LG Fashion Improves Customer Satisfaction, Boosts Profitability, and Lowers Total Cost of Ownership by at Least 20%
 
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LG Fashion Improves Customer Satisfaction, Boosts Profitability, and Lowers Total Cost of Ownership by at Least 20%

  • Oracle Customer:  LG Fashion
    Location:  Seoul, Korea
    Industry:  Retail
    Employees:  1,000
    Annual Revenue:  $1 to $5 Billion

LG Fashion was founded in 1974 as Korea’s first high-end fashion company. In 2006, it spun off from LG International Corporation, part of the LG Corporation group. Over the past 40 years, the company has worked to achieve globally renowned brand quality through continuous investment in innovative design, high-quality customer services and sales networks, and creative marketing strategies.

Through its online shopping mall and retail stores nationwide, LG Fashion sells men’s and women’s apparel, sportswear, and accessories. Its more than 20 fashion labels include Maestro, Hazzys, Daks, and Lafuma. In addition, with the establishment of branches in Shanghai, Milan, and Paris and the expansion of its overseas business in China, Taiwan, Thailand, Singapore, and elsewhere, LG Fashion has catapulted itself into the global fashion industry.

With rapid data growth from its retail and online stores, LG Fashion’s legacy IT environment experienced a surge in CPU usage and slow I/O performance. As a result, it faced challenges in supporting its SAP enterprise resource planning (ERP) system and online shopping mall system during peak hours. The slow system performance caused problems for online shoppers and resulted in lost revenue.

“We had performance issues on the database server side. Periodically, we upgraded CPU, memory, and disks, but we could extend our single-server system no further,” said Jong Sam Park, deputy CIO and general manager, strategic information and system department, corporate management innovation division, LG Fashion. 

LG Fashion implemented Oracle Exadata Database Machine to improve system performance for its business-critical ERP system and online shopping mall, and it ultimately, increase profitability. The company improved data processing speed by maximum 92%, achieving one-second response times for 96% of all transactions. It also enhanced customer satisfaction, increased storage capacity by 54%, and expects to lower total cost of ownership (TCO) by at least 20% over the next five years.

 
Improves Data Processing Speed up to 92%, Enhances Customer Satisfaction

A word from LG Fashion

  • “We chose Oracle Exadata Database Machine over our existing IBM product because of its superior performance and 20% lower total cost of ownership over five years. We also accelerated data processing speed by maximum 92%, enabling us to improve staff productivity, enhance our customers’ online shopping experience, and accommodate strong sales growth.” – Jong Sam Park, Deputy CIO and General Manager, Strategic Information and System Department, Corporate Management Innovation Division, LG Fashion

With Oracle Exadata, LG Fashion reduced peak-time CPU usage for its SAP ERP system from 90% to 40% and CPU use for its online shopping mall system from 90% to 10%. This improved I/O performance and enabled LG Fashion to complete time-consuming batch processing up to 80x faster. It also gained the ability to process ERP and online shopping mall data at a maximum of 92% faster—in 10 minutes instead of two hours—and achieved a one-second response time for 96% of all data transactions. As a result, Oracle Exadata helped the company to process orders and answer questions faster.

“We previously had to place restrictions on full usage of the online shopping mall to prevent slow system performance during peak times and avoid causing problems for online shoppers,” Park said. “With Oracle Exadata Smart Scan, we now provide much faster stock searches, such as brand availability, and process more accurate customer orders. This has not only increased customer convenience but also boosted our company’s revenue.”

 
Increases Storage Capacity by 54%, Saves at Least 20% on TCO Over Five Years

 
Completes Online Migration of ERP System with Only Six Hours Downtime

 
Service Interruptions Eliminated with Database Duplication

 
 

 
 

Challenges

  • Improve customer satisfaction by ensuring high performance of the existing ERP system and online shopping mall to avoid negative impact on revenue and support future growth
  • Enable the company to efficiently manage growing volume of data on products and fashion trends
  • Enable online migration of the ERP system within seven hours to minimize disruption to business operations, including online shopping
  • Ensure stability of the ERP system and online shopping mall to prevent service interruptions

Solutions

Oracle Product and Services

  • Reduced ERP system peak-time CPU usage from 90% to 40%, and online shopping peak-time usage from 90% to 10%, accelerating batch work processing by up to 80x
  • Increased staff productivity by improving data processing speed for ERP system and online shopping mall by maximum 92%, enabling much faster stock searches and fast and accurate customer order processing
  • Achieved one-second response times for 96% of all data transactions
  • Lowered TCO by an expected 20% over next five years by reducing storage costs through 80% data compression rate and increasing overall storage capacity by 54%
  • Enabled successful online migration of the ERP system to Oracle Exadata with less than six hours of downtime, minimizing disruption to business operations
  • Ensured system stability by implementing Oracle Database to provide database duplication for the ERP system, eliminating service interruptions to online shoppers

Why Oracle

“We chose Oracle Exadata Database Machine over our existing IBM product because of its superior performance and 20% lower TCO over five years. We also accelerated our data processing speed by maximum 92%, enabling us to improve staff productivity, enhance our customers’ online shopping experience, and accommodate strong sales growth,” Park said. 

LG Fashion also chose Oracle Exadata over IBM for its high performance and lower cost, and because the company expects to reduce TCO over the next five years by at least 20%.

“Another critical point in our decision to go with Oracle was that online migration of the ERP system using Oracle Exadata—compared with the existing ERP system—had a downtime that was 12x shorter,” Park said.

As important, Oracle Database enabled database duplication, which solved challenges associated with the previous single database system.

Implementation Process

LG Fashion decided to implement Oracle Exadata Database Machine and Oracle Database in December 2012. Both the ERP system and the online shopping mall migrated to Oracle Exadata using Oracle’s Triple-O migration method, going live in April 2013.

Partner

LG Fashion’s upgrade of its IT infrastructure involved three Oracle Partners—LG CNS, LG N-Sys, and Daesang IT.

LG CNS provided overall project management services during the implementation.

“We are very happy with LG CNS’s reliable service and expertise in consulting, system integration, ERP, and IT infrastructure solutions,” Park said. “It helped us to complete the new IT infrastructure on time and realize the benefits that Oracle technology could deliver to our fashion business.”

LG N-Sys, which has strong partnerships with global companies like Oracle, managed the implementation of the online shopping mall. Daesang IT deployed LG Fashion’s new ERP server.