Samsung Electronics President Koh Dong-jin has been riding a rollercoaster from the hell since last August. He confidently unpacked the Galaxy Note 7 in New York, but the episode surrounding the device¡¯s faulty batteries dashed Samsung Electronics and President Koh¡¯s hopes immediately. The glitch of the battery led to the stoppage of production and recalls from the market, and he endured a hardship to find the causes of the faulty batteries.
Even though some top company executives demanded the end of the Galaxy Note series, he could not give up it.
But lately Samsung Electronics has built a foundation to restore trust from the market.
The Galaxy S8, which debuted in March this year, has become a global hit. President Koh unveiled the Galaxy Note 8 as Samsung Electronics¡¯ 2017 H2 strategic model at an event at Park Avenue Amory, New York, on Aug. 23. Park said in an interview that the release of the Galaxy S8 was a turning point in regaining trust, and the success of the new Galaxy Note 8 would almost turn the tide.
By soul-searching and overhauling its systems, Samsung was able to heal the scars brought on by the faulty Galaxy Note 7, President Koh said of the bitter lesson the company learned at an event to unveil the Galaxy Note 8.
Koh said he oversaw a three-month process of scrutinizing the battery¡¯s failure. He convened meetings from Mondays to Fridays and inspected a first-hand look into the field every Sunday. Samsung Electronics tested 200,000 smartphones and 50,000 batteries with the help of outside investigators. In the past, he said, Samsung Electronics had accepted battery makers¡¯ evaluations, but now the company has decided to undergo its own eight-stage sample inspection process.
¡°Samsung Electronics suffered huge losses amounting to 7 trillion won, (caused by the faulty battery), but my thoughts have been on how it can be translated into an investment for the future,¡± he said.
The case of the faulty batteries, the first since its establishment, dealt a severe blow to the whole of Samsung Electronics.
The company harnessed its organizational capabilities to overcome the crisis. In the process, executives and staff members in the mobile division said they struggled to find the causes of the episode, and in the process learning precious lessons strong leadership and teamwork.
¡°I¡¯m very worried that the battery glitch might discourage our developers¡¯ challenging new innovations,¡± President Koh said, adding that he emphasized to developers that the DNA of the mobile division depends of technological innovation. He told them that he did not want technologies demonstrated for just show, and it is important to empower consumers with worthwhile technologies.
For instance, among the innovtive features of the Galaxy Note 8 are teh "Power-Off Screen Memo" funciton and "Live Message" funciton in which hand-written caligraphical styles cabe be availabe.
President Koh said his division did its best to make the success of the Galaxy Note a turning point to restore trust from customers. He added that Samsung Electronics will continue to reinvent smartphones until it secures an upper hand over its rivals, without resting on its laurels.
Regarding how long Samsung Electronics¡¯ flagship smartphone Galaxy series will continue to yield sales and profits, he said he huddled with his division executives to establish ¡°the 2020 vision,¡± but he would not elaborate on the details. Koh pointed that his company will continue to put into devices new experiences. His remarks may be construed as the company¡¯s strategies to align itself with businesses related to such areas as A.I., IoT, big data and virtual reality.