Samsung Business Strategy

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Business Management Quality Innovation with Market-Based Global SCM System Implementation Samsung Electronics, a leading Korean company as well as a symbol of the IT industry, carried out an innovative project to strengthen its global Supply Chain Management (SCM) execution ability, gaining the industry’s interest. Samsung Electronics placed its emphasis on the business management scenario of predicting and preparing for future environmental changes and competitiveness, which is one of the survival strategies of an industry with an unpredictable future. The company is aggressively establishing the foundation for enhancing business management speed and efficiency-oriented business management innovations since early this year. In accordance with this type of scenario, Microsoft’s Business Intelligence (BI) Platform provided life to Samsung Electronics’ SCM system. Samsung Electronics decided to implement an action-oriented BI solution that enables on-demand changes of business management plans and reflects these adjustments. As such, it decided to deploy SQL Server 2008, which can satisfy all three major requirements of BI solution, including ‘performance and reliability’, ‘cube write-back’ and ‘user convenience’, and the company is thoroughly experiencing the benefits of this IT innovation. In the face of enterprise-wide application, it has completed application in only its video display business division, so it is still too early to mention any fixed quantity of benefits. However, with this system implementation, Samsung Electronics expects to increase its forecast accuracy for product demands by more than 20%. |[pic] |

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|We judged that we must operate a |
|market-based SCM in order to detect |
|changes in the global market |
|environment and to adapt quickly to |
|the change requirements. So we |
|required a reliable BI solution that |
|can support a large amount of data |
|processing on Samsung Electronics’ |
|promoted BI platform, which consists |
|of hundreds of terabytes of data from |
|ERP and GSBN systems. Ultimately, we |
|chose Microsoft’s BI Platform since it|
|can resolve issues of timely and |
|technical costs felt and demanded by |
|Samsung Electronics while it was |
|facing system implementation. |
|[pic] |
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|Jo Dong-geun |
|Deputy Manager, Samsung Electronics |
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|[pic] |
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Situation

Need for market demand-based global SCM in order to actively respond to changes in the external environment

Samsung Electronics, showing limitless growth in both semiconductor and cell phone industries, is a global corporation with more than 90 offices in 52 countries all over the world. Last year, it achieved US 100 billion dollars in revenues, positioning itself as one of the ‘Top 3 Companies in Global Electronics Industry’ and early this year, it ranked 38th, the highest for a Korean company in a Fortune Magazine announcement of the ‘Top 500 Global Companies for 2008’.

Until it established a noteworthy business management index of US 100 billion dollars in annual revenues, Samsung Electronics was under pressure from high logistics costs and insecure supply and demand of raw materials and, as a manufacturing company, it is always conscious about imminent risks and a need for constant innovation and future visibility to avoid over-purchase/production.

In...
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