Daelim Industrial Co., Ltd. was founded in 1939 as one of 13 subsidiaries of the Daelim Group. As a leading South Korean construction and petrochemical contractor, it provides a range of services and products, including architecture, civil engineering, and plant equipment for industrial facilities, such as power plants, at home and in 26 countries worldwide. Daelim Industrial has earned a reputation for producing some of the most significant infrastructure developments on the Korean peninsula in the past 50 years, including roads, bridges, dams, and power plants. Its increasingly global focus includes operations in the Middle East, Southeast Asia, China, and the United States, with a strong portfolio of 483 completed international projects, including construction of the world’s largest polycarbonate plant in Saudi Arabia.
With the goal of becoming a global leader in the construction industry and improving its competitiveness to support growth in new markets, Daelim Industrial needed to improve its planning and forecasting capability to enable faster decision-making and increase operating efficiency across its global construction projects.
Daelim Industrial implemented Oracle Hyperion Planning to improve forecasting reliability and enable rapid response to internal and external environments, including the global economic climate, government policy, and project resource allocation, to reduce risk and cost. By running Oracle Hyperion Planning on Oracle Exadata Database Machine and using Oracle Exalytics In-Memory Machine for greater insight, it ensured high performance and high availability for its enterprise-performance-management platform, completed batch processing jobs 3x faster, and reduced time for processing financial records by more than 6x. Staff members now close the books each month and produce reliable forecasts 5x faster, enabling simultaneous closings for 200 sites and assisting managers to make better decisions and support the company’s global growth strategy.
With over 2,000 global construction sites, Daelim Industrial needed a robust planning tool to ensure reliable financial forecasts and support faster decision-making to reduce project risks and costs. Using Oracle Hyperion Planning, it automated the time-consuming process of gathering information from various financial statements, including profit and loss statements, cash flow statements, and balance sheets across all sites. Leveraging Oracle Hyperion Smart View for Office, users can seamlessly move budgeting and planning data to a familiar Microsoft Excel format and view information in various dimensions for quick analysis and forecasting. Users can also refresh spreadsheets with the click of a button and automatically update the changes in the underlying database for Oracle Hyperion Planning. This has eliminated manual intervention and enabled the accounting team to produce financial forecasts 5x faster—in just 40 minutes instead of 200 minutes—increasing forecasting reliability and business agility.
“Thanks to Oracle Hyperion’s predictive planning capabilities, we can instantly evaluate the financial impact of changes in key business drivers, such as fluctuating labor and materials costs, enabling us to take faster action for strategic planning. For example, we have taken steps to diversify our revenue structure by reducing involvement in the saturated South Korean domestic construction market to increase investment in the expanding field of power production.” said Jae-wook Hwang, director, IT planning team, Daelim Industrial Co., Ltd.
Previously, Daelim Industrial took more than three hours to complete month-end financial closing and another three hours to revise the changes before finalizing financial statements. In addition, the aggregated database structure of its enterprise performance management (EPM) system could not support simultaneous closings for its multiple projects, so accounting teams had to wait 30 minutes between closings. This delayed preparation of financial forecasts for all locations and slowed decision-making.
By using Oracle Exalytics with Oracle Hyperion Planning, Daelim Industrial maximized the capabilities of Oracle Hyperion Planning and provided real-time data analysis. Thanks to Oracle Exalytics’ in-memory database and powerful computing capacity, it reduced month-end financial closing time to 40 minutes and enabled simultaneous closings for 200 construction sites, increasing operating efficiency for enterprisewide forecasting and enhancing staff satisfaction.
Using Oracle Exalytics’s rich visualization capabilities, Daelim Industrial now presents financial data to users in meaningful and compelling ways, such as interactive charts, spatial maps, and multidimensional, tabular formats. This has improved managers’ ability to evaluate and quantify risks and make better decisions to mitigate those risks, ultimately increasing competitiveness.
“Thanks to Oracle Exalytics’ unmatched speed, intelligence, and simplicity, our users can analyze data at the speed of thought. We gained better insight into business performance for each construction project, enabling us to reduce risks and costs,” Hwang said.
Daelim Industrial had an outdated IT infrastructure, and it was time-consuming to generate reports or ad-hoc queries, particularly during peak periods. As such, the company wanted to ensure high performance and high availability for its EPM system and minimize the impact of service interruption to support efficient business planning. By implementing Oracle Exadata Database Machine, the company gained the ability to complete batch processing 3x faster. In addition, it can process a massive volume of financial records 6x faster, in just 20 minutes instead of two hours. By using Oracle Exalytics and running Oracle Hyperion Planning on Oracle Exadata, Daelim Industrial significantly improved budgeting and forecasting efficiency and allowed management to rapidly adjust planning strategies in response to market changes.
Daelim Industrial also achieved 10x more data compression by using Oracle Exadata’s Hybrid Columnar Compression technology, increasing storage capacity it needs to support its growth strategy in the Middle Eastern and Southeast Asian construction sector and reduce storage costs. With Oracle Exadata’s scalable database platform, it accelerated performance for all workloads by 10x and enabled staff to carry out online transactions and account settlement without performance bottlenecks, supporting up to 3x more data growth.
Oracle Exadata also ensured high availability for Daelim Industrial’s EPM system by using completely redundant hardware, including InfiniBand networking, power distribution units, power supplies, databases, and storage servers. It eliminated single-point failure and ensured business continuity. With Oracle Enterprise Manager 12c, IT staff gained an integrated view of hardware and software components. The company also streamlined system management by using the lights-out monitoring feature to automatically detect and log service requests through timely notifications, reducing problem-resolution time.
“With Oracle’s preconfigured, pretested, and pretuned engineered system, we now have a stable and reliable IT infrastructure with high performance and scalability, enabling us to improve our competitiveness and take a step closer to becoming a global leader in the construction industry,” Hwang said.
Daelim Industrial conducted several proof of concepts (PoCs) in reviewing vendor solutions to replace its legacy database and storage servers. The company chose Oracle because its test results demonstrated that Oracle Exadata and Oracle Exalytics In-Memory Machine with Oracle Hyperion Planning could optimize EPM system performance and maximize Daelim’s capability to support business growth.
“Oracle delivered an outstanding PoC, with Oracle Exalytics reducing financial closing times by 85% and Oracle Exadata increasing online transaction processing performance by up to 3x. We were also impressed by the ability to integrate Oracle engineered systems seamlessly with Oracle Hyperion through a high-bandwidth, InfiniBand network, in addition to expert support received at the group level. Oracle’s solution met our corporate needs by ensuring the reliability and stability of our IT infrastructure,” Hwang said.
After the PoC, Daelim Industrial deployed Oracle Exadata and Oracle Exalytics over three months, in stages that included setting up the physical equipment, configuring Oracle Exalytics and Oracle Hyperion, migrating data, and installing the machine. The implementation was efficient and highly successful.
Kolon Benit, an Oracle partner, has been helping Daelim Industrial to maintain its EPM system since the company implemented it in 2011. The company engaged the partner to install Oracle Exalytics In-Memory Machine and Oracle Exadata for its financial-closing-time improvement project.
“Kolon Benit’s experience in delivering EPM solutions and skill in applying design changes to Oracle Hyperion enabled us to maximize the potential of Oracle Exalytics In-Memory Machine and Oracle Exadata, and to increase business agility,” Hwang said.