Strategy+1+Implementation


 * Strategic Innovation #1 Implementation **

 The introduction of a secure email/messaging network is a position building new game since the service would target a new market segment, the business-oriented demographic. It is important to realize that this new strategy involves the acquisition of Synchronica and AuthenTec which are valued at approximately $22.5 million and $128.8 million USD, respectively (REF) (yCharts, 2011). The integration of Synchronica and AuthenTec into Samsung mobile will have an impact on structure, systems and people, and therefore it is appropriate to use the S3PE as a framework for implementing this change.

Structure:  Under the assumption that Samsung operates under a functional structure, a new division which oversees the email system should be created. Key employees from Synchronica and AuthenTec who have knowledge about their systems should be grouped together with Samsung employees who are already familiar with Samsungs culture. The marketing division would need close communication with these new divisions so they are more knowledgeable about the new services and hence be able to market the bundle more effectively. Marketing is an important function in this change since they will be informing and persuading the new market segment about Samsungs secure email service. More importantly, the marketing unit would be responsible for making sure the needs of this new market segment are correctly integrated into the new service.

Systems:  In regards to organizational systems, a profit sharing system where all employees receive shares in the company should motivate them and provide them with more incentive towards making the new service a success. Samsung would also need to have a system in place to benchmark its economic performance before and after the change. Existing information systems would be extended into the new division while keeping an emphasis that tight information sharing with marketing is needed.

People:  As previously mentioned, Samsung would hire former Synchronica and AuthenTec employees and place them in the newly created divisions. Additionally, some Samsung employees familiar with the organizational culture would also be placed in each division. By mixing these employees together, the new members can more easily adapt to Samsung's culture, and therefore integrate into the company more seamlessly. Keeping the new employees would give Samsung the people with the resources and capabilities of running a secure email network. It would also significantly reduce the time and resources necessary to hire new people.

 To enforce the new strategy, a sponsor at the senior executive level is necessary as well as a champion who works closely with the new division and marketing. The champion would promote the cooperation between marketing and the email network division by articulating the benefits. The sponsor would act as support from top management which the champion can leverage to enforce the new changes.

Environment:  The smartphone industry is highly competitive and currently Research in Motion is the only company which is able to capitalize significantly on the business oriented user. Neither Apple, nor any Android manufacturer is able to gain any significant share of this market. The secure email network would allow Samsung to chip away at RIM's market share while giving it a competitive advantage over Apple. The entire purpose of this new strategy is to attract more valuable customers by providing a viable alternative to RIM's secure network and devices. Therefore it is important to have a functional unit with Samsung that focuses most of their energy in attracting this demographic of customers.

Possible Challenges of Implementation:

AuthenTec Valuation: []