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.
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.”
LG Fashion needed to manage growing amounts of product-line and fashion-trend data, much of it related to its popular online shopping business.
“Using Oracle Exadata Hybrid Columnar Compression technology, we achieved an 80% compression rate and a high-performance storage platform,” Park said. “For example, we produce approximately 3 terabytes of data per year, but thanks to Oracle Exadata, we reduced our storage requirements to 1 terabyte annually and increased our storage capacity by 54%.”
With Oracle Exadata, LG Fashion expects to reduce licensing costs and cut TCO by at least 20% over the next five years, when compared to the legacy hardware system.
As important, the company can run mixed workloads on one system, further optimizing its investment.
LG Fashion also required an online migration of its existing ERP system to increase business process efficiency, such as procurement and inventory management for different fashion brands, and to ensure that information was readily available for both online and retail shoppers with minimum disruption.
“After considering operation hours for our online shopping mall and retail stores and personnel support hours, we decided 7 hours was an appropriate downtime for the ERP data migration,” Park said. “However, the estimated migration time using the SAP migration tool was 36 hours. With Oracle Exadata and Oracle’s Triple-O migration methodology, we successfully completed the migration with just 6 hours of downtime, minimizing negative impact on our business operations. And, we are equipped to upgrade at any time.”
LG Fashion became the first company in Korea to perform an SAP ERP migration to Oracle Database and Oracle Exadata.
With a single database, the ERP system often experienced service interruptions lasting up to eight hours—which disrupted business and had a negative impact on hourly revenue. In response, LG Fashion implemented Oracle Database, which provided database duplication to eliminate service interruptions and improve system stability.
Oracle Exadata has not experienced unplanned downtime since going live in April 2013.
“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.
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.
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.