Samsung eliminates missed deliverables
Updated: July 12, 2005
By Ann Steffora Mutschler
Contributing editor to Electronic News
Samsung has taken the knowledge base concept a step further in addressing the issue of slipped deliverables.
Samsung runs about 50 research projects each year with the average duration of approximately 2 years on each project. The company found deliverables were slipped 85 percent of the time with the slips being 2 and 3 months in duration.
This activity doesn't bode well, especially when a company has the mandate to introduce 20 new products by 2010 and has already lost revenue due to the inability to get products to market fast enough.
With help from Microsoft, the executives at Samsung are now able to take an enterprise view of all the projects in the organization through a common network, Web-based, messaging and scheduling, resource and allocation system.
With all of the projects visible to the executive team and all information accessible through a Web-based portal, Samsung's management team is equipped to make fact-based business decisions and strategy adjustments on the fly.
The management team can now look at a particular project to find out what resources may be required. By making adjustments, they give that project a better chance of making it to the marketplace.
Also, with the Microsoft-based system, Samsung is able to discontinue projects in the best interest of the company.
Executives at Samsung forecast an increase in efficiencies of its research and development (R&D) deliverables by 50 percent over the next 18 months.
Joon Mo Soon, director of project management at Samsung, says, "The Microsoft solution will aid us in producing better products while helping us maintain our position in the electronics market."
The ability of Samsung to align their strategic initiatives with their R&D resources is a significant competitive advantage in today's challenging business environment.
