Samsung Global Research's management diagnosis office appears to be holding the helm on Samsung Electronics' year-end regular executive reshuffle and organizational overhaul. As the outline of a management diagnosis for Samsung Electronics' DX (finished goods) institutional sector takes shape, analysts say the office's findings by business unit will become crucial data for the reshuffle and restructuring.
According to the business community on the 26th, the management diagnosis conducted by Samsung Global Research's management diagnosis office on the Visual Display (VD) business unit will soon be wrapped up and reported to the Business Support TF, Samsung's de facto control tower. In addition, results from internal audits conducted in the home appliance business unit will be combined, and broad strategic changes, including workforce optimization within the DX institutional sector, are likely to be reflected.
◇ Elite MX personnel expected to move en masse to the home appliance field
First, for the DA business unit in charge of home appliances, the prevailing view is that a significant number of personnel from the MX (Mobile eXperience) business unit will be dispatched to reinforce a shortage of research and development (R&D) staff. With President Roh Tae-Moon of Samsung Electronics removing the acting title and formally beginning his role as head of the DX institutional sector, the explanation is that elite personnel from the MX business unit will be deployed forward to improve the performance of the home appliance business, which has suffered deteriorating profitability, and to strengthen quality competitiveness.
A senior Samsung official said, "The home appliance business, which has long recorded sluggish results, needs an overhaul in management across quality, product innovation, and marketing," and added, "Within Samsung Electronics, the MX business unit, which is adopting artificial intelligence (AI) technologies the fastest and showing the most visible results, will support the DA business unit with personnel and technology."
In fact, Roh recently told reporters that the advanced AI capabilities of the MX business unit should be spread across the entire DX institutional sector. Roh said, "The key to Samsung Electronics' success in the smartphone market was the rapid adoption of AI," and added, "The home appliance field also has boundless potential to create product innovation with AI."
By contrast, the VD business unit is said to be reviewing workforce cuts and changes in business strategy. A Samsung Global Research official explained, "It is true that both the TV business and the home appliance business are sluggish, and the market environment is unfavorable as well, but the VD business unit differs in that despite having ample personnel and resources, it has failed to deliver results." This is interpreted to mean that a comprehensive review of the VD business unit's management strategy and structural reform is unavoidable.
◇ Choi Yoon-Ho, head of the management diagnosis office, influences Business Support TF decisions
Another key point is that this management diagnosis was reportedly led by President Choi Yoon-Ho, who is said to enjoy strong confidence from Chair Lee Jae-Yong. Since Choi took over as head of the management diagnosis office, Samsung Global Research has shown a markedly different approach this year. It stepped beyond its traditional role of market research, dispatching personnel to business units to assess on-the-ground conditions, gather information, and conduct evaluations, while incorporating performance systems into those roles to carry out rigorous business unit diagnostics.
Choi is regarded as a figure who built the foundation for growth in the battery business after taking the helm as president of Samsung SDI at the end of 2021, having previously served as head of management support for Samsung Electronics' Europe operations, on the Future Strategy Office's strategy team, the Business Support TF, and head of Samsung Electronics' Management Support Office. In the 2010s, he belonged to Strategy Team 1 of Samsung's Future Strategy Office, considered the most influential, and is known as one of Samsung's leading "strategy experts."
An industry official said, "Unlike other decision-makers at the Business Support TF, President Choi Yoon-Ho has delivered results not only at the Future Strategy Office but also as an executive, so internal trust in him is strong," and added, "The management diagnosis office's findings will be the most important data and basis for the Business Support TF to carry out organizational restructuring of the DX institutional sector and key executive appointments, as well as workforce reductions and organizational efficiency measures."