LG Electronics pursues its 21st century vision of becoming a true global digital leader who can make its customers worldwide happy through its innovative digital products and services. LG Electronics sets its ultimate vision to rank among the top 3 global companies in electronics, information, and telecommunication firms in the world by 2010.
LG embraces the philosophy of “Great Company, Great People,” where as only great people can create a great company, and pursue two growth strategies involving “fast innovation” and “fast growth.” They seek to find their three core capabilities: product leadership, market leadership, and people-centered leadership. LG Electronics has essentially built their company into a battleship, conquering their business strategy and technological operations. They have built an exceptionally strong foundation for future growth and promise.
Presentation
Wednesday, April 4, 2007
Technology
LG Electronics domain name for their company is http://us.lge.com/index.jhtml. LG uses the Internet as their business network which connects hundreds of computers together.A network usually has at least one connecting device including a hub, switch, or home/broadband router. They use various Ethernet cards as their interface device to connect their computers together. In LGs case, they use a hub network. Each computer on LGs network must have a network interface which consists of an expansion card or integrated into the motherboard, or even through software for a modern. These network interfaces provide the entrance or doorway in that computer for information traffic to and from other computers.
LG uses a WAN (wide area network) as their internet connection. They use wireless communications media to conduct business. LG uses a satellite modem to connect with the hundreds of other company computers throughout the world.
The four principles of network security are: confidentiality, authenticity, integrity and availability. LG incorporates all of very essential principles because most of their business is conducted via the Internet. However, the main principles used are integrity and availabiltiy. LG business is focused on building the adhearance to the moral and ethical priciples. Keeping moral character of the company is essential. The other prime principle is availability. LG strives to to be easily obtainable through the internet and other stores.
LG has files for all areas of their company including: consumer files, product files, tracking files, employee files. With these files LG can appropriately produce a report to define all the information in a organized manner.
Some databases that LG uses are product databases, advertising databases, and customer databases. Some information that may be retrieved into those database include:
DATABASE INFORMATION
1. PRODUCT - Change of a product price
2. ADVERTISING - Change in advertising
3. CUSTOMERS -Track consumers who have late payment on bills
4. SALES -Monthly sales of product
5. MARKETING- Expenses for online, television advertising, promotional campaigns (SKINS).
It is important that LG has these databases to organize and manage all the spectrum's of their company: Display and Media, Appliances, Telecommunications, into a foundation for the company’s information. Managers, at LG receive monthly reports of all documented activity happening within each and every one of the databases.
The IT, information technology, department of the LG is responsible for all the database information and storage. The CEO of the IT department is Joseph Stevens, he is responsible to make sure that all the files and data are to be stored in the appropriate fashion, and to make sure that all of the database information is stored in backup files.
The way managers get reports is either by fax or emails sent from the IT department. LG, the company, strives to have the highest technology driven standards in all aspects of its business. The Internet is a driving force to establish communications through the various CEO’s and managers throughout the world. The CEO's and managers get most if not all of their files through the Internet, or by fax.
There are many different types of hardware categories and brands of computers. LG uses Dell computers with a Pentium III processor with RAM of up to768 MB. Below is an example of a hardware and software reference:
Indicated below are the information regarding their Hardware and Software:
Also some more information on drives and internet connection speeds.
HARDWARE
COMPUTER: Dell Optiplex GX1
CPU: Pentium III 500MHZ
RAM: 768MB
SWAP: 1536MB
CONTROLLER: Promise ATA/100 TX - BIOS 14 - IN PCI SLOT #1
DRIVES USED: 1] Western Digital 250GB ATA/100 8MB CACHE 7200RPM
2] Maxtor 61.4GB ATA/66 2MB CACHE 5400RPM
DRIVE TESTED: The Western Digital 250GB.
SOFTWARE
LIBC VERSION: 2.3.2
KERNEL: linux-2.4.26
COMPILER USED: gcc-3.3.3
EXT2: e2fsprogs-1.35/sbin/mkfs.ext2
EXT3: e2fsprogs-1.35/sbin/mkfs.ext3
JFS: jfsutils-1.1.5/sbin/mkfs.jfs
REISERFS: reiserfsprogs-3.6.14/sbin/mkreiserfs
XFS: xfsprogs-2.5.6/sbin/mkfs.xfs
Inside the IT department there are the database administrators, who are the sole persons responsible for the databases. They handle the more technical and operational aspects of managing the information contained in databases, data warehouses, and data marts.
OLAP, Online analytical processing is the manipulation to support decision making. OLAP within a data warehouse supports customer relationship management activities, cross-selling strategies, and marketing campaigns. LG indefinitely uses OLAP within all of their marketing campaigns including the Skins sponsorship.
In fact, LG also uses data warehouses as a special form of a database that contains information gathered from operational databases for the purpose of supporting decision making tasks. LG’s goal is to create business intelligence using data marts, which are data mining tools to gather information in an effective manner. Data warehouses support only OLAP.
LG Electronics incorporates T9 Text Input along with the extensive library of T9® language databases across a wide-range of LGE wireless phones distributed worldwide.By incorporating T9 Text Input into mobile communications products, companies are solving the fundamental problem of how to quickly and easily type and send messages.
Data-mining tools are the software tools you use to query information in a data warehouse. These data-mining tools support the concept of OLAP. LG Electronics primarily uses intelligent agents and statistical tools as the company’s data mining tools. Intelligence agents utilize artificial intelligence such as neural networks and fuzzy logic to form the basis of “information discovery.” Statistical tools, for example, help you apply various mathematical models to the information stored in a data warehouse to discover new information.
LG uses a WAN (wide area network) as their internet connection. They use wireless communications media to conduct business. LG uses a satellite modem to connect with the hundreds of other company computers throughout the world.
The four principles of network security are: confidentiality, authenticity, integrity and availability. LG incorporates all of very essential principles because most of their business is conducted via the Internet. However, the main principles used are integrity and availabiltiy. LG business is focused on building the adhearance to the moral and ethical priciples. Keeping moral character of the company is essential. The other prime principle is availability. LG strives to to be easily obtainable through the internet and other stores.
LG has files for all areas of their company including: consumer files, product files, tracking files, employee files. With these files LG can appropriately produce a report to define all the information in a organized manner.
Some databases that LG uses are product databases, advertising databases, and customer databases. Some information that may be retrieved into those database include:
DATABASE INFORMATION
1. PRODUCT - Change of a product price
2. ADVERTISING - Change in advertising
3. CUSTOMERS -Track consumers who have late payment on bills
4. SALES -Monthly sales of product
5. MARKETING- Expenses for online, television advertising, promotional campaigns (SKINS).
It is important that LG has these databases to organize and manage all the spectrum's of their company: Display and Media, Appliances, Telecommunications, into a foundation for the company’s information. Managers, at LG receive monthly reports of all documented activity happening within each and every one of the databases.
The IT, information technology, department of the LG is responsible for all the database information and storage. The CEO of the IT department is Joseph Stevens, he is responsible to make sure that all the files and data are to be stored in the appropriate fashion, and to make sure that all of the database information is stored in backup files.
The way managers get reports is either by fax or emails sent from the IT department. LG, the company, strives to have the highest technology driven standards in all aspects of its business. The Internet is a driving force to establish communications through the various CEO’s and managers throughout the world. The CEO's and managers get most if not all of their files through the Internet, or by fax.
There are many different types of hardware categories and brands of computers. LG uses Dell computers with a Pentium III processor with RAM of up to768 MB. Below is an example of a hardware and software reference:
Indicated below are the information regarding their Hardware and Software:
Also some more information on drives and internet connection speeds.
HARDWARE
COMPUTER: Dell Optiplex GX1
CPU: Pentium III 500MHZ
RAM: 768MB
SWAP: 1536MB
CONTROLLER: Promise ATA/100 TX - BIOS 14 - IN PCI SLOT #1
DRIVES USED: 1] Western Digital 250GB ATA/100 8MB CACHE 7200RPM
2] Maxtor 61.4GB ATA/66 2MB CACHE 5400RPM
DRIVE TESTED: The Western Digital 250GB.
SOFTWARE
LIBC VERSION: 2.3.2
KERNEL: linux-2.4.26
COMPILER USED: gcc-3.3.3
EXT2: e2fsprogs-1.35/sbin/mkfs.ext2
EXT3: e2fsprogs-1.35/sbin/mkfs.ext3
JFS: jfsutils-1.1.5/sbin/mkfs.jfs
REISERFS: reiserfsprogs-3.6.14/sbin/mkreiserfs
XFS: xfsprogs-2.5.6/sbin/mkfs.xfs
Inside the IT department there are the database administrators, who are the sole persons responsible for the databases. They handle the more technical and operational aspects of managing the information contained in databases, data warehouses, and data marts.
OLAP, Online analytical processing is the manipulation to support decision making. OLAP within a data warehouse supports customer relationship management activities, cross-selling strategies, and marketing campaigns. LG indefinitely uses OLAP within all of their marketing campaigns including the Skins sponsorship.
In fact, LG also uses data warehouses as a special form of a database that contains information gathered from operational databases for the purpose of supporting decision making tasks. LG’s goal is to create business intelligence using data marts, which are data mining tools to gather information in an effective manner. Data warehouses support only OLAP.
LG Electronics incorporates T9 Text Input along with the extensive library of T9® language databases across a wide-range of LGE wireless phones distributed worldwide.By incorporating T9 Text Input into mobile communications products, companies are solving the fundamental problem of how to quickly and easily type and send messages.
Data-mining tools are the software tools you use to query information in a data warehouse. These data-mining tools support the concept of OLAP. LG Electronics primarily uses intelligent agents and statistical tools as the company’s data mining tools. Intelligence agents utilize artificial intelligence such as neural networks and fuzzy logic to form the basis of “information discovery.” Statistical tools, for example, help you apply various mathematical models to the information stored in a data warehouse to discover new information.
Wednesday, February 21, 2007
Business Strategy
LG has numerous competitors in the market of electronics. Some competitors include Samsung Electronics, and Toshiba Corporation. They maintain competitive goals for their market strategy to produce high end mobile devices and other multimedia products. Their primary vision for a new market position is becoming one of the top three global corporations by 2010.
LG uses global differentiation as their business strategy. Like Apple, LG uses integrated collaboration environment and business intelligence system in their organization. LG works together with all departments including design and promotion to keep their products increasingly well-known for their originality and uniqueness. In recent news, LG will be joining for the first time in the Windows Mobile phone space collaborating with Microsoft. (See article: REUTERS 02/14/07). This collaboration with Microsoft Mobile windows will surely raise revenues and is a great example as a business intelligence decision for the company because of the tremendous demand for the internet via your cell phone. Microsoft recently unveiled a new version of its Windows operating system for mobile devices, making it look more like Windows Vista and adding features previously only available on personal computers.
For LG, much of the power of the 5 forces model comes from the supplier power because the relative attractiveness through their collaboration efforts with their telecommunication sector (mobile phones). Buyer power has shown efforts with the display and media sector of the company but certainly not due to the fact that LG will reduce costs in order for a consumer purchase. Well, an incentive for customers to use LG phones through a mobile phone distributor the companies work together to give a discounted upgrade to consumers to build a loyalty factor with customer satisfaction of the product. There is a high threat of substitutes and rivalry among existing competitors in the telecommunications sector due to the fact that there are many other manufacturers of mobile devices and computer products.
LG tailors their product to the prestige customer. Their is no bottom line initiatives taken by LG. They use top-line initiatives to increase revenue through information technology. Much of LG's marketing is through advertising in print, television and outdoor ads. Not only does LG advertise with these tools but also through internet advertising. Banner ads play a role in promotion for the company. They also use affiliated programs, considering Verizon, Sprint and Cingular and other mobile plan distributors play a a role in pushing customers to LG in the exchange for money that LG would owe to Verizon, Sprint, etc. for the distribution of their products. By this the company gains a great name and much advertisement. Another example of online advertisement for LG, there are many articles in Google, which is a search engine, to lead consumers to LG. There is also some use pop under, which is an excellent way of advertisement.
LG uses sports marketing in their unique marketing mix to also provide a top line initiative of the company, advertising through sponsorships. For example, In 2006, LG started sponsoring the US PGA "Skins Game." The Skins Game is the nation's biggest golf championship that opens during the holiday week of Thanksgiving Day. The Skins Game also has one of the highest TV viewing of live golf telecast which in turn is giving LG great publicity within the prestige market.
The company’s online payment systems are extremely secure, using an “s” in the https:// secure format to ensure customers of privacy. For example, if one is trying to purchase one of their products online, they have to go through a series of steps before purchasing the product. First, they have to choose what kind of phone they would like to purchase. Second, they have to choose the kind of plan that their phone provider has. After that the LG website goes to a secured encrypted website where all the payment information is taken and than scrambles their credit card data so that only a secured bank can get your information. In that website they ask the customer for all of their information such as their social security number, credit card information and all their address information.
The internet business model that LG uses is a Clicks N' Mortar model, which means that their customers can go to an actual store or shop online and purchase their products. This gives them a great deal of flexibility as a world wide company. They have two E-commerce models. A Business to Business (B2B) model because they sell much of their phone products to other companies to distribute their product. They also adopt the Business to Consumer (B2C) model because they offer much of their products online for personal use without going through a store going to directly to the consumer.
LG uses global differentiation as their business strategy. Like Apple, LG uses integrated collaboration environment and business intelligence system in their organization. LG works together with all departments including design and promotion to keep their products increasingly well-known for their originality and uniqueness. In recent news, LG will be joining for the first time in the Windows Mobile phone space collaborating with Microsoft. (See article: REUTERS 02/14/07). This collaboration with Microsoft Mobile windows will surely raise revenues and is a great example as a business intelligence decision for the company because of the tremendous demand for the internet via your cell phone. Microsoft recently unveiled a new version of its Windows operating system for mobile devices, making it look more like Windows Vista and adding features previously only available on personal computers.
For LG, much of the power of the 5 forces model comes from the supplier power because the relative attractiveness through their collaboration efforts with their telecommunication sector (mobile phones). Buyer power has shown efforts with the display and media sector of the company but certainly not due to the fact that LG will reduce costs in order for a consumer purchase. Well, an incentive for customers to use LG phones through a mobile phone distributor the companies work together to give a discounted upgrade to consumers to build a loyalty factor with customer satisfaction of the product. There is a high threat of substitutes and rivalry among existing competitors in the telecommunications sector due to the fact that there are many other manufacturers of mobile devices and computer products.
LG tailors their product to the prestige customer. Their is no bottom line initiatives taken by LG. They use top-line initiatives to increase revenue through information technology. Much of LG's marketing is through advertising in print, television and outdoor ads. Not only does LG advertise with these tools but also through internet advertising. Banner ads play a role in promotion for the company. They also use affiliated programs, considering Verizon, Sprint and Cingular and other mobile plan distributors play a a role in pushing customers to LG in the exchange for money that LG would owe to Verizon, Sprint, etc. for the distribution of their products. By this the company gains a great name and much advertisement. Another example of online advertisement for LG, there are many articles in Google, which is a search engine, to lead consumers to LG. There is also some use pop under, which is an excellent way of advertisement.
LG uses sports marketing in their unique marketing mix to also provide a top line initiative of the company, advertising through sponsorships. For example, In 2006, LG started sponsoring the US PGA "Skins Game." The Skins Game is the nation's biggest golf championship that opens during the holiday week of Thanksgiving Day. The Skins Game also has one of the highest TV viewing of live golf telecast which in turn is giving LG great publicity within the prestige market.
The company’s online payment systems are extremely secure, using an “s” in the https:// secure format to ensure customers of privacy. For example, if one is trying to purchase one of their products online, they have to go through a series of steps before purchasing the product. First, they have to choose what kind of phone they would like to purchase. Second, they have to choose the kind of plan that their phone provider has. After that the LG website goes to a secured encrypted website where all the payment information is taken and than scrambles their credit card data so that only a secured bank can get your information. In that website they ask the customer for all of their information such as their social security number, credit card information and all their address information.
The internet business model that LG uses is a Clicks N' Mortar model, which means that their customers can go to an actual store or shop online and purchase their products. This gives them a great deal of flexibility as a world wide company. They have two E-commerce models. A Business to Business (B2B) model because they sell much of their phone products to other companies to distribute their product. They also adopt the Business to Consumer (B2C) model because they offer much of their products online for personal use without going through a store going to directly to the consumer.
Tuesday, February 6, 2007
History
In 1958, the company Goldstar (today's LG Electronics) was established. The first major product produced by LG was Korea's first radio, made in 1959. Throughout the years LG has been producing many products, but only in the 2000s did they emerge as a powerful electronic company. In 2003 they produced the World's first IMT-2000 mobile phone. In 2005, LG also produced the world's first DMB phone (Digital Multimedia Broadcasting).
Monday, February 5, 2007
Introduction and CEO
LG Electronics was established in Korea in 1958 as one of the first companies to make their way into the electronic market. LG has three main business areas: (1) Display and Media, (2) Appliances, (3) Telecommunications. For the purpose of this assignment our group has chosen to focus our attention on the display and media sector of LG. This sector is best related to MIS. LG is one of the largest producers of computer products including: LCD monitors, mobile media (i.e.-USB drives), and DVD writers. They are one of the leading innovators of the newest technology in cell phones. They have created user-friendly phones including the "Chocolate" and the "ENV" to give consumers the enhanced capabilities of Bluetooth technology, camera/camcorder access and more through an ease access touch screen (Chocolate) and a handheld miniature keyboard (ENV).
With a total number of 64,082 employees worldwide, LG caters to the consumer by maximizing the consumer satisfaction and also creating top of the line products for the technologically driven consumer. LG has continued to stay ahead of the game. They distribute to more than seven mobile phone providers including: Verizon, Sprint, Cingular, ALLTEL, Metro PCWS, and U.S. Cellulars.
One of the main reasons LG has been and continues to be a leader in its field is its continued worldwide consumer satisfaction. The company’s research and development team always finds itself on the cutting edge which affords it the opportunity to expand its already vast consumer base. LG bases their products for "Smart" consumers who enjoy enhancing their life.
The current CEO and Vice Chairman is S.S. Kim*. His management style focuses on three areas: early innovation, stretch goals and field management. He first entered LG Electronics 35 years ago as a mechanical engineer and has spent most of his career at LG. Kim’s overall goal is to have LG remain in the global top 3 companies in the electronic field.
With a total number of 64,082 employees worldwide, LG caters to the consumer by maximizing the consumer satisfaction and also creating top of the line products for the technologically driven consumer. LG has continued to stay ahead of the game. They distribute to more than seven mobile phone providers including: Verizon, Sprint, Cingular, ALLTEL, Metro PCWS, and U.S. Cellulars.
One of the main reasons LG has been and continues to be a leader in its field is its continued worldwide consumer satisfaction. The company’s research and development team always finds itself on the cutting edge which affords it the opportunity to expand its already vast consumer base. LG bases their products for "Smart" consumers who enjoy enhancing their life.
The current CEO and Vice Chairman is S.S. Kim*. His management style focuses on three areas: early innovation, stretch goals and field management. He first entered LG Electronics 35 years ago as a mechanical engineer and has spent most of his career at LG. Kim’s overall goal is to have LG remain in the global top 3 companies in the electronic field.
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CEO S.S. Kim
"Just as it has since 1958, LG is focused on developing technology that enriches and empowers people."
