For those who are not familiar with Lee Kun-hee’s powerful leadership, they may think Samsung Group’s transformation into a global powerhouse in most of the world’s key industries has been completed.
Flagship Samsung Electronics has surpassed its strongest rival Apple to grab the title as the world’s largest smartphone maker, it boasts the world’s largest market share for memory chips, and operates IT systems throughout Asia and the U.S., while Samsung-made batteries power up hybrid cars all over the world.
These are only a few examples of just how much Samsung has expanded over an amazingly short time span of 20 years; it was following the “New Management Initiative” issued by Chairman Lee in 1993 that Samsung began to sincerely ponder becoming a global company of top billing.
The proclamation, also known both within Samsung and out as the “Frankfurt Declaration,” involved the famous quote, “Change everything but your wife and children.”
The story is a worn one, repeated by many, and it all started when Lee was on a global tour at the time.
He was dissatisfied with how Samsung products were being treated and the quality of the goods, so he gathered Samsung’s executives for a meeting in Frankfurt, Germany, to embark on the first step to change from a “good” company into a “great” one.
This year marks the 20th anniversary of the Frankfurt Declaration, and the company plans to mark it with a poignant exhibition and forum between June 7 and July 9 at Suwon’s Samsung Digital City.
Under the name of “Samsung Innovation Forum,” the company has put together 20 years of Samsung history for each business unit of Samsung Electronics, including products, technology and services.
“This year’s forum was meant to share and commemorate the past 20 years of Samsung Electronics, which has continuously challenged the world markets with top-caliber products and innovation,” Samsung officials said.
Another aspect of the forum they added is to reenact the crisis of 1993.
One such product was Samsung’s video tape recorder, which was a cheap and bulky excuse compared to its rivals back in 1992.
Another was a television, which collected dust in a corner in U.S. retail stores. The mold for washing machines was awry and employees had to redo them by hand before putting them out.
In short, quality was being shortchanged.
But the declaration was not a magic wand, and quality did not improve immediately.
In 1995, Samsung burned about 50 billion won worth of cordless phones ― 150,000 units in all ― which were still being recalled for errors.
Part of the intention is to remind the Samsung workers of their past, and urge them to look back in time to once again remember the importance of innovation and quality, the forum organizers said.
Meanwhile, to keep the Samsung workforce inspired, the forum will also feature the creative and edgy products that catapulted the company into global fame and popularity.
From the first plus-one TV that stretched the TV screen an inch wider to the recent smart TVs that feature apps and ultra-high-definition TVs that are at least four times sharper than Full HD displays, are all on display.
Lee Gyung-tae, an executive at Samsung Electronics’ corporate planning team added that it was also a chance to see how Samsung has evolved from a technology-centric company into a corporation that’s able to read people’s minds and hearts.
“From there, we have further evolved into a partner for a smarter life, and the forum offers the opportunity to see all this and recognize how Samsung will further work to make our lives better,” he said.
Executives from different business units will participate to hold seminars with other employees to discuss these and other pending issues for the company.
In essence, the forum symbolizes all that chairman Lee, and now his son Jay-yong, is hoping to achieve in the coming years for Samsung.
Both the senior and junior Lee have been stressing for years that while for some, this may appear to be Samsung’s prime, it may actually be a crisis in disguise.
With Apple, there is still a raging legal battle going on, and smartphones may have yet to fully evolve to be completely compatible and convenient for users. Displays are expected to get even bigger, TVs are coming out in all shapes, including curved, and wearable devices are ready to steal the show.
It means the pressure is on, and Samsung is bracing for another successful 20 years and beyond.
By Kim Ji-hyun (
jemmie@heraldcorp.com)
