• Journal of the Korean association of regional geographers
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• v.7 no.2
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• pp.17-34
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• 2001

This paper is to analyze how firms in a large firm-led industrial city have carried out the restructuring in the face of radical shifts, with focus on the strategy and the restructuring of firms in Ulsan, a typical industrial district in Korea that is specialized in heavy & chemical industry. It has been well known that the local economy has been led by a small number of large firms, including affiliates of chaebol, and its industrial structure has also been characterised as a clear dichotomy between large firms as a customer and small and medium-size firms as a supplier, which can be called not horizontal but vertical relations. It can identify some tendencies, however, that local companies have been rather dynamically changing in response to increasingly turbulent environment since the Asian crisis. Some are radical, but some incremental. These can be summarized in four distinctive but interlinked ways. First, more than half of local companies surveyed have attempted to change their production systems, mainly from the fordist mass production towards the flexible mass production, seeking both economies of scale and scope. Second, local firms have vigorously continued to reorganize the boundary of the production and the organization, by specializing products and focusing on the core competence in order to save costs and cope with radically changing customer demands in a flexible way. Third, there have been various strategies for the organizational innovation such as the introduction of team organization, the boundary blurring between the managerial and production workers and the intra-firm spin-offs, so as to improve managerial efficiency and competence in the use of internal labour market. Finally, they have tried to be more sensitive to the market and customers. These tendencies seem to be increasingly critical to sustain their competitiveness. To do so, they tend to focus increasingly not only on the competing via the product quality rather than through price, but also to seek to diversify the market and customer firms beyond national boundary.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.24 no.69
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• pp.23-35
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• 2001

This paper attempts to identify the relationship between the business model and its financial performance through the construct of business paradigm, fit which may be defined as the congruence between the customer needs (the demand side) and the firm competence( supply side) to meet them, Each business model\`s business paradigm fit reflects how well the technology that business model has taken is interconnected with market. Basically, the business paradigm fit consists of two parts, product fit dealing with the product(s) to meet the customer needs well and process fit focusing on producing and/or providing that product(s) at the lowest costs. For empirical tasting the business paradigm fit matrix and the measures for them were developed and the data about 73 companies as sample were collects with questionnaires. The findings are: First business paradigm fit can be used as a strong empirical indicator for the firm performance, Second. balance fit in product or process gives to the most desirable outcomes and no fit brings about the worst ones. Third the over fit(the case of doing more excessive innovative efforts than to be needed) shows much better outcomes than the under fit(the case of doing less innovative efforts) Fourth, this paper shows where, in what situation, and what type of innovation has to be taken for firm success at firm level, whereas Schumpeter(1934) already indicated the importance of innovation for economic growth at the economy /industry level. However, further study should be done later with more refined measures and expanded sample data.

• Knowledge Management Research
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• v.21 no.1
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• pp.175-195
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• 2020

The development of platform service based on the information and communication technology has revolutionized patterns of commercial transactions, driving the growth of global economy. Furthermore, the radical advancement of artificial intelligence(AI) presents the huge potential to innovate almost all the industrial and economic activities. Given these technological developments, the goal of this paper is to investigate AI's impact on the platform service innovation as well as its influence on the business performance. For the goal, this paper presents the review of the types of service innovation, the nature of platform services, and technological characteristics of leading AI technologies, such as chatbot and recommendation system. As an empirical study, this paper performs a multiple case study of Kakao Group which is the leading mobile platform service with the most advanced AI in Korea. To understand the role and effect of AI on Kakao platform service, this study investigated three cases, including chatbot agent of Kakao Bank, Smart Call service of Kakao Taxi, and music recommendation system of Kakao Mellon. The analysis results of the case study show that AI initiated innovations in platform service concepts, service delivery, and customer interface, all of which lead to a significant decrease in the transaction costs and the personalization of services. Finally, for the successful development of AI, this research emphasizes the significance of the accumulation of customer and operational data, the AI human capital, and the design of R&D organization.

• IE interfaces
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• v.17 no.spc
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• pp.122-130
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• 2004

Since the cost of software maintenance occupies about 50~75% in a general successful organization, the software maintenance plays an important role in software life cycle. In particular, if the managed system needs to be operated in a long term or the system is very large and complex, then the maintenance is especially more important. Software maintenance is defined as software modification activities after customer delivery, such as improvement of performance or functionality, error correction, adaptation to environmental changes, etc. In this paper, software cost estimation models are proposed, that is based on productivity of manpower in maintenance projects. In order to do this, the activities of maintenance are classified into function change, non-function change, user support and application operation. The proposed models are constructed and verified based on the real size and cost information of projects in the real world. The approach in this paper is to discriminate the heterogeneous activities in maintenance projects, and then to calculate the respective cost of each discriminated activity. By using the proposed models, the total cost of maintenance project is summed from the costs of four activities. In addition the number of conflicts between owner and order receiver about the amount of cost will be reduced and the reasonable cost estimation system will be established.

• Journal of Korea Society of Industrial Information Systems
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• v.7 no.2
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• pp.54-67
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• 2002

EC(Electronic Commerce) provides much easier access to visual and audio type data for customer. That capability of EC enabled companies to use new internet-based market campaigns and product sales. EC system is becoming an inevitable element for company. However developing actual EC system is not an easy task. It is mainly due to the early stage large development costs. Considering the above importance of EC and developmental issues on EC, this study is intended to figure out EC managerial success factors and analyze the current status of Korean EC market, We believe that the study results could provide the non concrete practical implications for future Korean EC market growth.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 1999.04a
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• pp.426-426
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• 1999

;There are many sources of uncertainty in a typical production and inventory system. There is uncertainty as to how many items customers will demand during the next day, week, month, or year. There is uncertainty about delivery times of the product. Uncertainty exacts a toll from management in a variety of ways. A spurt in a demand or a delay in production may lead to stockouts, with the potential for lost revenue and customer dissatisfaction. Firms typically hold inventory to provide protection against uncertainty. A cushion of inventory on hand allows management to face unexpected demands or delays in delivery with a reduced chance of incurring a stockout. The proposed strategies are used for the design of a probabilistic inventory system. In the traditional approach to the design of an inventory system, the goal is to find the best setting of various inventory control policy parameters such as the re-order level, review period, order quantity, etc. which would minimize the total inventory cost. The goals of the analysis need to be defined, so that robustness becomes an important design criterion. Moreover, one has to conceptualize and identify appropriate noise variables. There are two main goals for the inventory policy design. One is to minimize the average inventory cost and the stockouts. The other is to the variability for the average inventory cost and the stockouts The total average inventory cost is the sum of three components: the ordering cost, the holding cost, and the shortage costs. The shortage costs include the cost of the lost sales, cost of loss of goodwill, cost of customer dissatisfaction, etc. The noise factors for this design problem are identified to be: the mean demand rate and the mean lead time. Both the demand and the lead time are assumed to be normal random variables. Thus robustness for this inventory system is interpreted as insensitivity of the average inventory cost and the stockout to uncontrollable fluctuations in the mean demand rate and mean lead time. To make this inventory system for robustness, the concept of utility theory will be used. Utility theory is an analytical method for making a decision concerning an action to take, given a set of multiple criteria upon which the decision is to be based. Utility theory is appropriate for design having different scale such as demand rate and lead time since utility theory represents different scale across decision making attributes with zero to one ranks, higher preference modeled with a higher rank. Using utility theory, three design strategies, such as distance strategy, response strategy, and priority-based strategy. for the robust inventory system will be developed.loped.

• International Journal of Quality Innovation
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• v.8 no.3
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• pp.156-172
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• 2007

The high-tech industry is the economic lifeline for Taiwan. Its characteristics are short product life cycle, rapid changes in the market, and a high obsolescence rate for new products. Under globalization, the high-tech industry has adopted Information Technology (IT) to shorten the manufacturing process, reduce costs and conduct product research and development (R&D) to increase the core competence of enterprises and achieve the goal of sustainable operations. Enterprises should actively strengthen their integration with internal and external resources and lead in R&D management to increase industrial operating performance. Effectively managing operations and R&D management evaluation in Taiwan's High-tech Industry has become a critical subject. This study adopted 4 major Balanced Scorecard (BSC) perspectives to establish the Total Performance Evaluation Indicators for the R&D management department in Taiwan's High-tech Industry. The Analytic Network Process (ANP) was applied to evaluate the overall performance of the R&D management department. The research framework is divided into 2 phases. The first phase is combined with the 4 major perspectives, Financial, Customer, Internal Business Process and Learning and Growth, as the related indicators for each measurement perspective. The Key Performance Indicators (KPI) were selected using Factor Analysis to identify the key factor from the complicated indicators. The relationship between the characteristics of each BSC's evaluation perspective is dependence and feedback. This study applied ANP to conduct the calculation and adjustment of correlation between each KPI, and determine on their relative weights for the objective KPI. The "Financial Perspective" for R&D management department in Taiwan's High-tech Industry focused on the budget achievement rate of R&D management. The weight indicator value is (0.05863). The "Customer Perspective" focused on problem-solving satisfaction. The weight value of this indicator is (0.17549). The "Internal Business Process Perspective" focused on the quantity and quality of R&D. The weight value of this indicator is (0.13506). The "Learning and Growth Perspective" focused on improving competence in the research personnel's professional techniques. The weight value of this indicator is (0.02789). From the total weighting indicators, the order of the Performance Indicators for the R&D management department in Taiwan's High-tech Industry is: (1) Customer Perspective; (2) Internal Business Process Perspective; (3) Financial Perspective; and (4) Learning and Growth Perspective.

• Journal of Information Technology Application
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• v.3 no.2
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• pp.67-82
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• 2001

The ILOF project addresses the needs of logistics industrial organizations to reduce information processing time, improve added and residual value of information and reduce processing and transportation costs. It deals with the information supply chain information systems shared by vertical partner as important entity, whose performance and optimization very significantly affects the efficiency and performance of logistics industries. This paper deals with logistics information exchange systems based on supply chain management, focusing on sharing database and processes between partners such as shipper, logistics broker, transportation company, shipping company etc., for smoothing the information flow, enhancing consumer service and reducing communication fee and labour costs. The significance of contribution of this research is the provision of a model for logistics information exchange including entity relationship diagram, data flow diagram and functions which is able to facilitate the formulation of a customer driven supply chain information network, there by enhancing the competitive edge of companies in logistics industries on local and global basis.

• International Journal of Advanced Culture Technology
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• v.9 no.2
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• pp.100-105
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• 2021

Contactless service is rapidly emerging as a new growth strategy due to consumers who are reluctant to the face-to-face situation in the global pandemic of coronavirus disease 2019 (COVID-19), and various technologies are being developed to support the fast-growing contactless service market. In particular, the restaurant industry is one of the most desperate industrial fields requiring technologies for contactless service, and the representative technical case should be a kiosk, which has the advantage of reducing labor costs for the restaurant owners and provides psychological relaxation and satisfaction to the customer. In this paper, we propose a solution to the restaurant's store operation through the unmanned kiosk using a state-of-the-art artificial intelligence (AI) technology of image recognition. Especially, for the products that do not have barcodes in bakeries, fresh foods (fruits, vegetables, etc.), and autonomous restaurants on highways, which cause increased labor costs and many hassles, our proposed system should be very useful. The proposed system recognizes products without barcodes on the ground of image-based AI algorithm technology and makes automatic payments. To test the proposed system feasibility, we established an AI vision system using a commercial camera and conducted an image recognition test by training object detection AI models using donut images. The proposed system has a self-learning system with mismatched information in operation. The self-learning AI technology allows us to upgrade the recognition performance continuously. We proposed a fully automated payment system with AI vision technology and showed system feasibility by the performance test. The system realizes contactless service for self-checkout in the restaurant business area and improves the cost-saving in managing human resources.

• Asia Marketing Journal
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• v.7 no.1
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• pp.67-89
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• 2005

In recent decades, product variety has increased dramatically in most industries. Rapidly evolving technologies, global competition, and sophisticated customers have contributed to an increase in product variety in many industries. In this paper, I study the impact of product variety on several businesses in the supply chain through literature review. By study of literature. this paper presents the benefits and drawbacks of increasing product variety on functions performed in several departments, such as engineering, manufacturing, purchasing, logistics and marketing. It provides a brief overview of the various techniques like modularity, component sharing, and platform-based development, which are helpful in reducing the costs, when designing for variety. It also provides a brief overview of order processing, purchased component/part variety, which are helpful in reducing the purchasing costs, and customer satisfaction, market advantage, market share, competitive advantage and demand forecast, which are useful in impact of product variety on marketing. Future research directions are discussed.