Creative and Innovative Management in Samsung
Creative and innovative management
The primary aim of this task is to outline and discuss how creative and innovative management process has been used in Samsung. Samsung is one of the leading and biggest consumer electronics companies that provide consumer electronic products and services to the customers in the global market. The roles of senior management also have been drawn in the task. It further explains the vision and mission of Samsung that help in promoting creative and innovative management practices. The innovative ideas that have been adopted by the firm are discussed in the report briefly. In today’s modern world, the organization uses change management models like Kotter’s 8 step model and Lewin change model to initiate new and innovative ideas in the organization. It is stated that stakeholders play a major and crucial role in implementing new ideas. The paper highlights the significance of the stakeholders and it also depicts information about the communication plan and strategy to overcome the barriers related to communication. More detail of the task has been shown below.
Samsung Company was incorporated in 1969 with its headquartered is situated in Suwon, South Korea. The company is a biggest manufacturer of electronic elements like semiconductors, chips, and hard drive devices. It is one of the biggest manufacturers of smart phones and mobile phones. With the success and growth of its electronics, the company has been well known internationally as an industry leader in technology and now it has got rank in top 10 global brands. The company dedicates efforts to creativity, shared value, and innovation with partners and excellent people. An effective and innovative knowledge management system is used by the corporation to compete with rivals in the global market (Samsung, 2019).
Creativity and Innovation Management in Samsung
Over the last decades, Creativity and Innovation has become the key for achieving the success and growth. Creativity means to generate new and unique ideas and Innovation means apply or invent that idea. It increases the quality of the product and an organization. Creative and Innovative ideas are very important to run the business and stay ahead of their peers. Without creativity and innovation a company will be stuck doing things same old way. Therefore, Samsung uses creative and innovative management process to attain various benefits in the global market (Dawson & Andriopoulos, 2014).
With the help of creative and innovative management, Samsung is able to focus on the product cost, quality, flexibility and customer satisfaction. The company achieved an award for outstanding management in 1985.Samsung launched a new Smartphone GalaxyA8s in December 2018.It will launch new Smartphone Galaxy S10 series by adopting the a innovative and creative management in the international market (Samsung, 2019). By this management, the firm resolves and handles the queries and problems of the customers while selling the products and services globally. It is further worth evaluated that Samsung won the gold for digital marketing in the consumer good category for its customer service program and campaign. By implementing creative and innovative management system, the firm has become no.1 brand in India. In 2012, the company launched an extensive and unique program of organizational reform. The company also redesigned management structures in each and every business area to use capabilities throughout the entire company (Maital & Seshadri, 2012).
Role of senior management in Innovation initiatives
Senior management is generally a team of individual at higher level who focuses on the day to day task of the organization. For the business it is most important to focus on creativity and innovation. All the financial decisions come under the top level management thus senior management are responsible for the planning and direction of the firm. In Samsung Company, senior management includes executive manager, Finance manager, and sales manager etc. The role of senior management is to handle and manage day to day activities and innovative ideas in the organization. It is one of the significant roles that is played by senior management at Samsung (Frow, Nenonen, Payne & Storbacka, 2015).
Furthermore, it is also reported that senior managers provide guidance to workers directly and through the supervisor for the new innovative product. Ensure clarity and priority of the product is another role of senior managers which are performed by them. Prepare budget for the innovation and approve from the directors and stakeholders is other task which is exercised by the top management. The top management is also accountable to hire qualified and talented candidates for conducting business. The senior managers provide assistance and guidance to the workers for implementing new policies and processes. They are responsible to encourage teams and to communicate with the financial and others departments. If there is any barrier and issue in the workplace then top management is accountable to reduce and eliminate this issue and barrier. In this way, senior managers play a fundamental role in implementing new initiatives (Donate & de Pablo, 2015).
Mission and vision promoting creativity and innovation
Samsung is a digital electronic company which offers electronic products and devices to the customers internationally. The mission of the company is to devote talent and advanced technology for creating superior products and services that contribute to a better global society. This mission helps the company to promote and enhance creative management practice internationally. By focusing on the quality and features of the electronic products, the firm is able to maximize the satisfaction level of the customers. The company tries to provide good service and product efficiently by focusing on the long term mission. If the firm does not provide good service then it losses goodwill and image in the global market. By focusing on the mission, the organization can take risks and adopt changes in a constructive manner. The mission also improves day to day activities; creates new and unique ideas and invasions for making a dynamic image in the minds of the customers. In this way, it promotes and encourages creativity and innovation in the global market. On the other hand, Samsung vision is to perform better day to day activities and give good service and product with quality and fair price. It wants to become a creative leader and improve the quality of devices and products. This also leads high creativity and innovation globally. The company believes in customer relationship and satisfaction to cope up with competitors. The other vision of the company is to become a beloved brand and innovative and admire company at international level. If the company will become a leader in consumer electronic industry then it will able to endorse innovative and dynamic ideas internationally (Samsung, 2019).
Techniques use to creative ideas and innovative ideas
It is evident that Samsung uses various techniques and tools to generate innovative and creative ideas. One of the significant and innovative techniques that used by the company is value chain analysis. To develop new ideas, the company interacts with various partners to generate, conceive and distribute products and services among the people. Engage in observation sessions is another way to create innovative and effective ideas. Brainstorming and force field analysis are other techniques that are helpful in develop and implementing new ideas and thoughts (Samsung, 2019). Moreover, Samsung needs to maintain open and direct communication with people to create and initiative new idea. It is found that Samsung is a global player in screen technology, chip design and TVs. Therefore, the company is doing well in innovation area. The organization also uses a methodology for systematic problem solving and further it is adopting six sigma. At Samsung strategy and innovation center, the people drive innovation for the company in diverse areas like artificial intelligence, automated mobility, digital health and internet of things (Banović, Krystallis, Guerrero & Reinders, 2016). Knowledge management system further was developed by Samsung to generate more revenue and to satisfy the customers. The organization honored for outstanding design and engineering with 36 CES 2018 innovation awards that depicts that the company is showing interest towards the innovation. Samsung has made investment in the various areas of 5G, AI and IoT over the past year. The other innovative ideas include Tab S4, Samsung galaxy watch, knowledge management system and HMD Odyssey that have been used and developed by the company (Skroupa, 2017).
The potential risks and benefits
The innovation leads higher competitive benefits in the context of Samsung electronics company. Innovation is the development of customer value through solutions that meets the needs and requirements of the customers (Nibusinessinfo, 2019). Innovation also increases profitability and returns in the global market. The company can easily differentiate its products from the competitors with the help of innovation. Samsung further improves brand recognition and value with the help of innovation. The workplace productivity is also increased through excellent innovation. All these benefits are taken by Samsung by adopting or implementing various innovations. On the other hand, innovation also consists various risks such as losing market share to competitors, losing key employees, failing efficiency and productivity and reducing margin and returns. Sometimes, the customers do not take interest in the new innovation thus; the firm has to face various issues while implementing new ideas (Kappel, 2019).
Knowledge management idea has been taken from the above discussed ideas. With the help of this knowledge management system, Samsung is selling electronics products and services in the international market. Also, it helps in focusing on raw manufacturing and gaining long term profitability (Jones, 2013).
Propose and rationalize change management models
The change management has been discussed below.
Lewin change management model: This model is used to analyze and evaluate how an ice block changes its shape to transform into a cone of ice through the procedure of unfreezing. The three stages of Lewin change management model include unfreeze, change and freeze. This model can be used by Samsung for the implementation. This model is suitable because it helps in making plans and policies for enhancing knowledge management easily because this model provides brief information and knowledge about the change at initial stage. At the same time, it does not try to reduce the complexities with opposition by evaluating and addressing it head on (Managementstudyguide, 2019).
Kotter’s 8 step change management model: This model helps in bringing new ideas and process effectively and efficiently. Kotter’s change management framework include create a sense of urgency, develop an effective coalition, formulate a strategic initiatives and vision, enlist a volunteer army, enable measures by reducing barriers, create a short term aims, sustain acceleration and institute change. This framework helps in giving a clear direction and guidance for implementing the innovative ideas in Samsung. The reason behind using this model is that it focuses on the preparation and acceptance of change and also monitors on the values and culture of the workers (Kotter, 2019).
Stakeholders in Samsung
The organizational stakeholders can influence or be affected by the organization’s objectives, measures and policies. The stakeholders of Samsung include creditors, directors, government, employees, owners, suppliers, unions and community. The company has developed and enhanced a strong rapport with its stakeholders, pursuing each one with different strategies. With effective and dynamic knowledge management system, Samsung frequently meets with its stakeholders to address significant decisions and challenges, for example, operating and creating a health research center and increasing the compliance of management within the organization (Fu, Yi & Zhai, 2013). The company is in direct and open communication with its employees and customers to create a better customer relation service by making and enhancing customer satisfaction surveys. The firm also participates in government policies and strategies; one innovative policy has helped generate an energy management system to minimize the firm’s energy consumption by 10%. The knowledge management put direct impact on the stakeholders such as creditors, customers and suppliers. The suppliers will get innovative ideas and opinion to improve and enhance the production and operations. On the other hand, customers will able to identify and judge the quality and features of the electronic products with the help of knowledge management. The customers and employees are valued with the help of this knowledge management system. In this way, knowledge management initiative helps in providing right direction to the various stakeholders in the organization.
The valuable list of stakeholders benefits include valuable engagement, excellent understanding of concerns and needs, dynamic decisions and improve communication. All these benefits can be taken through innovative knowledge management system because this system helps in accessing the knowledge and information of the organization when they need it (Iqbal, Ahmad, Sheeraz & Bashir, 2012).
The communication process to the stakeholders and ways to collect feedback
The communication process to exchange the new ideas and thoughts with the stakeholders is detailed below.
Planning: It is an important stage of the process to communicate and collaborate with stakeholders effectively. Samsung needs to build a clear vision and determines the strategic goals and objectives that are important at the workplace like customer acquisition, and revenue growth.
Prioritization: After setting the goals and objectives, the top management needs to identify and analyze the priorities to maintain strong relationship with stakeholders such as customers and suppliers.
Execution: It is significant step to cooperate with several stakeholders in the organization. To execute the tasks, various project management tools and methods can be used by the company at the workplace. It will help in making happy the stakeholders within the organization (Wang & Wang, 2012).
Release: Providing self-service access to the innovative ideas is another way to develop consensus and get stakeholders on company’s side. Software like product plan permits the company to enhance and develop innovative ideas in the firm. It will further help in minimizing the communication barriers which are raised between company and stakeholders (Herremans, Nazari & Mahmoudian, 2016).
(Source: Kirsch, 2019)
The best ways to collect feedback of concerns and opinion include surveys, feedback boxes, user activity, usability tests, and reach out directly. All these ways also will help in collecting reviews and feedback of the customers efficiently. Furthermore, these ways help in reducing and eliminating the issues related to quality, features and aspects of the product.
Business goals for the implementation of new idea
The primary goal behind this idea is to promote and enhance the knowledge and experience among the customers and suppliers and to increase awareness among them to cope up with rivals in the consumer electronic industry. It will further help in using the advanced and innovative technologies and resources related to electronic products in near future. The knowledge management system will also help in improving moral, encouraging connection with the several stakeholders and retaining the potential and talented employees. The business goals include: to improve and boost organizational agility, to maintain strong communication, to improve business process, to maximize the rate of innovation, to create innovative customer service process, to maximize profitability and to increase awareness among the customers in a hassle free manner. These goals will help Samsung to achieve its long term mission and vision in near future (Yang & Carless, 2013).
The possible organizational barriers
There are enormous barriers which resist implementation of new and innovative idea in Samsung. Resistance to change is one of the biggest barriers that can hamper the implementation of new idea like knowledge management system in Samsung. In this barrier, the employees do not want to learn new idea and process which is beneficial for them and they ignore the tasks. Leadership development and enhancement is critical to the implementation (Lee, 2011). These organizational barriers are related to inbound and outbound activities. If company wants to eliminate these issues then it needs to strengthen its overall strategic planning. It will be helpful in reducing the possible barriers and customizing its products as per the client’s need and demand. Inadequate and ineffective learning leads various chaos and issues in the organization during the period of change. No motivation and reward for growth is leading barrier in Samsung that can affect the implementation of new idea at the workplace. The workers are not motivated and rewarded for the success and development will not look out the opportunities rendered by the company. One of the ongoing challenges in today’s modern era is lack of communication which affects the success of the new idea. If the team members do not communicate effectively and efficiently then they need to face issues while initiating the ideas (Savage-Austin & Honeycutt, 2011).
Strategy to overcome the barriers to the implementation of the new idea
Training and development strategy can be used to overcome the barriers and issues to the implementation of the new idea in Samsung. Generally there is a lack of training and learning on recognition giving. The top management at Samsung needs to create a learning program, provide direction, integrate training program into the existing management training curriculum and enables team members to share notes. This strategy will help the employees to make understand the objectives of developing new idea. A training and education program will permit the top management to strengthen those skills and talents that each worker needs to improve and enhance (Watson et al. 2018). This training program further will bring all the workers to higher levels so they all have similar knowledge and skills. This would also reduce any weak links within the firm who rely heavily on others to complete implementation process of new idea. This strategy will provide a depth understanding about the new idea to the workers who are resisting for initiating the innovative idea in the organization. It is worth noted from the various studies that training and development program can be held by the company to teach the employees for the new idea. This strategy will help in developing and improving the skills, talents and qualities of the workers to handle the tasks and duties in an effective manner. Furthermore, it will boost morale, self-respect and loyalty among the workers to implement the new and innovative idea in the organization. The culture of the company can be improved and encouraged by conducting training and development programs. This strategy also leads higher job satisfaction and job security among the employees. Thus, the workers can attain desired goals easily. The set goal is to attract and retain more customers and to maximize revenue and returns. By using this strategy, the company can implement change management model such as Lewin change management and Kotter’s 8 step change management model (Bey, Hauschild & McAloone, 2013).
Communication plan to the stakeholders
Communication plan is accompanied with the process activities which could be undertaken by management to communicate with the stakeholders. In this case, company could take online and team based communication plan for its stakeholders. This communication plan will start with the formulating the strategies for the spreading information to stakeholders, implementing procedural steps and follow up.
Identification of the stakeholders- Firstly all the stakeholders of the company would be identified. Samsung Company needs to assess the dispersion of the imperative information with the stakeholders and on the basis of same, required information will be shared with the stakeholders. These stakeholders will be assessed and on the basis of it, the medium to be used for the strategic communication plan will be prepared.
Developing communication plan- Each and every stakeholders will be assessed so that individual communication plan could be developed by Samsung. For instance, mail to individual employees and other stakeholders and also using the cyber computing enterprises resources planning and other methods could also be used by company to communicate imperative information with the stakeholder (Gui, Tang, & Yin, 2018).
Analyzing the current communication methods and resources- In order to strengthen the communication among the stakeholders, Samsung Company needs to assess the available communication methods. Company could use the financial reporting frameworks. This will not allow company to send notice of its key financial details with the stakeholders (Leonidou, & Skarmeas, 2017).
Analyzing and evaluating the factors affecting the stakeholder’s communication plan- Samsung Company needs to assess which factors are affecting communication strategy of the company. Nonetheless, For instance, company could use divulges its key imperative information on online website where it could reflect what possible factors could be shared with the stakeholders.
Implementation of the communication strategy- This will requires changes in the financial reporting frameworks and changes in the confidential data policies and regulation. In addition to this, company could also hire more expert members in the newly developed communication department where it could share imperative information with the stakeholders and also could resolve the possible queries and issues of the stakeholders (Xia, Govindan, & Zhu, 2015).
After assessing the communication strategic plan for communicating information to stakeholders, it could be inferred that company needs to implement the effective strategic policies which could strengthen the communication process. Nonetheless, company could also enter into the strategic alliance with other IT organization to boost its communication strategies to communicate imperative information with stakeholders (Ryan, 2017). Samsung Company could also use Kotter’s 8 step model and Lewin change model to initiate new and innovative ideas in the organization which could be useful to eliminate the communication barriers in the process system of the organization.
In order to mitigate the communication plan barriers which company might face, Samsung needs to develop internal control system. This department will focus on only assessing the shared information with the top most stakeholders. This department along with the top management department will be aware about all the shared information with the stakeholders and they will formulate the action plan if anything goes wrong due to the shared information (Bouzon, Govindan, & Rodriguez, 2018).
It is concluded from the above discussed analysis that Samsung uses innovative and creative management process to implement the new ideas at the workplace. It is analyzed that senior management plays a leading role in taking initiatives in the organization. Along with that, innovative mission and vision promote creative and dynamic management practices effectively. It is also evaluated that innovative and unique techniques and tools to generate creative ideas and opinion. In the innovation process, Samsung faces ample of challenges and issues like resistance to change and lack of communication. Besides this, change management models and dynamic strategies are used to overcome and minimize the organizational barriers. An effective strategy and communication plan is used to eliminate and detect the organizational issues and challenges. Now in the end, after assessing all the details of the Samsung business, it could be inferred that company needs to strengthen its business process by using the advance technologies and system process in its business. It is analyzed that Brainstorming and force field analysis are other techniques that are helpful in develop and implementing new ideas and thoughts for strengthen the inbound and outbound activities of the Samsung Company (Samsung, 2019). Therefore, the crux of this report is that Samsung Company has developed core competency in cost leadership and product differentiation strategy in market and competing with the rivals. An effective and innovative knowledge management system is used by the corporation to compete with rivals in the global market (Samsung, 2019). Company has also used life cycle stage planning strategy to strengthen its overall sales throughout the time. Samsung Company has also focused on using the Kotter’s 8 step model and Lewin change model to initiate new and innovative ideas in the organization to strengthen its business process.