SK Telecom CEO Man-Won Jung held a press conference on Friday, April 9, to announce his commitment to develop global markets by enhancing competitiveness of Korean ICT service and software industries with SK Telecom’s extensive ICT capability built over the last 25 years.
Jung returned after six years to become CEO of SK Telecom after leaving his post as Executive Vice President for the company’s Mobile Internet Business Division in 2002. At the press conference he said: “The Korean mobile telecommunications market is experiencing stagnant growth and the situation is much more serious than what I thought from the outside. Therefore I have focused all my energy to build a growth story and culture during the last three months.”
He announced four missions to achieve growth by developing new services and international markets. The four missions include contributing to the nation by securing technological leadership; developing new markets with creative services; promoting globalization by building an ecosystem of co-existence and co-prosperity; and increasing consumer benefits through leading and differentiated innovations.
Regarding the reasons behind the slowing growth of the ICT industry, Jung cited the imbalance between the hardware and software sectors. He thus stressed the need to strengthen the competitiveness of the software industry.
He also said that the imbalance between various ICT industries is worsening as witnessed by the strong growth of Korean mobile handsets and weak performance of the Korean software industry. Currently Korean mobile phones hold 25% of the global market share while the Korean software industry’s revenue accounts for mere 2% of the world’s total.
Based on such a diagnosis Jung believes that new growth opportunities can be created when Korea's ICT services and software industry expand beyond the domestic sphere. In this vein he puts great emphasis on developing global markets through enhanced competitiveness in ICT services and the software industry.
SK Telecom’s four missions touch upon four different areas.
In the area of technology, the company will focus on widening the range of ICT infrastructure usage and developing technologies that will allow for higher productivity in other industries based on the fact that Korea’s ICT industry has mainly focused on building infrastructure, showing lower industrial usage when compared with other advanced nations.
To this end SK Telecom plans to implement five technology-related growth tasks named 5nGINE, which is an acronym for next generation, Global de-facto standard, Innovation, No-Border and Experience. The tasks will facilitate expanded use of ICT infrastructure for users, industries, businesses and the government and maximize its positive ripple effects.
They include advanced next generation wired and wireless network technologies like LTE and 4G, innovative user-interface technologies such as automatic translation and personalized technologies, business platform technologies including cloud computing, smart technologies like smart grids, and cross-industry convergence technologies.
5nGINE refers to developing next generation technology, technology that can become global de-facto standard, innovative technology, technology with no borders that promotes cross-industry convergence, and technology that provides better customer experience.
In the area of service, SK Telecom plans to open new markets by constantly developing creative services based on its technological leadership.
The company will promote two directions: one is to pursue integration within the ICT industry, and the other is to push for convergence between the ICT sector and other industries to build smart infrastructure that enhances efficiency in the overall economy and produces innovations.
As regards to promoting globalization by building an industrial ecosystem of co-existence and co-prosperity, SK Telecom will establish a Collaborative Innovation Center to serve as a marketing test bed and realize a Korea ICT Valley. It will also join hands with partners to enter overseas markets together with the aim to produce many global de-facto standards.
In addition, it plans to accelerate the process of going global by making full use of SK Group's global network of some 300 offices located in 42 countries.
In the area of consumers, SK Telecom aims to become a company that delivers happiness to customers through endless efforts to increase consumer benefits based on its leading and differentiated innovations.
To this end, the company will proactively meet consumers’ needs by developing measures to cut tariff, for instance, by launching a new concept of wireless internet tariff scheme; simplifying current tariff schemes to make them easier to understand; and providing tariff scheme and handsets specially developed for the disabled.
Furthermore, it plans to adopt Customer Experience Management (or CEM) to constantly deliver the best customer experience.
As proven by his announcement to create blue oceans in the global marketplace based on ICT, he is strongly determined to lead the globalization of Korea’s ICT industry and contribute to the recovery of economic crisis by creating another success story.
Meanwhile, Jung said that constant efforts will be made to build a growth culture while setting missions for future growth. He is thus emphasizing the need for a strong sense of unity among employees.
In fact, Jung held one-on-one interviews with all executives and workshops with executives and team leaders during the last three months. He stresses the importance of open communication, through which he believes the company can accumulate capabilities and overcome growth limits.
Jung also focused on instilling volunteer leadership among leaders and a sense of ownership among employees.
SK Telecom’s announcement of strategic direction for sustainable growth is expected to be followed by specific business strategies in both its domestic and overseas markets.
