Information system of Hanjin shipping

Information frame of Hanjin shippingIntroduction fare by its nature is a very competitive and a very multifactorial industry. (Martin Stopford, 1997) Shipping companies nominate to work out on a orbicular outstrip and manage offices either around the world and work with a several(a) work force. Merchant shipping is one of the most highly set industries in the world. Hence nurture brasss play a very authorised role in the vigilance of the shipping company. In this essay we get out analyse a case study of how Hanjin shipping employ culture system of ruless grow as a leading shipping company. Hanjin is a globular transportation and Logistics Company. (Hanjin shipping, 2010).The company operates around 200 ships, mainly container vessels, gas tankers and peck carriers. Hanjin ships are trading worldwide. Hanjin transport cargo to more than 100million tons a year to 6000 destinations worldwide. (Hanjin shipping, 2010) Companys sales network includes 200 international br anch offices and 30 corporations. Over all the company is expanding rapidly on a ball-shaped scale and is overly venturing into untested shipping related trade.Business problemsHanjin was increase its global operations by opening new container terminals, buying new outstanding ships, going in alliance with container railways. Hanjin lacked the logistics required to be able in the container industry. Its 10 year old ERP systems lacked functionality and flexibility required to operate such a complex and big system of rules ( illusionist 2008). Hanjin understood that without lay off to end logistics solutions they cannot compete in container championship. Hanjin withal faced problems controlling procurement costs and to meet the global regulatory requirements (Oracle 2008). The data collection system was done manually and hence it was time consuming and prone to errors. Hanjin take a crap a work force of around 4000 which are employed all around the world. It was increasi ng difficult for Hanjin to manage such a large and diverse work force.Solution to Hanjin problemsAs a solution to the problems Hanjin was face up collectable to its global expansion it decided to launch Process excogitation couch. The influence first appearance purpose was to establish go on management bodily organise and strengthening its organisational capabilities. (Sustainability report, 2006). The brook applied to melody process and organization structure as well as the corporate cultures based on adopting the advanced IT infrastructure. (Sustainability report, 2006, p.27). Hanjin decided to re-engineer their occupation process using best practice models for their ERP systems so as to gain global competitiveness. This system was going to be a long term solution, it testament not directly show on balance sheet but it will be platform for creation new business projects (Business report 2006). Hanjin also decided to shift to node based business by ensuring good ser vice and increase guest satisfaction.Process debut ProjectThe process innovation project squad was assembled in October 2004 and then they spent 5 months for mapping the new systems and the process. The project will be utilize little by little on a timber by step basis. The process innovation project was to be implemented during a period of 3 years.The main aim of process innovation was to be customer centred and a profitability oriented management company. The information system used to re-in force the organisational capabilities and will prepare the management to be more customers focused.The information system rise upment contracts were given to companies which were best in the business (Oracle, 2008). ERP was given to ORACLE while others were given to Siebel and Hyperion. During the process of project Oracle acquired Siebel and Hyperion which resulted in seamless integration and customer support. (Oracle, 2008).Information Systems(ERP) endeavor Resource planning Enterpri se system integrates the key business processes into single(a) system. In this system the flow rate of information is seamless throughout the organisation (Laudon laudon, 2007).Hanjins Enterprise Resource Planning (ERP)Hanjin integrated business process such as finance and accounting, capital asset planning, human resource, procurement process. They used these for smooth flow of information in their intimate system. The companys senior management was involved in the projects implementation. The Managing director and CIO of Hanjin Shipping said that To improve our global competitiveness, we needed an IT solution that supported extensive process reengineering (Oracle, 2008, pg.1). Hanjin decided to empower about 57.7 million USD on this project. They standardised the management and data collections methods, restructured the flow of data between their business systems and prepared a dictionary so as to make it easier for the provide to follow new system. As the system was impleme nted on a step by step basis, gradually the cater could see the benefits of the system and they were not resilient to changes, but they were will to share information in between different divisions. Company also adopted other best practice guidelines such as preparation and educating the provide, use of software support and maintenance.Benefits of Information systemThe above plot is explained using the generic model of 6Cs for explaining business benefits.Lower Cost The e-sourcing system assisted them to procure products from a list of suppliers and they were benefited from competitive pricing which resulted in procurement costs. Cost saving per customer was increased due to increased efficiency (Oracle, 2008). improve Communication As the data was consolidated into a single system, hence staff gained an integrated view of operations (Oracle, 2008). improve Management Control New ERP systems and re-engineering process helped in improved business management. This gave the manager s a complete view of the companys operations and also equipped the staff with detailed information they required to plan, execute and evaluate complex initiatives. The managers were also able to make conclusivenesss and ensure problems were addressed immediately.Performance evaluation was easier and could be easily done on a global basis and culture medium and long term strategy planning could be done due to data availability. (Oracle, 2008)New Capability HR platform helped in modify the efficiency of the department. The new system helped the managers to view complete history of the staff and also discard applications. This resulted in increased efficiency of HR staff which could focus more on attracting and retaining skilled employees and also train them. (Oracle, 2008)Improved Customer Service Due to its service network it could respond fast to customers demands. Detailed sales and marketing plans could be developed. (Oracle, 2008)Competitive Advantage Hanjin got the actualiz ation of a reliable logistics partner. (Sustainability report, 2008). In April 2008 Hanjin got the highest awards in logistics in Korea. (Sustainability report, 2008).Future business plansThe project improved the overall performance of the company process. In afterlife company aims to invest more in their IT systems which aims to complement their management systems as well as front office work. (Business report 2007). As the internal system implementation was completed the company now is ready to develop shipping/logistics related business which will become the companys next control forces. Banking on their internal system they are stepping closer to become a Global logistics company. They are also planning to expand its 3PL (3rd party logistics) business by extending its global network (Hanjin Shipping, 2008). In line with their Process Innovation project they have also launched another project Knowledge management. (Sustainability report, 2008) certaintyThe project taken by Hanj in to rebuild its business process by the use of information systems was strategically very important. Hanjin is a global organisation with different functions, organisational levels and many business processes hence ERP system was the correct cream of information system. This project became the base to implement advance business process which complement their information systems and also increase the efficiency of the company. It helped the company to be more customers focused which is a key strategy in current times. They could venture into new aspects of business such as logistics. The selection of Oracle and Siebel was also correct because they were the best in the business. Hanjin made correct decision by integrating all systems together. The acquisition of Siebel and Hyperion by Oracle ensured that the systems have seamless integration and continuous support. The information systems which they used were in line with their business strategies which resulted in success of the project.Reference ListHanjin shipping, 2008. Hanjin Shipping go Closer to Becoming Global Total Logistics Company, Online Available at http//www.hanjin.com/en/news/080513_02.jsp?srv_id=ENGid=080513_02.jspbackUrl=news.jspcurPage=5blockSize=10 Accessed on fifteenth March 2010.Hanjin shipping, 2008. 2008 Hanjin shipping business report, Online Available at t http//www.hanjin.com/en/company/invest/ sequester/Business_report_2008.pdf Accessed on 15th March 2010.Hanjin shipping, 2008. Hanjin sustainability report 2008, Online Available at http//www.hanjin.com/upload/2008_gri_en.pdf Accessed on 15th March 2010.Hanjin shipping, 2006. Hanjin sustainability report 2006, Online Available at http//www.hanjin.com/upload/2006_gri_en.pdf Accessed on 15th March 2010.Laudon., J, Laudon., K, 2007. Management Information systems Managing the digital firm. tenth ed. Pearson Education Inc. New Jersey.Stopford., M, 1997. Maritime Economics 2nd ed. Routledge LondonOracle, 2008. Hanjin Shipping Improves Business Intelligence, Competitiveness with Integrated Platform, Online Available at http//www.oracle.com/customers/snapshots/hanjin-shipping-ebs-case-study.pdf Accessed on 15th March 2010.Oracle, 2008. Hanjin Shipping Gains Single View of Business with Master entropy Management System, Online Available at http//www.oracle.com/customers/snapshots/hanjin-shipping-datahub-case-study.pdf Accessed on 15th March 2010.