Organizational Management: Samsung's Open Innovation Strategy

This presentation analyzes Samsung's open innovation strategy, focusing on its application within the company. It examines Samsung's annual goals, diverse product offerings (including the Galaxy lineup, cameras, and smart TVs), and the various types of open innovation collaborations they employ, such as partnerships, accelerators, ventures, and acquisitions. The presentation explores the strategic innovation process and its impact on Samsung's operations, along with financial results, including profitability, liquidity, asset efficiency, and capital structure ratios. Non-financial factors like customer satisfaction and research and development investments are also addressed. The analysis concludes with a summary of how Samsung utilizes open innovation to maintain operational efficiency. A graphic model is also provided to describe the innovation strategy.

OPEN INNOVATION
Organizational Management

OPEN INNOVATION
 Open innovation strategy acts a paradigm which assumes
that an organisation can and should use internal and
external ideas as well as internal and external paths to
market as the organisation searches for making
advancements in their technology
 The distributed innovation process that relies on
purposively managed knowledge flows throughout
organisational peripheries utilising pecuniary and non-
pecuniary mechanism in line with the business model of
the firm
 Samsung is a huge company that is using open innovation
strategy for making innovations in their business

ANNUAL GOALS OF SAMSUNG
 The annual goal of Samsung is to
develop diverse range of product
offerings with the objective of gaining a
competitive advantage over the
existing players in the markets

PRODUCT OFFERINGS OF SAMSUNG
 Samsung Galaxy Lineup
 Galaxy Note Lineup
 Samsung Cameras
 Samsung Smart TVs
 Samsung Computers and PCs
 Samsung Digital Frames
 Samsung Sound System

SAMSUNG’S OPEN INNOVATION
Samsung
 Samsung is using diverse type of collaboration as a strategy
 The distinctive part of the open innovation collaboration, they have
divided it into 4 categories which include partnership, accelerators,
ventures and acquisitions
 Accelerators are like start-ups with an innovative and empowering
environment for developing new things
 The motive behind is that the product stemming from the internal start-
ups could become a part of product portfolio of Samsung over time or
just serve as learning experience for the firm

OPEN INNOVATION
 Samsung utilises strategies of open
innovation where they believe that making
a collaborative framework can help the firm
in doing better innovations by allocating
different task to different types of their units
 Partnerships are also used by the firm so as
to find out new ways of doing business and
to find innovations

STRATEGIC INNOVATION
 Strategic innovation helps the firm to
improve its strategies and work for the
success of the firm
 Samsung concentrates on bringing
innovation that is disruptive and hence
they fund their innovations accordingly

FINANCIAL RESULTS FROM SAMSUNG
Samsung Electronics Co limited
 Profitability ratio: Return on capital employed, gross
profit margin and net profit margin of the company is
21.79%, 45.69% and 15.82%.
 Liquidity ratio: Current ratio and quick ratio of the
company is 2.34 and 1.82
 Asset efficiency ratio: Creditors turnover days and
stock turnover days of the company are 42.01 days and
94.01 days
 Capital structure ratio: Gearing ratio and interest
coverage ratio of the company is 0.42 and 7.56 times. It
depicts that solvency risk of the company is quite lower

FINANCIAL RESULTS FROM SAMSUNG

FINANCIAL RESULTS FROM
SAMSUNG

FINANCIAL RESULTS FROM
SAMSUNG

FINANCIAL RESULTS FROM
SAMSUNG