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Question: You may soon hear more about Honam


You may soon hear more about Honam Petrochemical Corporation. Headquartered in Seoul, South Korea, this company manufactures and sells petrochemical products, such as synthetic resins, synthetic industrial materials, such as ethylene glycol and ethylene oxide for making polyester, automobile antifreeze solutions, benzene, propylene, and ethylene. Honam has about 2,200 employees and its 2010 revenues exceeded U.S. $6.75 million.
Honam’s primary market is South Korea, but the company has set its sights on becoming a top-tier chemical company throughout Asia and achieving sales of U.S $10 billion. Honam plans to do this by strengthening its existing businesses, extending its overseas business and developing new businesses.
To manage far-flung operations in China, Hong Kong, Moscow, and New York City Honam needs reliable reports that are able to accurately measure management performance and provide useful, accurate information for increasing sales and reducing costs. Honam’s existing systems provided managers with reports to guide their business decisions, but in many cases the data in the reports were outdated and “sanitized.” Individual managers were processing and manipulating the data to make their departments “look better” to senior management. The report data were also somewhat outdated and presented periodically. Honam’s top management wanted “anytime access” to current daily data to obtain an accurate and unbiased view of what was occurring in the sales office or on the plant floor. It did not wanted to be overloaded with unnecessary data so it could focus on the “watch-up indicators” it considered crucial to the business.
Executive decision-makers did not want to work with last quarter’s numbers. They wanted up-to-theminute reports that they could view quickly on their desktops. They also wanted access via the Web or their mobile devices. Finally, Honam executives wanted enterprise-wide data that could be accessed and shared easily across various business units and functions to support the company’s expansion geographically and by product line.
These three requirements drove the technology selection process. Honam’s information systems team reviewed a number of different software products and vendors and selected SAP BusinessObjects Dashboards and SAP BusinessObjects Web Intelligence. The company already had seven years’ experience running SAP’s ERP system, so this vendor seemed like an appropriate choice.
SAP BusinessObjects Dashboards is a drag-anddrop visualization tool designed to create interactive analytics for powerful, personalized dashboards based on SAP’s BusinessObjects business intelligence platform. BusinessObjects software tools can be used for performance management, planning, reporting, query and analysis, and enterprise information management, and provide self-service access to data from databases and Excel spreadsheets. SAP BusinessObjects Web Intelligence is an ad hoc query, reporting, and analysis tool that is used to create queries or use existing reports, format retrieved information, and perform analysis to understand trends and root causes…….

1. List and describe the information requirements of Honam’s new management system. What problems was the new system designed to solve?
2. To what extent were “people” problems affecting management decision making at Honam? What were some of the people, organization, and technology issues that had to be addressed by the new system? How did the system’s designers make the system more “people-friendly?”
3. What role did end users play in developing Honam’s new system? How did the project team make sure users were involved? What would have happened to the project if they had not done this?
4. What were the benefits of the new system? How did it change the way Honam ran its business? How successful was this system solution?


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