Implementation of Open Innovation Strategies in Samsung

The report provides an innovation analysis of Samsung, a multinational electronic company. It highlights the organization's separate departments responsible for bringing out different innovations, such as partnerships, management, research and development, which introduce innovative products in the market. The report also emphasizes the importance of implementing open innovation strategies to sustain in the market, particularly in the rapidly growing mobile industry. The analysis draws insights from various studies and sources, providing a comprehensive understanding of Samsung's innovation aspects.

Innovation within a business
and its environments

Table of Contents
Executive summary..........................................................................................................................1
INTRODUCTION...........................................................................................................................1
ORGANISATION & INDUSTRY OVERVIEW............................................................................1
Organisation and its Innovation History.....................................................................................1
Existing Innovation Performance and capabilities......................................................................2
The industry in 2016...................................................................................................................2
THE FUTURE OF INDUSTRY IN 2020 AND BEYOND............................................................3
ORGANISATIONS INNOVATION REQUIREMENTS 2020 AND BEYOND..........................4
CLOSING THE INNOVATION GAP............................................................................................4
Building innovation capabilities.................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

Executive summary
Smart phone industry is the fastest growing industry in the world. It is experiencing the
significant advancements with the rage og innovation inculcating in different segments. The
report is prepared to elucidate the organisational operations to bring innovation in the products
and launch new product in the market. In the report Samsung is selected as the organisation
which is recognised as the pioneer of many products and marked as innovator by many scholars.
INTRODUCTION
In the era information technology, rapid advancements has been seen in different sectors.
Such changes are induced with the inculcation of technological up-gradations in the services and
products offered by the organisations belonging to different industries. One of the recognised
organisation known for bringing innovation is South Korean multinational electronics company,
Samsung (Goetsch and Davis, 2014). Present report is prepared to elucidate the evolution of
Samsung in bringing innovation. Report throws light on the innovation history of the
organisation and the current situation of selected product smartphones. It also discusses the
existing innovation capabilities and the innovation requirements in 2020.
ORGANISATION & INDUSTRY OVERVIEW
Organisation and its Innovation History
The south Korean electronic manufacturing company Samsung is the world's largest
manufacturer of mobile phones overtaking its closest competitors Apple. It is the public
company serving customers from more than 45 years (Porter, 2011). The biggest competitors of
the company in manufacturing smartphones are Nokia, Samsung, HTC and Sony. It produces
range of other products such as consumer electronics, telecom equipments, semiconductors,
home appliances and many others.
In manufacturing smartphones it has led into range of innovations from the inception of
launching its products in markets. Initially it has launched the phones with many operating
systems such as windows, symbian, LiMo, Bada. But later on drained all the other operating
systems and remained with android and windows. Having popularity with galaxy series, at
present it has become the largest manufacturer of mobile phones. In the current time it has
brought distinguished features in mobile phones such as that of in display, camera quality,
operating systems and many others.
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Existing Innovation Performance and capabilities
Samsung is the organisation with the execution of wide range of options that makes it a
pioneer in different areas to bring innovation. The innovation team of the organisation work in
the areas to bring innovation in many areas. Such areas are digital health, data centre, human
computer interface, internet of things and smart lighting.
Digital health: This is the section in which it caters to increase the efficiency and productivity of
the organisation innovation aspect through attracting high talents and brainy minded people. This
is projected to have the tailored features such as latest sensors, behavioural algorithms, battery
technologies and displays (Benito, Lunnan and Tomassen, 2011).
Data centre: Samsung is having the leading component technology to the development. It caters
to increase the efficiency and productivity in different aspects. It aims to attract the customers by
providing them different options and other related. It is seen that there is the growing needs of
smartphones in the world in the exponential rate. From the various types of evidences and studies
it is articulated that customers are getting orientated towards the advanced features and
technology.
Human computer interface: Innovation are made to make the human computer interface in the
better manner. The areas which are concentrated are the speed with which the users are having
application of the phones, their utility towards the use of it is increasing and other related.
Internet of things: In this aspect, Samsung caters to optimize the performance, power
consumption, memory utilization and safety and security rationalisation.
Smart lighting: Through this Samsung intends to provide innovative lighting solutions such as
making them smarter, faster and safer (Valente and Crane, 2010). Safer it is made in the context
of data protection.
With the considerations in above aspects, Samsung is pushing the horizons and looking
beyond the technological advancements, it has a competitive edge in the smartphone industry.
The industry in 2016
The fastest growing industry Smart pones with the growth rate of 23% each year. It is
found that around 2 billion people are using smartphones for their daily uses. In the present time
the use of phones are not limited to the communication and networking purpose but it has
widened to the large horizon that is for different other uses that are tracking location,
entertainment, music and video downloading and other inbuilt features. Further, it provides wide
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extended opportunities for utility such as to download app related to photographs, travelling,
security many others. Further, it is found that selected organisation Samsung is having
significant share in it that is of 22.3% in market with the sales of 325 million phones
THE FUTURE OF INDUSTRY IN 2020 AND BEYOND
The rapid revolution in the use of technology has brought significant transition in
different sectors (Vaara and Tienari, 2011). From the statistics it has been found that mobile
industry is the fastest growing industry in the world with the fast paced increased number of
users. Going through different stages of evolutions mobile industry has been developed
considerably. With range of distinguished features, smartphones has overtaken the use of early
mobile systems. Till 2010 the share of smartphone was only 20% but it increased to 74% moving
gradually towards saturation. But innovation and advancements made it not to stop at any stage
in terms of features and sales. There are many anticipations made about the up-gradation in
features such as curved screens, hologram technology, virtual hardware and many others. In this
anticipation and trends seen in empirical studies different inferences are made.
Due to huge growth it is predicted that there will be around 6.3 billion smartphones in
circulation. Offering the wide range of services apart from letting connectivity and networking
such as entertainment options in the form of games, music and video downloading, tracking
location and various others, smartphones will lead in mobile systems. Offering such services it is
accounted that it will acquire around 80% of mobile traffic by the end of 2020 (Halme,
Lindeman and Linna, 2012).
By 2020, it is expected that smartphones will have large number of innovations such as
disruption free performances, attractive designs, more safety and security, better utility options
for the applications such as camera. Further, it is projected that connectivity of smartphones to
other areas such as cars in the form of automatic parking and driving, home security, remote
controlling, Homosepia-Robot and other related will revolutionize the use of smartphones. Along
with this the looks of smartphones are expected to change in the near future such as with the
replacement of hard mobiles with the bendable handsets, innovative ways of using touchscreens,
more space and others.
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ORGANISATIONS INNOVATION REQUIREMENTS 2020 AND BEYOND
In-spite of having number of distinguished features in smartphones, Samsung is required
to inculcate certain additional USP's to have competitive edge and capture the attention of large
number of users in with the wide pool of smartphone users (Chiaroni, Chiesa and Frattin, 2011).
Artificial Intelligence: This is the foremost thing which is expected from the mobile phone
companies. With the progression of different kinds of software advancements in safety and
security context it is anticipated that organisation will come with certain related innovations. For
instance, in the present time all the appliances and equipments used are becoming smart and
advanced from the point of view of utility so Samsung can bring advancements such as direct
and non disruptive linkages with other appliances like cars (Goetsch and Davis, 2014).
Hardware designs: In includes there is high intensive expectations with respect to changes in the
hardware and display feature of mobiles. In that context bringing bending devices with
prolonging life, introducing transparent handset with larger durability, attractive designs and
other related. It is found that the organisation Samsung has already started working on the
bendable phones.
Safety and security options: With the improvements and imbibing security measures Samsung
can increase the customer loyalty to the large extent. So far there has been features added in the
mobile phones such as fingerprint sensors, iris scanners and others. But with the more tighter
features users will be able to secure their phones in more appropriate manner.
Sustainable hardware: It refers to the element of durability. It is found that along with the
advancements in the mobile structures the life span of phones are decreasing in the significant
manner (Hotho and Champion, 2011). In that respect introducing mobile phones with such
featuring of waterproof, heat resistant, longer sustenance of battery and other related Samsung
will be able to mark its significance in market more appropriately.
CLOSING THE INNOVATION GAP
Building innovation capabilities
In order to have the significant position in the market position, Samsung uses structured
and systematic method. Samsung has been counted among the organisation that is pioneer in for
wide range of opportunities and capabilities with respect to bring changes in existing operations
and products. In the context of building external innovation capabilities Samsung is using
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structured manner. A separate department namely Open Innovation centre, constantly works on
this section of introducing new product range in the market (Brown and Osborne, 2012). It
consists of 4 team which works on this aspect in separate areas that are partnership team,
Research and development team, Management and administration team and lastly accelerators.
Partnership team is responsible to have consolidation with many people with whom
different types of deals are signed such as with lucrative trading partners. Such as suppliers of
advanced raw materials, software, new technologies and many other related. Research and
development team continuously caters to bring something innovative in market. They make
research to make the product more advanced and attractive (Euchner, 2013). Management and
administration is responsible for mergers and acquisitions of different organisation that will
accrue desired goals and targets. Lastly, accelerators drives the business towards growth and
developments.
In order to build innovation capabilities, a plan is followed by the selected organisation
Samsung, inculcating set of activities in it.
Innovative ideas: The section is selected in which innovation is desired by the organisation such
as in the context of design and model of the phone, the application part, features such as security
and other. Or the random idea is opted to proceed further with respect to outbreak the sales of
product.
Precise foresight: After overviewing the market scenario that is sales and profit trends,
organisation is able to focus on particular area. It is fount that in the context of smartphone
industry there are huge possibilities to grow. After making the in-depth understanding of all the
features and application information in current market conditions, further proceedings are done.
Innovation is closely associated with risk hence it is required to make most probable estimates.
Customer insight: Customer orientation towards the mobile section is understood through
making surveys and seeking feed backs (Mithas and Arora, 2015). Going through the customer's
needs and requirements, research and developments are made to bring something innovative and
new.
Technologies and Assets: Technology and smartphones are closely interlinked. Samsung by
keeping themselves updated with the latest technology and current advancements bring into new
range of products in markets. It focuses on all the sections and hence, with each new model new
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and advanced feature is pioneered it different segment such as with better camera quality,
display, processor, operating system.
Planing and Implementation: Thereafter strategic planning is done with the inculcation of
several required components to allocate the resources in efficient manner. There are different
approaches adopted for the purpose such as strategic alliances, mergers & acquisitions, resource
utilization, financial arrangements and other related (Bahemia, 2014). Post planning the
implementation of strategies is done with respect to the requirements and needs.
CONCLUSION
Report has been prepared to explain the innovation aspects of the selected organisation an
multinational electronic company Samsung. From the study it has been inferred that it has the
separate departments which is responsible for bringing out different innovations that is Samsung
open innovation centre. Comprising four departments separately for each part that is
partnerships, management, research and development it introduces wide range of innovative
products in market. It can be articulated that mobile industry is the fastest growing industry
demanding fast pace advancements. By bringing certain advancements such as bending devices,
advanced touch screens, precise security and safety, attractive designs and will let the
organisation to sustain in the market predominantly in 2020 with the significant share.
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REFERENCES
Books and Journals
Bahemia, H., 2014. January. Implementation of an open innovation strategy for a radical
innovation project at Jaguar. Academy of Management. 20(1). pp. 13-67.
Benito, G.R., Lunnan, R. and Tomassen, S., 2011. Distant encounters of the third kind:
multinational companies locating divisional headquarters abroad. Journal of Management
Studies. 48(2). pp. 373-394.
Brown, K. and Osborne, S. P., 2012. Managing change and innovation in public service
organizations. Routledge.
Chiaroni, D., Chiesa, V. and Frattini, F., 2011. The Open Innovation Journey: How firms
dynamically implement the emerging innovation management
paradigm. Technovation. 31(1). pp.34-43.
Euchner, J., 2013. Innovation is change management. Research Technology Management. 56(4).
p.10.
Euchner, J., 2013. Innovation is change management. Research Technology Management. 56(4).
pp.10-30.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence.
Pearson.
Halme, M., Lindeman, S. and Linna, P., 2012. Innovation for inclusive business: Intrapreneurial
bricolage in multinational corporations. Journal of Management Studies. 49(4). pp. 743-
784.
Hotho, S. and Champion, K., 2011. Small businesses in the new creative industries: innovation
as a people management challenge. Management Decision. 49(1). pp.29-54.
Mithas, S. and Arora, R., 2015. Lessons from Tata's Corporate Innovation Strategy. IT
Professional. 17(2). pp.2-6.
Porter, M.E., 2011. Competitive advantage of nations: creating and sustaining superior
performance. Simon and Schuster.
Vaara, E. and Tienari, J., 2011. On the narrative construction of multinational corporations: An
antenarrative analysis of legitimation and resistance in a cross-border merger. Organization
Science. 22(2). pp. 370-390.
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Valente, M. and Crane, A., 2010. Public responsibility and private enterprise in developing
countries. California Management Review. 52(3). pp. 52-78.
Online
Samsung. 2016. [Online]. <Available Through: http://www.samsung.com/in/home/>. [Accessed
on: 13th May 2016].
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