Quantcast
Jump to content

LG CEO William Cho Shares Focus for the Future


News Reporter

Recommended Posts

In Year-End Address to Employees, CEO Stresses Shift to Future-Ready
Business Structure to Create New Value Recognized by Customers

LG-Logo_Standard_Basic_insert-600x289.jp

SEOUL, Dec. 23, 2022 — LG Electronics’ (LG) CEO William Cho outlined the company’s areas of focus for the future, building on the “successful changes” and “winning growth” of the past year, at his year-end address. The livestreamed discussion gave Cho the opportunity to connect with LG employees and communicate four strategic areas the company will focus on in 2023 to reshape into a future-oriented business structure.

To begin, Cho highlighted the importance of advancing LG’s business portfolio. “To increase corporate value, we need to accelerate qualitative growth and secure growth engines in areas with high potential,” Cho noted. “We will focus on maximizing the capabilities of existing businesses to strengthen the competitiveness of our core business while also rapidly fostering strategic businesses for the future.”

The CEO then continued by emphasizing the need to establish a customer-centered business operating system. “We need to produce tangible results through innovation that combines the customer experience and digital transformation,” Cho continued. “To strengthen our customer-centered mindset and improve the way we work, we aim to achieve innovative customer experiences that exceed expectations by setting clear mid- to long-term goals and roadmaps.”

Next, Cho cited the strengthening of the company’s future preparation capabilities. “We need to secure future technologies and strengthen software competitiveness through R&D, increase brand value as well as improve brand reputation, especially among the younger generation,” said Cho. “We also need to foster online businesses and intensify digital marketing to expand into the e-commerce business.”

He also noted uncertainties surrounding the business environment. To fundamentally reshape LG’s competitive edge and improve operational efficiency with the ability to preemptively respond to changes in business environment, the company recently organized a special taskforce. “We expect these measures will allow us to build a healthier corporate structure, enabling the company to constantly produce positive results and create new customer value by securing long-term competitiveness in terms of business advancement,” said Cho.

Cho asked everyone tuning in to consider what – and who – defines LG Electronics as a company. “Each and every one of us at LG is a ‘Value Creator’ for our customers. My hope is that everyone truly appreciates our customers and contemplates how we can provide them with more and better values by meeting, listening to and becoming them,” he continued. “It is because we know that the answer always lies with our customers that we keep looking deeper into their lives and gathering insights to deliver first, unique and new customer experiences.”

Cho ended his talk by reminding everyone at LG that the future will be determined by the way we think and act now, which is, ultimately, to prepare for the future. “We need to courageously go through the trials and difficulties that we inevitably encounter in our individual challenges with an optimistic attitude and positive mindset that we can definitely succeed, as we have done so far,” Cho concluded.

# # #

 

link hidden, please login to view

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Similar Topics

    • By News Reporter
      LG Singapore recently hit another important milestone with the opening of the LG Life’s Good Experience Zone. Officially launched in January in collaboration with leading Australian retailer Harvey Norman, this first-of-its-kind space showcases how LG’s latest smart products seamlessly integrate into, transform and revolutionize practically any space. Visitors to the zone can expect to be treated to a first-hand experience of the interconnected world LG’s innovations create.

      The celebrations began with a ribbon cutting ceremony where Gerald Chun, managing director at LG Singapore, and Bernice Kwok, chief operating officer at Harvey Norman Singapore, used golden scissors to officially open the space to the people of Singapore and the world.

      As part of the celebrations, a team of red lion dancers performed a captivating routine to bring good fortune and wealth to the new space. Afterwards, Gerald Chun and Bernice Kwok were presented with a pair of traditional blessings as a gesture of long-lasting prosperity.

      The special guests were then ushered through the showroom on a private tour conducted by LG Singapore’s insightful product team, giving them the very first look at the Life’s Good Experiential Zone and their first experience of how their lifestyle could evolve to the next level as LG’s appliances work in unison with the LG ThinQ app.

      “We are delighted to collaborate with Harvey Norman to introduce Singapore’s first-ever LG shop-in-shop experience zone, a significant milestone that demonstrates our commitment to innovating shopping experiences,” said Gerald Chun, managing director at LG Singapore. “As visitors witness the debut of various LG products in Singapore, our commitment to innovation is on full display. We invite everyone to join us on our journey to shape the future of home living.”

      Offering a sneak peek into the future of living, the LG Life’s Good Experience Zone invites you to witness the seamless integration of LG’s cutting-edge technologies. By exploring such harmonious synergy, visitors can discover a connected ecosystem where all products converge and are intelligently managed on the intuitive LG ThinQ app, inspiring them to envision their dream home that elevates daily convenience and quality of life.
      Contributed by LG Singapore

      link hidden, please login to view
    • By News Reporter
      Company’s Innovative Solutions Enable Customers Across Diverse Industries and
      Sectors to Create Seamless Digitalized Spaces That Engage and Inform

      SEOUL, Jan. 30, 2024 — LG Electronics (LG) is showcasing its advanced digital signage solutions at Integrated Systems Europe (ISE) 2024 in Barcelona, Spain, from January 30 to February 2. LG will unveil its comprehensive range of display solutions tailored to the needs of retail, corporate, education and hospitality, including its Micro LED, All-in-One LED, Transparent OLED and cloud management platforms.
      Inside ISE 2024’s largest booth, the LG MAGNIT lineup of micro LED displays are featured across several zones that demonstrate different usage scenes, including a digitalized control room, meeting space, luxury suite and virtual production studio. The company’s micro LED technology enables large-scale screens that can be tailored to meet customers’ specific demands and installation environments. In addition to outstanding picture quality with stunning color accuracy across a wide viewing angle, LG’s micro LED tech has undergone rigorous testing for surface flame spread and electromagnetic compatibility.
      Ideal for conference rooms, LG MAGNIT All-in-One features easy-to-access, front-mounted controls, integrated speakers and a controller for convenience and simplicity. LG’s Micro LED solutions for corporate control rooms boast large screens and continuous monitoring capabilities, while LG MAGNIT for virtual production studios delivers accurate image reproduction and compatibility with various filmmaking equipment. LG’s Micro LED displays for luxury suites leverage the α (Alpha) 9 AI processor to provide mesmerizing viewing experiences and content-optimized picture quality.
      LG’s 1,728-square-meter booth also presents ‘Kinetic LED’ for diverse settings such as shopping malls and airports. The striking installation comprises a kinetic screen measuring 3,670 x 6,100 millimeters and several large-size LED Fine Pitch (model LSBC019) displaying vibrant digital art that moves in sync with atmospheric music.
      The Luxury Suite offers exclusive cinematic viewing experiences with the 118-inch LG MAGNIT and 49-, 55- and 65-inch UHD signage solutions featuring new art gallery-inspired picture-frame bezels (offered in three elegant colors). With Apple AirPlay, guests can stream content to LG Hotel TVs, right from their iPhone or iPad, whether it’s to watch movies and shows from their favorite apps or share what’s on their Apple devices, including photos, personal videos, games and more. Guests simply scan a unique, on-screen QR code after checking in to privately and securely pair their iPhone or iPad directly to the TV in the room for the duration of their stay.
      The Corporate Zone highlights three LG MAGNIT displays: one perfect when filming CEO speeches or commercials, another that has a detachable power supply unit for use in control rooms, and the All-in-One model with embedded controller and speakers for meeting rooms. Also on show are the newly-introduced 21:9 aspect ratio, 171-inch LED All-in-One and 21:9, 105-inch LCD signage, which work well with widescreen video-conferencing platforms. These signages are also compatible with integrated solutions from LG’s partners to meet user-specific needs.
      In the Retail Zone, visitors can explore solutions that enhance the shopping experience and generate advertising revenue for store operators. LG’s various digital signage for retail boutiques, restaurants, bakeries and cafes include the 79-inch Stretch LED signage, ideal for showing brand content; Transparent OLED, which serves as a digital menu board; and LG Kiosk, which provides a convenient self-service option. The company is also illustrating the ease of selecting and playing in-store advertisements through LG DOOH Ads’ Programmatic AD feature, which optimizes advertising content according to customers.
      With its thin bezels, the new 55-inch modular Transparent OLED allows for an NxN-format ‘video wall’ installation that serves as an open partition while engaging shoppers. Also, LG’s double-sided LED-LCD signage (86-inch LED and 75-inch LCD) shows off the compelling possibilities for simultaneously delivering advertisements to in-store visitors and passersby. This space also demonstrates the space-efficiency and versatility of the 37-inch stretch, and 30- and 55-inch vertical Transparent OLED displays.
      The Education Zone features a digital classroom equipped with LG CreateBoard – interactive digital boards (55 to 86 inches). Educators can easily load classes through its web browser and give students access via QR codes. An excellent choice for university film programs, the integrated solution for virtual production includes LED screens for displaying digitally-rendered backgrounds, LG CreateBoard for writing and OLED displays for reviewing video footage.
      To enhance the customer experience, LG offers various cloud-based software solutions that facilitate the efficient management of its cutting-edge digital displays. The integrated LG Business Cloud platform lets users explore, subscribe to and manage the cloud solutions available for LG digital signage and commercial TVs. Visitors can also check out LG SuperSign Cloud, which enables content creation and distribution for digital signage, the hospitality-enhancing LG Pro:Centric Cloud and the LG ConnectedCare remote management solution.
      What’s more, LG unveils its commercial display security system, LG Shield, to respond to more sophisticated cyber threats emerging from AI. LG Shield operates under webOS to protect against security threats, safeguarding central servers, apps and operating systems. Its security performance completed a global common criteria evaluation and has been granted EAL 2 certification and ISO/IEC DIS 18974.
      “At ISE 2024, LG’s digital signage, cloud management platforms and collaborations with professional partners across diverse industries reveal an unmatched ability to deliver integrated solutions optimized for a wide variety of spaces,” said Paik Ki-mun, senior vice president and head of the Information Display business unit of LG Business Solutions Company. “We will continue to provide customer-focused smart life solutions that open up new and exciting ways to connect, engage and create.”
      LG’s latest digital signage solutions will be on display in Hall 3 (Stand 3K 100) of Fira Barcelona’s Gran Via conference center from January 30 to February 2. To learn more about LG’s digital signage solutions on show at ISE 2024, visit www.lg-informationdisplay.com/ise2024.
      # # #

      link hidden, please login to view
    • By News Reporter
      Company Empowers Young Talent in Europe
      to Reimagine HVAC for a Better Tomorrow

      SEOUL, Jan. 26, 2024 — LG Electronics (LG) announces that the grand finale of its first-ever heating, ventilation and air conditioning (HVAC)-themed student hackathon, Hack for Heat, will take place on January 26 at the LG office in Courbevoie, France. The groundbreaking event will see talented youth from across Europe competing in teams to help redefine the future of HVAC and create a better tomorrow for all.
      LG is a company that understands the importance of transitioning to low-carbon heating systems and is fully committed to supporting the EU’s Green Deal. In line with this commitment, LG offers efficient and sustainable HVAC solutions. As part of efforts to foster the next generation of HVAC innovators and help bring about positive change, LG organized the Hack for Heat hackathon, inviting students to apply their passion and unique ideas to three key challenges facing the HVAC industry:
      HACK HEAT FOR DESIGN: Redefining HVAC design to seamlessly integrate into urban landscapes, with a focus on aesthetics, size and cost. HACK HEAT FOR PLANET: Creating ‘zero carbon’ heat pump systems while addressing aspects of the supply chain. HACK HEAT FOR USERS: Crafting engaging educational content to connect with consumers and spread awareness about LG’s commitment to sustainable development solutions. The Hack for Heat grand finale will feature six teams representing Spain, Portugal, the U.K., Hungary and France. Each team will have the opportunity to present their projects to a jury comprising LG executives from various business units. The winning team will be rewarded with an all-expenses-paid trip to Seoul, South Korea, where they will have the chance to immerse themselves in the local culture, explore the city’s renowned landmarks and enjoy an exclusive tour of LG headquarters.
      Open to the public and media, the Hack for Heat finale will be held at Workstation, 25 Quai du Président Paul Doumer, Courbevoie, France, on January 26 from 8:30 to 15:30 (CET). Registration is required and can be completed on the event’s
      link hidden, please login to view. “Hack for Heat reveals LG’s strong commitment to innovation and firm belief in the power of young talent to shape the future of HVAC,” said James Lee, head of the Air Solution Business Unit at LG Electronics Home Appliance & Air Solution Company. “We are thrilled to welcome the unique ideas of these passionate, young innovators, and look forward to seeing how their contributions will transform the industry and make people’s lives better.”
      For more information about the event, visit .
      # # #

    • By News Reporter
      Company Outlines Direction and “Break Through Limits” Management Policy
      During Press Conference in Las Vegas

      LAS VEGAS, Jan. 10, 2024 — LG Electronics’ (LG) CEO William Cho and key company executives introduced the strategies LG is implementing to achieve its ‘Future Vision 2030’ goal, during a press conference held for Korean media in Las Vegas, Nevada, U.S.A., on January 10.
      The CEO began the proceedings by noting that LG had identified three major inflection points – electrification, servitization and digitalization – that will ultimately reshape business and the customer experience. The company aims to overcome challenges, such as persistent market and supply chain uncertainties, and accelerate growth by building a high-performance, results-oriented organization with a winning spirit.
      “If 2023 was the year in which we set the direction for new changes, we will make 2024 the year in which we truly accelerate these changes,” said CEO Cho. “Future Vision 2030 is our promise to the market and to our customers, and we will strive as a company to deliver on this promise.”
      Announced by the CEO last year, Future Vision 2030 is LG’s long-term goal to transform into ‘Smart Life Solution Company’ that can connect and expand the customer experience across various spaces, including home, commercial, mobility and virtual.
      Strengthening Future Competitiveness Through Investment
      CEO Cho set ‘Break through Limits’ as the key phrase for, and underlying philosophy of the company’s management policy in 2024. Having already established three focus areas for future growth – a non-hardware business model, B2B expansion and the development of new businesses – LG will now make an all-out effort to further refine its portfolio.
      To start with, the company will maximize the potential of its future growth engines by expanding investment based on the strategic priorities of the business. This year, the company will more than double its level of investment; putting USD 8 billion* into R&D and other critical areas to strengthen competitiveness, moving forward.
      High-growth and high-profit core businesses will also see larger investment in 2024. These include B2B businesses, such as vehicle components, HVAC, built-in appliances and digital signage, as well as the webOS platform business. LG will continue to invest in new businesses, such as electric vehicle (EV) charging and robotics, and has already announced plans to invest more than USD 40 billion* by 2030 to transform its portfolio for qualitative business growth.
      Furthermore, beginning this year, LG will actively seek inorganic growth opportunities, such as mergers, acquisitions and partnerships, in addition to adopting strategies designed to invigorate its internal growth engines. Emphasis will also be placed on game-changing areas of technology that add customer value, such as AI and mixed reality (MR).
      The CEO identified the newly established Overseas Sales and Marketing Company as a valuable asset for helping LG “break through limits.” Already playing an important role in LG’s global success, the new organization accounted for approximately two-thirds of the company’s total sales. The Overseas Sales and Marketing Company implements specialized strategies that take into consideration the unique characteristics of each region and market. Its efforts have maximized the performance of the business, worldwide, and have played a significant role in strengthening the capabilities and growth of LG’s international subsidiaries.
      Achieving ‘Triple Seven’ Goals for Growth, Profit and Value
      With platform-based service businesses, the B2B business and new businesses as its three, main growth engines, the company aims to reach its goal of ‘Triple Seven’: an average growth rate and operating profit of seven percent or more, as well as enterprise value that translates to an EBITDA ratio of seven.
      Last year, despite a decline in market demand, the company performed impressively thanks to the growth of its B2B business. Over the past five years, the compound annual growth rate of LG’s B2B businesses has easily exceeded double digits, with the average annual growth rate of overall sales reaching around eight percent.
      The Vehicle component Solutions (VS) Company has likewise emerged as a key business for LG, achieving annual sales of USD 8 billion* in its 10th year of existence. The global transition to EVs is expected to increase the demand for high-value EV parts, one of the VS Company’s core areas of expertise.
      Based on the three pillars of in-vehicle infotainment (IVI), e-powertrains and vehicular lamps, the VS Company is projected to enjoy continuous, rapid growth. From 2024, it will focus primarily on securing software-defined vehicle capabilities, expanding its EV parts customer-base, and strengthening its leadership in smart lamps. To respond to the increasing number of new orders, the company will invest in boosting production capacity in Central America, South America and Europe.
      The HVAC business, another important part of LG’s B2B portfolio, is growing quickly in emerging markets such as Asia and Central and South America, while in advanced markets, including Europe and North America – where demand for high-efficiency, eco-friendly products is strong – it continues to uncover new opportunities.
      LG’s HVAC business aims to leverage the competitiveness of its technologically advanced components, such as motors and compressors, to expand its product lineup. After establishing a consortium for advanced heat pump research in Alaska, U.S.A., last November, LG plans to build an R&D base in Europe this year. The company also intends to broaden its business with the introduction of differentiated air conditioning products, such as the Dedicated Outdoor Air System.
      Recognizing that B2B companies are impacted less directly by the economy than B2C companies, LG is actively bolstering its B2B business as a means to maintain sales and profit stability. The company has announced plans for the expansion of its B2B businesses, and is seeking to raise sales volume to more than USD 32 billion* (double the current level) by 2030 through launching a variety of new, value-added solutions.
      LG will also fast-track the evolution of its overall business model, entering non-hardware areas, such as content, services and subscriptions, to complement its existing product-centric home appliance and TV companies. Leveraging the hundreds of millions of LG products already in use around the world as ‘platforms,’ the company expects to generate continuous sales and profits.
      In line with this shift in business direction, the Home Entertainment (HE) Company aims to become a media and entertainment platform company and accelerate the growth of its webOS platform business. The HE Company is rapidly reinforcing the foundations of its platform business by expanding the webOS ecosystem to include smart monitors, IVI systems, and other TV makers. LG expects the webOS platform business to become one of the most potential growth engines  in the near future.
      The Home Appliance and Air Solution (H&A) Company, whose success is playing a preeminent role in supporting LG’s organization-wide transformation, is also developing a smart home solution business that combines services and subscriptions. The H&A Company’s ultimate goal is to deliver on its ‘Zero Labor Home, Makes Quality Time’ vision, which goes beyond home appliances to make homelife smarter and more convenient than ever.
      The subscription business, encompassing ‘daily’ services that augment LG’s home appliance products, has been growing at a fast pace in South Korea. The overseas expansion of the subscription business is underway, with strategic markets in Asia the first outside of Korea to experience its many benefits.
      The percentage of LG’s total sales accounted for by its non-hardware businesses – such as the webOS platform-based content and service business, and the home appliance subscription business – has more than doubled over the past five years.
      Additionally, LG will aggressively promote the commercialization of intangible assets, such as its standard essential patents in critical areas of technology including communications, media, mobility and IoT connectivity. And, during its recent reorganization, the company established new business entities to commercialize its know-how in the construction of smart factories.
      Moreover, LG will secure growth opportunities offering high potential and a high degree of business synergy. As a prime example, the LG NOVA will increase its startup promotion fund to more than USD 100 million by the end of 2024, enabling the company to help discover new technologies and solutions to drive future innovation, and to lead new business segments.
      LG’s recently created EV charging business is emerging as a comprehensive EV charging solutions provider, boasting advanced charging units and control solutions, remote diagnosis and servicing capabilities, as well as vehicle battery diagnosis and robust manufacturing and sales infrastructure. Entering the North American market, the company has completed the construction of a charger production line in Fort Worth, Texas, U.S.A.
      In the digital healthcare segment, the company is expanding its telemedicine business in cooperation with Amwell, and will also review the viability of offering services in areas such as prevention, diagnosis, post-management and recovery. In virtual reality, another promising business area, LG is preparing for the commercialization of MR devices. At the end of 2023, the company established an eXtended Reality business unit within the HE Company, and is continuing to collaborate on augmented reality solutions with various technology partners.
      In addition, the company’s Chief Technology Office (CTO), which leads the development of future technologies, is conducting intensive R&D programs to strengthen business competitiveness and discover new core technologies. In particular, the CTO is focusing on eight areas of technology: software, system on chip, AI, robotics, materials and parts, standards, next-generation computing and cloud/data.
      Accelerating DX Through Data-Driven Practices and Next-Gen ERP Investment
      Through digital transformation (DX), LG will provide customers with F.U.N. – First, Unique and New – experiences, and further enhance its customer-centric management system.
      The company is making large-scale IT investments to establish DX across the entire organization. On top of this, LG is building N-ERP, or Next-generation Enterprise Resource Planning, to seamlessly integrate and link the company’s business processes and systems. Intellytics Customer 360, a customer data platform that enables integrated management of data gathered from diverse customer contact points, will be rolled out globally from this year.
      LG’s DX efforts extend beyond the innovation of the customer experience to the improvement of value chain efficiency; from purchasing and manufacturing to delivery and sales. Last year, by applying DX to each value chain, LG raised productivity and efficiency to the value of more than USD 240 million.*
      Transforming Into a High-Performing Organization and Spreading ‘Life’s Good’ Values and Philosophy
      When speaking with employees, CEO Cho often quotes noted American management scholar, Peter Drucker: “Culture eats strategy for breakfast.” The CEO truly believes that a strong organizational culture is essential to turning strategy into good performance.
      During his ‘CEO F.U.N. Talk’ with employees last December, Mr. Cho outlined the company’s vision for 2024, which includes becoming a high-performing organization. He stated that, “To accomplish this, we need to intricately connect our mission, vision and goals, and have a relentless focus on execution.”
      United under the brand promise of Life’s Good, a variety of integrated brand activities, spanning marketing, ESG and CSR, will be initiated starting this year. The company will spread the values and philosophy that underpin Life’s Good with the spirit of a brave optimist, while also infusing the brand with a youthful dynamism. A self-professed ‘brave optimist,’ LG is an innovator that daringly faces difficulties, believes in pursuing opportunities for improvement, even during tough times, and finds solutions by listening and paying attention to its customers and the market.
      Visitors can experience LG’s latest innovations at its CES booth (#16008, Las Vegas Convention Center) from January 9-12. For more information on LG products unveiled at CES 2024, please view the
      link hidden, please login to view. # # #
      * Exchange rate: KRW 1,250 per USD.

×
×
  • Create New...