— Dongjin Kim, General affairs information head of department , HSG Sungdong Shipbuilding
Despite a period of decline in maritime trade, for those willing to embrace change and actively adapt, the shipbuilding industry’s future is full of potential. Mirroring the path of its peer group, HSG Sungdong Shipbuilding has returned to solvency following a period in receivership and is navigating a new, upward trajectory. The company’s vision embraces key elements of its industry’s future: robotics, automation, and artificial intelligence (AI).
A critical aspect of HSG Sungdong Shipbuilding’s return to commercial viability in an increasingly competitive market is the Smart Yard. Dongjin Kim, general affairs information head of department, elaborated, “The Smart Yard is a field automation project designed to modernize and optimize our facilities. Success in initiatives, like the automation of the numeric control system in our steel cutting factory, have significantly enhanced the accuracy and efficiency of production.”
The innovative, AI-powered shipyard covers more than 1 million square meters, integrating all construction processes from steel cutting through delivery with the company’s Smart Flow production system. The plant includes features such as a digital welding system and automated panel and unit assembly shops, all of which help maximize quality and productivity.
HSG Sungdong Shipbuilding’s Smart Yard project is a product of the South Korean government’s national initiative to invest in AI-enhanced projects and help reinvigorate the operations of shipbuilders. Smart Yard is enabling the company to competitively manufacture its signature vessels as it returns to profitability.
The modernized facility and its continued development are huge celebratory milestones in HSG Sungdong Shipbuilding’s recovery. Following the global decline in demand for new vessel production, the company had accumulated sizable debt and was placed into receivership. With stringent court-imposed stipulations and looming deadlines to restructure, liquidation had appeared imminent.
“In this difficult situation, the absolute top priority was to identify how to reduce costs. Reviewing our budget confirmed that IT’s biggest single expenditure was maintaining Oracle applications and database. Despite being a critical application, the cost to support Oracle was so large that our head of finance was always asking ‘Why is it so expensive?,’” recollected Kim. Drastically reducing this expense became necessary to sustain the company’s ongoing financial viability.
To ensure system availability, HSG Sungdong Shipbuilding had subscribed to Oracle’s Premier Support and Advanced Customer Service. Kim added, “We had used Oracle E-Business Suite [EBS] for over 10 years and throughout that entire time, we rarely received support from Oracle, a service provider. Considering our level of usage, there really wasn’t any justification to continue paying Oracle’s support fees.”
After examining its options, HSG Sungdong Shipbuilding contracted with an independent third-party support provider. “We were able to cut more than 50% from the amount we had originally been paying Oracle for support. These are savings that benefit the entire company and enable us to strategically reallocate funds to the Smart Yard initiative,” explained Kim.
The IT team director discovered Rimini Street’s independent, third-party support for Oracle services while researching cloud migration services. He recalled, “In the long run, we are keen to move EBS to the cloud and reduce daily oversight of the system using robotic process automation. Rimini Street was chosen because cost savings are a necessary first-priority for realizing any future plans in addition to quality support.”
With Rimini Street, HSG Sungdong Shipbuilding has access to world-class support at considerably lower expense. Kim highlighted, “Whenever we had a challenging problem, Oracle’s local team would frequently transfer the ticket overseas to headquarters for an answer, which always caused a delay. Rimini Street’s Korean office is staffed with an experienced group of specialists that repeatedly resolves issues without having to escalate outside of the country.”
The efforts to restructure and rebuild have enabled HSG Sungdong Shipbuilding to create a robust foundation for the company’s return to market prominence. Ever forward-looking, Kim is already planning for the sea of opportunities and challenges that lie ahead. He noted, “IT will play an increasingly significant role as we continue to develop our infrastructure and further enhance business operations. I am confident that our partnership with Rimini Street will be part of that future.”
Are you questioning your S/4HANA roadmap options? According to Gartner, “The complexity of the SAP S/4HANA roadmap, lack of clarity in industry-supported functions and the range of deployment options available (both on premises and Software-as-a-Service, or SaaS) mean that customers must spend more time selecting what is best for them, given that SAP has stated […]
Saving at least 50% on SAP support costs to leverage the investment made in implementing an existing SAP system is an attractive proposition for most IT leaders, especially in today’s economic stress. Third-party support provides this option. In fact, Gartner calls “third-party support a safe haven.”
According to Gartner1, “…an array of on-premises customers will move to third-party support as a safe haven while evaluating their long-term plans.”
Learn how 7 manufacturers gained operational efficiencies and funded digital transformation with Rimini Street third-party support for enterprise software.
SAP customers contemplating the transition to S/4HANA have a lot to consider. A move to S/4HANA is more than an upgrade; it’s a new implementation effort, a new platform, and a new database. With costs estimated to be 5 to 7 times current license costs and potential barriers to aligning scarce expertise to make the move with minimal disruption, many customers are searching for options. The Valoir Research report, “Assessing an SAP-Rimini Street Strategy,” helps SAP customers understand the role of independent, third-party support from Rimini Street. In the report, you’ll learn: The current state of SAP software support and licensing burdens The value of stopping the clock on SAP’s planned deadlines to make the S/4HANA move when your business needs dictate – not SAP’s roadmap Ways customers are using liberated resources and budget to help fund digital transformation and accelerate innovation initiatives How Rimini Street independent, third-party support has helped customers reset their SAP relationships to better position themselves for an eventual move to S/4HANA
Oracle Security Patches, AKA Critical Patch Updates (CPUs), are often considered a “freebie”, but in reality, they are anything but free. Learn about the hidden costs associated with receiving and applying Oracle CPUs and what you can do to significantly reduce those costs.
You don’t have to follow the restrictive and expensive vendor-dictated roadmaps for Oracle EBS. Break free from forced upgrades and budget-draining support packages. Use your IT budget to drive innovation and get the support you need to achieve your business goals. Independent, third-party support saves up to 90% annually on maintenance and support costs and allows organizations to control their own IT roadmap based on business needs – not vendor-dictated demands. In this ebook, you’ll meet eight Oracle EBS customers across manufacturing, retail, media, and packaged goods that made the switch to independent, third-party support with Rimini and achieved significant business success.
This website has been built using modern web standards not fully supported by your browser. Please consider updating your browser.Upgrade Today