Samsung SDS shifts business focus

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Samsung SDS shifts business focus

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Jun Dong-soo, CEO of Samsung SDS, addresses the IT service company’s objectives on Wednesday at an event marking the 30th anniversary of the company’s launch at its headquarters in southern Seoul. Provided by the company

Marking the 30th anniversary of its launch, Samsung SDS is shifting its corporate structure towards IT service for the manufacturing and logistics industries.

CEO Jun Dong-soo said that with the new initiative, the company aims to achieve sales of 20 trillion won ($18.3 billion) by 2020 and become the top global IT company.

The head also noted that Samsung SDS will continue to expand in the overseas market and supply its systems to non-Samsung affiliates, fighting the perception that the company’s services are heavily dependent on Samsung Group affiliates.

The announcement came as Samsung SDS is pushed into the spotlight following its successful initial public offering last year. The company is also considered a key subsidiary as Jay Y. Lee, vice chairman of Samsung Electronics and heir-apparent of the country’s largest business group, owns an 11 percent stake in the company.

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The CEO said that the company will seek to integrate the latest trends in the technology sector into its existing solutions.

“We are going to create platforms based on SMAC, which stands for social network, mobility, analytics and the cloud,” said Jun.

The emphasis on SMAC reflects the company’s efforts to catch up with the evolving IT service industry.

Jun presented its Cello solution as an example of the business’s refocusing. Cello allows the integrated management of all processes, from supply chain management to logistics.

“Cello combines a variety of advanced technologies and leverages our expertise in consulting, system construction and IT infrastructure,” Jun said.

“The technologies can provide visibility in the global logistics chain to let different parties know the whereabouts of their parcels. Our analytics program can also track and report different risks such as inclement weather and abnormal conditions like strikes, and then offer alternative routes,” he said.

The company head also noted that partnership with other global information and tech giants will help Samsung SDS reach the global market.

He brought up the partnership with global database company Oracle last month. Samsung SDS entered into a strategic partnership with Oracle to jointly market IT solutions for the development of digitally advanced logistics systems.

The joint project will incorporate Samsung’s expertise in logistics hardware and software with Oracle’s advanced database platforms, with an eye toward the Chinese market.

Samsung SDS said that the new logistics system will use the latest Internet of things and big data technology to enhance real-time tracking and the visibility of shipments.

While Samsung SDS eyes a broader clientele base, it also pledges to maintain cooperation with Samsung Electronics, its top shareholder.

The two companies work together on a mobile security system called KNOX and an identification system based on fingerprints.

The CEO also addressed the company’s stance on media reports that said Samsung SDS had gone public to strengthen Jay Y. Lee’s position within Samsung Group, rather than because the company was ready.

“We want our value to be judged by performance,” said Jun.

“The reason why Samsung SDS receives a boost is related to the global trend that shifts towards the IT sector,” he continued. “SDS has been involved in different rumors, but most of them are groundless.”

During the event, he also denied the rumor that Samsung Electronics will take over the logistics side of Samsung SDS.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]

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