The Samsung Way: Transformational Management Strategies from the World Leader in Innovation and Design

The Samsung Way: Transformational Management Strategies from the World Leader in Innovation and Design

Language: English

Pages: 256

ISBN: 0071835792

Format: PDF / Kindle (mobi) / ePub

Learn how to manage, lead, and succeed . . . the Samsung way.

Based on ten years of research and interviews with 80 top executives, the award-winning The Samsung Way is the first definitive guide to the groundbreaking management principles that transformed a lagging electronics company into one of the most successful brands in the world.

Combining professional insights from Samsung insiders with practical applications for managers, executives, and CEOs, this powerhouse of a book shows you how to:

  • Speed up decision making and execution, on a bigger scale.
  • Create a convergence synergy among diversified businesses, while staying competitive in core businesses.
  • Mix and match Western and Eastern management styles.

Also known as “The Three Paradoxes of Samsung Management,” these seemingly contradictory goals are the keys behind Chairman Lee Kun-Hee’s now-famous New Management Initiative―the business plan that drove Samsung to become the number-one leader in mobile phones, televisions, semiconductors, and other electronics. A revolutionary―and time-tested―approach to innovation, Samsung’s management principles will help you find the perfect balance of styles by combining the best of all worlds.

This ingenious step-by-step guide shows you how to implement Samsung’s proven techniques for grafting American business practices onto a Japanese system, thus keeping costs low and bringing about differentiation. You’ll learn how to achieve both economies of scale and speed in this era of a hypercompetitive world. Best of all, you’ll drive new ideas and innovations at every level of your company while building on your greatest strengths and successes.

That’s The Samsung Way.

Praise for The Samsung Way

“To remain competitive in today’s global marketplace, GE must benchmark itself against the best run companies in the world. Samsung is one of these companies. This insightful book outlines Samsung’s formula for success and is an important read for any executive or leader who wishes to implement a similar plan in their own organization.”
―Jeff Immelt, Chairman and CEO of GE

“If I were to be asked about how Samsung Electronics became successful, I would confidently recommend The Samsung Way in lieu of a response. As CEO of Samsung Electronics, I am still amazed by the insightful analyses and explanations given here. This book led me to reconsider the direction of Samsung’s future strategy.”
―Oh-Hyun Kwon, Vice-Chairman and CEO of Samsung Electronics

“A firsthand glimpse of how an unlikely laggard in emerging economies became a global power to be reckoned with. This informed, readable book will help you understand what management innovation is really all about.”
―Rita McGrath, Professor, Columbia Business School, and author of The End of Competitive Advantage

“Samsung has emerged as the most intriguing, and to its rivals most threatening, global company from Asia. This book provides both detailed insights into how Samsung rose to global prominence and developed a new management model, transcending contradictions to combine the best from East and West. A fascinating read!”
―Yves Doz, Solvay Chaired Professor of Technological Innovation, INSEAD

“This is the first in-depth, behind-the-scenes look at how Samsung achieved its current success as one of the world’s foremost corporations. It will be of great interest to executives, managers, and companies who need to upgrade their game to world-class status and beyond.”
―Pankaj Ghemawat, Anselmo Rubiralta Professor, IESE Business School

“The herculean efforts of Professors Song and Lee go some distance in demystifying the secrets of The Samsung Way. There are lessons here for the behemoths of the developed world, as well as tomorrow’s challengers from the emerging world.”
―Tarun Khanna, Jorge Paulo Lemann Professor, Harvard Business School

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looks at the external and internal fit of the Samsung Way to determine its sustainability. In addition, we analyze and suggest solutions to Samsung’s main challenges for the future. The authors’ opinions concerning how Samsung should maintain its position as a world-class corporation and how the Samsung Way should continue to develop with respect to paradox management are presented in this chapter. Finally, we conclude by suggesting what other corporations can learn from the Samsung Way. This

landscape. This was the case when Samsung entered the mobile phone market, taking on and ultimately surpassing entrenched leaders like Motorola, Nokia, and Apple. To achieve global leadership, Samsung’s workforce adopted rapid-offense tactics to shorten the time needed to reach the top. This included aggressive 64 T h e Sa msun g Way Figure 3.1  How Chairman Lee’s Vision Shapes Samsung’s Style Far-Reaching Vision Aggressive Investment to Preempt Market Opportunity Achievement of Vision

problem is, the more simplified it should be. When building a home, it is easier and more extensible to start from the ground rather than digging into it. The same applies to this circuit.” Thereafter, Japanese semiconductor firms Toshiba and NEC, which had previously adopted trench designs, faced major problems, while Samsung gained ground. Another example involved a proposal by Toshiba to jointly develop nextgeneration NAND flash in 2001. At the time, Toshiba had a source technology 70 T h e

msun g Way strengthen the competitiveness of its business ecosystem. Although the materials for active-matrix organic light-emitting diode (AMOLED) display screens for mobile phones are procured from outside companies, for example, Samsung SDI is also developing, producing, and supplying the same materials. In this way, not only can Samsung Electronics accelerate the development of new products, but it can reinforce the competitiveness of its overall ecosystem by transferring operational

Approval organization worldwide and the production capacity at each production organization worldwide. It also determines such things as whether a particular region’s inventory can be transferred to another region, and what and how many products from a particular plant should be sent to a particular sales organization at a particular time. Since the GOC meets every Tuesday afternoon, it can coordinate and integrate Samsung’s business processes for each division in nearly real time on a global

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