The National Agricultural Cooperative Federation of Korea (hereinafter 'National Agricultural Federation' or NACF) caused a decline in work efficiency by depending on manual work for identifying and analyzing various financial information of the head office or settlement work of branches. Since work improved as the new system of LG Hitachi was adopted, we intend to introduce the case.
We talked to Mr. Yun Rae-gu of the National Cooperative Federation who is responsible for everything from planning to management of fund liquidity system and training for operators of the financial accounting management system.
Mr. Yun The existing financial accounting related systems the National Cooperative Federation used operated under a mainframe environment. The mainframe is a platform that has many features, including the best stability, safety, and availability. On the other hand, it was difficult to sufficiently respond to scalability when adding new functions.
Mr. Yun When the deadline of primary duties approached, branch tellers (bank window employees) frequently made telephone inquiries to the accounting information team of the head office IT division. While there were usually no big problems since the main cause of errors were already fixed in most inquiries, there was still a work overload to the person in charge of the IT division because he had to respond to every inquiry. In addition, if the overall total was incorrect after accounting was closed by the tellers, and the cause of the problem was not identified, even the IT division could not solve the problem just by calling. In this case, work was inefficient because the branch tellers had to look through every single thing to find the cause behind a problem.
There was a need to improve the system to effectively utilize financial accounting information from the enterprise perspective since flexibility and applicability of data were weak in responding to new changes.
─ Mr. Yun, NACF
The National Agricultural Federation felt the need for a system that could cover everything from the improvement and operation of financial accounting related systems to the educational support for users and operators.
Mr. Yun We realized the need for improving work efficiency of closing duties conducted every day at branches, fast analysis and delivery of financial accounting information required in various decision-making, and a need to respond flexibly to changes in the market and regulations.
To satisfy such requirements, we started constructing an integrated financial accounting system, even taking into account many information provisions from cases of advanced accounting systems. These reflect an improvement in work productivity, International Financial Reporting Standards (IFRS), and process improvements.
A solution provided by LG Hitachi will be introduced in the next page.
NACF (National Agricultural Cooperative Federation)
Financial and Insurance Activities
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LG Hitachi Ltd.