Samsung Electronics

-Innovation and Design

Strategy

Group Members
-Mukesh Popli
-Neha Arora
-Pallavi Gupta
 Contents
• Company Background
• 4 main Issues
• Innovation & Design at Samsung
Electronics
– Investment in-
• Design
• R&D Centers
• Samsung E-Process
• Competitors
• Results
 Company Background
• Changed from-
– agricultural products to
– flour mills to petro-chemicals,
– chemical factories to raw materials and
– machinery to end products
• Black & White Television {VCRs and microwave ovens}
• JVs with NEC, Sanyo and Corning Glass works
• Developed its own Integrated circuits and DRAMS
• Shift from division-centric development model to
portfolio-centric model

3
 4 main Issues

• Decentralization
• Innovativeness
• Globalization
• Outward-looking management

4
Innovation & Design at Samsung
Electronics
 Investments

Creative people Co-operation

among business
to develop partners through
Technologies supply-chain

Firm’s ability to The speed of

explore and innovation and
penetrate new product
markets development
 R&D Centers
• Samsung Information System America
– Advanced research on core and advanced
technology
• Samsung India Software
– Software development for high-end TVs, digital
media, telecommunications
• Samsung Electronic China
– Software, TV and MP3-player development
• Samsung Advanced Institute of Technology
– Nano electronics, energy and environment and
display
 Design
• Balance between reasons and feelings
• Rationalization of design by using
geometric and technological parameters
• Enhancing design-emotional connection

Reason Feeling Emotional

Connection

8
 Samsung E-Process

Component Supplier R&D Management

Customer
management
Process

9
 Competitors
• Apple Comp Inc
• LG Electronics
• Nokia Corp
• Motorola Inc

10
 Way Ahead

Value to
Competing
Competingwithwith Customer Competing
Competingwithwith
Marketing
Marketing Operational
Operational
Capabilities
Capabilities Capabilities
Capabilities
Price
Quality
Timeliness
Flexibility
Competing
Competingwith
with
Product Technological
Technological Process
Capabilities
Capabilities
Enhancements Enhancements
 Results
• Improvement in the product development processes
• Increasing their investments in R&D and product design
i.e. R&D globalization.
• By adopting right innovation strategies.
• By mastering the less tangible, more intuitive qualities of
superior design.
• By diversification of products and step by step or
continual improvement.
• Implementing Global localization strategy.
• Achieving Vision of leading in digital convergence by
using e-processes (electronic integration of processes
by going online)
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