Adopts Global ERP System". Consumer Goods Technology, 2008, https://consumergoods.com/lg-electronics-adopts-global-erp-system-0.
"Enterprise Systems And Its Benefits | Management Study HQ". Management Study HQ, https://www.managementstudyhq.com/enterprise-systems.html.
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Maximizing Efficiency: Coordinating and Integrating Org. Processes - Essay Sample. (2023, May 03). Retrieved from https://proessays.net/essays/maximizing-efficiency-coordinating-and-integrating-org-processes-essay-sample
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