Analysis of Samsung's Innovation and Sustainable Business Development

This report provides a comprehensive analysis of Samsung's innovation and sustainable business development, with a specific focus on artificial intelligence. The report begins with an executive summary, followed by an introduction that highlights the evolution of communication technologies and Samsung's significant contributions to the field. The report then delves into Samsung's business model canvas, outlining its infrastructure, value proposition, customer channels, customer relations, key activities, customer segments, cost structure, and revenue sources. A detailed description of Samsung's business in relation to artificial intelligence is provided, along with an examination of its value proposition and its relation to AI. The report further explores supply chain development within the AI department, the implementation of AI technology, and its impact on communication automation and entertainment. Financial value capture, strategic fit, customer desirability, technical feasibility, and financial viability are also discussed. Finally, the report includes an analysis of innovation tools, a conclusion summarizing the key findings, and recommendations for future development. References and appendixes support the analysis presented throughout the report.

Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 1
Samsung innovation on artificial intelligence
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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 2
Executive summary
Technology advancement has touched the entire environment of human life. The technologies
that have brought significant changes in the world can be traced from solid communication and
information on both the aspects of availability, access, and distribution. The organizations that
have ventured heavily in technology have accrued several benefits and has outdone the
organization using traditional operation methods. This report is narrowing this discussion to
Samsung organization as the subject of debate about technology and the business aspect of it.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 3
Table of Contents
1 Introduction..............................................................................................................................................4
2 Samsung business model canvas..............................................................................................................4
Infrastructure..........................................................................................................................................4
Value addition.........................................................................................................................................5
Customers’ channel.................................................................................................................................5
Customer relation....................................................................................................................................5
Key activities............................................................................................................................................5
Customers segments...............................................................................................................................5
Cost structure..........................................................................................................................................5
Revenue sources......................................................................................................................................6
Value proposition....................................................................................................................................6
3 Samsung business description on artificial intelligence............................................................................7
4 Value proposition and description relative to artificial intelligence.........................................................8
5 Supply chain development in artificial intelligence department..............................................................9
6 Implementation of artificial intelligence technology..........................................................................10
7 Artificial intelligence and communication automation.......................................................................10
8 Artificial intelligence and entertainment in Samsung.............................................................................11
9 Financial value capture and strategic fit for artificial intelligence..........................................................12
10 Customer desirability............................................................................................................................12
11 Technical feasibility..............................................................................................................................13
12 Financial viability..................................................................................................................................13
13 Innovation tools....................................................................................................................................13
14 Conclusion............................................................................................................................................14
15 Recommendation.................................................................................................................................14
16 References............................................................................................................................................15
17 Appendixes...........................................................................................................................................18

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 4
1 Introduction
In the earlier generations, message passing relied on human messenger. Later, radios and phones
came into play. In the earlier generations, communicating with a person in another continent
would take months. The response would also take months before landing to the sender. The radio
and mobile wave has changed this phenomenon completely, and communicating with distant
persons has become noble and lively. Today it is possible to have a conference where people in
attendance are in different countries at the comfort of their homes. The aspect of automation
came into play (Andersson, Mattsson, Movin, Mähring, Teigland, & Wennberg, 2018). Samsung
is one of the organizations that has made a significant contribution to communication through
innovation and implementation of the technology in information relay. The organization has also
highly invested on artificial intelligence. These reasons are sufficient and worth discussion as in
this article.
2 Samsung business model canvas
Samsung is a manufacturing company dwelling on electronics with the example of
phones, televisions, fridges, watches among others in the long list. The following is a summary
of Samsung organization in business model canvas.
Infrastructure
The organizations’ manufacturing plants are fitted with complex machinery to process
the raw materials into desired electronics. The raw material comprises of steel, iron, rubber and
plastic. A stable management is also set to manage, control and make plans for the organizations’
activities and the human resource.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 5
Value addition
The value addition is the primary role of the organization. Samsung is dedicated to adding value
on raw materials and human power of the organization. This is achieved through branding of the
products, enhancing innovation and ensuring a stable six sigma resources utilization to reduce
wastage as well as making use of the waste products.
Customers’ channel
The channel goods take to reach the consumers depends with the product, market location
and knowledge as well as the cost. However, Samsung has most of its products sold through their
retail shops hence the channel consists of producer, retailers and consumers.
Customer relation
The organization has a robust customer care unit and services that facilitates
communication of ideas, complaints and giving orders. This is done through phone calls, website
and email.
Key activities
Being a manufacturing and marketing company, Samsung focuses on research of market
demand and how it can be satisfied through manufacturing the products.
Customers segments
The market of Samsung products is segmented as mass market and cooperate buyers for
the organizations that feel Samsung products are the best to meet their demand.
Cost structure
Different products have different prices. The price is set on evaluation of the cost of
production, cost of distribution, cost or research, marketing cost and government related effects.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 6
Revenue sources
Most of the organizations’ earnings are from selling the products, communication
channels with the like of website and YouTube channels.
Value proposition
Samsung have created robust and higher quality products, the company has put a lot of effort to
provide to its consumers products of high quality. The company has a good proposition
compared to other companies such as Hyundai, it has certainly tried to offer a good price to its
customers. Products of Samsung have a high technical edge hence satisfactory to the users. The
following diagram represent value proposition canvas for the company.

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 7
The diagram below summarizes the Samsung business model.
3 Samsung business description on artificial intelligence
Samsung is one of the popular electronics manufacturers and sellers in the world. That has
ventured in artificial intelligence and the internet of things. The brand is widely accepted owing
to the high quality and automation of the products availed in the market. The organization
produces and sells items like radios, smartphones, mobile phones, televisions, refrigerators,
freezers, among others in the list. The organization is based on the information technology field
and has a lot of interest in artificial intelligence, robots, and the internet of things. Evolution of

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 8
internet has favored the organization in a great margin (França, Broman, Robèrt, Basile, &
Trygg, 2017). Internet lovers have always found themselves using Samsung products
unknowingly.
Products development by Samsung as an organization has gone to a higher level. Talent,
innovation, and research have been intensively put into play. This has enabled the organization to
launch products with powerful market influence in a sequential manner after launching any of its
products.
4 Value proposition and description relative to artificial intelligence
Explaining to the potential customers the reasons they should buy artificial intelligent items from
you but not your competitors who offer almost similar products. This is crucial for the
organization survival. Samsung identified this and its role in the industry long ago and taken the
advantage as a survival strategy in the market.
Organizations in the world have developed artificial intelligent products and sold them at a
competitive price but failed to make sufficient profit to thrive. These is caused by lack of
knowledge on the significance of holding your business proposition high but instead end up
hiding it in empty slogans. Samsung managers make decision with the help of artificial
intelligence on the organization proposition hence competitiveness (Evans, Vladimirova,
Holgado, Van Fossen, Yang, Silva, & Barlow, 2017).
The objective of the organization is to satisfy the needs of the people better than the competitor.
The theory of human psychology argues that satisfied customers come back for more with their
friends. This is one of the strongest marketing strategies since the customers have the confidence

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 9
in the product owing to the conviction and referral of their friends or relatives (Boas, Grimpe,
Manning, Oliveira, Stormer, & Strand, 2018). The organization has ventured and invested
heavily on the quality of their products. Pricing has since then become straightforward, and high
pricing of the product has little competitive advantage to the competitors.
5 Supply chain development in artificial intelligence department
Samsung is working with around 2500 suppliers across the globe on the foundation of
mutual relationship. The management of the organization conducts an assessment of the
suppliers to ensure the sustainability of the environment, financial status, and customer services
delivery. This has been made realistic through development of intelligent robots that have the
capacity to collect litters which could pose environmental pollution risk.
Samsung has also highly invested in technology to maximize production speed and
reduce the need for human resource (Antikainen, & Valkokari, 2016). The organization has
ventured on the internet of things thus increasing the rate of production. This has saved the
company from the expenses on human power. Also, the use of machines has improved the
quality and the quantity of production since machines are not subject to fatigue and have the
capacity to maintain the same pace of production around 24 hours a day.
All the above have been implemented along with vigilant observation of the law and
environmental conservation. Human resource rights have been given preference in the
organization. This is meant to improve the human and society-organization relationship.
The following are ventures the organization is eying to invest in.

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6 Implementation of artificial intelligence technology
It seems days are gone when one could make a call and chat a human customer care at the
customer care desk. The organizations have shifted from this to the installation of a system with
the ability to make a decision and interact with humans. Samsung has ventured in technology in
the customer care desk and other departments of the organization. Implementation of artificial
intelligence and the internet of things in the organization can bring a massive transformation in
the organization. First, the management of the entire production system will be more
comfortable. Production rate per piece of an item is also expected to rise exponentially. Also,
volume production is expected to be witnessed within the first days of technology
implementation (Joyce, & Paquin, 2016).
The implementation of artificial intelligence in the devices meant for sale will transform the
global world and the means of operating individuals’ daily chores. The members of the
community who will have an opportunity or access these devices are likely to enjoy the
efficiency of operation to about 90% since most responsibility will be on monitoring of the
system performance. This will also outdo the competitors, and Samsung will be working hard to
persuade the customers on the benefits of their product as opposed to a mere brand campaign.
7 Artificial intelligence and communication automation
The need for speed in information signaling has driven man to the invention of the possibility of
automation of information sharing. Devices with reporting capability have been put into use in
the organization to increase the speed and accuracy in communication timing (León‐Bravo,
Moretto, Cagliano, & Caniato, 2019).

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Artificial intelligent devices are electronic devices with the capacity to receive and send signals
via the internet. Some are small and are implanted on the walls or point of interest while others
are large and have actuators. These devices can detect and communicate any information of
interest safety, location, fire outbreak, and even the weather conditions of the site.
The aim of Samsung to venture in automated communication devices was propagated by the
need to strengthen the security and wellbeing response. If the device detects any enormous and
unfortunate change of things, it will communicate via the internet to the person of interest of the
server. Imagine a situation where the sea waves sweep away your motorboat, and your
swimming skills are not competitive enough to bet on against your life. The situation can be very
perplexing, wondering whether to call your loved ones to request for help or say your goodbye
(Pal, & Gander, 2018). Communicating this information at this moment is difficult. However, if
the boat has been advanced with artificial intelligence, it will send signals to the control panel
requesting for help.
Since this technology has not been in use in large number, taking this idea will likely make
Samsung the next big thing. Since Samsung has volumes of loyal customers, marketing will be
easy. It will attract masses of buyers hence making huge profits and improving the safety
response of the members of the society (Schaltegger, Hansen, & Lüdeke-Freund, 2016).
8 Artificial intelligence and entertainment in Samsung
The entertainment industry has transformed lives from the high earning on the screenplay.
However, compiling the graphics and the sounds is a tiresome process and requires a lot of time
and substantial capital investment as well as the presence and the skills of the actors. Samsung is

INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 12
thinking otherwise as part of the solution to time management and capital venture in this field in
proposal implementing artificial intelligence to create graphics based on the intelligent machine
creativity. This will ease the process of movies making using graphics that resemble the matter
as it is in the ground (Schaper, 2016).
9 Financial value capture and strategic fit for artificial intelligence
The most excellent business might not be significant in size. The return on the investment can,
therefore, be used to estimate the value generation of the business in relative to the investment.
Samsung is very strategic as far as price setting is concerned. The marketing department and the
finance managerial group must sit around a table to evaluate the cost of production for and set
the price such that: the difference in cost and price is sufficient to pay for the factors of
production and generate profit to the shareholders (Silvestre, & Ţîrcă, 2019).
Uncertainty is a common phenomenon in business; Samsung is under the following uncertainty
in the course of its operations on implementing artificial intelligence.
10 Customer desirability
The reception of a product in the market is not guaranteed. In the past, developing product was
done in bits, the fast lot to test the market and the later to satisfy the market demand. If the
product is not received well in the market, the organization tries to change the model of the same
and give it a test to reduce the losses of ideas. In the future, the marketing team will hold open
forums with customers and listen to their views to control uncertainty. This will also improve the
government organization relation (Voegtlin, & Scherer, 2017).