Assessment of ICT Systems in Samsung: INF701 Management Informatics

This report provides an in-depth analysis of Samsung's Information and Communication Technology (ICT) systems. It begins with an overview of the company, discussing its structure and operations. The report then evaluates the extent of alignment between Samsung's business models and its ICT infrastructure. A Work Centred Analysis is conducted to identify existing and missing ICT systems, followed by an application of Porter's Five Forces to assess the competitive landscape and a Balanced Scorecard to evaluate performance. A SWOT analysis summarizes the company's strengths, weaknesses, opportunities, and threats related to ICT. The report concludes with recommendations for improving Samsung's ICT systems and an implementation plan. The analysis highlights areas for improvement, particularly in knowledge management and customer relationship management, and suggests strategies to enhance Samsung's competitiveness and operational efficiency through better ICT utilization.

Running head: MANAGEMENT INFORMATICS
Management Informatics
Name of the Student
Name of the University

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Executive Summary
This report has been focused on the utilization of information and communication technology in
the Samsung Company. The overview of the company has been provided in the report. The use
of ICT advantages in Samsung has been discussed in the report. Various analysis report has been
done including work centred analysis, porter five forces, swot analysis have been focused in the
report. A few proposals with respect to progress of using ICT frameworks in Samsung have been
examined.

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Table of Contents
Introduction......................................................................................................................................4
Overview of the Company...............................................................................................................4
Extent of Alignment........................................................................................................................4
Work Centred Analysis................................................................................................................5
Porter’s Five Forces.....................................................................................................................6
Balanced Scorecard.....................................................................................................................9
SWOT Analysis.........................................................................................................................10
Recommendations..........................................................................................................................13
Implementation Plan......................................................................................................................13
References......................................................................................................................................16
Appendices....................................................................................................................................17
Appendix A: Work Ceneterd Analysis......................................................................................17
Appendix B: Balanced Score card.............................................................................................18
Appendix C: Porter’s Five Forces.............................................................................................19
Appendix D: SWOT Analysis...................................................................................................20

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Introduction
The implementation of information and communication technology has been the main
focus of various organization in the world. The use of ICT in organizations have been helping in
reducing various types of problems in the operations of organization. The efficiency of business
process and demand of regulations have been maintained properly with the implementation of
ICT services. This report is based on renowned company names as Samsung. The
implementation of ICT services in Samsung has been discussed in the report. The utilization of
Work Centred Analysis, SWOT analysis, and Porter’s Five Forces are analyzed in the report.
Some recommendations regarding improvement of utilizing ICT systems in Samsung have been
discussed.
Overview of the Company
Samsung has been established in 1969. It is recently organized with three divisions that
are based on reorganization happened in 2013 (Samsung 2015). The divisions have been Mobile
Communication and IT, Consumer Electronics and Device solutions. Headquarter has been in
Suwon, South Korea. Samsung has been operating in 217 offices across 73 countries with having
320,671 employees. There are 15 regional offices that are operated by the company is Korea,
South East Asia, North America and Africa. The entire work of Samsung has been depended on
data. Along with applying informatics to develop cutting edge products and technologies,
informatics also helps the company be organized.
Extent of Alignment
Evaluating and Assessing effectiveness and efficiency of Samsung utilization of ICT
technology with different business models and frameworks have been used (Laudon and Laudon

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2016). The Work Centred Analysis is used in order to define existent and missing act systems.
However, for evaluating strength and weaknesses, SWOT, Porters Five Forces and Balanced
Score card have been analysed.
Work Centred Analysis
As per research done by Enck et al. (2014), an organization might be defined as social
work system. A social work framework is similar with HR in order to act processes in business
utilizing capabilities, input materials and technology with external and internal customers. In this
value added processes information and technology have been creating both direct and indirect
value. The work centred analysis has been utilized for analysis all elements required for serving
customers focusing on ICT. This system is utilize for concluding business process in order to
determine gaps between linking with business technology and business processes. The work
centred analysis has been constituting of three elements including Products, customer and
business processes (Lee and Yu 2012). The business processes elements have been containing
sub elements including major activities, participants as well as information and technology. The
main vision of Samsung is nit to wait until the customer contacts the company irreversibly sales
people active approach to the customers and clients and selling those products and services. As
per the business rationale, al business processes have been aimed towards benefits of customer.
For efficient use of the operational resources and controlling business processes, Samsung has
been utilizing an ERP systems that covers functional areas including warehousing, purchasing,
controlling, finance and accounting (Zaied 2012). The ERP system refers to classical theme of
information for covering suppliers and employees. Samsung has been looking for this system fir
handing fist of its customers in the market.

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Samsung has been utilizing transport management system for controlling logistics for
tracking products during shipping and delivered to desired customer. Samsung has been dealing
with two distribution channels that are online marketing and direct marketing. E-commerce has
been handed and monitored by storefront system (Yang and Yang 2012). It has been an
electronic portal and buying system over which customers can review electronic products and
purchase it from it. Samsung’s, online portal have not been able to provide possibilities for
actively include customer review and personal recommendations, Therefore, for supporting
direct marketing distribution channel, Samsung has been utilizing ERP systems for
commissioning customer orders and monitoring over effectiveness and efficiency of sales
people. There has been no ICT system in the operations that help in personal recommendations
and relationship between salespeople and customers for recording extra data about customers.
Therefore, the summarized results of Work Centred analysis report of Samsung has been focused
on the based on implementation of ICT systems (Theorin et al. 2017). It has been necessary for
monitoring customer needs for recording and conserving customer data for improving customer
relationship and increase customer loyalty (Sepulveda and Young 2013). The present ICT
systems have been supporting in achieving business goals. The proposed ICT system has been
focused on documentations and knowledge management systems for storing and conserving data.
The current knowledge of customers have been related with the sales and in the company. The
second issue have been electric storefront system. The inline store do not contain many products
of Samsung for customer to access them and purchase over there. Therefore, the new ICT
system have been focusing on these areas of Samsung.

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Porter’s Five Forces
Porter’s Five Forces has been a framework for analyzing industries structures and
evaluating competitor in the industry. The development of competitive situation has been
indicating whether industry has been enabling a company for developing profitably and
successful in meeting challenges in future. The analysis of porter’s five forces in Samsung has
been provided below:
Threat of new entrants: Mobile industry has a tough options for taking entry for new
start-ups. This industry requires high capital requirements that makes it difficult for new entrants
to entry into the market. The production of products in the industry requires high capital for start-
ups (Yucel et al. 2012). The initial cost of raw materials and set up required huge cost.
Therefore, it can be analysed that the threat of new entry has been low for Samsung. However,
the existing competitor has been Apple and Nokia who are producing huge amount of mobiles in
the market.
Industry Rivalry: The demand of electronics products including mobile phones have been
increasing in the daily market. Therefore, rivalry among companies in the industry has been
high. The segment of smart phones has been one of its important segment. Samsung has been
competition with its competitors including LG, Apple, Lenovo and Huawei. These competitors
have been looking over strategies implemented by Samsung in the market. This has been
creating internal rivalry in the smart phone industry. The revolution in the smartphone industry
has been creating a great opportunity for Samsung to gain huge profit margin in the market.
However, Samsung has been able to keep a competitive advantage in the market. With reference
to Porter’s Five Forces analysis, a critical success factor has been adequate customer advisory
service due to high bargaining power of buyers. The present ICT systems have been supporting

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in achieving business goals. The proposed ICT system has been focused on documentations and
knowledge management systems for storing and conserving data. The current knowledge of
customers have been related with the sales and in the company.
Bargaining Power of Buyers: There have been various electronics products available in
the market with same featured but at different sources (Bajdor and Grabara 2014). Therefore,
companies have been facing issues in retaining their customer in the market. Samsung has been
facing issues in maintaining keen approach in the market. The buyers of Samsung has been
getting various options of products in the market. There have been huge competition in the
market of companies and their products. Therefore, customer have been getting several choices
of products on the market and using the power of bargaining in the market.
Bargaining Power of Suppliers: The bargaining power of supplier in case of Samsung has
been low. The processor, memory and different storage components of Samsung are
manufactured by their own. This help in getting out of suppliers contact. Samsung has been
looking for producing huge amount of raw materials and components of electronic components
that help in reducing the bargaining power of suppliers. Samsung itself used to provide mobile
components to different companies in the industry. Samsung has been able to manufacture their
own products and components of electronic goods (Demir and Krajewski 2013).

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Figure: Porter’s five Forces for Samsung
(Source: Low and Chen 2012)
Threat of Substitute: As research done by Low and Chen (2012), mobile and electronics
Industry has been facing a rapid changes in the mind of customers in the market. According to
demand, companies have been inventing new technologies in the market. Therefore, there have
variety of products available with new features in the market at different prices. Customers have
been getting a huge amount of choices in the market. It is possible that product sold by Samsung
is same as product sold by Another Company at low price. Therefore, customers might
substitute Samsung with their companies therefore, threat of substitutes has been high for
Samsung. However, Samsung has a huge customer base that are loyal to the brand
(Bharamagoudar, Geeta and Totad 2013). Samsung has been able to gain trust of customers in
the market. Therefore, customers of Samsung have not shifted their electronic brands easily.

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However, it has been important for Samsung to implement proper ICT systems for improving
quality of products and services for retaining trust of their customers in the market.
Balanced Scorecard
These elements are derived from strategies of company and vision. In order to improve
the exiting strategic direction of the company the Balanced Score cards is used as a performance
measurement tool. Considering the multidimensional business ratio it is determined that, balance
score card helps to achieve the business objectives from different perspectives. The business
ratio will give all present, past and future information associated to the company. Risks and
threats in the implementation of the ICT has been mentioned in the balanced score card. The
analysis reflects that the goal achievement of Samsung has been addicted to the change in the
market. The cost efficiency has been dependent of the employee costs and market demand. The
implementation of ICT can be done in the Samsung by initiating online business of Samsung and
decreasing the price with increase in quality of products.
The high bargaining power of the buyers also affects the competitive market and
commercial revenue of the company in context with the Porter’s Five forces. It has been
necessary for monitoring customer needs for recording and conserving customer data for
improving customer relationship and increase customer loyalty (Sepulveda and Young 2013).
The present ICT systems have been supporting in achieving business goals. The proposed ICT
system has been focused on documentations and knowledge management systems for storing and
conserving data. The current knowledge of customers have been related with the sales and in the
company. The second issue have been electric storefront system.
SWOT Analysis
Strength Weaknesses:

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 High upright degree addition
 It is the highest numbers of memory
manufacturer all over the world.
 Largest LCD screen manufacturer in
the world
 Phones are high quality
 Innovative – waterproof Galaxy S5
 Phone quality varies in speed and
other factors
 Pricing strategy allows for huge
market capture
 Good branding and advertising
 Dependence on Apple for component
sales
 Brand is unfocused, potentially
unclear
 Samsung phones don’t have
exceptional compatibility with other
devices, nor as well developed
ancillary services compared with
Apple’s phones
 . Authority questioned internally and
externally
Opportunities:
 Offers many hardware to the
consumers
 Improving the operating system for
the mobile phones
 In order to allow the latest Operating
System for Samsung, the company is
partnering to Google
 The software capabilities are
improving
 Help the company to meet the
Threats:
 Threats to bundled hardware
 Incredibly cheap hardware leads to
smart phones that cost next to nothing
 Luxury phones that steal market share
in China
 Huawei stealing market share in China
 Cheap phone developers making super
cheap smart phones.

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expectation
Samsung's most noteworthy quality is in its vertical mix. It is both the biggest memory
maker and LCD show producer on the planet and this enables it to effectively and inexpensively
fabricate segment parts. While other devoted producers make singular parts less expensive,
Samsung can make the majority of the significant segments for a telephone and afterward group
and pitch those segments to telephone sellers (Castronova, Goodall and Ercan 2013). This
capacity has enabled them to turn into Apple's essential telephone part maker, which means its
most noteworthy rival really depends on it for store network steadiness. Higher up vertically,
Samsung builds up its very own product for discharge on its telephones notwithstanding the
stock Android working framework. These highlights are commonly generally welcomed, and
help to include esteem and recognize Samsung telephones from different telephones utilizing
Android.
On CNET, the most famous web wireless audit site, Samsung dependably overwhelms
the best ten telephones graphs, positioned both by survey scores and by prevalence. Their
telephones are not just high caliber and solid; they likewise discharge various telephones which
are properly valued dependent on their abilities. This manages them enormous market infiltration
which no other contender can coordinate. Customers pick Samsung telephones for their
adaptability and their quality at a given value point (Li et al. 2014). In spite of the fact that they
are regularly censured for lacking structure contrasted with their adversaries, Samsung
telephones are quite often less expensive for a similar quality, and frequently have more
prominent adaptability and highlights.