Daelim Industrial Prepares Financial Forecasts 5x Faster, Completes Month-End Close in Less than One Hour, and Supports Growth Strategy
 
 

Daelim Industrial Prepares Financial Forecasts 5x Faster, Completes Month-End Close in Less than One Hour, and Supports Growth Strategy

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.

 
Produces Financial Forecasts 5x Faster, Increases Business Agility

A word from Daelim Industrial Co., Ltd.

  • "By using Oracle Hyperion with Oracle Exalytics and Oracle Exadata, we gained a high-performance, highly available, and scalable enterprise performance management platform to provide faster and better intelligence for business performance and enhanced competitiveness. We can produce reliable forecasts 5x faster and complete the month-end close in less than one hour, enabling us to support overseas expansion at a lower cost." – Jae-wook Hwang, Director, IT Planning Team, Daelim Industrial Co., Ltd.

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.

 
Accelerates Financial Closing by 5x, Gains Better Intelligence

 
Completes Batch Work 3x Faster, Supports Growth Strategy at Lower Cost

 
 

 
 

Challenges

  • Deploy a robust planning tool to enable rapid and reliable financial forecasting and gain deeper insight into the business performance of global construction projects to increase business agility
  • Reduce month-end financial closing time and enable simultaneous closings across all sites to enhance the ability of managers to evaluate risks and make better decisions for construction projects
  • Ensure high performance and high availability of EPM platform to increase storage capacity and support overseas growth strategy at lower cost

Solutions

  • Increased business agility by using Oracle Hyperion Planning to automate data aggregation across multiple financial statements, enabling the accounting team to produce financial forecasts 5x faster with enhanced reliability
  • Reduced financial closing time to 40 minutes from three hours, thanks to Oracle Exalytics’ in-memory database and powerful computing capacity
  • Increased business efficiency for construction sites by enabling 200 simultaneous financial closings, rather than waiting 30 minutes between individual closings
  • Completed batch jobs for the month-end closing 5x faster and reduced time for processing a large volume of financial records by 6x, enabling management to rapidly adjust its planning strategy and increase competitiveness
  • Improved management’s ability to evaluate and quantify risk by using Oracle Exalytics’ rich visualization capabilities to present information in meaningful and compelling ways
  • Enabled rapid analysis and forecasting by leveraging Oracle Hyperion Smart View for Office to seamlessly move budgeting and planning data to Microsoft Excel format and enable users to view information in various dimensions, increasing user satisfaction
  • Supported international expansion by using Oracle Exadata’s Hybrid Columnar Compression technology to boost data compression by10x, increasing storage capacity and reducing costs
  • Achieved high-level scalability and supported 3x more data growth by accelerating the performance of all workloads by 10x, allowing staff to carry out online transactions and account settlement without creating performance bottlenecks
  • Ensured high availability by using Oracle Exadata’s fully redundant hardware to eliminate a single point of failure and ensure business continuity, such as providing construction work for power plants
  • Simplified IT system management and accelerated issue resolution time by using Oracle Enterprise Manager’s lights-out monitoring feature to automatically detect and log service requests

Why Oracle

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.

Implementation Process

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.

Partner

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.