Samsung 2001 Annual Report Download - page 12

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Digital- Company embodies the fundamental changes that have taken and con-
tinue to take place within our organization. Our first task in this mission is to create
an internal climate for innovation that encourages convergence and collaboration on
the technical, product, and business levels. We started by initiating a transition from a
division-centric development model that focuses on delivering stand-alone products
to a portfolio-centric model that brings together multiple divisions and units to create
integrated solutions for our home network, mobile network, office network, and core
components business portfolios. Anchored by a world-class product lineup that leads
the globe in seven categories—CDMA mobile phones, microwave ovens, DRAM, SRAM,
TFT-LCD panels, computer monitors, and VCRs—these four strategic portfolios are a cat-
alyst for convergence and collaboration both within and between our four business units
as well as with strategic partners like Dell, AOL Time Warner, Sony, and Microsoft, set-
ting the stage for the next generation of breakthrough digital products and solutions.
This is the essence of the “Digital” in Digital - Company.
Let me elaborate a little more on this concept. As you may have heard, our busi-
ness units assumed new names in January 2002. The Digital Media System unit is now
the Digital Media Network. The Information & Communications unit is simply the
Telecommunication Network. The Home Appliances unit is the Digital Appliance
Network. And the Semiconductor unit is now the Device Solution Network. These
changes are not the result of a major structural reorganization. Rather, they emphasize
the increasingly important role convergence and collaboration are playing in all our activ-
ities. For instance, the merger of the Digital Media and Telecommunication Network
R&D centers at our Suwon plant complex has set the stage for seamless collaboration
in all areas of research. The new names also underscore the new direction each unit
is taking. The Telecommunication Network name reflects the reality that mobile phone
sales alone generated a net income of 1 trillion won for the unit in 2001. An even more
8% Digital Solution Network 37.8% Other
Digital Media Network 27.3% Telecommunication
Apr 5 100,000-unit cable modem deal with Fujikura(Japan) Apr 10 SecuMAX 2.0 online digital rights management solution debuts Apr 12
10