LG CNS, a company specializing in DX, joins hands with SAP to start a next-generation ERP1 project based on SAP S/4HANA for successful DX for Korean companies.
LG CNS signed a strategic partnership memorandum of understanding with SAP on March 10 at the SAP headquarters in Walldorf, Germany.
With this MOU as an opportunity, the two companies will cooperate and jointly operate the next-generation ERP system optimized for Korean companies by utilizing SAP's ERP solution 'S/4HANA'. In addition, based on the technology and know-how of both companies, they will seek opportunities to discover new businesses.
The two companies plan to expand business collaboration using S/4HANA globally, starting with the Korean market, including LG affiliates. To this end, LG CNS' ERP consultants complete S/4HANA-related technology and operation training at the SAP Global Training Center.
LG CNS is starting its journey as a global strategic partner that operates S/4HANA of SAP, which has the largest share in the global ERP market. It combines the ERP operation capabilities of LG CNS, which has been providing ERP services for Korean and foreign customers in various industries such as manufacturing, chemicals, distribution, and aviation for 25 years, with the know-how of SAP, which leads the global ERP market.
LG CNS plans to further develop ERP by combining new technologies such as application modernization (AM), artificial intelligence (AI), and machine learning with ERP to innovate and operate ERP based on the cloud.
Customers who have applied the next-generation ERP system can respond quickly to changes in the business environment and continuously operate services. This is because AM is applied to next-generation ERP systems.
With AM, the application is divided into multiple services that operate independently of each other. By separating and slimming the ERP, which had several functions integrated, the system can be improved at any time the customer wants.
Minimizes the risk of downtime of the entire system if some function fails. For example, if one function out of 100 has a problem, only that service can take a separate action, enabling fast failover.
In addition, customers using the next-generation ERP system can make rational decisions based on big data. For example, in the production area, AI, machine learning, etc. analyze big data on the supply chain status in real time and conduct effective management simulation.
In the second half of last year, LG CNS upgraded the existing ERP division to the ERP innovation division. ERP consultants belonging to this organization have technical expertise such as global ERP, cloud, and AI. Through this partnership, SAP's product development organization and Enterprise Cloud Services (ECS), a dedicated ERP operating organization, will participate in the project.
"This partnership is an opportunity for LG CNS to bring its next-generation ERP capabilities to a global level, and for SAP to expand its customer reach in the Korean market," said Hyun Shin-Kyun, CEO of LG CNS. "We will work together to support our customers in their DX transformation journeys."
