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Saudi Electronic University
College of Administrative and Financial Sciences
E-commerce Department
Student Name:
Student ID:
Course Title: Management Information Course Code: MIS201
System
Academic Year/ Semester:
CRN:
Instructor Name:
Student Grade:
Grade Level:
Low/ Middle / High
1
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment of MIS201- Management Information System
MIS201 – Project
Summer Semester 2022
Assignment Details
The project involves studying the IT infrastructure of a relevant information system (IS)/
information technology (IT) used by selecting any organization of your choice locally or
internationally.
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Table of Contents
Executive Summary……………………………………………………………………………..4
Organizational Profile……………………………………………………………………………4
Strategies…………………………………………………………………………………………5
Technology Involved……………………………………………………………………………6
Data Management……………………………………………………………………………….6
Stakeholders……………………………………………………………………………………..7
Conclusion……………………………………………………………………………………….8
References ……………………………………………………………………………………….9
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Executive Summary
This report is a study of the IT infrastructure of the IT systems used by Samsung
Electronics Co., Ltd. Samsung uses an information system to manage its daily operations, hand;e
supplies, store data, and relate with its customers. The report explores the main IT components of
the information system used by Samsung, including the hardware, software, data management,
networking, and services. It is important to understand the IT infrastructure an organization uses
to understand its operations. The report also includes the company profile, technology, and
strategies used to achieve competitive advantage. The final part of the report discusses the
stakeholders involved, including the suppliers and the staff operating the system.
Organizational Profile
Samsung is a South Korean multinational company specializing in electronic device
manufacturing. This company was founded in 1938 as a small company that sold noodles and
fried fish (Zhou, 2020). In the late 1960s, it ventured into the electronics industry and became
one of the most successful companies. The first electronic product manufactured by this
company was the black and white television. Over the years, the company opened more facilities
in England, the United States, Japan, and Portugal. Today, it manufactures smartphones,
semiconductors, memory chips, televisions, and integrated systems. The organizational purpose
of Samsung was to devote its technology and talents to developing superior products to
contribute to a better global society. Therefore, the company placed a high value on its people
and technology. Over the years, the company has remained committed to its purpose, leading to
the conferment of different awards and recognitions.
The organizational structure employed by Samsung is a product-type divisional structure.
This structure involves the creation of self-contained divisions within the organization and
assigning tasks to employees according to the products or services they produce (Fairfield,
2016). Samsung uses this structure to determine which resources and operations belong to each
division. The entire organizational structure is unified through the company’s headquarters based
in Seoul. Some divisions include the consumer electronics division based in the United States,
the device solutions division, and the IT and mobile communication division. Therefore, each
division utilizes the allocated resources to produce specific products, but all the divisions are
jointly managed from the headquarters. Additionally, the divisions are located in different
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countries or different locations in South Korea. Each division specializes in the manufacture of a
specific type of product.
Strategies
Strategies for competitive advantage used by Samsung include new product development,
utilization of the market opportunities, branding, and pricing mechanisms. Samsung ensures that
it continuously develops new products to maintain a competitive advantage. Considering that it
faces stiff competition from Tecno, Huawei, and Apple, it has to ensure that it remains ahead in
the market by offering new products. This strategy is supported by its numerous R&D centers
spread across the world. In all these R&D centers, the staff continuously research and develop
new products. R& D and innovation keep the business sustainable because new products are
developed regularly (Mohnen, 2019). This company invests heavily in R&D and innovation
because these strategies have proven effective in maintaining a competitive advantage. Samsung
spends at least $15 billion annually on R&D and related activities (Kim et al., 2019). Due to the
advantage of R&D, Samsung has about 16 R&D centers scattered across 14 countries. They also
have AI-dedicated centers that also contribute to product development.
Additionally, they constantly look for market gaps and utilize those opportunities. They
develop new electronic devices and offer new services to fill the market gaps. Opportunities exist
in offices, homes, or any other place that may require electronic devices. Whenever there is an
opportunity, they develop new products to fill market gaps. Another strategy Samsung utilizes is
strong branding to ensure that its products are distinct in the market. They focus on producing
high-quality and customer-centric products to maintain their customer base. As a result, they
earn a good reputation and customer loyalty. Samsung also has a flexible pricing system where it
offers products in all markets. It has products for low-end, middle, and high-end markets.
Therefore, its products are popular with customers of all statuses, making it one of the largest
companies in the world in terms of revenue.
Besides, Samsung has adopted several strategies that are most effective in improving its
performance. These strategies include heavy investment in technical innovation, marketing
campaigns, and product development and design. Samsung understands that having the right
technology does not guarantee market success. Therefore, they have focused on product designs
to ensure their products are acceptable in the market. They focus on the quality of the products,
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the location of the various features, and the styling. As a result, they produce product designs
that appeal to their customers. They also invest heaving in technical innovation through the R&D
centers. Designers and engineers spent their time developing new products and designs in those
centers. Finally, Samsung initiated a robust marketing campaign to sell its brand and improve its
sales. Today, Samsung is a local brand in most homesteads due to these branded campaigns held
all the time.
Technology Involved
The setup in this organization is based on its IT infrastructure. The hardware component
of the IT infrastructure at Samsung includes the computers and robots that are slowly being
introduced to replace human labor. However, this hardware component is run by the software
component comprising several information system programs. The software used by Samsung are
mainly supplied by other companies such as Google because Samsung is mainly a hardware
manufacturing company. The main software used in Samsung devices is Android, but some
devices use Tizen. On the other hand, this company’s telecommunication services are offered
using mobile networks that offer 2G, 3G, 4G, and 5G networks. This company has majorly
focused on telecommunication devices that enable communication irrespective of geographical
location.
Considering that Samsung uses an information technology system in its operations and
devices, it must provide proper security measures. Information safety is maintained at Samsung
using strategies such as encryption technologies to protect the data. These security strategies are
meant to protect the company’s IT infrastructure and devices against cyber security threats.
Besides, Samsung devices are compatible with different mobile, office, and home networks.
They also provide private network services to their clients. Another major feature of Samsung’s
IT infrastructure is its system integration component. This component integrates the physical and
virtual components of the IT infrastructure. Samsung has invested in the internet of things
technology which applies this component of the integration of the physical and virtual
components using artificial intelligence. Therefore, Samsung widely uses AI in its IT
infrastructure.
Data Management
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A large company like Samsung generates large volumes of data that need to be managed
and stored appropriately. Some of the methods used by Samsung to manage and process data
include customer relationship management (CRM), supply chain management, and operations
data management systems. The data from customers and their behaviors are managed using the
CRM system. This system gathers customer data such as contact information, quotes, service
requests, purchases, and interactions with Samsung representatives. Then the data is stored and
processed to identify the customer behaviors and purchasing patterns. With such data, Samsung
can easily adjust its operations depending on customers’ needs. On the other hand, the SCM
system is used to manage the flow of goods, supplies, finances, and data related to the supply
chain. The data is collected and stored in this system before processing. The processed data can
show how the supply chain is performing and suggest possible areas of improvement. Besides,
the organization’s daily operations are managed by the N-ERP system. This system is the newest
version of the Global ERP (G-ERP) system used by most companies worldwide. It involves
resource planning features and workflow coordination to ensure efficiency in operations. The
data management strategies employed to manage data in the company are integrated with the
company’s operating system to coordinate all the activities from a single source.
Samsung also utilizes cloud storage technology where data is stored in a cloud space. The
cloud space used by Samsung is the Samsung cloud. Samsung device users can store their data
on the Samsung cloud and retrieve it anytime. On its part, Samsung Company has a database for
storing data generated in the company. For instance, data on supply chain management is stored
in this database. Initially, Samsung was using an on-premise database from Oracle. However, it
migrated its database to the cloud-based Aurora from Amazon Web Service (AWS). This cloudbased database enables Samsung to store all its data, including the data from its device users.
Therefore, Samsung relies on cloud technology for its data management needs today.
Stakeholders
The information system adopted by Samsung affects the stakeholders, groups, and
departments within the company. The main stakeholders involved in this organization’s
information system are the staff and the suppliers. The staff comprises clerical workers,
supervisors, and project managers. All these workers use the information system to manage their
operations. Therefore, they need technical knowledge of how these systems work. They input
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information, process transactions, and communicate through the information system. This means
that their daily operations are affected by the effectiveness of the information system.
Additionally, departments within the company are affected by the information system used. For
instance, a failure in the system of one department that specializes in the manufacture of
microchips that another department needs will affect operations in the other department.
Samsung has numerous suppliers who also rely on its supply chain management system
to process their deliveries. These suppliers include companies that supply electrode plates and
assembled materials. Considering that Samsung uses the supply chain management (SCM)
system to manage its supply chain, a failure in the system would affect the supplies. The
suppliers would be affected because they would be forced to supply depending on the efficiency
of Samsung’s information system dealing with supply management. Therefore, Samsung
suppliers have to rely on the information systems used by the company, and their operations are
affected when the systems fail. However, Samsung ensures that its supply chain management
process is competitive, cost-effective, and efficient.
Conclusion
Samsung Company specializes in the manufacture of electronics. As a technology
company, it has its IT infrastructure, which includes the hardware, software, networks,
telecommunication, and information security components. It also manages and stores large
volumes of data using a large cloud-based database from Amazon Web Service. The major
stakeholders in this company include the information system users and the suppliers. The system
users are the staff members such as clerical workers and project managers. These stakeholders
are affected by the information systems used at Samsung because their daily operations are based
on the efficiency of the systems.
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References
Fairfield, K. D. (2016). Understanding functional and divisional organizational structure: A
classroom exercise. Management Teaching Review, 1(4), 242-251.
Kim, J. H., Chun, M. Y. S., Nhung, D. T. H., & Lee, J. (2019). The transition of Samsung
electronics through its M&A with Harman international. Journal of Open Innovation:
Technology, Market, and Complexity, 5(3), 51.
Mohnen, P. (2019). R&D, innovation and productivity. The Palgrave handbook of economic
performance analysis, 97-122.
Zhou,
Y.
(2020).
The
Samsung
story.
Nature
Electronics,
3,
234.
https://doi.org/10.1038/s41928-020-0418-8
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Saudi Electronic University
College of Administrative and Financial Sciences
E-commerce Department
Student Name:
Student ID:
Course Title: Management Information Course Code: MIS201
System
Academic Year/ Semester:
CRN:
Instructor Name:
Student Grade:
Grade Level:
Low/ Middle / High
1
Saudi Electronic University
College of Administrative and Financial Sciences
Assignment of MIS201- Management Information System
MIS201 – Project
Summer Semester 2022
Submission
Part 1
Part 2
Part 3
Submission: week 3 Sunday 17/07/2022
End of week 5 Saturday 6/08/2022
Instructors will manage the date and time for presentation during week 6
40 Marks
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1. Key problems of the existing system used by Samsung
Samsung Electronics Co., Ltd uses an information system to manage its workflow and
operations, store data, manage supplies, and relate with the customers. The company exclusively
uses technology to manage its data and run its operations since it is a technology company.
Additionally, it has multiple branches worldwide, and they need to be monitored from a
centralized location. This explains why the company uses information systems to manage its
operations and processes. The information systems used by Samsung have several components,
including Enterprise Resource Planning (ERP) Systems, Supply Chain Management (SCM)
system, and Customer Relationship Management system (CRM). An ERP system is used to
manage the organization’s day-to-day operations (Bhumgara & Sayyed, 2017). Businesses use
ERP systems to improve efficiency by improving resource management and utilization. With
Samsung being a large company with multiple resources ranging from human, physical, and
financial resources, the use of an ERP system helps improve its organizational efficiency.
Additionally, the company uses an SCM system to coordinate the flow of supplies, finances, and
supply-related data (Fore et al., 2016). This system helps the organization manage the supply
chain operations from procurement to the delivery of products to the final destination. An
advanced SCM system helps the business coordinate all the components and processes of the
supply chain (Fore et al., 2016). As a result, the supply is managed from a central location to
improve efficiency. On the other hand, the CRM system is used to manage the company’s
interactions and relationships with the customers. The CRM system used by Samsung collects
and stores customer data, facilitates communication with customers, and allows customers to
give feedback.
However, the existing information systems used by Samsung face some challenges that
limit their effectiveness. Some of the key problems of the existing systems at Samsung include
growing cyber security risks and threats and reliance on other companies for the software
components. Cyber security threats are on the rise, and Samsung’s information system
infrastructure is at risk of attack (Bendovschi, 2015). As a result, the company is forced to spend
huge sums of money to purchase security systems to protect its information systems. The
customer data collected and stored by Samsung may be illegally accessed by third parties
through hacking and cyber-attacks. Therefore, they also risk breaching the customers’ right to
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privacy. Samsung focuses on hardware development and relies on other companies to supply the
software. Therefore, the company may not dictate how the systems are developed and may only
work with what is available in the market. As a result, the employees may face challenges using
systems other companies have developed. These problems threaten the effectiveness and success
of the company’s information systems.
2. System Evaluation
One of the widely used systems at Samsung is the customer relationship management
system. Samsung adopted the CRM system in 2003 to align its integrated marketing campaigns
with the global trends where customers are prioritized in marketing (Varma & Ravi, 2017). The
impact of this system on the company can only be classified as a success story. The system has
successfully revolutionized customer management at Samsung. The system requires users to
create their accounts on the company’s website. Additionally, the company made it easy for
customers to log in to their accounts by integrating social login features from social media
platforms like Facebook. Customers can register their devices, give feedback, and ask the
Samsung customer service representatives questions. Since this system was implemented,
millions of Samsung customers have created their accounts and managed to have their issues
sorted through the system. A 2020 American Customer Satisfaction Index report shows that
American customers are more satisfied with Samsung than Apple (Lennigham, 2021). They cited
reasons such as good customer service at Samsung. Other customers indicated their satisfaction
with the Samsung devices such as Galaxy Note 10+ and Galaxy S10+. With a good reputation
for producing high-quality products and handling its customers well, it is easy to see why
Samsung customers are satisfied with the company. The company has managed to use the CRM
system to improve its customer handling and build stronger relationships with the customers.
Therefore, by introducing the CRM system, Samsung has managed its customer relationships
better, and most customers are satisfied with their services. Stronger customer relationships pay
off because the brand benefits from customer loyalty and increased sales.
3. Suggestions for the company
The company’s main problem is cyber security risks that can disrupt its operations. In the
information age, the dynamics of cyber-attacks have changed as new threats are reported every
day (Bendovschi, 2015). Samsung faces security threats such as hacking and unauthorized access
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of the customer’s devices and the company’s information systems by malicious individuals.
Recently, Samsung warned its customers who use Galaxy S8 to S21 smartphones to be vigilant
to avoid cyber-attacks. Additionally, the company has recorded past incidences where
unauthorized persons accessed customers’ devices. Besides, the company’s information systems
and storage systems could be attacked by hackers. As a result of these security risks and threats,
an integrated security management system can be used to solve the company’s main problems.
This new system will ensure that its information systems, cloud storage, and the customers’
devices are secure. This system will have advanced security features such as data encryption,
surveillance and detection, and a reporting procedure. The system will automatically detect
threats to the company’s systems and raise the alarm. Additionally, device users and company
employees can report suspicious incidents through the system. Finally, it will introduce
encryption technology to protect the data and the customers’ devices. Considering that Samsung
is a big company with a high-value infrastructure and millions of customers, it has to invest
heavily in the security of its information systems and its customers. Therefore, the adoption of an
integrated security management system that will provide security to all the company’s assets and
customer devices will help solve the problem of cyber-attacks.
4. Conclusion
Samsung is a multinational company that specializes in the manufacturing of electronics.
Over the years, the company has become one of the biggest companies in terms of revenue.
Being a technology company, Samsung has invested heavily in information systems. Currently,
the company has several information systems that help in operations management, supply
management, customer relationships, and resources management. The company has to rely on
operation systems to streamline operations in all its subsidiaries spread across the world.
Therefore, each information system used by Samsung has its specific function. For instance,
Samsung adopted customer relationship management systems to manage customer interactions,
supply management systems to manage the supply chain process, and enterprise resource
planning systems to manage all the resources at the company. These systems have improved the
organizational efficiency at Samsung and made the company become the customers’ favorite
worldwide. The CRM system used by Samsung has made American customers happier, and they
now prefer Samsung over Apple based on customer satisfaction. However, Samsung still faces
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the threat of cyber-attacks. Therefore, it needs to adopt an integrated security management
system to solve this problem. This system will offer comprehensive security to the company’s IT
infrastructure, assets, and customers’ devices.
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References
Bendovschi, A. (2015). Cyber-attacks–trends, patterns and security countermeasures. Procedia
Economics and Finance, 28, 24-31.
Bhumgara, A., & Sayyed, I. (2017). Enterprise resource planning systems. International Journal
of Advances in Engineering & Technology, 10(2), 283.
Fore, V., Khanna, A., Tomar, R., & Mishra, A. (2016, November). Intelligent supply chain
management system. In 2016 International Conference on Advances in Computing and
Communication Engineering (ICACCE) (pp. 296-302). IEEE.
Lennigham, M. (2021). US Customers Happier with Samsung than Apple. Telecoms.com.

US consumers happier with Samsung than Apple

Varma, G., & Ravi, J. (2017). Six Sigma in electronics company: A case study on
Samsung. International Journal of Research in Management Studies, 2(5), 12-25.
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