Company Introduction ……………………………………………………………………………..

09

1.1 Evaluate current Creative and Innovative Management processes in an

organization………………………………………………………………………………………….10
1.2 Explain how to lead others to positively embrace innovation and
change………………………………………………………………………………………………..11

2.1 Assess the influence of vision and mission on generation of Creative and Innovative
Management processes in an organization……………………………………………………….13

2.2 Use analytical tools to identify potential Creative and Innovative Management
ideas……………………………………………………………………………………………………13

2.3 Assess risks and benefits of Creative and Innovative Management

ideas……………………………………………………………………………………………………16

2.4 Use change models to support the implementation of Creative and Innovative
Management ideas…………………………………………………………………………………...17
Company Introduction – SAMSUNG

A Digital Leader responsible global citizen a multi faceted family of companies an ethical
business Samsung is all of these and more.

At Samsung group and Samsung electrics, our products, our people, and our approach to
business are held to only the highest standards so that we can more effectively contribute to
better world.

For over 70 Years Samsung has been dedicated to making a better world through diverse
business that today span advanced technology, semiconductor skyscraper and construction
petrochemicals fashion , medicine, finance, hotels and more. Samsung Flagship Company,
Samsung electronics, leads and global market in high – tech electronic manufacturing and
digital media.

Through Innovative, reliable products and services, talented people, a responsible approach to
business and global citizenship, and collaboration with our partners and customers, Samsung is
taking the world in imaginative new directors.

Vision -2020

Inspire the world, create the Future

Mission

To inspire the world with innovation technologies, Product and designs that enriches people’s
lives and contributes to a socially responsible, sustainable future.

Goal

Quantitative Goals

USD 400billion in sales, predominantly No 01 in the global IT industry & global top 5

Qualitative Goals

Innovative Company, Respected Company. Top 10 world’s best work place Creative Leader
building New Market, global enterprise that attracts the world’s best talents.
 1.1 Evaluate current Creative and Innovative Management
processes in an organization

Innovative management: “Innovation is not just about releasing new product. It also
encompasses implementing new business process, fresh ways of doing things, radical,
alliances, and brilliant new routes to market and business strategies.” (Sloane, 2003, pg.8)

An organization takes the support of innovative management in terms of running their business
and serves their customers in a better and innovative ways. Portfolio management is the tool
through which understanding of innovative management can be understood in better manner.
Portfolio Management process: it consists of three components through which innovative
management can be handled and represented in a structured framework. There components
are described below

1. Incremental: A very depth and meaningful analysis can be taken in this process through which
organisation brings more developed and evaluated ideas on the current projects.
2. Radical: The way to use the basic and core methods with the same technology but more
advanced implementation in the organisation.
3. Fundamental: The process to use totally different technology.

Samsung actively secures innovation and growth engines in order to share new technology and
products with society. In-ternally, the company operates breakthrough programs and systems to
establish an innovative culture and invests heavily in R&D and greater productivity.

Recently, Samsung have worked hard for “open innovation” in an effort to single out various
ideas and business opportunities, resulting in many noteworthy successes. Through such
initiatives, they have secured innovativeness and more efficient systems to ensure future
growth. On top of using innovative technologies for the sake of profit, we are sharing these
same technologies to help bring about a more sustainable society.
Samsung Innovative process

1.2 Explain how to lead others to positively embrace innovation and change

Small Sized Innovation Process

C-Lab (Creative Lab) allows employees to submit their ideas to the in-house idea competition
while also providing opportunities for winners to focus on the realization of their ideas. The
selected ideas may be commercialized as product at Samsung, or used for continued research.
Sometimes they are even commercially at external startups. This is an example of Samsung’s
ne attempt to encourage employees in their voluntary, creative initiatives under the motto
“Failure is okay as long as we follow our hearts.”

Creative -Lab idea suggestions: 2,700 (2013-2015)

Every year, over 2,000 employees freely propose ideas at the C-Lab competition. Selected
employees then receive the company’s support for each team, made up of three to four people,
to concentrate on the realization of their idea for the next six months to one year. Employees at
C-Lab are free by their rank and the company’s work management, working under a more self-
regulatory atmosphere. In addition, new evaluation and compensation systems directly
connected with project results have been introduced so that participants can strive only for
making notable achievements.

As of 2015, 104 C-Lab projects had been carried out, of which 72 projects were completed.
There was a high level of achievement with C-Lab, 52 projects were already commercialized or
transferred to different business divisions for further development or launched their own startup
companies. In addition, we filed for a total of 95 patent applications through C-Lab. With C-Lab
projects that showed great potential as a new business outside the company, we support the
Establishment of an external startup, and also provide opportunities for the person to rejoin
Samsung. (See page 140 for more details) Since 2013, a total of 416 employees, or an average
of 140 people a year, have participated in 104 C-Lab projects. This represents 0.6 percent of
Samsung’s domestic R&D workforce (SET division-based), and the company has a long-term
goal of making one percent (cumulative) of its domestic R&D workforce go through C-Lab by
2020. By doing this, we hope to single out creative business areas that can naturally become a
growth engine for the future, and wish that employees who experience C-Lab as a research
facility in the style of a start-up will continue to spread our creative organizational culture at work
even after projects are completed.

Ideas Displayed at International Fairs through C-Lab

Some excellent projects, which started at C-Lab, were recognized for their innovativeness and
gained attention on the global market through international fairs. Samsung displayed excellent
projects to customers at International Fairs in advance to check the market’s response, and will
use that feedback to improve upon future projects.

Idea Market

Through Idea Market, part of MOSAIC’s Square section, employees’ ideas are led to practical
business results, such as commercialization or patent applications. In 2015, these practical
results increased by 60 percent over the previous year. In fact, Idea Market became a venue for
employees to propose ideas and realize them. For example, our Mobile Communications
Business had a contest for employees’ opinions to improve development efficiency through Idea
Market in 2015. A total of 1,387 ideas were received and over 20 ideas were applied to
products. A way to enhance the image quality for the camera of the Galaxy 6 model was also
proposed through this contest.
 2.2

2.1 Assess the influence of vision and mission on generation

of Creative and Innovative Management processes in an
organisation

Vision 2020

The underlying principle that defines our vision for the future of Samsung Electronics is "Inspire
the World, Create the Future".

This vision is at the very core of our commitment to lead innovations in technology, products
and solutions that inspire communities around the world to join our aspiration for creating a
better world full of richer digital experiences. As they recognize their responsibility as a creative
leader in the global society, we also dedicate our efforts and resources to offering new values to
the industry and customers while fulfilling shared values of their employees and partners. At
Samsung Electronics, we want to create a future that is exciting and promising for all together.

As a guide to common understanding and measurable goal, a set of specific objectives is

incorporated into our vision. By 2020, Samsung seek to achieve annual sales of USD 400 billion
while placing Samsung Electronics’ overall brand value among the global top 5. Three key
strategic pillars that are now part of our culture, business operation and management describe
the governing initiatives to this end: ‘Creativity ’, ‘Partnership’ and ‘Great People’.

They pride their self on delivering the world’s best products through operational excellence and
innovation prowess. As they look forward to exploring new business areas including healthcare
and biotechnology, they are excited for new challenges and opportunities ahead. Samsung
Electronics will continue to build on top of its current achievements new capacity and expertise
to further its competitiveness and its history of innovation.

2.2 Use analytical tools to identify potential Creative and

Innovative Management ideas
There are many factors which are involved in to the organisation and which makes its
innovative, before going in to the understanding of analytical tools, it is very important to know
about such factors like Training and development, Team working, shared vision and leadership,
organisation culture, creative climate etc.

Shared vision & Leadership: According to Senge (1990, p 206), shared vision and leadership
creates the future images of the organisation. People have the focus to learn about future goals
and being committed to the organisation. Organisation also makes sure to create an
environment in search of new innovations.

Organisational Structure: Organisation structure based on the hierarchical structure where all
the employees are being allotted with their work and responsibilities to achieve the organisation
goals. (Duncan, 1981)

Training & Development: Training and Development both are different activities but attached
together. Through training, employees can learn and work effectively where development is the
opportunity for the employees to make themselves prepared for the next task. It helps to know
the right skills in right people to work in more innovative ways and being more creative. (Michael
Moskowitz, A practical guide to training and development, p 2)

Employee Involvement: Each factors are inter connected with each other, where to fulfil the
requirement of training and development it is very important to have employee involvement
which also bring the enthusiasm to the employees. The outcome of the practices brings more
new ideas for new innovation and quality products and development to face the challenges with
better performance.

The tool that I have chose for Samsung is the SWOT analysis. It enumerates the various
strengths and weaknesses that may face the company as well as the opportunities that may be
available for expansion and various threats that are encountered in the course of operation.

The below mentioned analytical tool will explain the current stage of the Google and its future
requirements.

SWOT Analysis

Strengths

1. Innovative Designs: Samsung offer a lot of handsets with different types of designs,
unlike its nearest competitor Apple Iphone.

2. Integration of open source operating system, and software. The strongest strategy
they look adaption of the source technology like Android Operating System. The world is
moving with Android open source operating System. Different companies are working
 with it. It offers a lot of features, options and software. Taking this strategy into account.
Samsung grabbed huge competitive advantages over other mobile manufactures.

3. Cost & Quality Focused. When it is about the production costs, Samsung reached the
economies of scales; it outsourced its production to different countries that has
competitive advantage in producing quality at small costs.

4. Too Large product diversity (Stability on Sale). Samsung has a huge of product in its
product portfolio; it offers different types of products to its customer. In return, the profit it
makes is very much stable. When the sale of one product goes down, other products
may be experiencing increase in sales.

5. Low Product Cost: Low Production costs allow Samsung to offer its products at lower
price than its competitors do.

6. Largest Market Share in Mobile Phone Market: By applying the above strategies
Samsung has been able to grab largest market shares in the market.

7. Recognized Brand: Without any doubt, Samsung is one of the most recognized brands
in the world.

8. Strong Brand Reputation: until now, it has been achieving strong reputation of offering
quality products at low price.

9. Environmental Focus: it has been fulfilling responsibility towards the environment.

They provide energy efficient products. They ensure that the chemicals used in the
products do not harm its users. And currently, Samsung is operating the global recycling
and take- back programs in 60 countries.

10. Very strong R & D Department: Samsung has a strong R & D department which
frequently helping to develop new innovative consumer products.
11. Samsung Has a Large number of skilled employees all over the world.

12. Samsung captures a greater than% Smartphone market share in the Netherlands

Weakness

1. Low – profit Margin: It always keep low profit market. There are lots of competitors in
this industry. So, keeping the customers they must offer the products at low price.

2. Damaging Image by infringement: Few of the recent incidents affected its brand
image negatively.

3. Too Large Product Diversity (Lack of Focusing on Specific one): It takes a lot of
work if the product portfolio is large. It cannot be possible to give concentration to each
product with utmost importance.
 4. Lacking own operating system: Like Apple IPhone, it does not have its own operating
System.

5. Less Quality than Apple’s: when it comes to the quality, Apple is doing better in the
handset offering.

6. Heavily Dependent on Consumer Electronics: Dependence on Consumer electronics

is higher than other manufactures.

7. Large Dependence on other software: it cannot, solely, provide all of the software
needed to support its devices. It depends on third parties.

Opportunities

1. Most people use features phones that make a switch o smart phone.

2. The demand for technologically advanced phones is growing. As the smart phones
are becoming the near alternative of computers, the demand of smart phones is
increasing.

3. Strong financial position for future. As the Samsung has been doing business for a
long period of time, it has been able to secure a strong financial position in the market.
As a result, it will able to make more investment in the future.

4. The growth of tablet market: the growth of table is in negative phase for which these
users will be switching to smart phones.

Threats

1. The Large Number of Competitors. The mobile market is saturated. The Samsung has
a lot of competitor in the market, the number is also growing.

2. Strong Competitors like Apple. HTC etc. it has strong competitors like Apple, HTC,
Lenovo, and Xiamoi mobile. It is the biggest threat Samsung.

3. Peoples are looking for better Quality nowadays so if there is any of quality peoples
will be switching to the companies who give better qualities.

4. A Large Number of Products, Failing one will affect another. As the Samsung has a
large portfolio, is has a high risk also. If any product do harm to the customers, it will
affect the large brand image and therefore, will grow negative effect to others.
 2.3 Assess risks and benefits of Creative and Innovative
Management ideas

Risk and benefits are two outcome of the creative and innovative process through which any
organisation makes its plan for new products and technology with new goals. Moreover,
organisation has to make sure to convert any risk in to benefits and its pros and cons as well.

Risk in the organisation happens due to:

1. Information unavailability and irrelevant details
2. Lack of ownership
3. Deviation of goals followed by its objectives

Vertically Integrating Risk

When companies attempt to generate explosive sales, they never mean it quite as exactly as
what Samsung accomplished this fall. Just a month after releasing its most advanced
Smartphone to date, the Galaxy Note 7, the world’s largest Smartphone manufacturer recalled
its new flagship product after dozens of reports of unplanned explosion.

Much of Samsung’s success in the Smartphone game can be attributed to its vertical
combination. Originally a components manufacturer, the company designs and manufactures
not only its phones, but many of the individual parts in them. This approach may help mitigate
some traditional supply chain risks, but it also creates significant exposure to less obvious risks
inherent in vertical integration itself, making the crisis a valuable case study for entities in other
sectors as well.

As companies become their own suppliers and assume responsibility for the foundational
elements of their products, they reduce their ability to find relief in the event of a recall. Without
a supplier, the vertically integrated company has no other entity to which to turn to offset either
the reputational or financial damage caused by defective products

2.4 Use change models to support the implementation of

Creative and Innovative Management ideas
Benefits of innovative and creative management processes

Some of the key benefits that Samsung could enjoy by utilising the creative and innovative
ideas is that it could launch these news creative products in market first before their
competitors. Hence it gives them a chance to reach the market first and get hold of the market
share initially. Since markets are driven by consumers demand and whoever meets the
consumer demands first gets the larger share. This has proven true for Apple this is what is
needed by Samsung.

Right now there are no mobile phone manufacturer who are offering multiple OS in their
handsets and hence this would give be seen by users as a unique way to get the best of both
OS in the market using one smart phone.

Premium Prices

Using the new creative and innovative ideas, and bringing out new innovative products in
market first, Samsung can charge premium prices for its products which could show off it
revenue figures. In part, this has to do with increased competition. With Nokia, HTC going all-in
against Apple, Google pressing with its Android products, and even Research in movement
trying to get back in the game with its BlackBerry 10, Samsung has to fight a multi-front war but
this will give Samsung an unprecedented edge of its competitors who have not thought of this
innovation yet.

Large Market Share

Since the smart phone market is huge with estimates that another one billion new users will be
getting hold of a smart phone device in next 2 to 3 years ~ by 2020. So the consumer smart
phone market is still quite profitable and most mobile companies are fully aware of these
statistics, that is why there is a brutal competition in the mobile market to get the new products
launch early with new ideas and innovation that compels the end users to adopt these devices.

Many new developers are busy building apps for the users as it benefits the consumers who
use these apps, plus it provided incentives to app developers who get paid for users who
download these apps. By using these market trends, Samsung could position itself again at the
top by introducing new products and features early in the market.

The effect of large volume sales has a positive impact on shareholders as it maximises the
shareholder return. This creates new investment opportunities in exploring new ideas and
services that people care about.

Increase in Research & Development

Research and development budget can also be increased if the Samsung is making more
money. The stock value rises and gross margins increase. The company can also invest in new
ventures. For its shareholders, Nokia could engage in aggressive stock buybacks. It could also
hike its dividend. But for consumers and for those concentrating on their finances rather than
on the stock price, the best thing Nokia could do is continue developing cutting-edge products
that expand its stellar ecosystem and continue to get consumers on board.
Increased employee motivation and morale

By implementing the proposed creative and innovative ideas, Samsung can keep coming up
ways of bringing new innovation in its products and this also increases employee motivation and
morale. When the staffs know they work in a company that values creativity and innovation
then they feel more motivated to work and hence it increases the productivity of an organisation.
People love to work in companies which play an important part in the lives of millions of people
every day.