Samsung SDS unveiled its target of raising sales from some 8 trillion won to a range of 20 trillion won by 2020. During a ceremony to mark the 30th anniversary of its founding, the nation¡¯s largest IT service provider also announced a vision of becoming a global top-10 IT service company. The ceremony took place at Samsung SDS¡¯ headquarters in Shincheon-dong, Seoul, on April 15.
Samsung SDS President Jun Dong-soo said, ¡°The global IT industry is reaching a watersheds of creating new order, and we have to jump into the eye of the typhoon, a center of change.¡±
Jun¡¯s remarks indicate there is no guarantee for survival unless Samsung SDS offers services which differentiate itself from global juggernauts like IBM and Amazon.
Samsung SDS President Jun, credited for his role in catapulting Samsung Electronics¡¯ semiconductor unit to becoming the global leader, is spearheading the company¡¯s innovation. Jun, nicknamed ¡°trouble shooter,¡± was transferred from president of Samsung Electronics in charge of memory business to president of Samsung SDS, in late 2013. At that time, the government curbed the transfer of groupwide IT service orders, saturating the domestic IT service market, so Samsung SDS had to find solutions to break the stalemate.
Samsung SDS President Jun has turned to the global market to find solutions.
The company is accelerating efforts to restructure its business portfolios to focus on strengthening its global presence, with the goal of becoming a century-old ¡°super world-class¡± IT service provider.
The company has focused on logistics business process outsourcing (BPO) using advanced IT technologies. Samsung SDS¡¯ adopting logistics BPO into Samsung Electronics¡¯ supply chain management (SCM) systems for parts and finished products of cellular phones, refrigerators and TVs has dramatically lowered logistics costs. Thanks to these efforts, the logistics BPO segment, accounting for 30 percent of the company¡¯s sales, has become a mainstay business arena.
Behind Samsung SDS¡¯ new vision of raising sales to 20 trillion won by 2020 is the company¡¯s capability to nurture such new growth engines as the logistics BPO segment. The move comes in the context of Samsung Electronics¡¯ omnidirectional expanding of such business-to-business areas.
Samsung SDS has a strategy designed to enhance the competitive edge of its solutions, dubbed ¡°SMAC.¡± SMAC stands for Social Networks, Mobile, Analytics and Cloud. SMAC refers to technologies that emerge anew in the course of a rapid shift of the corporate work environment from a PC-based paradigm to a mobile environment that is based on smartphones and tablets.
Samsung SDS said it will redouble efforts to provide assistance in changing the corporate IT environment to a mobile one, and raise the productivity and efficiency of operations for each company¡¯s overall IT infrastructure by making the most of the SMAC technology.
For instance, Samsung SDS strives to develop solutions to enhance factory productivity and lower default rates by adopting Big Data analytic technologies into the manufacturing field. Industrial IoT technologies offer shipment information in real time in the logistic BPO sector. The company aims at raising sales from factory automation and other solution infrastructure business to 5 trillion won annually and those from the conventional IT operation/maintenance business to 7 trillion won.
Meanwhile, Samsung SDS's efforts to ensure innovation come in the corporate environment. On top of the enhancement of its IT competitiveness, Samsung SDS strives to transform the company into a body with a consilience-type of talent, combining language and culture. The company has 500-odd in-house study groups and provides learning opportunities by sponsoring conferences on diverse themes and technology seminars.
Samsung SDS endeavors to live up to its social responsibility by operating the social contribution program, dubbed ¡°Smart Bridge to get rid of social bipolarization.¡±
Samsung SDS devotes itself to becoming a super IT service leader by enhancing business execution power through these innovative efforts and aggressively moving towards the exploration of global markets, company officials said.