Professional Documents
Culture Documents
DEVARAJAN K | SHALABH DHANKAR | SONAM BHARGAV | AMARENDRA KR.GORAI | BHARATH BALAJI | AKSHATA V M | KARTHIKA S| NEELAM | VIGNESHWAR M | AMOY KUMAR D | KULBHUSHAN SINGH BAGHEL | MAHTAAB KAJLA Management of Technology and Innovation
Flow of presentation
Company Overview
Q&A
Assignment Question
What is Samsungs strategy of innovation that has enabled it to catapult from a $20 billion company to a $100 billion company in 10 years?
Company Introduction
South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea Notable Samsung Group industrial subsidiaries include Samsung Electronics (the world's largest technology company measured by 2010 revenues),Samsung Heavy Industries (the world's second-largest shipbuilder measured by 2010 revenues), and Samsung Engineering and Samsung C& Samsung Group accounts for about a fifth of South Korea's total exports
Worlds Most Reputable Companies 2010 ranking published by Reputation Institute of the US, Samsung was placed at 22nd, a large advancement from prev. yr.s 74th Samsung was ranked 11th in 50 Most Innovative Companies 2010 list by Business Week, a five-notch increase from the previous years 16th Samsung had emphasized innovation in its management strategy since the early 2000s and it again highlighted innovation as part of core strategies when it announced Vision 2020 in which the company set an ambitious goal of reaching $400-billion sales revenue within 10 yrs.
Management of Technology and Innovation
State Intervention
South Korea : directed cheap credit Asian Financial Crisis 1997-98: reckless expansion Generates cash to finance its expansion plans
Invested $20 billion in 5 fields in which it is a relative newcomer: solar panels, energy-saving LED lighting, medical devices, biotech drugs and batteries for electric cars New Environmental rules (solar power, LED lights, electric cars) or exploding demand (medical devices, drugs) Large scale Manufacturing and lower costs
Patient and bold (Strategic thinkers) Family of its late founder, Lee Byung-chull, wants it to be family controlled Family control is guaranteed by a complex web of cross-shareholdings
Ten years later, Samsung sold more of them than any other company in the world
The technology it delivered made the iPhone and iPad a reality, and made Samsung Apples biggest supplier and now its biggest hardware competitor.
When it pounces, the company floods the sector with cash. moving into very high volume production as fast as possible not only gives it a price advantage over established firms, but also makes it a key customer for equipment makers.
Samsung - Apples most important supplier in the smartphone and tablet-computer markets. Samsung components, which include all the products application processors, account for 16% of the value of an iPhone.
Management of Technology and Innovation
Problem
Apple is now suing the socks off the company for copying the look and feel of its products.
The company has pushed out older managers and restructured its divisions over the past two years despite posting record profits even in the global financial crisis
It has aimed products at poor countries, too. This not only gave Samsung scale, but also market shares in the worlds fastestgrowing economies making it resistant to recession
New sectors have synergies - experience in semiconductors and flat-screen televisions fits easily with solar cells and LED lighting: the technology, materials and production processes are similar.
Close watch on competition - Chairman Lees fear is that successful companies get flabby when they hit middle age. He saw that in Sony, founded in 1946, which has been struggling since the 1990s. Samsung Electronics turned 40 in 2009, which prompted Mr Lee to lay the groundwork for the five new growth areas
Entrance of foreign companies into the Korean market and their refusal to transfer their technologies to Samsung initiating its ITICs
Samsung started TICs by means of reversing the engineering of imported foreign technologies and transfer of technology
The capability to establish their own ITICs, to become one of the leading companies in the world which challenges firms from advanced countries in the global market
Transfer of Technology
Government Support
Starting point technology innovation Adaptive technology innovation
Mass production
A follow-theleader strategy
US based R&D
Product
Management Strategies
Business
Product Innovation
Process
Crisis Construction
Technology
Process innovation based KM strategy provides the sustained competitive advantage To realize the value of knowledge in companies KMS should be executed in parallel to PI
Accumulative Knowledge
Methodological Knowledge
Knowledge outcome of innovation process Not the process itself, but tasks related to performance Should be combined with tacit and explicit knowledge
.
Management of Technology and Innovation
References
Article Asias New Model Company: Samsungs recent success has been extraordinary. But its strategy will be hard to copy Economist Oct 1st 2011 Article The next big bet: The worlds biggest information-technology firm is diving into green technology and the health business. It should take care; its rivals should take notice Economist Oct 1st 2011 A spiral process model of technological innovation in a developing country: The case of Samsung : Kichan Park1*, Murad Ali1 and Franoise Chevalier2 Integration model of technology internalization modes and learning strategy: globally late starter Samsungs successful practices in South Korea Y. Gil1, S. Bong, J. Lee Knowledge Management and Process innovation The knowledge transformation path in Samsung SDI Seungkwon Jang, Kilpyo Hong, Gee Woo Bock, Ilhwan Kim
Q&A