According to Legare and Nielsen (2015), innovation refers to something which is original and more effectual, introduced as an effect that breaks into market or community for better consumption of resources. It is often considered as the implementation of enhanced solutions through which new demands, unstated requirements or existing market wants can be fulfilled. Further, the present report revolves the theories of innovation applied by Samsung Company. The same is discussed further in detail along with its features and strength. The discussion has been done relating to the manner of implementation of theories by Samsung. Moreover, the predictions concerning the future development of products, services or procedures are also assessed in the report. A detail discussion has been presented regarding the manner in which these strategies are applied by the organization. At the end of the report future perspective of the innovative theories have been discussed in order to assess the manner in which these theories can be applied in products of the company so that it can provide excellent services to its consumers.
Salter and Tether (2014), asserts that the innovation occurs by providing more efficient products, procedures, services, technologies or business approaches which are accessible to markets, administration as well as the community. There are some theories of innovation which are discussed in detail below:
It is stated by Archibald and Archibald (2016), that in the context of business, disruptive innovation can be defined as a theory which creates a new market and value network and ultimately disturbs market and value network, dislocating recognised companies of the market, products as well as associations.
In other words, it has been specified in the theory that it is possible for small companies to disrupt big organization through providing a better or new version of services or product which are more interactive with a subset of consumers (Brem, Tidd and Daim 2018). There are many cases, where the small firms establish a new technology which is of substandard quality or performance to that of a large organisation but builds in another manner such as low prices or expediency.
Along with this, many of the start-ups consider that their key objective is to be disruptive or to dislocate a particular industry. With accordance to Cortez (2014), one of the main issues concerning this theory is that it is misinterpreted by companies. Thus, it is very significant to comprehend the basis of theory from a defensive viewpoint in order to prevent them from being disrupted (Goncharuk, 2018). The same is implemented by Samsung Company in an appropriate manner as the concept behind the disruptive theory is clearly understood by it.
Figure 1 Components of Disruptive Technology
(Source: Archibald and Archibald, 2016)
In present times, it is generally observed that companies are not facing problems with creating new ideas or making new innovations. Huarng and Ribeiro-Soriano (2014), specifies that the main issue which organisations are facing is the implementation of innovative ideas without having an adverse impact on key functions of the company. Further, most of the companies are facing this issue and finding a way to solve it. Although they have approved upon the significance of innovation in business and have appointed the panels to create new value-adding, innovations items and services, these products might end up never being instigated since no one in the existing company units will take accountability and take the threat of introducing them. The company which has or is supposing of appointing innovation team/department lab should be attentive of this concept of Dual innovation and ensure that the teams which are being appointed have skills and permissions which are required by this theory (Latham, 2014). Hence the, same is observed in the Samsung company as it keeps on innovation constantly and for the same efficient staff is employed by it so that the implementation of innovative ideas do not affect operations of the company.
It is believed by the company that practising to address small challenges will make them prepared for big challenges. For the same, the employees of Samsung are directed to practice the innovation in every possible operation and to the extent possible.
The organization which apply specified innovation approach have set themselves up to three things in order to operate the business effectively, i.e. create, test and authenticate innovations outside of their organisations. In addition to this, they incorporate a number of best innovations back into the core business in a reliable way. In accordance with assertions of Le Masson, Hatchuel and Weil (2017), it refers to the capability of the company to be effective in its management of today’s business and also adaptable for coping with tomorrow’s changing demand. Acting as ambidextrous implies that the company is capable of utilising the both left as well as a right hand in an equivalent manner. As per assertions of Metcalfe (2018), organisational ambidextrous obliges the companies to utilise both examinations as well as exploitation methods in order to be successful.
As per the study of Orsenigo (2018), the Samsung Company is one of the oldest companies which operate at the global level. It provides a range of product with superior quality to its consumers such as mobile phones, computers, washing machines, televisions and so on. Nowadays, it not only provides electronic products but also entered into other industries also like environment energy, expediency and comfort, information as well as healthcare and biotech. With the assistance of the same, it can be said that the company keeps on developing its operations and its products as earlier the commercial cellular portable phones were offered by the company, but nowadays they are offering a variety of smartphones which includes innovative features for the same skilled employees are appointed by the company. The innovation is done in such a manner so that there is no negative impact on key operations of the company. Furthermore, the company tries to launch innovative products every time so that the needs of consumers could be fulfilled by providing products of superior quality along with innovation. The same can be explained by citing an example that in earlier times it offers black and white TV but as the time changes it modifies it products and seeks to increase the satisfaction level of consumers by offering them LCD, LED and so on.
Moreover, it has to be considered that at the initial stage only the company gets a big success which keeps on continue. Innovativeness of Apple and iPhone has been determined and accessed in a significant manner by various researchers. It is found that the innovation in product and services by iPhone is steeper than that of Samsung Galaxy Range (Richtnér et al., 2017). Furthermore, innovativeness of both the companies is considered as similar to a significant extent. Along with this, Apple has adopted a technology innovation approach whereas Samsung follows marketing innovation strategy. The same implies that Apple has some model of iPhone and builds up its operating system and hardware while Samsung Company provides a broad variety of prices along with different features in different smartphones. Furthermore, some factors are discussed below relating to how the dual/ Ambidextrous Organisations theory of innovation is utilised by the company in order to operate efficiently and maximise profits.
The organisational structure of the company is set up appropriately. It tends to have features of organic structures along with open and vibrant systems (Samsung Innovation Strategy, 2017). Increase in utilisation of information technologies, for example, email, internet blog, mutual data repository causes the requirement to eliminate middle administration. The same will lead to faster responsiveness to market, higher competitiveness, more elasticity as well as reducing processes among division. Thus, it can be assessed that a perfect blend of features of double innovation theory is present in the organization structure of the Samsung Company. Moreover due to this organisational structure of the company and its decision making procedure provide support in the implementation of innovation theory in the products of the company. To evade delays and support for rapid innovation, decisions should be delegated to the innovative team. Since if the decisions are delegated to the innovations team further innovation will be developed in accordance with that only. Furthermore, having a separate innovative team including skilled employees will result in the success of innovation and no negative impact on the company.
The supply chain of a company is very competitive. The company is unusual among mobile producers as in that it tends to utilise its personal hardware elements in order to produce its phones, in spite of funding them from third parties as it has the resources to attain this. It is to be considered that, around 70% of the main constituents utilised in Samsung Electronics smartphones are attained from in-house production. Moreover, the supply chain of a company is a blend of outsourcing as well as in-house production, a major difference from its key rivalry that is Apple which depends completely on its producers. With the assistance of the same, it indicates its approach as a competitive advantage for operations of the company. Hence, due to the same the company is considered as one of a competitor for those also who are well-recognised.
Team-working increasingly reflects a deeper recognition that working in such a manner brings greater economic gains. In the case of Samsung company, cross-functional team assists to bring in various knowledge sets required for solving issues, developing a new company or to create new innovative approaches. Operating as a team requires more participation, higher commitment, sharing knowledge and self-administration which is observed in the present company. The same is a more elastic and organic strategy which assists to instigate innovation establishing across organisational as well as nationwide. Since the company has a very efficient team for operations of the business and also that they work effectively as a team which leads to increase in profits of company Samsung’s Innovation Strategy in Smart Phones market (Tidd and Bessant, 2014)
The Samsung Company is considered as the company which keeps on innovation in their products and services so that enhanced products can be provided to the consumers. As the public reward those only who differentiate themselves as a key actor in innovation culture as well as who encourage the value of innovation is the influential instrument to develop thinking by the enterprise.
Figure 2 Model of Innovation Strategy
(Source: Samsung Innovation Strategy, 2017)
As discussed above that Samsung is believed as the innovative company, but it has to concentrate more on the products and services. The reason behind same whatever innovation is done by Apple in its products or services Samsung follows the same to lead in competition or to sustain with the latest trend. In other words, it can be said that the company is a follower of Apple. In order to remain in the market for a long period of time, it has developed innovative products on its own as the company cannot survive in the market which follows other and has personal ideas. Further, the same can be proved by citing an example of Nokia company as earlier it was considered as one of the topmost company but if we talk about present times, it does not exist for the consumer because consumers see no innovations in their products. Consumers like those companies only which keep on innovation according to the needs of them. Thus, if Samsung desires to survive for a long period of time, it has do innovations on its own and in such a manner that other companies follow it. In addition to this, the company should bring innovation in the products and services by analysing the requirements of consumers that is what they seek to have in a particular product or why they like the product offered by Apple and tries to make innovation accordingly.
For the same Samsung’s requires to keeps on innovation in IM division is often seen as the risk the firm takes through launching products which have an initial like-warm to not so good feedbacks under the technical world. The instance of such type of innovativeness is phablet Galaxy Note. Further, the company desires to inspire the world and develop a sustainable environment for a bright future. The needs and requirements of consumers are considered by the company, and the one thing which a consumer seeks in the company is the concern for the environment. Due to the same, company plans to have an Ecosystem Management strategy in future. The motive behind this strategy is to decrease gas emissions which come from production companies by 50% along with decrease in the amount of indirect greenhouse gas emissions from all products by 84 million tons over 5 years. In order to attain long-term success in future Samsung is strategising to anticipating requirements and demands of the market. The reason behind the innovativeness of company is the implementation of TRIZ which is also called as TRIPS system for patent approaches (Madani, et al., 2014). Furthermore, this system is adopted by the company to acquire competitive patent policies, reinforcing their own patent and growth in other patent claims. Apart from this, it is considered by Samsung that they will evaluate the innovation strategy in smart devices more deeply so that comprehensive conclusion can be attained. Research or gathering the information period will be increased that is from weeks to a month in order to obtain more data so that analysis can be done into deeply and efficient manner.
Figure 3 Innovation Strategy Model of Samsung
(Source: Talukder, 2016)
Disruptive innovation is applied by the company for disturbing the whole industries. The Samsung Company also through disruptive innovation wants to obtain success in the market (Christensen, Raynor, and McDonald, 2015). Samsung Company is moving forward to identifying the new venture by which the revenue can be generated such as mobile health, mobile payment, and the internet to things and so on. The manager of the company believes that the growth of the company is possible through the significant investment in the new ventures and by shifting towards the disruptive innovation (King, and Baatartogtokh, 2015). Moreover, the president of the Samsung strategy innovation Centre contended that the success is not only depending on the leadership, but it must also be based on something new innovative ideas. It is essential for the sustainability of the company to adopt the new techniques, by which the company can remain in the industry with a very competitive environment (Osiyevskyy, and Dewald, 2015). With this regards, the company also opened the new research centre namely global innovation Centre, Samsung Research America, and consumer electronics show. The main objective of these centres is to build something innovative by combining the hardware and software. Along with this, Samsung also acquired the US-based mobile payment company for starting its own payment platform system. The research centres of the company invested in many new ventures which include mobile commerce, virtual reality, and the internet of things and so on. These all things make the impact on the industry in a very significant manner. Further due to the fast expansion, the company also creates the infrequent benefit. The company builds the phones and televisions, along with the parts used by the competitors. Under the Samsung research America Centre, the company comes up with the new innovative ideas, on which the feasibility test for the new devices applies. Company also entered with the partnership with many companies. Therefore by the disruptive innovation, company is expanding its market (Christensen,& et.al 2018).
Double innovation theory is applied by appointing the efficient staff in the company so that the company conducts its operation in a very efficient manner. The Samsung Company also appoints the top graduates from the excellent university, by which the company can build a strong network and make the superior human resource (Jacob, 2015). The skilled staffs of the company assist in combining all the new ideas and techniques into the business. They implement the new innovation in a manner by which the basic operation of the company does not get impacted (Eaglestone,& et al. 2016). The company also established the new department and centres for enhancing the value-added services, new innovation with respect to the products and services. The Samsung company apply the dual innovation technique at the time of establishment of the new research centre and ensures about that the department is consist of sufficient staff who are skilled and capable of conducting the new innovation through the combination of several techniques (Burger-Helmchen, and Hussler, 2017).However, for the dual innovation technique, the company must have to do the following things –
On the basis of the above analysis, it has been seen that innovation plays a very important role in conducting and sustaining in the business environment. The Samsung Company also implemented the dual innovation as well as the disruptive innovation in its business operation (Hsieh,& et al. 2018). But it requires emphasizing on developing new ideas rather than following in order lead from its competitor.
Conclusion
In the present competitive environment, innovation is an essential element for the corporate sustainability. Due to the intense competition in the industries, innovation plays a vital role as it assists the company to cope up with the competition. Innovation can be referred as finding the better solution for meeting the requirement of the people, the trend of the market and the unstated requirement. There are so many innovation theories, which can be applied by the organization. Among several theories, the present study describes the disruption theory of innovation and the double innovation theory. Thus, it can be concluded that through the disruptive innovation the small companies also able to disrupt the big size companies by the new and different techniques in its products and services. The main objective of the disruptive innovation is to disrupt the entire market by the new ideas and innovative methods. However, the innovative double theory applies in the context of integration of all the new ideas with the existing core business process in an efficient and effective manner. On the basis of the above analysis, it has been evaluated that the Samsung Company is one of the leading company in the entire world with respect to the electronic product. The company through the implementation of the innovative strategy identifying the need of the customers and market and expanding its market share. Though, it requires to an emphasis on innovative criteria with more efficiency in order to attain its predetermined objectives.
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