SAMSUNG INDIA-An Introduction

Samsung India Electronics Private Limited (SIEL) is the Indian subsidiary of the US $55.2 billion Samsung Electronics Corporation (SEC) headquartered in Seoul, Korea. It is the hub of Samsung’s South West Asia Regional Operations, and looks after its business in Nepal, Bangladesh, Maldives & Bhutan besides India. SIEL commenced operations in India in December, 1995. Initially, a player only in the Colour Televisions segment, it later diversified into colour monitors (1999) and refrigerators (2003). Today, it is recognized as one of the fastest growing brands in the sphere of digital technology, and enjoys a sales turnover of over $ US 1 billion in a just a decade of operations in India. Samsung in India has a presence in the following areas of business:
• • •

Consumer Electronics (CE)/Audio Visual (AV) Business Home Appliances (HA) Business Information Technology (IT) Business

Its operations are broadly divided into the following key sub-functions:
• • •

Sales & Marketing Manufacturing Software Centre Operations

THE SALES & MARKETING FUNCTION Headquartered in New Delhi, Samsung India has a network of 19 branches and 16 Area Sales Offices (ASOs) located all over the country, and the number is expected to grow, as the organization continues to expand its horizons. The Sales & Marketing function at Samsung is primarily divided into two categories:
• •

Sales & Marketing (IT) Sales & Marketing (AV/HA)

Apart from sales to households through its robust distribution channel, SIEL also has a huge clientele in the Institutional Sales space. Therefore, there is a separate department devoted completely to this function. It is the VMB (Vertical Market Business) department that is responsible for making sales to institutions such as airports, hotels, banks, movie theatres, etc.

Another function of the sales & marketing function at SIEL is public relations, also known as corporate communications. Here, the scope of activities includes maintaining liaison with the

Plasma and LCD TVs. High Efficiency Module Conveyor. and Washing Machines & Refrigerators. U. Auto PCB Tester. Camcorders. high-tech facility for manufacturing Color Televisions.. to washing machines with special “Sari Wash Course”. High Volume & Very High Quality Production. THE MANUFACTURING FUNCTION SIEL has its manufacturing facility at Noida. This is the state-of-the-art. SIEL Software Center plans to be certified at SPICE Level 3 by 2005 and CMMI Level 4 by 2006.P. The focus of the R&D Centre is to customize both Consumer Electronics and Home Appliances’ products to better meet the needs of the Indian customer. Multimedia applications etc. From color televisions designed for higher sound output. PDAs. Samsung uses many tools for innovation such as “Reduced 7 Type of Wastage & SixSigma”. and believe in following optimized and stringent quality processes to build these world leading products. DVD Players.P. 2D/3D Graphics Engines. SIEL Software Centre is involved in the business of developing embedded and desktop software for Samsung Electronics Corporation in a variety of areas related to Analog and Digital TV. THE SOFTWARE R&D CENTRE SIEL Software R&D Center was set up in September 2002 as a Software R & D Centre in Noida. Color Monitors. website management. Samsung Electronics brings a very enriching entertainment experience to the consumers 2 . DLP TVs. Our commitment to grow through continuous innovation has helped us improve our productivity by 200% in the last 5 years. SIEL Software Center engineers continuously strive to improve the performance and introduce innovative features to make the end products more efficient and user friendly. organizing corporate social responsibility initiatives. DNIe vision series of Flat CTVs especially designed for the Indian market to Samsung mobiles with regional languages menus. U. and all modern machines geared up for High Speed. Samsung India is also instrumental in carrying out Hardware Research & Development at its Noida R&D Centre. etc. SIEL Software Center has successfully completed more than two hundred projects in collaboration with Samsung Headquarters Visual Display and Digital Media divisions ( Korea). Monitors and other Multimedia technologies. Digital TV Set Top Boxes. We design and implement some of the critical components for products such as next generation CRT and Projection the Samsung R&D Centre in India is helping the company to continuously innovate and introduce products customized for the Indian market. This manufacturing unit consists of sophisticated facilities with latest Auto Insertion Machines. We firmly believe that continuous innovation is the key to making path-breaking improvements in our products & processes and achieve productivity goals beyond imagination. corporate literature. MP3/Video players.

Management Information Systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. e. Decision Support Systems. We aim to revolutionize the way and break the barriers to ride on the frontiers of technology to provide superior quality products to Samsung's customers. Rajesh Chopra. has not limited its activities to the mere creation of a website.g. the company established its presence on the Web and has gone from strength to strength to establish itself as an eenterprise. the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making. are the discipline covering the application of people. sometimes referred to as Information Management and Systems.worldwide through its cutting edge technologies. consumer goods major Samsung India Electronics Limited (SIEL). Academically. and those that have. have limited it to the creation of a website which merely serves as an disseminator of information. Shipra Arora profiles the initiatives of the company in this space and finds out how it is using the medium for brand building as well as customer retention Chopra says the company now uses the Net extensively for communication with vendors and service centres At a time when most companies in India are still sceptical about using the Net. SIEL Software Center is always looking for dynamic individuals who are driven by ambition. We follow optimized and stringent quality processes to build these world leading products For SIEL Software Center to continue to remain a strategic and key R&D Center of Samsung Electronics. deputy general manager-information systems. Within a mere three years since commencement of operations in 1995. the consumer electronics major. 3 . points out that the growth of the Internet in the company took place in two distinct phases. Samsung India Electronics Limited (SIEL). but has instead used it a business facilitator. youth. and Executive information systems Samsung India moves operations to the Net Realising the potential of the Internet. Our Engineers continuously strive to improve the performance and introduce innovative features to make these products very user friendly. Expert systems. vibrancy and challenge. Management information system Management information Systems (MIS). has been one of the trendsetters in this space. SIEL. it is important that every employee of SIEL Software Center contributes his/her fullest potential and capabilities. and procedures — collectively called information system — to solving business problems. technologies. namely eenabling and e-enhancing.

Samsung launched its B2B initiative. Chopra points out that even communication in terms of material rejection etc are transmitted to vendors The significant applications under this include Customer Relationship Management (CRM) and database marketing.Elaborating on the company’s e-business with applications such as Digital World and Call Login. in 2000. Hence. The applications on the B2B front include ‘GLONET’ for its vendors. www. As soon as the purchase order is raised. With more that 550 4 . the e-commerce site for its customers forms the B2C part of SIEL’s e-marketing program. “The implementation of GLONET has shortened the business cycle since it has helped us optimise the logistics processes including Just In Time Delivery (JIT System) and replenishment. the GLONET system (an extranet for SIEL) has evolved beyond being a simple application for business application transaction with vendors and has become an advanced application supporting complete business communication between the two parties. Account reconciliation with these vendors is also done online. The purchases from the Singapore Spare Parts Centre too are done online. Chopra adds that GLONET is being used to effectively purchase Samsung India’s requirements from its International Procurement Offices as well as vendors in India. This marked the company’s first initiative on the B2B front. it is transmitted to the vendor real-time as the system is Webbased. SERVICENET Authorised Service Centres: The next B2B project on hand for SIEL’s IT department was the automation of its authorised service centres (ASC). Business to Customer (B2C) and Information Channel (PR). In this way. Both B2B and B2C form the core of its innovative e-marketing activities apart from tieups for brand promotion. Business to Business (B2B) Global Logistics Network Systems (GLONET) Vendors: With sourcing for production being done from both domestic and international markets.” he explains. The company’s e-business strategy comes a full circle with the third angle providing an ‘Information Channel’ through its website www. ‘SERVICENET’ for authorised service centres and EDI for custom and bank.samsungemart. which form the bulk of Samsung’s sourcing (26 domestic and 30 international) through Samsung’s GLONET. Chopra points out that it spans across three areas Business to Business (B2B).samsungindia. SIEL realised the need for streamlining its processes with its vendors to lead to more efficient and transparent functioning. This involved linking the key vendors. The EDI Application extends from order placement and sharing of the production plan (4 weeks fixed and 12 weeks rolling production plan) to invoicing. The sharing of planning information and automation of business process with its vendors has also helped the company reduce inventory levels and curtail wastage.

inventory management. it can get accurate information on spares availability. in an effort to e-enhance the organisation. which in turn is linked to the ASCs through Servicenet. which the service centre can access at the click of a button. Service manuals and technical bulletins training material. the ASCs are linked with the Regional Parts Distributors and the CS Head Office through the Internet.service centres. 2001. This in turn is linked to Samsung’s South East Asian subsidiaries as it is integrated at the back-end with SAP R/3 of Samsung India and Samsung Asia for LPA VISION spare parts Management and automatic planning of spare parts. when the authorised service centre logs onto ServiceNet. Samsung India set up its online B2B application for ASCs called Servicenet. The system essentially translates into an entire service network being linked through the Net for day to day working. Accordingly. the entire service and Spares Management of Samsung India was Web enabled. Facility to place orders online with the spares made available within the next 24 hours c. the need to connect them was something the company couldn’t afford to ignore. d. With this. Now. order or follow up on its order for spares. service related manuals and other communication material are all available online. it can now draw spares not just from the Singapore depot but from any of the other subsidiaries depending on its need. service centres are better placed to respond to customers since Servicenet links ASC with Samsung’s four regional parts distributors and 15 Gold ASCs. Reduced obsolescence and manual errors. Samsung India started using SAP for service from September 1. the MegaSys system automatically generates weekly orders to the Singapore regional depot for spares. with the implementation of Servicenet. “In this way. b. in 2001. assisting in realising better return on investment and reduced cost. gain access to Chopra with the IT team at SEIL Samsung personnel directly. at any point of time. 5 . With Samsung India integrating its spares management operations with this system. Shifting of the Spare Parts Ordering Cycle from a monthly to a weekly basis and consequent reduction in spares inventory levels in quantity and amount at ASC by 50 and 35 percent respectively. The modules in this package include ASC/ASP management. According to Chopra. calls management.” explains Chopra. Based on the spares stocking and consumption levels at the National Spares Warehouse. defect ratio and early warning signals and technical approval system for field defects. track warranty claim status and in case of problems. The key benefits of Service net include: a. and hence need not stock-up unless required. Transparency in the system since the ASC can check stock availability in the warehouse of the parts distributor.

we can even authenticate the serial no of the product bought by the customer. Samsung Digital world. According to Chopra. f. collection. customers buying through Samsungemart can gain automatic access to Samsung Digital The site is linked to samsungemart. “We view Samsung Digital World as a forum for our exclusive customers to interact with and build a relationship with the company. Samsung has built cross links between the different properties on the website. At the customer end. reconciliation.” Chopra points out. Information Channel Though established with the objective of functioning merely as a website for the company. The success of the initiative can be gauged from the fact that in the first six months of its launch itself SDW got over 50. The online banking application also covers applications related to customs in its purview of functioning. accounts status. To improve the robustness of the applications. Samsung India has made a Samsung Customer Club online called ‘Samsung Digital World’. which represents an initiative to build and enhance a long-term personalised relationship with Samsung Customers and reinforce brand loyalty amongst Samsung Product Owners. the company has automated most of its financial processes and transactions online.samsungindia. in order to facilitate online buying. Enhanced efficiency in servicing customers in terms of spares management. Online call logging: SIEL introduced its online call logging facility with a view to better serve its customers. Samsung’s Customer Club and Samsung Infotainment. The whole idea of creating a new integrated site is to give Samsung sites across different subsidiaries a synergy in terms of look and feel and a common brand feel. the portal www. “All applications related to employees salary such as balance confirmation. “Since we have integrated the system at the back-end with SAP.” In fact. online call logging for customers to register their calls with the company. Facilitating much faster and easier communication e-banking: As part of its e-banking initiative. Samsung customers can log on to the samsungindia website 6 . SDW acts as a tool for facilitating SIEL’s CRM activities. service requirements such as product demonstrations etc to the service centres. the company has even tied up with some key bankers. For instance. even account reconciliation with vendors is done online. in addition to serving as a complete information channel for SIEL.” Customers who have registered themselves for Samsung Digital World offline too can check their point status by logging on to the Samsung website. Chopra says. Says Chopra. To ensure the smooth functioning of this system.000 Samsung customers as its members.e. The application is linked with Servicenet at the back-end to transfer all their now leverages the Net to help in brand building and Customer Relationship Management (CRM). Samsung Digital World (SDW): SDW is one of the key applications supported by samsungindia. withdrawal etc covering the entire gamut of banking applications have been put online.

contests designed around products. all products of the company are available through this channel. Currently. the idea is to build the brand value and image through this channel leading to both offline sales and online sales through samsungemart. It is in fact aggressively working towards increasing its online B2C revenues to contribute about 1-2 percent of its total revenues in the time to for registering their calls and are given a unique call reference number for tracking their with most of the sales being gifting orders. weekly Quiz and e-Greeting cards. Developed with the idea of creating a Fun Zone on the Samsung website. However. 7 . However. the revenues are enough to sustain the expenses for maintaining the application. This is being used for promotional activities and direct mailer marketing.www. an entry into this space was imminent to prepare ourselves for the future surge in B2C sales. working of technologies. the IT team is working on features such as introducing more transaction security in the site to overcome the biggest hurdle to B2C in India. the advertising and even how the technology works. Business to consumer(B2C) Samsungemart. samsungemart. articles. Enterprise resource planning Enterprise Resource Planning (ERP) systems are the nervous system of an It is very important to establish and stabilise our B2C presence by the time this market picks up. and support numerous industry-specific needs. For this. For the ASC which gets the call. a very minuscule portion of company’s revenues comes from this channel. The information in the database is also used for understanding customer behaviour to build up effective CRM SIEL launched its B2C e-commerce application in the year 2000 through its B2C mall. According to Chopra. it translates into accurate customer call data. Further. most organizations have their ERP environments firmly in-place and under. the company is not just waiting passively for the market to dictate terms. Infotainment: Samsung Infotainment was created as a special entertainment centre on the Samsung website in August 2001.” he adds. “The whole idea behind Infotainment is to create a zone where the Samsung Customer or a visitor on the website gets a chance to interact with the brand and also learn something new about Samsung products.” Features include information on the company and its products. Says Chopra. thus making it easier for ASCs to process customer calls leading to customer “Even though the B2C space has not picked up well. the application also helps the company in online marketing activities through its massive customer database. According to Chopra. track projects. the application also provides for escalation of calls to the next level if they are not met with satisfactorily within a specific time period. They move products. assist in decision-making. According to Chopra. tracking and coordinating vital operational support. Implemented primarily in the 1980s and 1990s. this section has a mix of games and contests built around the Samsung Brand. place orders.

There are two parts of being a "Digital-ε Company". Samsung Electronics. each slogan had the quality of representing the most significant moments in Samsung’s history. brokerage and underwriting and 8 . and the first is clearly about being "Digital" producing not just digital products. Samsung has continually refined its Mission statement to respond to changes both in the world. or “Pursuit of Rationalism”. but products that inspire digital integration across our entire company. production. and marketing to customers. Whether it was “Economic Contribution to the Nation”. partners. “Priority to Human Resources”. and the market-disciplined approach is the way we bring value to every part of our supply chain.Ever since its inception in1938. including products data to and customer relationship through Enterprise Resource Planning (ERP). The second part of being a "ε" is to use ε. has the following as its Vision and Mission. and in itself. the flagship company of the Samsung Group currently positioned as a high technology leader. Samsung Electronics Global Mission & Vision would be achieved through nine action values: • • • • • • • • • Continuous Innovation Creativity Challenge Strategic Focus Speed Simplicity Empowerment Crisis Awareness Customer Focus Sybase® technology: Samsung Securities—a company engaged in trading.Processes connecting R&D. Each of them represented a different stage of Samsung’s growth from a domestic industrial leader to a global electronics powerhouse.

Using Sybase® technology. The project’s aim was to improve customer satisfaction and productivity by building a secure. With the objective of implementing a competitive system as a comprehensive investment bank. The new system enables customers to perform commodity transactions with a single integrated card and engage in different online transactions at every branch. Samsung Securities implemented a customer-oriented distribution system and increased the speed of transaction processing. such as the reduction of time for daily transactions closure from three to four hours to 30 minutes.distribution of securities—needed to build a secure. Sybase EAServer provides the application layer to supply Webenabled application access. customer-oriented information system.549 employees. trust business. Samsung created a data management solution that improves productivity and customer satisfaction. Proven Technology Using Sybase Adaptive Server® Enterprise (ASE) and Sybase Replication Server®. Samsung Securities now experiences benefits in numerous areas. brokerage. the company was the first in the Korean securities industry to construct a client/server structure on a large-scale system. Key Benefits • • • Reduces transaction close time from four hours to 30 minutes Accommodates a tenfold increase in transactions Consolidates view of customer portfolios Sybase Technology Sybase Adaptive Server® Enterprise Sybase Replication Server® Sybase EAServer Maintaining the Leadership Position Samsung Securities. international securities business. Samsung Securities undertook the contract sheet transfer project. To eliminate inefficiency and inflexibility with contractor-based management of contract sheets. and to implement a customer-oriented information system. underwriting and distribution of securities. customer-oriented information system. engages in trading. Sybase ASE coupled with Sybase Replication Server was considered to provide fast response speeds. It has 111 branch offices with 2. Samsung Securities felt that Sybase provided large-scale data management solutions with proven success. established in 1992. With numerous securities firms on Wall Street using Sybase solutions. Improved Speed. And 9 . Productivity and Customer Service With the help of Sybase technologies.

“We could not achieve the desired speed. Samsung India Electronics. which provided a 400 percent speed improvement. "In a large country like India. while most companies are still working on a monthly system. who is heading the supply chain operations of Samsung globally. Samsung is utilizing Information Technology in a big way. so we had to take a closer look. It will also cut down costs and increase profitability. it will be able to bring down the number of warehouses from 25 to 20.for the employees. despite the new server environment. the company estimates that if VAT is introduced in the country. Towards this overall goal of technology-driven performance. Corporate SCM Group. "Efficiency will definitely increase with the introduction of VAT. is in India to conduct training on best practices in SCM utilised by Samsung across the world. “In the end. like other corporates.” From the management-efficiency perspective. we switched to a weekly one several years ago and are now running a pilot in Korea to reduce the cycle to a daily basis.Support Division. manager of Samsung SDS’s technical support team for Samsung Securities." says Mr Sungchil. is strategising about the changes it would have to make in its supply chain management to take maximum advantage of the new tax regime. Samsung is running several pilot projects globally to improve efficiency on the supply chain side and make it more "speedy". the Sybase solution provides enhanced productivity. IT INITIATIVES: In Samsung India Limited knowledge and technology are key resources which have helped the Company achieve higher levels of excellence and efficiency. "The executives will be required to take an exam on the subject and pass it too. customer service and system competitiveness. there is a bigger opportunity to save money on the supply chain management (SCM) side". Samsung Electronics (Korea). In fact. "In fact." he quips. we had to perform SQL tuning for a very sensitive program. Director .” said Junghoon Lee. This will help in integrating a vast distribution system spread all over India and across the world. Samsung." says Mr Bong Sik Park. the new system provides comprehensive account and commodity information for each customer. Agrees Mr Park Sungchil. SUPPLY CHAIN MANAGEMENT WHILE the introduction of value-added tax (VAT) in the country is still in the offing. 10 . Senior Vice-President. Mr Sungchil.

new web applications can be delivered in a much shorter time than with other tools and approaches. Enterprise Link's SmartTran offers a very cost-effective way to take advantage of legacy systems. a $500 million division of Samsung Corporation. Also of interest are a number of intranet 11 . has a partnership agreement with Samsung Information & Telecommunications. In many situations.H. rapid-delivery alternative to client/server solutions. Samsung will market. Bae of the New Media Division of Samsung Information & Telecommunications. Roll out of IT services to new plants and CFAs. increasing efficiency." said James Cha of Samsung Information & Telecommunications. What is more. The SmartTran technology is the first to offer Korean corporations a tool that quickly creates customized interfaces with the power to change the interaction between a user and a legacy application. a leading provider web-to-host integration tools. This new functionality can include access to intranets. Setting up of new Data Centre at KCO Head Office. Under the terms of the agreement." "SmartTran is the only mainframe-to-web tool that offers full control over mainframe applications without programming. applications and data." said B." Samsung is interested in tapping the significant opportunities in Korea for extranet businessto-consumer applications in insurance and home banking. the SmartTran approach offers a lower-cost. Extension of Reach System to distributors for capturing Secondary Sales Data. extranets and mobile computing. Implementation of a country wide new WAN Infrastructure for running centralized ERP system. "In the current Korean economic environment. as well as supply chain automation applications in manufacturing companies. "Korean companies and the government are interested in preserving and extending the significant investments they have in mainframe systems and applications.Samsung’s major IT Initiatives • • • • • Migration from Baan and Mfg ERP Systems to centralized SAP ERP system from 1st April 2006 for all business units. A large percentage of Korean organizations run on mainframes. without programming. reducing costs and leveraging current investments are very important. SmartTran Mainframe-to-Web Integration Tchnology EnterpriseLink Technology Corporation. With SmartTran we can deliver a full range of intranet and extranet applications that effectively leverage mainframe systems. sell. service and support EnterpriseLink's SmartTran web-to-host integration software throughout Korea. The SmartTran products from EnterpriseLink allow Korean companies to quickly and easily add new functionality to mainframe applications to extend their life. with SmartTran.

at a faster rate and help enhance the daily work of the users. a rapid application development (RAD). Updates and all modifications need to be done only once and every copy of the database accessed by the users is automatically updated too. Samsung India can now enable growth and scalability of the group’s business and culture.shtml  The project has covered all the software engineering phases. make data storage and manipulation more effective and easier information to customers.naukri. The benefit of placing the system on the network was that the system could be more easily maintained.g.expresscomputeronline. Samsung Fire & Marine Insurance is currently developing an extranet application and Samsung Life Insurance is working on an intranet/extranet  http://www. Again. Once the system is installed it is expected to provide the following features: Facilitate the communication between all members. Conclusion The MIS automates the Samsung’s daily tasks.htm 12 . as well as providing a fun element for the members to use outside work 00770300. which are vital for the successful development of most systems. BIBLIOGRAPHY  http://en. Also placing the MIS on the department’s network gave the system more security as Novell’s security features were applied to restrict the access only to the  http://www.opportunities: for example.htm  http://www. enabling overseas offices of Korean companies to communicate effectively with headquarters a number of techniques were applied in the data modeling stages that helped to visually represent the different processes and data flows in the system. Many techniques were used and adapted from a number of methodologies  http://www.

 http://www.htm 13 .com/press_releases/informationsystem/43 00770245.samsungindia.

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