'Innovation and Design Strategy Essay\r'

'Samsung Electronics: unveiling and Design dodging Introduction: The case study commences with the integrating of forward-looking inclination and check off management by Samsung Electronics which started a new-sprung(prenominal) tr remainder in the electronics industry. As discussed in the case, initially Samsung was not much popular and lacked public figure identity but later it relocated itself by: * Improvement in the harvest-home development processes * increase their investings in R& adenylic acid;D and intersection point figure of speech i. e. R&D world(a)ization. * By adopting right innovation strategies. By mastering the little tangible, more intuitive qualities of superior design. By variegation of fruits and step by step or recurrent improvement. * Implementing Global localization strategy. * Achieving Vision of leading in digital convergence by development e-processes (electronic integrating of processes by going online). All these methods were impleme nted by Samsung in order to improve its productivity and to score competitive advantage all over its competitors like LG Electronics, Sony, orchard apple tree Computer Inc. , etc. Despite this, Samsung is facing the take exception to stay ahead in competition in the near future.\r\nConsumer electronics industry is facing a strong competition and the need of the our is to optimize the R & D costs, having relevant information regarding the IPR (Intellectual Property Rights) plot of ground design outsourcing and using appropriate product design followed by appropriate market strategy. Case compend: As mentioned in the case, the background of Samsung can be discussed in a tabular form: * Started by Byung-Chull Lee in 1939 as an exporter of agricultural products. I * Samsung Electronics established in 1969 followed by product diversification.\r\nI * Strategic Joint Ventures with NEC, Sanyo and Corning Glass work in 1970 | Brought 50% stake in Korea Semiconductor Inc. I * Acqui sition of Korea Semiconductor Inc. in 1978 followed by the prospered slaying of reverse engineered product design I * Vertical integration by developing their profess IC’s DRAMS(Dynamic Random Access Memories in 1985 Focus on qualitative growth than three-figure growth in 1990 | * Loosening of import restrictions by South Korean government I And Samsung accomplishd damage competitiveness in 1991. | * In 1992, Samsung established R;D place in European markets.\r\nI * In 1994, Samsung established R;D center in US markets. I * In 1997, Samsung cuts its Korean and overseas workforces due to Asian Financial crises. I * In 1999, Samsung was regarded as world’s premier(a) consumer goods and services industry By Forbes. I * In 2000, Samsung embarked vision to convert itself into a Digital- e company. * increase design staff and 2004 | * In 2005, Samsung increased its design budget by 20%-30% | * In 2006, Samsung registered 17,377 patents widely distributed I * In 2007, Samsung held management, product design and investment in R&D provided them advantages over its competitors.\r\nHence, they improve step by step with the product iversification, Mergers and Acquisitions, vertical integration and implementation of new technology. They were crisply involved in marketing and improving their brand image in the minds of their customers. The Samsungs learning and leveraging intercellular substance can be explained as: Dedicated tune units e. g. Informal technology transfer I newfangled venture department or division, e. g. â€Å"skunkworks( Investments in R&D’s) I Independent line of credit unit, e. g.\r\nPredivestment or potential spinout I Direct integration or business team ( Vertical integrating by developing their own IC’S) I High Low Leveraging existing competencies Innovation and product Design at Samsung Electronics Samsung Electronics leading perspective was contributed by the enlisted factors: * Creative people in the memorial tablet which contributed in the development of technology. * Co-operation between the business partners throughout the supply chain * Firms ability in exploring end penetrating into the new markets * Speed of innovation and product development.\r\nAlong with this Samsung also increased the investments in their R&D centers. After doing the trend abstract for the Exhibit 3 which shows the Samsung R&D udget and percentage gross revenue, We arrive at the conclusion that the Samsung’s R;D budget increased public treasury the year 2007 linearly. But there is extraction in the percentage of sales in the year 2007, which suggests that the Samsung pull up stakes need to rethink this strategy. There is an urgent need to optimize the cost related to Samsung’s R&D expenditure to prevent the decline of sales in future.\r\nSamsung globalized their R&D network worldwide to develop technologies which can be commercialized in the future. Basically the main base behind the globalization of R&D network is to: * Focus n innovation and generating new products for global market. * There is a huge orbit of product improvement. * This provides an access to the emerging markets. * Leverages the market prospect for the firm. User- Centric Design Philosophy Samsung’s philosophical system was to strike the balance between the reasons and feelings.\r\nThis was done by them with the rationalization of the design of product by using geometric and technological parameters and enhancing the design to the product so that it can make the emotional connection with the user. Their global localization strategy helped them to become a put across class consumer lectronics company. Marketing Samsung used electronic processes to achieve their vision of leading in digital convergence. The crossroad and integration between manufacturing, promotion ; distribution of electronics include releasing, promoting and marketing.\r\nThis * Helped in product differentiation * Better jimmy propositions or bundle of benefits to the customers. This graph shows net sales and operating profit of Samsung Electronics 2007 Samsung Electronics’ E-processes comprised of: The SCM, R&D management and Customer management processes were ntegrated with ERP (Enterprise Resource Planning). ERP implementation provided them a wider access to the Samsung Electronics’ operations. This improved their overall processes and improved efficiency.\r\n'