Kia Global, headquartered in South Korea, is one of the leading automotive manufacturers known for its innovative designs and commitment to sustainability. With a significant presence in numerous countries, Kia is dedicated to driving forward the future of sustainable mobility, especially with its growing focus on electric vehicles (EVs). As part of their continuous efforts to understand their franchise network operations, Kia HQ sought to implement a global Business Management System to better analyze and view their network performance across their major global markets.
Challenge: Streamline Data Management and Analysis
Before implementing Optimum’s Business Management System, AMOS, Kia Global faced several challenges:
- Inefficient Data Management: Kia was relying on Excel files to gather and analyze composite data, which was highly time-consuming and prone to errors.
- Limited Analysis Capabilities: The existing manual systems did not allow for detailed analysis of EV and ICE vehicle profitability. All data was aggregated, making it difficult to extract meaningful insights.
- Need for a Global Dashboard: Kia required a global dashboard that could provide a comprehensive view of KPIs across all markets, with a particular focus on EV profitability.
Michael Oh, Global Business Manager at Kia, noted,
We were unable to analyze EV and ICE data as it was all together and not split up. We needed an EV Profitability Analysis system that would split the data for us to analyze.
Solution: Implementing a Business Management System
To address these challenges, Kia turned to Optimum’s Business Management System, AMOS, leveraging their existing 10-year relationship with Optimum Info. Many of Kia’s international branches were already using AMOS, making it a natural choice for Kia HQ. The implementation process was collaborative and thorough involving setting up data feeds from various markets including some that were not using Optimum AMOS solution. These included data from Kia Markets in US, Canada, Mexico, India, Germany, UK, Spain, Italy, France, Russia, Australia and New Zealand.
Weekly meetings were held between Kia and Optimum to discuss implementation details, project requirements and feedback. The Optimum account manager played a crucial role in bridging communication between Kia’s team and the developers.
One of the key components of implementing the system was the establishment of the Standardized Chart of Accounts. This feature allowed for consistent sales data collection and analysis across all markets.
After implementation, around 10-15 people in Kia’s Global headquarters office, including the Global Sales Operations, finance, and dealer channel divisions, began using the AMOS system for monthly reports.
After establishing the Global Chart of Accounts it’s much easier to integrate the different markets’ data and collaborate with them. The fact that Optimum works with multiple Kia countries, including Kia Europe and Kia India, helps us a lot with integrating with their systems,
added Michael.
Results: Enhanced Data Insights and Operational Efficiency
The implementation of AMOS brought significant benefits for Kia, including:
- Enhanced Data Analysis: The trend analysis page allows for easy customization and quick insights. Users can select specific countries, periods, and KPIs to analyze, such as the gross profit of EV models over time.
- Automated Composite Dashboard: The composite dashboard automates the collection and visualization of composite data from all countries, drastically reducing the time spent on manual data entry and analysis.
- Improved Profitability Analysis: The EV dashboard provides detailed insights into gross profit per unit, enabling better decision-making regarding EV sales and profitability.
- Quick Response to Market Trends: Features like the KPI Tree and Quick Analysis allow Kia to monitor trends, such as decreasing dealer profitability due to supply chain issues and high interest rates and allows them to investigate underlying causes promptly.
Michael highlighted,
Before it took us at least a few hours to calculate the composite data of the 12 markets we manage but now we can conveniently download the data in just a few seconds using AMOS.
The Future: Expanding AMOS Across More Global Operations
Kia plans to further expand the use of AMOS across its global operations, such as Kia Central and South America. The region has smaller countries that struggle with data management and analysis. It is planned to implement the AMOS system in these countries, which will help streamline their business management processes and provide better insights into their financial performance.
Additionally, Kia is organizing a global Business Management meeting in Korea, where representatives from various countries and Optimum will be present. This meeting will serve as an excellent opportunity to introduce the benefits of the AMOS system to other regions. By showcasing how AMOS has transformed business management for Kia in other markets, they hope to encourage broader implementation and integration of the system.
Kia’s commitment to expanding the use of AMOS reflects their dedication to leveraging advanced business management tools to enhance their operational efficiency and decision-making capabilities. As more regions adopt the system, Kia will be better equipped to analyze market trends, respond to challenges, and capitalize on opportunities, ensuring continued growth and success in the competitive automotive industry.
Overall, we are very satisfied with the results of AMOS. The reports and data are quite meaningful,
summarized Michael.
