THE BRIEF
Samsung is the global market-leader in the manufacturing of LCD panels. The LCD business division sells panels to every major brand in the computer, mobile phone and television industry, including Samsung itself. Whilst pricing is constantly declining and commoditization is taking hold, LCD is an enduring technology and penetration will increase a further 50% by 2010. Despite being ideally placed for success, the relentless growth expectations of one of the world’s most dynamic conglomerates require the curve to steepen. A specialty product division of the LCD business has been established to deliver incremental revenues of US$2 billion by 2009, at a margin of 25%.
Fahrenheit 212’s brief was to catalyze the specialty business’ division goals by creating products that would open new markets for Samsung technology.
THE COMMERCIAL OBJECTIVE
To develop ideas that would create markets capable of generating demand for 600K screens annually when no advances in technology are on the horizon.
THE INNOVATION CHALLENGE
To transform Samsung from a manufacturer selling outputs to a partner selling outcomes.
THE INNOVATION STRATEGY
Fahrenheit 212 identified the tradeshow market as one of ten that met the criteria for inclusion. It relied heavily on visual displays, was global in scale, offered a high degree of consolidation and had demonstrated a high level of receptivity to innovation.
Through its analysis, Fahrenheit 212 discovered two unique aspects of the industry that made it ripe for innovation. The first revolved around the fact that tradeshow exhibit companies began as carpenters, and had not moved beyond their labor-intensive model of designing, building, shipping, storing and installing exhibits.
While their traditional vertical integration model had enabled them to generate significant profits, it had also attracted a range of specialists focused on picking off pieces of the value chain. In the face of the new pressure, the major players were hungry for ways to move from the construction business to the impact business.
Secondly, the majority of tradeshow exhibits were used briefly and discarded. And with increased profit-pressure across industries, re-usability has become a potent value generator for all involved.
THE OUTCOME
Fahrenheit 212 developed the world’s first interlocking digital display wall. Mirroring the structure of Legos, Samsung ID’s “plug and play” system gave exhibitors a way to deliver maximum impact, minimum complexity, and full reusability. Fahrenheit 212’s recommendation consisted of a video prototype that brought the hardware and software to life, the business case and a recommendation on the go-to-market development process. Samsung launched ID in the first half of 2008 as one of the first innovations in the LCD portfolio. International CES Innovations 2009 recognized Samsung ID as one of the year’s best electronics innovations.