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Samsung SDS out to capture new opportunities
System integrator faced with challenges to carve out overseas markets and step up value
By Korea HeraldPublished : July 31, 2013 - 19:19
Alfred Koh, one of the few Korean-American IT experts among the top Samsung brass, wants to take the next step forward --and so does his company, Samsung SDS.
The first step the company recently took toward the future was, albeit at the urgings of the government, to shift its focus to the overseas markets. The firm was basically edged out of all the financial and government systems integration work on the home turf.
But SDS appeared to be prepared, since the move was immediately followed up by a complete revamping of its delivery centers in key regions outside the country.
Through these efforts, the company, once dismissed for being an affiliate financed by system integration demand from its bigger Samsung subsidiaries such as Samsung Electronics despite registering sales of over 6 trillion won ($5.3 billion) annually, is seeking to add value and prove itself worthy.
Overseas focus and essential restructuring
Last month, Samsung SDS confirmed that it would be moving all of its operations from Korea, half voluntarily and half directed by government policies aiming at shooing conglomerates out of the market to make room for smaller suppliers.
"It not only has to do with the government drive to push conglomerates to step depending on affiliates for business and to create more opportunities for the smaller companies, but also with the fact that the local financial and government agencies are already equipped with top-of-the-line IT systems," said one industry expert who requested anonymity. "This means there really are no opportunities back home in Korea."
Samsung SDS has long since pledged to focus overseas, having laid the foundation with several big projects including the $23 billion automatic fare collection system it installed in China two years ago.
This expertise will now be applied to its newly created "Smart Manufacturing Town" unit. Smart manufacturing refers to the development and application of innovative IT solutions to existing business systems for seamless integration.
Samsung SDS also has expanded its global delivery facilities to form the "Global Delivery Center Strategy Team" to handle all support systems for IT platforms and services for overseas customers.
The center also has added a new position on "delivery innovation," the company said. Areas such as China and India will receive more emphasis, it added, since new bureaus focusing on these two nations were added within the strategy team. Other subunits include those for technology innovation, architecture and software.
The CEO Alfred Koh's expertise in the IT industry is expected to serve as another impetus for SDS's future growth. Koh was previously with IBM's global offices and consequently has extensive knowledge on foreign rivals and partners. He was recognized for his work at SDS by being promoted to president just a year following his appointment to vice president.
By Kim Ji-hyun (jemmie@heraldcorp.com)
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Articles by Korea Herald
