Hyundai Capital - OLAP(presentation date : 6/20)

Group 02

20061228 Chunghan Park

20120768 Modeum Lee

20100166 Taekbeom Yoo

[IMEN381] TP2- Final presentation

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1. Company and Environment Overview

2. Problems that the firm is faced with

3. OLAP (Online Analytical Process-ing)

4. OLAP of Hyundai Capital

5. Results and Further Improve-ments

Contents

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Company and Environment Overview

■ Corporate History

– Founded Hyundai Auto Finance Co. Ltd (1993.12)

– Changed company name to Hyundai Capital Services, Inc. (1999. 01)

– Domestic credit rating upgraded to AA+ (2010. 03)

– JCR credit rating upgraded to A(S) (2010. 07)

– S&P credit rating upgraded to BBB+(S) (2010. 11)

■ One of the most successful finance companies in Korea

■ Achieve stable financial results with operating profit of KRW 181 billion and net

income of KRW 129 billion (1Q12)

■ Market share of Hyundai Capital is larger than 50%

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Problems that the firm is faced with (1/2)

■ The characteristic of capital business

– High risk in capital business

– Business cycle frequency is reducing and volatility is increasing

– Capital company has to predict the risk factors and control them

■ The case of Long Term Capital Management

– LTCM made a pricing model

• tried to predict the return of finance product

– LTCM failed to predict the market Bankruptcy

■ Prediction is Important, but the more important point is accuracy and risk con-

sidering

?

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Problems that the firm is faced with (2/2)

■ Background for importing new solution

– There was analysis demand about every loss prediction for high profit

– They sold many types of capital product

• Many types of demand analysis

• Accuracy analysis

• Real time risk factors monitoring

• Fast and easy risk management

Hyundai Capital imported MOLAP solution!

AnalysisRequest

DecisionMaking

■ Definition– Approach to enable end-users to interactively analyze multidimensional data from

multiple perspectives for their decision making

■ Characteristics

■ Structure

Meta Data

Management& Configuration

Data Warehouse

Data Mart

OLAP (Online Analytical Processing)

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Characteristic Explanation

Multidimensional data Storing data using multidimensional structure

Direct access Allowing end-users directly access and use the data

Interactive analysis Analyzing data through interaction with users

Decision making Supporting users in decision making

Data Reposi-tory

OLAP ServerOLAP Client

Users

Importance of OLAP

■ Infrastructure for BI (Business Intelligence)– Analysis Function– Integration of reporting, mining, statistic functions

■ Practical Use of Information

■ Ultimate Objective of OLAP– Helping users understand the overall situation of the company

and support their decision making

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Needs for Possession of Information

Established DW(Data Warehouse)

Needs for Effective use of Information

OLAP tool

OLAP of Hyundai Capital

■ Multidimensional OLAP(MOLAP)– Classic form of OLAP– Stores this data in an optimized multi-dimensional array storage

■ MOLAP Solution of Hyundai Capital

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Source Data

CRMS

Monthly

Close

DailyRisk

LLC

Re-trieval

Data Warehouse

PMS Data Mart

ESS-Base 7X

Block type

ASO Type

User Interface

Dashboard

Monitoring

Supervisor

InformationAnalyst

ESS-base MOLAPExcel add-in

Results and Further Improvements

■ Result– Easily analyze risk factors without additional education

• Excel spreadsheet Add-in function of ‘ESS-Base 7x’

– Manage risk by using visual aids such as screen– Identify the progress from the present to the future– Increase the work efficiency

• Before: 80% of analysis was made by hand• After: only 20% of analysis is made by hand

■ Further Improvements– Diversification of evaluation

☞ Plan for raising usefulness by using multidimensional criteria

– Adapting MOLAP in other department for the realization of integrated system

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