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Samsung: The Internet of Things

Paul Okundaye; Nicole R.D. Haggerty

Product #:9B19E020_P
Supplier:Ivey
Discipline:Information Systems, International Business
Setting:South Korea, 2016
Details:Case (PDF) • 11 pages • 2019-09-13

Subjects:

InnovationInvestment managementFinance and investingTechnology and analyticsBusiness managementInformation systemsInternational business

Industries:

Information technology and telecom sector

Geography:

South KoreaAsia
Your Price:$10.54

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In 2014, the Internet of things (IoT) was still considered in its infancy stage. Over the next two years, the IoT matured and represented a considerable amount of uncertainty for the entire electronics industry. In 2016, the industry was at an inflection point regarding the technology, and its largest competitors had to make a choice: risk investing in research and development for a potential return (or failure), or stay the course and let competitors assume the risk. The chief executive officer of Samsung Electronics Co. Ltd. (Samsung), Boo-Keun Yoon, was in a position to take a stand in regard to the IoT and invest US$1.2 billion, which could have a major impact on the company’s future. It was up to Yoon to decide.

Learning Objectives

This case is suitable for business technology courses at the undergraduate- and graduate-level. The case can be used in a variety of topics related to the market entry of new or emerging technologies and the disruption in an industry caused by a new technology. Specifically, the case is suitable for discussions on a major global business deciding whether to adopt IoT technology as well as the dilemma of whether to increase or lower research and development investment in a new technology. After working through the case and assignment questions, students will be able to do the following:
  • Analyze the reasoning required when making new research and development investments as a technology company.
  • Recognize the complexities that exist for a giant industry incumbent trying to innovate and compete with smaller, nimbler start-ups.
  • Understand the IoT and what large-scale implications it represents for consumers and businesses.
  • Analyze how and why technology firms try to employ platform strategies.
  • Understand and apply the concepts behind “escalation of commitment” and the “sunk cost fallacy”—two major issues in the technology industry.
  • Analyze the technology industry and its inherent fast-paced competitive dynamics.
  • Identify and recognize the issues that arise when trying to develop a new technology as a business in an increasingly technologically dependent world.
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Case Study: Samsung: The Internet of Things | Ivey Publishing