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Evidence-based decision-making in Samsung Electronics

Hemraj Sah

Westcliff University

MGT 300: Fundamentals of Decision Making

Professor Ojha

Feb 13, 2023

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Evidence-based decision-making in Samsung Electronics

There is multiple case study regarding different companies which reflect evidence-based

decision-making in their business to make the progress and push the limit as well. For the

purpose of this assignment, I have chosen the company named “Samsung Electronics” and how

it takes evidence-based decision-making in its operation to maintain production and efficiency.

One of the biggest businesses in the world for electronics and cutting-edge technology is

Samsung. The business specializes in creating and manufacturing goods for a wide range of

consumers and businesses, including integrated systems, electronic gadgets, memory chips, and

digital media. The business also produces military equipment and works in construction. The

business rose to prominence as one of the most recognizable names in the technology industry,

and it contributes about 5% of South Korea's total exports (Lee & Lee, 2007).

How Samsung Apply Evidence-based Decision-Making Process

An organized method of decision-making called evidence-based decision-making uses

data, research, and other pertinent information to help people make well-informed choices. It is a

multi-stage, iterative process that includes defining the issue, looking for evidence, analyzing

that evidence, integrating it with other considerations, coming to a conclusion, and then

monitoring and assessing that choice (Saunders et al., 2020).

The steps of evidence-based decision-making have been used by Samsung Electronics to

address issues and make strategic choices. This is one of the real-life examples of Samsung

Electronics. The business's success can be partly due to its capacity for using data and research

to make wise decisions. Because of its culture of innovation and continual development,

Samsung Electronics is always looking for ways to enhance its goods, methods, and services.
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In the process of creating the Galaxy Fold, Samsung Electronics used the steps of evidence-

based decision-making. A smartphone called the Samsung Fold has an expandable display that

can be folded in half. Research, testing, and iterations were heavily engaged in the creation of the

Galaxy Fold.

Identifying the issue was the first step in Galaxy Fold's development. Samsung

Electronics saw the demand for a larger-display smartphone that was yet lightweight and simple

to operate. The company realized there was a demand for a robust product that could resist

frequent folding and unfolding. Finding evidence was the second step. To find the best

components, layouts, and features for the Galaxy Fold, Samsung Electronics carried out a

comprehensive review of the literature and a variety of tests (Yulianda & Handayani, 2015). To

make sure the device would satisfy their demands, the company also requested input from

customers and other stakeholders. Evaluating the evidence was the third step. Samsung

Electronics carefully evaluated the reliability and accuracy of the collected information and the

results of the investigation. The organization also took into account the reliability of the sources

and how pertinent the data was to the issue at hand. Integrating the evidence with other elements

was the fourth stage. Samsung Electronics took into account a variety of elements, including the

company's values, available resources, and the effect on stakeholders. The corporation also took

into account the device's possible advantages and disadvantages. Making a choice was the fifth

step. Samsung Electronics made the decision to move forward with the Galaxy Fold's

development in light of the evidence and other considerations. The business followed a

disciplined process to make sure the choice was well-informed and in line with its overall

strategy. The decision was monitored and evaluated as the last step. Samsung Electronics

monitored the outcomes and performance of the Galaxy Fold, looked for any unforeseen effects,
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and made any necessary improvements. This enabled the business to draw lessons from the

decision-making process and enhance its strategy moving forward.

Positive and Negative Impacts of Evidence-based Decision-Making in Samsung Electronics

While implementing any decision in an organization, there are positive as well as negative

impacts on the working of the company or employees. In addition, people also try to reduce the

bad impacts so that the company may run smoothly for a long period of time without any

disturbance. Samsung's usage of evidence-based decision-making (EBDM) has the following

advantages:

1. Improved decision-making: Samsung has been able to make more strategic judgments

due to the adoption of EBDM. Samsung also spots trends and possibilities that might

have otherwise gone unnoticed by utilizing a structured approach backed by data, which

results in better results and enhanced performance.

2. Improved innovation: By utilizing EBDM, Samsung has been able to produce more

cutting-edge goods and services. The organization has been able to spot trends and

opportunities that may result in the creation of goods and services that more effectively

satisfy the needs of customers by using data and research to guide its actions.

3. Increased efficiency: Samsung pinpointed organizational inefficiencies and areas for

development by employing a data-driven approach to decision-making. Because of the

potential for cost savings and higher productivity, this helped the business stay

competitive in a market that is undergoing rapid change.

4. Enhanced customer satisfaction: Samsung was able to comprehend the wants and

preferences of its customers by adopting EBDM. As a result, better services and products

were created to fulfill their needs, which raised customer satisfaction.

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Negative effects of Samsung's use of evidence-based decision-making:

1. Delayed decision-making: Using EBDM takes time and causes delays in decision-

making. The time-consuming nature of acquiring and analyzing the information results in

opportunities being lost.

2. Overreliance on data: Due to Samsung's adoption of EBDM, statistics, and research have

become overly important. As a result, judgments were made that were at odds with the

objectives or core principles of the business.

3. Resistance to change: The adoption of EBDM encounters pushback from staff members

or stakeholders who are unfamiliar with this strategy. This makes it difficult to execute

new procedures or projects.

Questions to Myself as well as My Team as an It Business Owner

I want to establish my own business in the IT field in the future and for this, we are

working to start in a group of two people and uplift it to the next level. Using evidence-based

decision-making (EBDM) as the owner of an IT company can help to ensure that decisions are

supported by facts and evidence rather than instinct or opinion. Better decision-making enhanced

organizational performance, and a competitive edge in the market can result from this (García

Del Junco et al., 2010). In order to use EBDM, we should first define the issue or choice that

needs to be made. This can make the information and evidence collected more pertinent and

useful for guiding the decision. After the issue has been identified, pertinent information and

proof should be acquired from both internal and external sources. It's crucial to assess the quality

and dependability of the information and proof acquired. This may entail evaluating the data's

accuracy, the information's reliability, any biases or limits, and the information's source. This

process can assist in ensuring that the choice is supported by accurate and reliable data.
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As an IT business owner, I will ask the following questions to myself as well as my team:

 What information and proof do we need to support this decision?

 How reliable and convincing are the facts and proof we have gathered?

 What effects might result from several proposed solutions?

 Which approach has the best chance of achieving the organization's objectives?

 What is our strategy for carrying out the choice and keeping an eye on results?

 How can we continuously learn from our decisions and make them better?

We can make sure that our decisions are supported by facts and data and that they are in line

with our objectives and core values by asking these questions while making decisions. In the

future, we may be able to make more sensible and sensible decisions because of this.

Ethical Considerations That IT company Owners Consider When Using EBDM

While implementing evidence-based decision-making, the owner of an IT company must

give ethical issues a first priority. This is due to the possibility of new ethical issues arising, such

as data privacy, bias, transparency, and legal compliance. An IT company owner can make sure

that the usage of EBDM is consistent with the organization's values and advances its long-term

objectives by taking these ethical issues into account.

An owner of an IT company must abide by all applicable rules and regulations regulating

the collection, storage, and use of data in order to protect data privacy. They must also safeguard

data against theft or misuse. An IT business owner must also be aware of potential biases caused

by various data sources and make sure that data is collected and analyzed in a way that

minimizes or completely removes these biases. In EBDM, accountability and transparency are

also crucial. We must explain to stakeholders the information that was utilized to make the
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decision in a clear and simple manner, together with any restrictions or uncertainties. To

maintain accountability and make the decision-making process open for audit, documentation is

a must.

Conclusion

In conclusion, Samsung Electronics is a leader in the technology sector on a global scale.

To sustain productivity and efficiency, Samsung Electronics uses evidence-based decision-

making in its operations. The organization employs a multi-stage, iterative approach that

includes describing the problem, seeking out information, interpreting that evidence,

incorporating it with other factors, coming to a decision, and then monitoring and evaluating that

decision. The benefits of Samsung's adoption of EBDM include increased decision-making,

innovation, efficiency, and client happiness. It has, however, also encountered drawbacks,

including slow decision-making, reliance on data to the exclusion of other factors, and reluctance

to change. One can benefit from Samsung Electronics' EBDM method as an owner of an IT

company, but it's also crucial to understand the potential pitfalls and balance the use of data-

driven decision-making with other factors.

References

Banasiewicz, A. D. (2019). Evidence-based decision-making (2nd ed.). Taylor & Francis

García Del Junco, J., De Reyna Zaballa, R. and García Álvarez de Perea, J. (2010) “Evidence‐

based administration for decision making in the framework of Knowledge Strategic

Management,” The Learning Organization, 17(4), pp. 343–363. Available at:

https://doi.org/10.1108/09696471011043108.
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Lee, W. and Lee, N.S. (2007) “Understanding Samsung's diversification strategy: The case of

Samsung Motors Inc..,” Long Range Planning, 40(4-5), pp. 488–504. Available at:

https://doi.org/10.1016/j.lrp.2007.06.011.

Saunders, G. H., Christensen, J. H., Gutenberg, J., Pontoppidan, N. H., Smith, A., Spanoudakis,

G., & Bamiou, D.-E. (2020). Application of big data to support evidence-based public

health policy decision-making for hearing. Ear & Hearing, 41(5), 1057–1063.

https://doi.org/10.1097/aud.0000000000000850

Yulianda, S. and Handayani, T. (2015) “The effect of two aspects-quality products and

consumers psychology - toward the purchase decisions of Samsung Mobile Phone,”

Mediterranean Journal of Social Sciences [Preprint]. Available at:

https://doi.org/10.5901/mjss.2015.v6n5s5p203.