|An LS Electric employee watches CEO Koo Ja-kyun present the company's vision for the next 10 years, at LS Electric's headquarters in Anyang, Gyeonggi Province, Monday. / Courtesy of LS Electric|
By Kim Bo-eun
LS Electric has unveiled a plan to achieve 10 percent annual growth each year through 2030, and to have its overseas businesses account for 70 percent of its portfolio and new digital businesses for 50 percent.
CEO Koo Ja-kyun outlined his vision Monday to transform the automation services provider into a global digital firm.
The strategy centers on adapting and finding growth opportunities for the company for the Fourth Industrial Revolution.
"We need to make this era of uncertainty where industrial paradigms are shifting rapidly into an opportunity for the company, and seek evolution beyond revolution ove the next 10 years," the CEO said in an online presentation to the company's executives and employees.
"The reason for our existence is not to become a long-standing firm that simply seeks to survive and maintain things the way they are ― we will need to achieve exponential growth to become a leading company and achieve a dominant market presence in the era of the Fourth Industrial Revolution."
The vision outlines fundamental changes that are occurring in the traditional manufacturing industry, where data is shared among equipment, parts and products in the manufacturing process.
The industry-based economy has entered a period of slow-down and is in the process of shifting to another period of growth, and Koo stated the company is seeking to achieve great expansion during this transition.
In order to enable this, the CEO stated LS will be undergoing fundamental changes in management, businesses and culture.
Last year LS introduced an independent organization set up within the company. LS said it was seeking new ways of management which value autonomy and responsibility to improve the execution of growth strategies.
The company also said it is seeking to localize global business models and transition to a business without borders, based on a digital platform.
LS said it plans to secure human resources to enable this innovation in management and business, pledging to change its way of working and doing business to become entirely customer-centered.
The company has set agility, challenge and excellence as keywords. Agility for LS represents putting the market and customers first, and providing them with the best value. Challenge centers on switching to a creative way of thinking and doing business. LS plans to strive for excellence in output, based on cooperation between employees and partners.
"We have achieved stable growth so far based on a traditional business based on electric power and automation, but we have been thinking about how to shift to a new innovative business model that utilizes ICT and digital capabilities that fit with the new era," an LS Electric official said.
"Power and automation are also evolving into a new data-based software and service industry as integration occurs with digital technology such as artificial intelligence and cloud. We have unveiled a vision to achieve exponential growth by transforming into a leading firm in relevant technologies, products and businesses."
LS Electric is the company's corporate name, changed last year from LS Industrial Systems, which had been used for 33 years.