Samsung: the "Butterfly Effect" of information

Sun into the user will not think, in Best buy every Samsung products, it is possible to become the impact of Samsung new product design of a "flapping butterfly", thus triggering a chain of butterfly effect. In May this year, Samsung Electronics and Best Buy formally signed a co-ordinated replenishment (CPFR) agreement in China.　　In the outside world seems to be only a supply management system agreement, but for Samsung global huge information chain to add a neural terminal. According to the CPFR agreement, Samsung Electronics and Best Buy jointly manage purchasing forecasts and inventories in the supply chain, share customer information, and Samsung's marketing department will analyze the approximate direction of development by summarizing sales information, such as what kind of mobile phone the user likes in the last six months or a quarter, whether it is a slide or a flip, a touch screen or a full keyboard.　　But this information is only a small part of Samsung's global information chain. So far, Samsung Electronics has CPFR with 38 retail channels in North America and Europe.　　Since 2004, Samsung Electronics sales have increased 400%, logistics inventories have been reduced by 64%, the accuracy of the forecast orders has increased to 93%, and the advance stocking cycle has shrunk from 11 weeks in 2005 to 4 weeks in 2008.　　In the future, Chinese retailers will also become an important information provider in the Samsung information chain, and Samsung is in deep contact with Gome and suning.　　At the same time, Samsung's neurons have up to the end of last year in China more than 100 county-level sales network established, as well as the continuous improvement in the Chinese market sales network and after-sales service system.　　As the Chinese market has become an important support for Samsung's global strategic layout, the global flow of information will be generated and aggregated in China, thus affecting global decision-making. At present, Samsung has not only independent research and development institutions in China, but also a close integration with the production plant research institutions.　　For example, and Samsung Suzhou factory together with the Institute, mainly responsible for the research and development of household appliances, South Korea headquarters has been 90% of the development of household appliances transferred to this. In Samsung's view, this information is not fully exploited if the flow of high-speed data is not finally aggregated into design and patents.　　External information acquisition should be coordinated with internal positive "work".　　Samsung from the external acquisition of information, after a preliminary analysis, the specific functions, software and other aspects of implementation by such as research institutes around the world, based in Shanghai, such as design research institutions are responsible. Samsung's CTO Tong said that so far, Samsung has applied for a total of more than 100,000 patents, half of which has been in force. The development of Samsung in China has so far had a team of about 4000 people.　　There are 22 research and development institutions, in addition to the Samsung Beijing Communications Research Institute, Nanjing Institute of Software, Suzhou and Hangzhou Semiconductor Research Institute and Home Appliance Research Institute, in addition to Samsung also specializes in design, user interface (UI) design Research Institute. Samsung's demand for information is not only large and accurate, but also more important, and the high speed strategy of feedback has enabled the company to benefit from shortening the product cycle, and now some Samsung Products ' weeklyPeriod is shortened to several weeks. In addition, Samsung also implemented Business-to-business and two market parallel, not only the production of finished products also produced parts. Coupled with the market information feedback, which makes Samsung achieve product diversification, large-scale and cost leadership.　　Samsung, for example, dominates the global market share in LCD panels and LCD TVs, and the upstream and downstream integration gives it a greater advantage. Not only in the subdivision of the industry, Samsung also set up the Chinese Economic Research Institute, analysis from the home appliance industry to real estate, and then to China's macro-economy.　　Reading the Institute's report, the reader can find that Samsung has amassed a large collection of third-party data, from the Research institute Analysys International, to the Chinese economic statistics, the volume of data. In Samsung insiders ' opinion, this analysis is very helpful to Samsung interior, such as China's real estate situation on home appliances sales have an impact, and the economic fluctuations also involve high-end mobile phone consumption psychology.　　Samsung China Institute can also sell reports to generate revenue. Samsung's investigation is meticulous and high-speed, Samsung not only in the market system has a global standing high-speed user survey system, the overall combat capability is also called tough. One of the details is that the CBN journalist exchanged business cards with a Samsung Electronics employee and received an email in the name of the chief researcher of the Samsung China Institute within one weeks, with a regular survey of the industry and the Chinese economy.