Korea Hydro & Nuclear Power: Improving Productivity by 60% with the SAP NetWeaver Technology Platform

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1 Korea Hydro & Nuclear Power: Improving Productivity by 60% with the SAP NetWeaver Technology Platform Korea Hydro & Nuclear Power Co. Ltd. (KHNP) produces 40% of Korea s energy and has built and operates 21 nuclear power plants. To upgrade its SAP ERP application, KHNP installed the SAP NetWeaver technology platform in order to improve productivity, reduce expenses, and comply with regulations for exporting nuclear power systems.

2 Company Korea Hydro & Nuclear Power Co. Ltd. Headquarters Seoul, Republic of Korea Industry Utilities Products and Services Nuclear and hydroelectric power and renewable energy Employees 8,673 (July 2011) Revenue KRW 5,839 billion (approx. US$5.1 billion) as of 2010 Web Site Business Transformation The company s top objectives Improve operational efficiency by integrating multiple information systems under the SAP ERP application Establish business processes that comply with global standards Establish plans of the packages and platforms in SAP ERP in preparation for future business models and globalization The resolution Unified data by integrating business processes Built a customized, Web-based business environment based on the SAP NetWeaver technology platform Built an IT environment that can be used by smartphones The key benefits Improved productivity by 35% through the reuse of 60% of the service module Increased efficiency through improved rate of software users Improved total cost of ownership by more than 30% Read more We recently introduced SAP NetWeaver to our IT platform. We chose SAP due to its reliability in the utilities industry. Also, KHNP has been using the SAP ERP application for more than 10 years. Sang Hyung Park, General Manager IT Planning and Administration Teams, Information Technology Office, Korea Hydro & Nuclear Power Co. Ltd. Top Benefits Achieved 60% Improvement in the rate of reusable services 30% Savings in total cost of IT ownership >100% Increase in number of software users See more metrics 2

3 Powerfully expanding its nuclear power generation services Korea Hydro & Nuclear Power Co. Ltd. (KHNP) is the nation s largest power generation company and produces approximately 40% of Korea s electricity through the use of hydro and nuclear power. Since 1978, the company has built and operates 21 nuclear power plants. KHNP is committed to maintaining a proper management framework, harmonious labor relations, and high credit ratings while achieving industry-leading profitability and efficiency gains. The KHNP IT team had been considering which software could best maximize the company s IT productivity and minimize maintenance costs through expanding the use of its legacy SAP ERP application functions. But the team faced formidable challenges due to the company s varied developing and operating systems, all operating within their own silos. As a result, staff were experiencing excessive development time at a high cost, due to the limitations of data reuse and retrieval within the existing system. For ensuring that employees can use SAP ERP with maximal efficiency, and improving IT productivity overall, the IT team realized the company needed a business process platform. They chose the SAP NetWeaver technology platform, which was composed of the SAP NetWeaver Composition Environment offering, the SAP NetWeaver Business Process component, and the SAP NetWeaver Process Integration offering. This platform provides reusable services of more than 3,000 programs provided by SAP, and maintains valuable business services stored in Enterprise Services Repository (ES Repository). They can be reused to assemble and construct them during the implementation of new applications. The result? Maximum productivity and user convenience. 3

4 Using SAP NetWeaver to integrate information systems KHNP examined various software options while building its Web-based user system. When the internal IT team integrated the measuring instrument calibration history system with the legacy SAP ERP application, they realized that SAP NetWeaver could best meet their needs to continue the important task of data integration. The KHNP IT team had carefully compared many Web-based system building methods and realized that its Custom Balt On (CBO) work could be greatly reduced by applying SAP NetWeaver to the company s SAP ERP backbone, called Dreams. The company carefully planned the implementation in three stages. Stage one integrating data from the measuring instrument calibration history system went smoothly. Soon thereafter, SAP NetWeaver was applied to KHNP s purchase monitoring system and the employee education management system. The implementation was done on time and within budget. The internal IT team also set up a comprehensive education program so that all end users would feel confident when using the new software. 4

5 Generating cost savings up to 60% SAP NetWeaver provides a common platform and application for employees to share similar functions, which has resulted in increased efficiency and reduced costs. KHNP has reduced its business process design, screen design, and development time by 30%. Employees using the streamlined software are taking 60% less time to do key business processes. As a result, costs for manpower and development time have been greatly lessened. The company s data has now been integrated within its SAP ERP application; business processes unification has become a reality. SAP NetWeaver has also enabled the company to save development time and expenses required to build its service environment. KHNP was able to realize a Web-based system capable of performing work, even from smartphones. Also, due to the companywide employee training program, which showed people how to use this software, the company s software user rate has increased by more than 100%. Key benefits 60% Improvement in the rate of reused services 30% Savings in the total cost of IT ownership 35% Improved information input rate >100% Increase in the number of software users 5

6 Korea Hydro & Nuclear Power Co., Ltd. Picture Credit Customer Name, City, State/Country. Used with permission. Integrating and consolidating data for a powerful future Korea Hydro and Nuclear Power is steadily expanding its use of SAP NetWeaver on a mid- to long-term basis. The company s IT employees are continually consolidating current CBO items and converting them to SAP NetWeaver in order to fully integrate the SAP ERP data within SAP NetWeaver. KHNP management is committed to ensuring that the company s employees become confident SAP ERP users so that both they and the company can grow together for a prosperous, exciting future. CMP17692 (12/02) Copyright/Trademark Privacy Impressum 6