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Study on Innovation Case of Samsung

Description on Background of Strengthening [R&D Activities] in Samsung
  • In the mid-1980s, Lee Byung-Chull, founder of Samsung Group prospected it was impossible for South Korea to continue to grow to the next century by dint of manufacturing, but leading by a technology-oriented top-tier company. Therefore, he decided to set up a research unit of the Group which is Samsung Advanced Institute of Technology (SAIT).
  • In the mid-1980s, Lee Byung-Chull, founder of Samsung Group prospected it was impossible for South Korea to continue to grow to the next century by dint of manufacturing, but leading by a technology-oriented top-tier company. Therefore, he decided to set up a research unit of the Group which is Samsung Advanced Institute of Technology (SAIT).
  • In 2005, R&D expenditure of SAIT was 0.318 billion dollars, R & D staffs were about one thousand people; total R & D expenditures of Samsung Group were 5.4 billion yuan, while R & D staffs were about thirty thousand people. 
Industrial Positioning of Samsung
  Successful and innovative companies
(Cisco, GE, Intel, Microsoft, Sony…)
 
Dominant design 1 Products of Samsung
(RAM, CDMA HHP, TFT-LCD)
Dominant design 2
Value level Product innovation Process innovation  
     
Product. Process improvement  

Improvements:
1.  Improvement on R&D procedures: strengthen design review in the R&D procedures, introduce risk evaluation and score card to measure the R & D results, etc; 
2.  Strengthening plan management: including selection of strategic plan, correct program planning, discussion on root cause, systematic problem-solving and communication strengthening, etc;
3. Scientific aids: including technology roadmap, technology tree, TRIZ, Six Sigma (DMAIC, DMADOV), as well as knowledge and intelligence tools. 

Improved R & D Program Management Processes
Mian stage Strategy Project initiation Project execution
Gate  RD portfolio management Planning RD  Starting RD     Validation DR    Completion RD   Product RD
Stage Value and vision Concept start Feasibility study Technology development Process development Technological transfer Value for customer
Activities Strategy set up Idea generation Goals setting R&D Mass production process Supporting business Customer satisfaction research
Main tools         Technological map   
                    Technological tree
                                      QFD
                                      TRIZ
                                      DFSS
                                                       Robust design
                                                                      
CTQ Realization 

Reference for R&D management of Samsung
  • Strong integration of the product development process and use of the so-called scientific tool, 「3T」in all steps ;
  • Exploration of social / technology trends and new opportunities;
  • Call-and-response between the framework of the strategy and technology roadmap and that of core technology development
Innovation Process of Samsung Electronics

Innovation Roadmap for 3T Technological Products of Samsung Electronics