Page 59 - (DK) The Business Book

START SMALL, THINK BIG 57

When processes evolve they may
create new jobs or cause existing ones
to disappear. The manual switchboards
of the old ztelephone system were soon
replaced by faster, automatic ones.

its foundation for future growth.
Samsung’s transformation was not
yet complete, however—the Asian
financial crisis of the late 1990s
forced the company to reinvent
itself yet again. Adapting its process
turned Samsung into a more
market-focused and consumer-
friendly brand. Since then the
company’s efforts, particularly in
the cell-phone industry, have been
based on constant attrition,
reinvention, and adaptation.

Long-term survival tasks are automated and fulfilled by a continual process. Social media,
Few businesses survive without computers and robots. Promotions for example, has created a market
adaptation or reinvention. Products have also adapted to fit changed shift that has required businesses of
such as Kellogg’s Cornflakes and consumer demographics, globalized all types to adapt; even record labels
Heinz Beans—products that have markets, and customer preferences. now embrace the promotional value
not changed in decades—are rare. Even established brands cannot of websites such as YouTube.
Even when a product has not avoid reinvention. The ecosystem in which a
changed, many of the processes Truly successful business business operates is rarely, if ever,
used in its manufacture, transformation is rarely due solely to static. Corporations exist in these
distribution, and marketing have discovering and commercializing ecosystems as living organisms
altered dramatically. The factories bold new ideas, technologies, and that must adapt to survive; great
of 100 or 50 years ago were very products. The most successful leaders know that failure to adapt
different than today’s, where many businesses know that reinvention is leads to extinction. ■

Lee Kun-Hee Born on January 9, 1942, Lee has been transformed from a
Kun-Hee is Chairman of the South Korean budget brand into a
Korean conglomerate Samsung. major international force and,
Holding an economics degree from alongside Sony, is one of the
Waseda University in Tokyo, world’s most prominent
Japan, and an MBA from George Asian businesses. Samsung
Washington University in the US, Electronics, the conglomerate’s
Lee Kun-Hee joined the Samsung most famous subsidiary,
Group in 1968 and succeeded is a leading developer of
his father as Chairman on semiconductors, TV screens,
December 1, 1987. and cell phones—with its
Samsung is the quintessential smartphones even outselling
example of a chaebol, a uniquely the iPhone in many markets.
Korean conglomerate that mixes The Forbes 2013 Rich List
Confucian values with family ties recorded Lee as the world’s
and government influence. Under 69th richest billionaire, and
Lee’s stewardship, the company the richest Korean.