Different factors such as technological innovations, globalization, and increased competitiveness in the market may create a need for effective organizational change. Frameworks for management, leadership, and change could contribute to forming changes for the organization that will facilitate the sustainable success of the organization. Applying different approaches regarding creativity, innovation, and leadership in managing change, Samsung Company could undergo significant organizational changes.
Samsung Electronics generate its competitive status by effectively changing products and processes. Samsung has grown from a low-cost equipment manufacturer to a world-class corporation in twenty years. The company has achieved such progress because it focused on changing and adjusting to the environment. Change is an important part of the development of any organization. Organizational change is a set of planned activities that facilitate the growth of an organization to the desired result.
Leadership has a crucial role in managing organizations and businesses. Leadership and management are two terms that create a framework for abilities and skills that an individual needs to successfully drive an organization. Leadership framework is an essential issue for the organization because it provides an environment for achieving goals by detecting the needs of employees and targets of the company. The evolution of an organization primarily depends on organizational leadership. Due to the rapidly developing and changing technology, the competition in the market is even tenser. Therefore, Samsung, as an electronics company that sells high technology devices, should implement an effective approach to leadership in order to maintain leading positions on the market.
Today company works on a new 5G technology, which will help it to become a leader among competitors. At this point, the concept for Samsung is to become an innovator creating the first 5G mm-Wave technology (Haizar et al., 2020). Efficiently calculating risks and securing its patent will secure the leadership position of Samsung in 5G technology (Ge and Zhang, 2019). Without strategic leadership, the sustainable success of the organization cannot be achieved. Even though it may be challenging to provide customers with 5G, Samsung needs to collaborate with government agencies and carrier partners to produce the best 5G products. For instance, such groups as O-RAN Alliance and 3GPP are contributors to networking, and they helped to accelerate the 5G delivery (Stone, 2020).
In order to maintain the development of an organization, innovations and innovative approaches should be implemented. Organizations who seek excellence in their business should collaborate with leaders with an innovative approach for the business strategy. Innovation helps the organization to respond to the new trends and technological challenges occurring in the market. For Samsung, it is important to emphasize an innovative approach when providing new products. Samsung already has established PIT as an innovation strategy. According to the study carried by Aslan (2019), Samsung Company has proposed a New Concept Development process which the business sectors can apply during the innovation of new products. Such an approach is crucial for the organization because it helps Samsung to fulfill the expectations of customers and make the company’s products compatible.
According to the study conducted by Jean (2017), surrogate measurement of net income and market share is used to analyze the existence of a relationship between innovation capabilities and the net revenue of smartphone makers and the relationship with Samsung’s market share. Jean is also interested in seeing how competition between smartphone makers is affecting Samsung’s net revenue and market share. Ross paved the way for Samsung’s Galaxy and Apple’s iPhone in terms of innovation (2019). Ross calculated the degree of innovation in products and services. Ross also found that the iPhone’s path to innovation is steeper than the Samsung Galaxy’s path. This shows that both the iPhone and Samsung Galaxy are original, and product innovations are as successful as service innovations. In addition, according to Ross (2019), Samsung pursued a “marketing innovation” approach, and Apple pursued a “technology innovation” strategy. It demonstrates that the organization has many different costs and features for the products, while other companies like Apple use their operating system. According to Kaylynn (2019), effective advertising and ingenious technology have made Samsung a leading manufacturer of quality devices and services.
In addition, the rebranding has allowed more people to know about the company’s excellent products. For the group, this strategy has become a long-term investment. It is currently attracting a variety of potential buyers from all over Asia. The company’s technology startup group, Samsung NEXT, was named as a strategy for Samsung Electronics in another study by Newsroom (2018). Samsung NEXT features an innovation department that identifies, supports, and develops pioneering new programs and service companies. Samsung is constantly looking for ways to change technology and society through front-line program innovation and leverage the perspectives of in-house professionals.
Samsung’s business areas are digital image, network, and cellular business. 3G phones and smartphones, as well as communication systems, printers, and PCs, are some of the items (Electronics, 2019). The constant evolution of Samsung’s IM business is evident in the introduction of a variety of new and innovative products. The Phablet Galaxy Note has been presented as a combination of tablet and smartphone. When it was first released, it sold over 10 million units. This makes this phablet one of the most successful Samsung smartphones in the company’s history. The Galaxy Note II, launched after the phablet, was a huge hit. Samsung’s strategic management is based on creativity, collaboration, skills and is fully implemented. Samsung is diversifying its portfolio so that it can continue to innovate and create products that meet customer satisfaction and needs. To compete with companies like Oppo and Apple, Samsung decided to focus its efforts and resources on a single smartphone, the Galaxy S.
New Product Categories
Samsung isn’t just responsible for mobile technology, so Samsung is responsible for a large global shipbuilding company that has a significant presence in the construction industry. With the new 5G technology communication system, Samsung is transforming its innovation approach from “quick followers” to “leadership”. Samsung waited until the market was ready before letting it go to the market. This shows that Samsung is about to take a big risk. With the Galaxy Camera and Galaxy Note, Samsung introduced two new product categories: network cameras and phablets.
Samsung’s story emphasizes the importance of organizational change in driving organizational innovation. Organizational creativity is also critically linked to firm performance, as it influences innovation and patent production. Leaders influence different aspects of employees’ behavior, as is well documented in research; for example, transformational leaders influence employees’ creative behavior and performance. The notion of creative process engagement in this study refers to the behavioral, cognitive, and emotional states in which one attempts to identify a problem, search and encode information, and generate ideas. To improve creativity in organizational contexts, employees need to define and structure the problem correctly and search for information to find the solution to the problem. Because creativity is seen as a function and interaction of individual efforts and characteristics of contextual factors, the study further investigated the mediating effects of intrinsic motivation and the moderating effects of task complexity and innovation support in the process of transformational leaders’ influence on employees’ creative process engagement.
Last year, Samsung’s A-series smartphones gave birth to new ideas, and consumer recruitment strengthened their position in market demand (Chacon and Rajawat, 2019). It is Apple’s leading competitor in the manufacture of high-end smartphones. Samsung is also expanding its sales and growth globally (Oputa and Ahmad, 2019). As a driving force for innovation, corporate culture is critical to building an active community within a company. Corporate culture is considered as one of the advantages of a company because it helps to form a framework for action within the company. Samsung requires an effective organizational culture to implement an innovative approach. Employees are also important in the company because all employees need to have the same perspective on the business.
The following business culture represents Samsung’s success: Samsung owns Changjo Kwan, an agency that promotes employee awareness of the nature of the business. Next, only the CEO can run the company, and before you start your business, try everything to make great products in different sizes, specifications, and models and sell them at different prices. In 2012, Samsung Electronics embarked on a comprehensive restructuring. In addition, Samsung has wiped out the organizational structure of each department in order to strengthen the company. The new management form states that Samsung is highlighting three core business segments, including consumer electronics (CE), IT and mobile communications (IM), and device solutions (DS) (Electronics, 2019). (Electronics, 2019). This study focuses on IT and Mobile Communications (IM). This is an important area that has made great strides in the last decade. The large IM sector is one of the main factors that made Samsung a market leader.
To carry out some innovation, Samsung chooses to use marketing strategies such as low prices and various products. It develops smartphones in a short amount of time, as well as a variety of devices, and monitors market reaction. Samsung’s smartphones have an incorporated feature named Information Table that stores a map of the system’s sections with distinct memory portions. The PIT’s mission is to provide production concepts by incorporating customer feedback, market-driven technology, and commercialization innovation. In addition, PIT focuses specifically on four levels. The first step PIT focused on was to understand the latest global trends. PIT then conducts a survey and collects data and user feedback. PIT checks and evaluates the information gathered in the first step, presents it to the founders and designers, and then translates it into their own ideas. PIT uses all the information gathered, the business strategies developed, and the ideas generated in Phase 3 to provide a solid business case to the business domain with extensive expertise.
Samsung is trying to secure funding for its innovative efforts. Samsung is working with numerous R&D centers, research centers, and partnership labs around the world to develop innovative devices and bring them to market quickly. Samsung is also a member of a global consortium that works with automakers to create “global innovation in vehicle connectivity.” By signing a vehicle connection contract, consumers can use their mobile phones in their vehicles.
Modernization and Globalization
After all, in the age of modernization and globalization, smartphones are already a necessity. Currently, the market is saturated with products offering the same technology, and as new models hit the market, there is a strong desire for technological improvements in smartphones. Some actions and changes are needed to disrupt the current regime. Samsung is at the forefront of a new wave of innovation, outpacing the competition with 5G technology. Samsung is taking a proactive approach to help the company become the “first entrant” in the new industry and make the new 5G technology more competitive. The “Fast Follower” method still helps companies and can be part of the business plan, but every company owns a number of important patents which help them become leaders with effective invention strategies.
In conclusion, Samsung has a number of opportunities to implement innovation, leadership, and creativity in order to maintain organizational changes. Organizational changes will allow the company to stay competitive in the market and handle challenges associated with new technologies and trends. Frameworks for management that include leadership and innovative approach contribute to the sustainable growth of Samsung Electronics. Hence, such organizational change plays a crucial role in the development of the company.
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Ge, X. and Zhang, W., 2019. Challenges of 5G Green Communication Networks. In 5G Green Mobile Communication Networks, pp. 1-27. Springer, Singapore.
Haizar, N.F.B.M., Kee, D.M.H., Chong, L.M. and Chong, J.H. (2020). The impact of innovation strategy on organizational success: A study of Samsung. Asia Pacific Journal of Management and Education (APJME), 3(2), pp. 93-104.
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