201 0LGCSNet Success story of the web-based system for service partners " We knew that we had to absolutely be at the top of customer satisfaction if we wanted to be successful.," Daya Prakash, CIO, LG Electronics India Pvt. Ltd. ICT Integration in Business Jaypee Business School 12/16/2010 lg. . faced such a challenge. LG INFRASTRUCTURE Currently in 2010. 2300 direct distributors and then sub 2 . they typically deploy manufacturing facilities and sales offices worldwide. It set up its manufacturing hub in India in April 1998 with a turnover of 31 million USD. . . companies must innovate continually. . in order to serve the local customers more efficiently.Update daily call status and action taken accordingly. Indian and abroad in 2004 domestic plant in Pune was setup.Call Monitoring and Closure. . .SUCCEED IN THE CONSUMER ELECTRONICS INDUSTRY AT A GLANCE Company Name -LG -India -www.Daily call registration and call assign to engineers. effectively and efficiently. LG.Improvement in Productivity and Quality of Service. South Korea.Monitoring the daily issues and immediately taken action on it and resolve. it can complicate business processes. LGEIL.com Industry -Consumer Electronics Qualitative Benefits . microwave oven. dealing in a variety of products like washing machine. a wholly-owned subsidiary of LG Electronics. to talk to trading partners. The communication among the various sales offices with their parent office is indeed very crucial in order to work both.Improvement in ASC Performance.Service bulletin . it has 48 branch offices across 9 regions across the country. television. To succeed in the CE industry. During the years 1998-2004 demand increased manifold and earlier third party manufacturing base was used by the organization which had various tax and duty benefits.Call Tracking and Open / Pending complaints reports. maintain efficiency & operate on a global basis. Although. set up base 12 years ago. mobile phones and so on. . . this type of expansion is crucial in gaining a substantial market share. In order to do so. Each branch is required office to reach customers directly through remote area offices area office in charge. But with increase in demand.Reduce response time due to regular call monitoring.Direct contact with the customers through happy calling to get the feedback. . The aim has been to provide a unique experience to customers. LG incorporates it through e-management system that integrates various business functions. Organizations today need to have their ERP foundations in place.907 sites Server host. LG owned shops were established. and it was not organized in ways that enabled employees to find it.10-20% increased accuracy for spare inventory management at ASC . With this idea in place. . PROVIDING EMPLOYEES WITH NEEDED INFORMATION There was plenty of substantial information at too many places.5 Lac (approx)calls in a month with absolute transparency. . LGCSNet sites Call center. Thus. As the demand is growing the challenge is how to give unique perspective to customers in order to provide more than value for money.Quantitative Benefits . To support VOC and 211 program by 120 Telecallers.5 lakh calls a month. dealers’ three distribution centres in place.100% of Spares parts orders are being routed through System only. Anytime.2. .Effective Spare Part Inventory Management amounting to an inventory worth Rs 14 crores.System used by over 1000 ASC across product categories.e. With Direct Service Centres (30 in non-metro and tier 2 cities) the aim is to monitor the whole experience and to ensure that the customers are exposed to better service experience.Over 90% calls are being registered through LGCSNet. All the modules of the ERP Package were configured wither prior customisation to a few i. IT@ LG The result of the same is Customer Satisfaction. anyone had any information to share. helping them to rightly appreciate the product and better understand the technicalities related to it. approx 30% customisation.533 sites North India.585 sites South India. 8748 service engineers 3 . it would be communicated manually. making about 1.SOFTCELLNET LGCSNet Country Map In these changing scenarios it is of paramount importance for the organizations is to act fast with the right decisions. in order to educate the customers on core technical products. LGEIL has several Authorised Service Center’s (ASC) spread across India. For instance. a company cannot leverage advantages in product performance and adaptability unless it has the availability of real-time information to determine costs.com). Therefore. THE NEED FOR REAL-TIME INFORMATION It is very difficult for any organization to attract 100% potential customers and engage their demand. XYZ engineer visits a customer & if he behaves courteously. if an organization has a satisfied customer then there is a huge scope of repeat purchase by customers and new products can be offered through cross selling etc. the information regarding which customer was visited by which engineer is recorded. Their demand requirement has to be very transparent in order to avoid building up of inventory and/or excess lead time.and 1124 service centers were too widespread to be collaborated with the help of current ERP package. Every ASC was given the access to the Customer Service Online Support network (www. ”To survive in the fierce and stiff competition. I am of the opinion that IT dept plays a crucial role in leading the company into the new height of execution with enhanced speed by providing delicate decision making tools and processes”. LGEIL LGCSNET 4 . and identify ways of benefiting from economies of scale across geographically widespread operations. the real time update was required for efficient servicing of the customers.lgcsnet. This is inconvenient for the customer as s/he shall have to repeat about the encounter at the first time service. But. The second time ABC engineer visits the same customer. wherein they could enter their demand and/or other relevant details concerning customer service. Thus. This resulted in redundancies and no single ownership of information. consistent and convenient to the customer. Every ASC has a demand requirement for LG products as per the consumption by the customer. management of speed with right decision ahead of competitors is critical. the moment of truth is pleasant. Thus. assess business performance.MD. The moment of truth had to be pleasant. Within Convenient 1 Hour time With this platform there was a 50-60% increase in sales potential. 5 . SMS Service Customer calls call center SMS sent to customer with job code SMS sent to service engineer slot assigning him of that job Simultaneous SMS to branch office 211 2. With reliable and good service quality LG provided a unique customer solution where in ERP system service centers infrastructure challenge was catered by a platform accessed by the 100 service centers and integrated through LG. Thus. the LG Market depended on the service center’s attitude towards the customer. LGCSNet was a control mechanism that lay down the guidelines for behaviour. Also. even if they were located in the backwaters. it has been of a paramount importance to the company and its business. 211 & Voice of Customer. This also enabled them to gain control over the service levels of the service engineers spread across the country. The data was gathered from the CSNet module & subsequently. Service Engineer visit in 1 Day 1. Long term benefits are being sought after with it. Call Back to Customer in 2 hours 1.SMS Service. Prakash. it updated the management with the real-time requirements/ information of the ASCs. There were three initiatives associated with this system.The B2B portal was meant to help LGEIL's service franchisees (ASCs) maintain spare part stock. The LGCSNet was launched with a campaign called “Customer Delight”. fed into the CRM module of the ERP package. According to Mr. service efficiency and communication skills of service engineers.