Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Samsung, Hyundai, LG urged to be 'software-centric'
Electronics and Telecommunications Research Institute (ETRI) President Kim Myung-joon, third from right, poses with researchers at the Consumer Electronics Show in Las Vegas, Thursday (KST). / Korea Times photo by Baek Byung-yeul
By Baek Byung-yeul
By Baek Byung-yeul
LAS VEGAS ― Korea's top companies ― Samsung Electronics, Hyundai Motor and LG Electronics ― must become more “software-centric” and break from their traditional “hardware-centric” structure to become leading industry players, the chief of the country's top electronics research institute said Thursday (KST).
“Samsung, Hyundai and LG are still stuck in a hardware-centric business mindset. They need to be manufacturing-minded. Otherwise, this makes them industry followers, not leaders,” Electronics and Telecommunications Research Institute (ETRI) President Kim Myung-joon told The Korea Times on the sidelines of the Consumer Electronics Show (CES).
“I fully understand how hard transforming their business model is and why they are still persisting in taking the lead in hardware systems. For instance, my university alumni who works for Hyundai Motor always dreamt of developing an automobile engine that could compete against the world's leading carmakers,” he said.
“It was like that back then, but now it is different. To become a leading player, they are required to have a more software-minded business structure.”
Sony's Vision-S concept electric car is displayed at the firm's booth at the Consumer Electronics Show in Las Vegas, Thursday (KST). / Korea Times photo by Baek Byung-yeul
Kim called on the Korean heavyweights to follow Sony's lead, which made a huge splash at this year's CES with its Vision-S concept electric car. Though Sony revealed that it doesn't plan to mass produce the vehicle, the prototype, which is loaded with 33 sensors, 360-degree in-car audio, displays for in-car entertainment and always-on connectivity technology was enough to wow visitors.
“In my view, Sony is the winner of this year's CES. The Japanese company succeeded in drawing attention with its concept car that fully utilizes its hardware and software technologies. I was impressed with the concept model but at the back of mind I felt very bitter because it should have been Samsung, Hyundai or LG, not Sony,” he said.
The president said Sony “seemed to find a balance somewhere in between software-centric and hardware-centric in its management.”
“With all its hardware technology for electric vehicles, Sony is also able to utilize its software technology in the car. Imagine playing a PlayStation video game or watching streaming video content inside the car. The company succeeded in reminding the industry that the important thing about electric vehicles is what we can do inside the car, not just its performance,” he said.
The president did recognize Korean companies' efforts to make progress.
“They are slow but they are making progress in changing their business structures. Samsung is fully committed to bring on board A.I. gurus. LG, which had been led by hardware engineers, started to place a high value on software engineers, starting a few years ago. For Hyundai, its new leader, who is entrepreneurial, is trying to transform the automaker to agilely respond to the changing industry,” Kim said.
However, Kim said he “hadn't found find any jaw-dropping technologies at this year's show.”
“The technologies many big companies showcased at this year's event are things we saw three years ago. However, I could feel that artificial intelligence (AI) and mobility technologies are maturing,” he said.
The president wrapped up the interview by saying he needed to visit another exhibition hall that had caught his curiosity.
“I am on my way to visit the startups exhibition. I am wondering what kinds of technologies startups from Europe have brought to the CES,” he said. “Especially, I am looking forward to see what French companies have exhibited. As they had a sense of being edged out by the world's No. 1 and No.2 economies _ the U.S. and China _ France has been aggressively trying to foster startups specializing in emerging technologies needed for the Fourth Industrial Revolution.”