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Press Release
SK Telecom Unveils New ’Corporate Innovation Strategies’.
2003.07.14These strategies are designed to maximize company value by leading a social and cultural changing paradigm, and promoting industrial convergence.
The company implemented 24 innovative tasks designed to increase values for customers, stockholders, and employees.
The company is changing its organization to effectively execute the corporate innovation strategies.?
On the 11th of July, SK Telecom disclosed new ’Corporate Innovation Strategies’ at a management seminar with the subject of ’Changing Management Focus’. This strategy is designed to maximize company value by leading in a social and cultural changing paradigm, and promoting industrial convergence.
These new strategies have a clear goal of leading an industrial convergence that will overcome the limits of a simple cellular service business, and spring forward to become an ubiquitous service provider that can offer complete services anytime, anywhere, and anyway the customer desires.
Beyond the short-term economic theory of pursuing the maximization of profitability, SK Telecom is committed to enhancing its social role and responsibilities, and becoming reborn as a company that can receive respect and trust from society. At the same time, the company plans to maximize overall corporate value on a long-term basis, by increasing values for customers, stockholders and employees. This is the key concern of progressive corporate management.
The principle content of the ’Corporate Innovation Strategies’ discussed and established at the management seminar, is as follows:
SK Telecom will greatly strengthen R&D functions for networks, platforms, and terminals, in order to timely furnish the most valuable services for the customer.
In line with this, the company plans to increase the R&D investment percentage from the current 2.2% to 3.0% of total sales, by 2005. In addition, the company has a plan to develop a tool to systematically measure and evaluate the company’s qualitative and quantitative value in furnishing the customers’ overall service needs and desires. This tool will be applied to the performance evaluation of each employee, so the customer-centered management policy plants its roots deeply in the entire organization of the company.
To maximize stockholders’ value, SK Telecom will continue to explore and promote new growth engines in an environment of industrial convergence designed to increase its present core competencies.
Moreover, the company plans to strengthen the role and function of the Board of Directors in order to greatly increase managerial transparency, and to also develop innovative internal management processes that will rapidly and accurately provide important corporate information to major stakeholders of the company.
In terms of increasing employees’ value, the company will train each individual employee to be an expert in his/her field.
To this end, SK Telecom plans to offer employees systematic training programs and guidance that will help them grow with the company.
SK Telecom will also continue to improve a rewards system that furnishes exceptional incentives to each employee, in accordance with their contribution to the company.
Furthermore, SK Telecom will institute a variety of entertainment programs and facilities, so employees have an opportunity to enjoy their family and recreational lives, as well as their work life.
The company also plans to expand strategic systems to foster female employee participation and input.
In order to successfully develop an innovative corporate management system, SK Telecom recently launched the ’Strategic Technology Division,’ (headed by Myung Sung Lee/Managing Director)’ that integrates the R&D function with the technological strategy function. The company also integrated the ’Conventional Marketing Business Division’ and the ’Internet Business Division’ into a ’Business Divisional Group’ (headed by Bang Hyung Lee/Executive Director).
In addition, SK Telecom will utilize existing telecom networks, and service distribution channels, as the basic infrastructure for effectively carrying out a wide range of new businesses.
In this regard, the company recently launched these related divisions, and appointed new directors.
To develop these ’Corporate Innovation Strategies’, SK Telecom researched the task of ’Securing Market leadership under the Environment of Industrial Convergence’ at SK Telecom’s Future Management Research Center in Icheon City, from January of 2002, to January of 2003.
Based on the outcome of this research, a management seminar was held three times this year, with the subject being ’Implementation of Changes in Management Focus’.
Further, the company established a specific feasible execution plan, by utilizing ’Working Groups’ at the Future Management Research Center, beginning in May of this year.
These new strategies have a clear goal of leading an industrial convergence that will overcome the limits of a simple cellular service business, and spring forward to become an ubiquitous service provider that can offer complete services anytime, anywhere, and anyway the customer desires.
Beyond the short-term economic theory of pursuing the maximization of profitability, SK Telecom is committed to enhancing its social role and responsibilities, and becoming reborn as a company that can receive respect and trust from society. At the same time, the company plans to maximize overall corporate value on a long-term basis, by increasing values for customers, stockholders and employees. This is the key concern of progressive corporate management.
The principle content of the ’Corporate Innovation Strategies’ discussed and established at the management seminar, is as follows:
SK Telecom will greatly strengthen R&D functions for networks, platforms, and terminals, in order to timely furnish the most valuable services for the customer.
In line with this, the company plans to increase the R&D investment percentage from the current 2.2% to 3.0% of total sales, by 2005. In addition, the company has a plan to develop a tool to systematically measure and evaluate the company’s qualitative and quantitative value in furnishing the customers’ overall service needs and desires. This tool will be applied to the performance evaluation of each employee, so the customer-centered management policy plants its roots deeply in the entire organization of the company.
To maximize stockholders’ value, SK Telecom will continue to explore and promote new growth engines in an environment of industrial convergence designed to increase its present core competencies.
Moreover, the company plans to strengthen the role and function of the Board of Directors in order to greatly increase managerial transparency, and to also develop innovative internal management processes that will rapidly and accurately provide important corporate information to major stakeholders of the company.
In terms of increasing employees’ value, the company will train each individual employee to be an expert in his/her field.
To this end, SK Telecom plans to offer employees systematic training programs and guidance that will help them grow with the company.
SK Telecom will also continue to improve a rewards system that furnishes exceptional incentives to each employee, in accordance with their contribution to the company.
Furthermore, SK Telecom will institute a variety of entertainment programs and facilities, so employees have an opportunity to enjoy their family and recreational lives, as well as their work life.
The company also plans to expand strategic systems to foster female employee participation and input.
In order to successfully develop an innovative corporate management system, SK Telecom recently launched the ’Strategic Technology Division,’ (headed by Myung Sung Lee/Managing Director)’ that integrates the R&D function with the technological strategy function. The company also integrated the ’Conventional Marketing Business Division’ and the ’Internet Business Division’ into a ’Business Divisional Group’ (headed by Bang Hyung Lee/Executive Director).
In addition, SK Telecom will utilize existing telecom networks, and service distribution channels, as the basic infrastructure for effectively carrying out a wide range of new businesses.
In this regard, the company recently launched these related divisions, and appointed new directors.
To develop these ’Corporate Innovation Strategies’, SK Telecom researched the task of ’Securing Market leadership under the Environment of Industrial Convergence’ at SK Telecom’s Future Management Research Center in Icheon City, from January of 2002, to January of 2003.
Based on the outcome of this research, a management seminar was held three times this year, with the subject being ’Implementation of Changes in Management Focus’.
Further, the company established a specific feasible execution plan, by utilizing ’Working Groups’ at the Future Management Research Center, beginning in May of this year.