Lotte Group Chairman Shin Dong-bin called for dramatic innovation and changes in the organization in order to overcome uncertainties.
In his New Year’s message on Jan. 2, Chairman Shin said, “Amid the declining growth of the Korean economy, the strengthening of the U.S. protectionist moves and the unrest of the Korean political situation, Korea is not forecast maintain high-level growth, and strenuous efforts are needed in order to survive amid unpredictable uncertainties, and we cannot survive without changes.”
In regards to the specific direction of changes, Chairman Shin stressed the need to secure competiveness through qualitative management, exploring new business arenas, preparing for future growth, practicing law-abiding management, and shared growth with neighbors and society.
Concerning the strengthening of competitiveness, Chairman Shin said each subsidiary will have to focus on its own field management as the group’s strategy headquarters will be reduced and reorganized. He called for each subsidiary to secure a competitive edge corresponding to global standards in all fields, including technology development, production and marketing.
He also emphasized the importance of law-abiding management following the prosecution’s investigation into the group.
Lotte Celebrates 50th Anniversary
Lotte, marking its 50th anniversary this year, plans to build a foundation for continued growth through changes and innovation. At a meeting of CEOs last November, Lotte Group Chairman Shin emphasized the importance to adapt to survive. He quoted the Chinese saying “gungjukbyeon byeongjuktong tongjukgu,” meaning that “want leads to change, which leads to advance, which lasts for a long time.”
In this context, the group set one of the 2017 themes: embrace change, brace for the advent of the 40th Industrial Revolution.
In a related development, the group plans to introduce IBM Watson to demonstrate artificial intelligence services tailored to meet customers’ understanding. The AI themes Lotte and IBM will work on by making the most of the Watson are “an intelligent shopping adviser,” and “an intelligent decision-making support platform.”
The intelligent shopping adviser will offer services ranging from the recommendations of products to the explanation of stores and online pick-up by using the “Chabot,” artificial intelligence software for automatic communications between humans and machines. The intelligent decision-making support platform will be used to help the group’s subsidiaries specializing in confectionery and food work out strategies to develop new products.
The Lotte World Tower, the nation’s tallest skyscraper, is to be dedicated. The completion comes about 30 years after a business site was designated. The tower is expected to establish itself as one of the nation’s landmarks, as well as the nation’s tallest building.
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A view of Lotte Department Store in downtown Seoul.
