About Samsung India


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About Samsung India

  1. 1. 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 media, organizing corporate social responsibility initiatives, website management, corporate literature, etc. THE MANUFACTURING FUNCTION 1
  2. 2. SIEL has its manufacturing facility at Noida, U.P. This is the state-of-the-art, high-tech facility for manufacturing Color Televisions, Color Monitors, and Washing Machines & Refrigerators. This manufacturing unit consists of sophisticated facilities with latest Auto Insertion Machines, Auto PCB Tester, High Efficiency Module Conveyor, and all modern machines geared up for High Speed, High Volume & Very High Quality Production. We firmly believe that continuous innovation is the key to making path-breaking improvements in our products & processes and achieve productivity goals beyond imagination. Samsung uses many tools for innovation such as “Reduced 7 Type of Wastage & SixSigma”. Our commitment to grow through continuous innovation has helped us improve our productivity by 200% in the last 5 years. Samsung India is also instrumental in carrying out Hardware Research & Development at its Noida R&D Centre. 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. From color televisions designed for higher sound output, to washing machines with special “Sari Wash Course”, DNIe vision series of Flat CTVs especially designed for the Indian market to Samsung mobiles with regional languages menus, the Samsung R&D Centre in India is helping the company to continuously innovate and introduce products customized for the Indian market. THE SOFTWARE R&D CENTRE SIEL Software R&D Center was set up in September 2002 as a Software R & D Centre in Noida, U.P. 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, Monitors and other Multimedia technologies. SIEL Software Center has successfully completed more than two hundred projects in collaboration with Samsung Headquarters Visual Display and Digital Media divisions ( Korea). SIEL Software Center engineers continuously strive to improve the performance and introduce innovative features to make the end products more efficient and user friendly. We design and implement some of the critical components for products such as next generation CRT and Projection TVs, Plasma and LCD TVs, DLP TVs, Digital TV Set Top Boxes, DVD Players, MP3/Video players, PDAs, 2D/3D Graphics Engines, Camcorders, Multimedia applications etc., and believe in following optimized and stringent quality processes to build these world leading products. SIEL Software Center plans to be certified at SPICE Level 3 by 2005 and CMMI Level 4 by 2006. Samsung Electronics brings a very enriching entertainment experience to the consumers worldwide through its cutting edge technologies. 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. Our Engineers continuously strive to improve the performance and introduce innovative features to make these products very user friendly. We follow optimized and stringent quality processes to build these world leading products 2
  3. 3. For SIEL Software Center to continue to remain a strategic and key R&D Center of Samsung Electronics, it is important that every employee of SIEL Software Center contributes his/her fullest potential and capabilities. SIEL Software Center is always looking for dynamic individuals who are driven by ambition, youth, vibrancy and challenge. Management information system Management information Systems (MIS), sometimes referred to as Information Management and Systems, are the discipline covering the application of people, technologies, and procedures — collectively called information system — to solving business problems. 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. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems Samsung India moves operations to the Net Realising the potential of the Internet, consumer goods major Samsung India Electronics Limited (SIEL), has not limited its activities to the mere creation of a website, but has instead used it a business facilitator. 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 At a time when most companies in India are still Chopra says the company now uses the Net extensively for sceptical about using the Net, and those that have, have communication with vendors and service centres limited it to the creation of a website which merely serves as an disseminator of information, Samsung India Electronics Limited (SIEL), the consumer electronics major, has been one of the trendsetters in this space. Within a mere three years since commencement of operations in 1995, the company established its presence on the Web and has gone from strength to strength to establish itself as an e-enterprise. Rajesh Chopra, deputy general manager-information systems, SIEL, points out that the growth of the Internet in the company took place in two distinct phases, namely e-enabling and e-enhancing. Elaborating on the company’s e-business strategy, Chopra points out that it spans across three areas Business to Business (B2B), Business to Customer (B2C) and Information Channel (PR). Both B2B and B2C form the core of its innovative e-marketing activities apart from tie-ups for brand promotion. The applications on the B2B front include ‘GLONET’ for its vendors, ‘SERVICENET’ for authorised service centres and EDI for custom and bank. www.samsungemart.com, the e-commerce site for its customers forms the B2C part of SIEL’s e-marketing program. The significant applications under this include Customer Relationship Management (CRM) and database marketing. The company’s e-business strategy comes a full 3
  4. 4. circle with the third angle providing an ‘Information Channel’ through its website www.samsungindia.com with applications such as Digital World and Call Login. Business to Business (B2B) Global Logistics Network Systems (GLONET) Vendors: With sourcing for production being done from both domestic and international markets, SIEL realised the need for streamlining its processes with its vendors to lead to more efficient and transparent functioning. Hence, in 2000, Samsung launched its B2B initiative. This involved linking the key vendors, which form the bulk of Samsung’s sourcing (26 domestic and 30 international) through Samsung’s GLONET. This marked the company’s first initiative on the B2B front. 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. As soon as the purchase order is raised, it is transmitted to the vendor real-time as the system is Web-based. The EDI Application extends from order placement and sharing of the production plan (4 weeks fixed and 12 weeks rolling production plan) to invoicing. Account reconciliation with these vendors is also done online. “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,” he explains. The sharing of planning information and automation of business process with its vendors has also helped the company reduce inventory levels and curtail wastage. The purchases from the Singapore Spare Parts Centre too are done online. In this way, 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. Chopra points out that even communication in terms of material rejection etc are transmitted to vendors online. SERVICENET Authorised Service Centres: The next B2B project on hand for SIEL’s IT department was the automation of its authorised service centres (ASC). With more that 550 service centres, the need to connect them was something the company couldn’t afford to ignore. Accordingly, in 2001, in an effort to e-enhance the organisation, Samsung India set up its online B2B application for ASCs called Servicenet. With this, the entire service and Spares Management of Samsung India was Web enabled. The system essentially translates into an entire service network being linked through the Net for day to day working. Now, with the implementation of Servicenet, the ASCs are linked with the Regional Parts Distributors and the CS Head Office through the Internet. 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. Samsung India started using SAP for service from September 1, 2001. 4
  5. 5. The modules in this package include ASC/ASP management, inventory management, calls management, defect ratio and early warning signals and technical approval system for field defects. According to Chopra, at any point of time, when the authorised service centre logs onto ServiceNet, it can get accurate information on spares availability, order or follow up on its order for spares, track warranty claim status and in case of problems, gain access to Samsung Chopra with the IT team at SEIL personnel directly. Service manuals and technical bulletins training material, service related manuals and other communication material are all available online, which the service centre can access at the click of a button. “In this way, service centres are better placed to respond to customers since Servicenet links ASC with Samsung’s four regional parts distributors and 15 Gold ASCs,” explains Chopra. With Samsung India integrating its spares management operations with this system, it can now draw spares not just from the Singapore depot but from any of the other subsidiaries depending on its need. Based on the spares stocking and consumption levels at the National Spares Warehouse, which in turn is linked to the ASCs through Servicenet, the MegaSys system automatically generates weekly orders to the Singaporeregional depot for spares. The key benefits of Service net include: a. Transparency in the system since the ASC can check stock availability in the warehouse of the parts distributor, and hence need not stock-up unless required. b. Facility to place orders online with the spares made available within the next 24 hours c. 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, assisting in realising better return on investment and reduced cost. d. Reduced obsolescence and manual errors. e. Enhanced efficiency in servicing customers in terms of spares management. f. Facilitating much faster and easier communication e-banking: As part of its e-banking initiative, the company has automated most of its financial processes and transactions online. Chopra says, “All applications related to employees salary such as balance confirmation, reconciliation, accounts status, collection, withdrawal etc covering the entire gamut of banking applications have been put online.” In fact, even account reconciliation with vendors is done online. The online banking application also covers applications related to customs in its purview of functioning. To ensure the smooth functioning of this system, the company has even tied up with some key bankers. 5
  6. 6. Information Channel Though established with the objective of functioning merely as a website for the company, the portal www.samsungindia.com now leverages the Net to help in brand building and Customer Relationship Management (CRM), in addition to serving as a complete information channel for SIEL. The site is linked to samsungemart, in order to facilitate online buying, online call logging for customers to register their calls with the company, Samsung Digital world, 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. Samsung Digital World (SDW): SDW is one of the key applications supported by samsungindia.com. According to Chopra, SDW acts as a tool for facilitating SIEL’s CRM activities. 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. “We view Samsung Digital World as a forum for our exclusive customers to interact with and build a relationship with the company,” Chopra points out. To improve the robustness of the applications, Samsung has built cross links between the different properties on the website. For instance, customers buying through Samsungemart can gain automatic access to Samsung Digital World. Says Chopra, “Since we have integrated the system at the back-end with SAP, we can even authenticate the serial no of the product bought by the customer.” Customers who have registered themselves for Samsung Digital World offline too can check their point status by logging on to the Samsung website. The success of the initiative can be gauged from the fact that in the first six months of its launch itself SDW got over 50,000 Samsung customers as its members. Online call logging: SIEL introduced its online call logging facility with a view to better serve its customers. The application is linked with Servicenet at the back-end to transfer all their complaints, service requirements such as product demonstrations etc to the service centres. At the customer end, Samsung customers can log on to the samsungindia website www.samsung.co/india for registering their calls and are given a unique call reference number for tracking their call. For the ASC which gets the call, it translates into accurate customer call data, thus making it easier for ASCs to process customer calls leading to customer satisfaction. According to Chopra, the application also provides for escalation of calls to the next level if they are not met with satisfactorily within a specific time period. Infotainment: Samsung Infotainment was created as a special entertainment centre on the Samsung website in August 2001. Developed with the idea of creating a Fun Zone on the Samsung website, this section has a mix of games and contests built around the Samsung Brand. Says Chopra, “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, the advertising and even how the technology works.” Features include information on the company and its products, working of technologies, articles, contests designed around products, weekly Quiz and e-Greeting cards. 6
  7. 7. According to Chopra, the idea is to build the brand value and image through this channel leading to both offline sales and online sales through samsungemart.com. Business to consumer(B2C) Samsungemart.com: SIEL launched its B2C e-commerce application in the year 2000 through its B2C mall, samsungemart.com. Currently, all products of the company are available through this channel. According to Chopra, a very minuscule portion of company’s revenues comes from this channel, with most of the sales being gifting orders. However, the revenues are enough to sustain the expenses for maintaining the application. “Even though the B2C space has not picked up well, an entry into this space was imminent to prepare ourselves for the future surge in B2C sales. It is very important to establish and stabilise our B2C presence by the time this market picks up,” he adds. However, the company is not just waiting passively for the market to dictate terms. 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 come. For this, 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. Further, the application also helps the company in online marketing activities through its massive customer database. This is being used for promotional activities and direct mailer marketing. The information in the database is also used for understanding customer behaviour to build up effective CRM activities. Enterprise resource planning Enterprise Resource Planning (ERP) systems are the nervous system of an organization, tracking and coordinating vital operational support. They move products, place orders, assist in decision-making, track projects, and support numerous industry-specific needs. Implemented primarily in the 1980s and 1990s, most organizations have their ERP environments firmly in- place and under. Ever since its inception in1938, Samsung has continually refined its Mission statement to respond to changes both in the world, and in itself. Whether it was “Economic Contribution to the Nation”, “Priority to Human Resources”, or “Pursuit of Rationalism”, each slogan had the quality of representing the most significant moments in Samsung’s history. Each of them represented a different stage of Samsung’s growth from a domestic industrial leader to a global electronics powerhouse. Samsung Electronics, the flagship company of the Samsung Group currently positioned as a high technology leader, has the following as its Vision and Mission. 7
  8. 8. There are two parts of being a quot;Digital-ε Companyquot;, and the first is clearly about being quot;Digitalquot; producing not just digital products, but products that inspire digital integration across our entire company. The second part of being a quot;εquot; is to use ε- Processes connecting R&D, production, and marketing to customers, partners, and the market-disciplined approach is the way we bring value to every part of our supply chain, including products data to and customer relationship through Enterprise Resource Planning (ERP). 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: 8
  9. 9. Samsung Securities—a company engaged in trading, brokerage and underwriting and distribution of securities—needed to build a secure, customer-oriented information system. Using Sybase® technology, Samsung created a data management solution that improves productivity and customer satisfaction. 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, established in 1992, engages in trading, brokerage, trust business, international securities business, underwriting and distribution of securities. It has 111 branch offices with 2,549 employees. With the objective of implementing a competitive system as a comprehensive investment bank, the company was the first in the Korean securities industry to construct a client/server structure on a large-scale system. 9
  10. 10. To eliminate inefficiency and inflexibility with contractor-based management of contract sheets, and to implement a customer-oriented information system, Samsung Securities undertook the contract sheet transfer project. The project’s aim was to improve customer satisfaction and productivity by building a secure, customer-oriented information system. Proven Technology Using Sybase Adaptive Server® Enterprise (ASE) and Sybase Replication Server®, Samsung Securities implemented a customer-oriented distribution system and increased the speed of transaction processing. Sybase EAServer provides the application layer to supply Web-enabled application access. With numerous securities firms on Wall Street using Sybase solutions, Samsung Securities felt that Sybase provided large-scale data management solutions with proven success. Sybase ASE coupled with Sybase Replication Server was considered to provide fast response speeds. Improved Speed, Productivity and Customer Service With the help of Sybase technologies, Samsung Securities now experiences benefits in numerous areas, such as the reduction of time for daily transactions closure from three to four hours to 30 minutes. The new system enables customers to perform commodity transactions with a single integrated card and engage in different online transactions at every branch. And for the employees, the new system provides comprehensive account and commodity information for each customer. “We could not achieve the desired speed, despite the new server environment, so we had to take a closer look,” said Junghoon Lee, manager of Samsung SDS’s technical support team for Samsung Securities. “In the end, we had to perform SQL tuning for a very sensitive program, which provided a 400 percent speed improvement.” From the management-efficiency perspective, the Sybase solution provides enhanced productivity, customer service and system competitiveness. SUPPLY CHAIN MANAGEMENT WHILE the introduction of value-added tax (VAT) in the country is still in the offing, Samsung, like other corporates, is strategising about the changes it would have to make in its supply chain management to take maximum advantage of the new tax regime. In fact, the company estimates that if VAT is introduced in the country, it will be able to bring down the number of warehouses from 25 to 20. quot;Efficiency will definitely increase with the introduction of VAT,quot; says Mr Bong Sik Park, Director - Support Division, Samsung India Electronics. 10
  11. 11. Agrees Mr Park Sungchil, Senior Vice-President, Corporate SCM Group, Samsung Electronics (Korea), quot;In a large country like India, there is a bigger opportunity to save money on the supply chain management (SCM) sidequot;. Mr Sungchil, who is heading the supply chain operations of Samsung globally, is in India to conduct training on best practices in SCM utilised by Samsung across the world. quot;The executives will be required to take an exam on the subject and pass it too,quot; he quips. Samsung is running several pilot projects globally to improve efficiency on the supply chain side and make it more quot;speedyquot;. quot;In fact, while most companies are still working on a monthly system, 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,quot; says Mr Sungchil. IT INITIATIVES: In Samsung India Limited knowledge and technology are key resources which have helped the Company achieve higher levels of excellence and efficiency. Towards this overall goal of technology-driven performance, Samsung is utilizing Information Technology in a big way. This will help in integrating a vast distribution system spread all over India and across the world. It will also cut down costs and increase profitability. 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. Implementation of a country wide new WAN Infrastructure for running centralized ERP system. Setting up of new Data Centre at KCO Head Office. Extension of Reach System to distributors for capturing Secondary Sales Data. Roll out of IT services to new plants and CFAs. SmartTran Mainframe-to-Web Integration Tchnology EnterpriseLink Technology Corporation, a leading provider web-to-host integration tools, has a partnership agreement with Samsung Information & Telecommunications, a $500 million division of Samsung Corporation. Under the terms of the agreement, Samsung will market, sell, service and support EnterpriseLink's SmartTran web-to-host integration software throughout Korea. A large percentage of Korean organizations run on mainframes. The SmartTran products from EnterpriseLink allow Korean companies to quickly and easily add new functionality to mainframe applications to extend their life. This new functionality can include access to intranets, extranets and mobile computing. In many situations, the SmartTran approach offers a lower-cost, rapid-delivery alternative to client/server solutions. The SmartTran technology is 11
  12. 12. 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, without programming. quot;In the current Korean economic environment, increasing efficiency, reducing costs and leveraging current investments are very important,quot; said James Cha of Samsung Information & Telecommunications. quot;Korean companies and the government are interested in preserving and extending the significant investments they have in mainframe systems and applications. Enterprise Link's SmartTran offers a very cost-effective way to take advantage of legacy systems.quot; quot;SmartTran is the only mainframe-to-web tool that offers full control over mainframe applications without programming. With SmartTran we can deliver a full range of intranet and extranet applications that effectively leverage mainframe systems, applications and data. What is more, with SmartTran, new web applications can be delivered in a much shorter time than with other tools and approaches,quot; said B.H. Bae of the New Media Division of Samsung Information & Telecommunications.quot; Samsung is interested in tapping the significant opportunities in Korea for extranet business-to- consumer applications in insurance and home banking, as well as supply chain automation applications in manufacturing companies. Also of interest are a number of intranet opportunities: for example, enabling overseas offices of Korean companies to communicate effectively with headquarters systems. Samsung Fire & Marine Insurance is currently developing an extranet application and Samsung Life Insurance is working on an intranet/extranet application. Conclusion The MIS automates the Samsung’s daily tasks, as well as providing a fun element for the members to use outside work hours. The project has covered all the software engineering phases, which are vital for the successful development of most systems. Many techniques were used and adapted from a number of methodologies e.g. a rapid application development (RAD). Again, 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. Once the system is installed it is expected to provide the following features: Facilitate the communication between all members, make data storage and manipulation more effective and easier information to customers. Samsung India can now enable growth and scalability of the group’s business and culture, at a faster rate and help enhance the daily work of the users. The benefit of placing the system on the network was that the system could be more easily maintained. Updates and all modifications need to be done only once and every copy of the database accessed by the users is automatically updated too. 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 members. 12
  13. 13. BIBLIOGRAPHY  http://en.wikipedia.org/wiki/Management_information_systems  http://www.naukri.com/gpw/samsung/oct05/  http://www.expresscomputeronl ne.com/20020304/ebiz1.shtml i  http://www.sybase.com/detail?id=1033836  http://www.thehindubusinessline.com/2004/11/29/stories/2004112900770300.htm  http://www.naukri.com/gpw/samsung/oct05/vision.htm  http://www.samsungindia.com/press_releases/informationsystem/4300770245.htm 13