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Conclusion

LG is on cutting edge of all new technology in the display field. The research put into its designs is unique as with most companies in the technological field. The business practices are the same, but with a wider global approach since LG is based in several Asian, and Pacific countries. LG is the number two maker of displays in the world, but many large companies such as Apple have contracts with LG to make their computer screens. The interesting thing is LG has computer management systems designed and in place to monitor every facet of their business from sales to inventory. There is complete reliability in knowing the exact data needed to make management decisions. The job of a mid-level manager is now as high-tech as ever!

Technology-Network

Network

LG Display uses a computer network where multiple computers are connected communicating with each other sharing information, hardware as well as software. As an international company with offices and manufacturing plants around the globe, the type of network used by LG Display is most definitely Wide Area Network (WAN). Different form Local Area Network (LAN) which is a network of close proximity, WAN is a set of connected networks serving areas not in immediate proximity to each other.

The company most likely employs a switched network due to the fact that several computers need to have different conversations at the same time and large amount of data needs to be transmitted simultaneously. A switch is ideal in this situation as it is a network device that connects computers and passes messages by repeating each computer’s transmission to the intended recipient. While some local subsidiaries of LG Display may use wired communication media such as twisted-pair cable, coaxial cable and optical fiber to transmit information over a closed, connected path, the headquarter and some other subsidiaries may more likely be using wireless communication media such as microware and satellite to transmit large amount of information through the across greater distance.

Communications Software, Connecting Devices & Voice over IP

LG Display uses a Management Execution System (MES), through Symantec, which manages all of their products stages in production. A product cannot move on to the next step unless the MES "orders" it to.

From April to December 2008, LG Display deployed Oracle Customer Data Hub and Oracle Product Data Hub, and then launched the system in January 2009.
Oracle Customer Hub now provides a new set of composite web services to help speed Service Oriented Architecture (SOA) enablement and supports out-of-the-box integration with Oracle’s Siebel Customer Relationship Management (CRM) and the Oracle E-Business Suite through Oracle Application Integration 2.3 (AIA). This version also provides new usability and fast implementation enhancements, helping speed time to value for MDM projects.
Oracle Integration Repository, an integral part of Oracle Product Hub, is a compilation of information about the numerous interface endpoints exposed by Oracle Product Hub. It provides a complete catalog of Oracle Product Hub business interfaces, and a comprehensive view of the interface mechanisms available. You can use this tool to easily discover and deploy the appropriate business interface from the catalog for integration with any system, application, or business partner. Exposed interfaces types are: Java Service Interfaces, XML Gateway Message Maps, Web Services, PL/SQL Procedures and Functions, Java Methods, Concurrent Programs, Open Interface Tables, Interface Views, etc.
As a multinational company, LG Display does a large amount of business over the world that a voice over IP seems like a logical thing to use in place of flying to business meetings. The business people can now talk and hear just like they were actually there. The company can save money on calls they would already have made with a normal telephone.

Network Security

Availability is how easily it is for a person to have access to a piece of information. LG makes the financial statement available for potential investors. The product information is also on the website in an easy to read format. The website is rarely a target for spyware and attacks since very few people use the website to buy items off it.

Confidentiality means information is being accessed by only those authorized to have that information. LG encrypts private documents so that only those with a password can access them. The locks and keys are in proper hands of those who need to have them.

Authenticity is source material really coming from where it says to be coming from. The source of all of LG material is marked by accredited agencies. LG also does not have a history of fabricating any of their legal or financial documents. Transparency of LG is apparent with the amount of data released to the public on its website.

Integrity is when the documents are not altered in an effort to affect what they mean. The web site is transparent with numbers being authentic. The web server LG use has very tough protection keeping hackers from crashing the site.

Domain Name

The domain name is http://www.lgdisplay.com. The .com part meaning it a commercial site on the world wide web.

Technology-Database, Hardware & Software

Files
A file is a collection of related records. Some files we believe are used in LG Display are:
• Supplier
The supplier file includes records of LG’s suppliers, their name, location, contact person and the nature of the business.
• Customer
This file includes records of corporations that LG Display sells its products to, which includes sectors such as multi-media, medical, automotive, aerospace, retail and etc.)
• Sales
This file includes sales records such as sale price, quantity, representatives and other sales-related records.
• Marketing
This includes records of marketing tactics used, results and marketing budgets and expenses.
• Order
The file is used to track customers’ order which contains order number, date, product model and transaction amount.
• Product
The product file includes product model, number, materials or technologies involved and product description.
• Operation
The operation file includes records of running a business, the periodical financial results, company’s forecasted verses actual revenue, cost, profit and other operational records of running a business.
• R & D
The file includes records of types of R & D involved, the technologies applied, the results, the budget and other related records.
• Employee
The file stores records of LG Display’s employee info across the globe such as their name, position, benefit and contribution record.

Database and Database Software
A database is a collection of related files. LG Display uses relational database, which uses a serious of logically related two-dimensional files to store information in the form of a database. One of the ways LG provides easy access to information is through the help of databases such as Oracle Database 10gR2. It runs on Oracle Real Application Clusters (RAC), which the IT team manages using Veritas Storage Foundation for Oracle RAC. In January 2009, the company begins employing Oracle E-Business Suite R12, which allows LG to increase productivity while reduce manufacturing downtime. Although it is unclear whether LG Display uses other Database Management Systems (DBMS), it is clear Oracle’s relational database is an important part of its technology.

Database Management
A Database Administrator (DBA) is usually in charge of maintaining, testing, securing and backing up the database for the purpose of ensuring the system’s maximum performance and its most efficient use. For LG Display, a global Oracle business management platform is responsible for the database. LG currently uses a three-server cluster configuration; two nodes are used to run databases and applications, and the third is on back-up duty.Managers’ Reports Generally, managers get reports containing detailed information collected over a period of time. Stored in DBMS, the information is only useful after becoming business intelligence, processed and analyzed to allow managers to make effective and often strategic business-related decisions. Through the process of Online Analytical Processing (OLAP), information becomes business intelligence and gets stored in data warehouses. With the help of data warehouse, businesses such as LG can perform more in-depth, multi-dimensional queries to help support decision-making tasks. For LG Display, one way managers get reports is through an integrated HR DBMS. It is engineered to link HR strategies with business goals so the company can monitor workforce performance against specific objectives or campaigns. This gives the managers better insights into workforce numbers and the details, qualifications, and performance of individual employees, thereby assisting in informed decision making. Another way of getting reports is through Oracle's E-Business Suite, which targets to help better manage a global operation including accounting and multi-organization access control (MOAC).Some examples of the types of reports managers would get are sales report, marketing report, production report, financial report, employee performance/workflow report, and customer report.

OLAP, Data Mining, Data Warehouse, Data Marts
Online Analytical Processing (OLAP) is the manipulation of info to support decision-making. LG Display most likely uses OLAP in many areas of their businesses to help the management in making strategic business decisions. For instance, OLAP is used in Sales Department to analyze the time of sales made, its quantity and price; it is also used for decision on effective marketing champagne for a new product.

Data warehouse is a special form of a database that contains info gathered from operational databases for the purpose of supporting decision-making tasks. Thus, it is necessary for the support of OLAP. Since OLAP is an important part of LG Display’s technology, the company most definitely uses data warehouse to house all of its sales, research and development database, and any relevant strategic business intelligence that LG needs. The data warehouses are so vast that they become multidimensional databases that house all-important files. A data mart is a subset of a data warehouse in which only a focused portion of the data warehouse information is kept. It breaks down a data warehouse into each department-related file for ease of access. Data Mart is most likely in use by LG since it’s an easy way to departmentalize information for easy access for employees. Data-mining tools are the software tools a company uses to query information in a data warehouse. The simplest data-mining tools are query-and-reporting tools such as query-by-example, structure query language, or a report generator, which allow data to be searched within the data warehouse. Other data-mining tools include intelligent agents, multidimensional analysis tools, and statistical tools. Multidimensional analysis tools allow workers to utilize a slice-and-dice technique to view information that’s needed at the time. The worker slices the information needed bringing it to the front while not affecting any other information. Since LG Display is so large, they most likely use statistical tools to figure out trends in new products. Also variable relationships can be established by figuring out how certain data is connected to each other. The person in charge of data mining is a database analyst. The person oversees all the data mining that is done in data warehouse. Smaller companies use Microsoft Access for databases creation. Larger companies use either Cognos, or Informatica for data warehousing and data-mining tools. SAS is leading company in statistical tools software. Although we are unsure which business intelligence software LG Display uses, it is likely the company employs software from one of the companies above.

Hardware
Hardware consists of the physical devices that make up a computer. While LG Display employs hardware such as input, output, storage, processing, telecommunications and connecting devices to manage various aspects of the corporation’s daily business transactions, its revenue mainly comes from sales of an output device, monitors. The company specializes in producing thin and lightweight liquid crystal display (LCD) monitors & organic light-emitting diode (OLED) monitors. Major global brands such as Dell, Hewlett Packard and Kodak of the US and Japan’s Toshiba have formed strategic alliances or entered into long-term sales contracts with LG Display and uses LG monitors as part of their product.

In January 2009, a five-year agreement with Apple was made supply Apple with LG display panels. The types of computers that use LG monitors range from table PCs, laptop computers, netbooks, to personal digital assistant (PDA) and smartphones. In other words, LG monitors can be seen on any devices with a visual screen. The IT department is responsible for installing and maintaining the hardware and software system.

Software
System software handles tasks specific to technology management and coordinates the interaction of all technology devices. It includes both operating system software and utility software. While LG Display is not a software company, it undoubtedly employs operating system software such as Windows Vista or Mac OS for coordinating hardware devices to work together and run business. In addition, utility software which provides additional functionality to operating system software such as anti-virus software and spam blocker software are also used to protect company property from being damaged or invaded. As an open source operating system, Linux may also be used within the company, but we were unable to find any information on this aspect. Application software is the software that enables one to solve specific problems or perform specific tasks. It is likely that LG Display uses payroll software, inventory management software, accounts payable and receivable software and other types of horizontal market software to manage its day-to-day businesses. The brands are likely to include the two major software companies, Microsoft and Oracle.

LG Display Reduces Manufacturing Downtime by 50% with Oracle E-Business Suite R12
Competitor increases in the TFT-LCD market, led LG Display to find new systems that would increase efficiency, improve quality control, and enhance risk management, in order to meet customer demands for quality, cost, and fast delivery. This required a comprehensive review and restructure of the company's business processes and systems. In January 2009, LG Display went live on Oracle E-Business SR12 after an 18-month project to standardize its global operations on the platform. The Oracle system helped to increase productivity by 30%, reduced manufacturing downtime by 50%, and is expected to lower costs by 30% to 50%.

See article below: http://www.oracle.com/customers/snapshots/lg-display-ebs-case-study.pdf

LG Display In The News

LG Display is starting to make Organic Light-Emitting Diode (OLED) screens. The screens are slated to come out sometime in 2010. LG Display also faces an overstock of screens already in production, but a glass shortage may hinder that production. LG aims to become the leader in screens sector by profitability.

http://www.reuters.com/article/marketsNews/idINSEW00012020090717?rpc=611

E-Commerce

LG Display is a manufacturer of TV, computer, mobile phone and any type of visual screen. The products such as LCD and LED screens made by LG are sold as parts to computer makers and consumer electronics makers who then sold the finishing products to distributors like Best Buy or Wal-Mart before eventually being bought by the end users. LG Display therefore mainly employs the business-to-business (B2B) e-commerce model while the stores that sell LG products are business to consumer (B2C) model. LG products are rated by information brokers like Consumer Reports and ConsumerReports.com so that consumers have a way to rate their products against the other ones in the category. For the B2B model, the company's Supplier Collaboration System is a vertical e-marketplace that connects the buyer and sellers in the indusrty specific to LG's primary business activities. In terms of B2C model, LG distinguishes itself as specialty merchandise, since its products are high-ticketed items that require customization, warranty and other after-sales services. The company may need to work on mass customizing its products to better tailor to individual needs.

Marketing Mix

Since the company primarily focuses on B2B business, LG Display does not sell its products directly by itself online. Therefore, one cannot find much B2B marketing via surfing the web or using search engines. However, its Supplier Collaboration System is an ERP system that integrates and unifies all suppliers and enables both suppliers and buyers to actively participate in an e-marketplace.
In terms of B2C marketing, other than registering with search engines such as Google or Bing to enable appearance on top of the search list, the company uses online advertisements on sites like Yahoo or Google in banners or sidebars. Viral marketing is also used through blogger reviews and online customer ratings. The click-and-mortar system is best representation of how LG products are sold. Stores like Wal-Mart, Best Buy and the now out-of-business Circuit City have actual stores that sell products and even more selections on the websites as well.

Payment System

As the second largest LCD maker, LG Display supplies panels to major personal computer makers and leading consumer electronics makers globally. The fact that the majority of its e-commerce business model belongs to B2B suggests payment is done through financial Electronic Data Interchange (EDI) since payments are often large and encompassing many purchases. Its Supplier Collaboration System is a B2B e-marketplace which supports financial EDI through a value-added network. Such system integration between the company and its suppliers efficiently cuts down costs for order processing time and effectively reduces human intervention. The companies that actually sell the LG products (B2C model) use shopping cart technology to help facilitate the check out process on their sites; this is an implementation of the digital wallet system as account or credit card information are saved to speed up the processing time. Online auction sites such as E-Bay allow customers to pay using credit cards or pay through a financial cybermediary, such as PayPal.

LG KM900 (LG Arena)

Business Strategy

LG Display Co Ltd uses differentiation as its main business strategy by producing goods and services that are unique to the market. That is products that are used to experience new, rich life of digital display through a variety of TFT-LCD LG Display provides, such as the production and supply of thin-film transistor liquid crystal displays called TFT-LCD panels, principally used for televisions to provide slim and sleek design. It also provides large, wide and high performance screens for notebook computers and wider, brighter and crisper screens for desktop monitors. In addition, it provides TFT-LCDs for handheld products such as mobile phones, and lighter and slimmer products for industrial and other applications such as entertainment systems, automobile navigation systems, portable DVD players, digital photo displays and medical diagnostic equipment. The customers served by LG Display include manufacturers of notebook computers, televisions and desktop monitors.
The customer service center provides product repair and warranty services to customers in the Americas region, where the demand for LCD TVs is rapidly growing, especially in the United States, Canada, Mexico and Brazil. The service center features optimized facilities and analysis equipment to provide warranty services primarily for LCD panels that are 32 inches and larger. In addition, the Company has one sales subsidiary and four representative offices in the U.S. As part of their strategy to improve customer alignment; this enables them to better respond to the needs of their customers in a timely and efficient manner.

Michael Porter's Five Forces Analysis

In the industry LG Display operates, Michael Porter’s Five Forces Analysis is crucial in assessing the state of competition.

The Bargaining Power of Buyers

The bargaining power of buyers is moderate. There aren't many companies that offer the same quality of products as those of LG Display or have advanced as much technologically. The company’s televisions, monitors, notebook PCs and applications stand out among existing competitors. LG Display reduces the buyer power by designing its products in ways that appeal to and fit the needs of today's customers. Everything from the slim and sleek, wide view, portable and compact designs and display technologies make the products superior to the competing companies.

The Bargaining Power of Suppliers

As far as LG Display's bargaining power of suppliers, the power is on the lower end. The company forms information partnership to create cooperation among supply chain partners for mutual success. It enters into a cooperative relationship with its suppliers by becoming their shareholders. This allows LG Display to promote strategic relationships with equipment and parts suppliers, which enables a stable source of supply at competitive prices. The result is high-quality parts at a lower cost which is done through sharing product concepts with suppliers early in the product development cycle. This kind of cooperation with suppliers has lowered costs by 10% compared to the fourth quarter of 2008. LG Display stands apart from its peers in terms of market share, cost competitiveness and supply capacity.

Threat of Substitute Products or Services

The threat of substitute products is moderately low. Substitutes for LCD are LED (Light-Emitting Diode) and OLED (Organic Light-Emitting Diode), both are newer technologies currently developed by the company. As long as LG Display can maintain its current market share of a quarter percent for the newer products, substitute products would not be considered as threats. The company’s development of new products and technologies that can be differentiated from those of its competitors increases switching cost as well as reduces buyers’ propensity to substitute. In addition, its innovation technology is another switching cost for consumers.

Threat of New Entrants

The threat of new entrants is low in the flat panel display industry (TFT-LCD technology) due to its various entry barriers such as rapidly evolving technology, capital-intensive characteristics, brand equity, expected retaliation among existing competitors and the significant investments required by the economies of scale. In addition, the industry may not be as appealing to potential competitors due to its highly competitive nature. Existing competitors have already experienced pressure on their prices and margins due largely to additional industry capacity from other panel makers in Korea, Taiwan, China and Japan. Other entry barriers also include LG Display’s absolute cost advantage in its supply chain management and learning curve advantage with its years of experience as a leading player in the industry

Rivalry among Existing Competitors

Rivalry among existing competitors is on the higher end. Although the company’s market share increased to 26.4% in 2009 from 20.4% in 2007, there is still intense competition within the industry. Competitions are likely to remain intense not only due to the expected large demand for LCD panels in the market today but also due to additional industry capacity from other Asian LCD panel makers such as Samsung, AU Optronics and Sharp. However, the average selling prices may continue to decline as a result of technology advancements and cost reductions. In order to stay competitive, LG Display strives to differentiate itself with not only cutting-edge technology but also innovative designs. The BusinessWeek article "LG Bets Big on TV Design" clearly demonstrates this business initiative.

http://www.businessweek.com/globalbiz/content/jan2008/gb20080116_993295.htm

Major Business Initiatives & IT Advantages

As a major manufacturer of LCD and other types of electronics screens such as LED and OLED, the company needs to have a strong Supply Chain Management (SCM) system to ensure supplies are in place at the right moment when they are needed (Just-In-Time method). This way cost can stay down while profits rise. Although it is uncertain whether LG Dispaly has any SCM in place, the company employs Inter-Modal Transportation to move its supplies from origin to destination through the help of Supplier Collaboration System, an ERP system that tracks goods from when they are shipped to the various stores that sell the products. The Customer Relationship Management (CRM) system is another focus of LG Dispaly since differentiation is its business strategy. The company's Customer Collaboration System serves to strengthen customer collaboration through providing services such as engineering support and market information. The Multi-channel Service Delivery also allows customers to interact with the company by either email, phone or the website. Another initiative businesses are increasingly using is E-Collaboration, the use of technology to support workflow, knowledge management, social networking, e-learning and collaboration. LG most likely uses virtual teams since there are employees in various countries like South Korea, China, Poland and the United States. The integrated collaboration environments improves work performance and allows sharing and flow of information. Considering the immence amount of technology involed in its industry, LG may also be using knowledge managment systems and wiki to capture, organize collaorate and share information. Finally, a company this size has to have an Enterprise Resource Planning (ERP) system in place to help facilitate the business practices. For LG, this integrated software that controls the various departments in the company is the Supplier Collaboration System. It allows all suppliers, forwarders and customers to review shipment processing, import trade, electronic certification, price estimation and vendor information management.

The type of IT LG Display uses is the Top-down silo, where all the IT command and control are in the IT function. Although cuts down cost, this centralized approach discourages innovation. Fortunately, its philosophical approach of Early IT Adopters encourages the development and use of IT and allows employees to experiment with new and emerging technologies in hope of finding a few that can provide significant competitive advantage.

Ethical, Social Responsibilities & Risk Management

In terms of ethical responsibility, in the LG Display official site, one can find the complete company Code of Ethics guidelines, where it details regulations into six parts:

1. Responsibilities to and duties to customers, which regards to customer protection, privacy and fulfilling promises;
2. Fair competition, regards to lawful usage of information and gaining competitive edge;
3. Fair transactions, regards to fairness and enforcement of contracts;
4. Basic ethics for employees, details employee dignity, protection of company property and issue of conflict of interest;
5. Corporate responsibilities to employees, regards to health and safety fair treatment and human resources development;
6. Responsibilities to the nation and society, details protection of stockholders’ interest, conforming to tax laws and environmental conservation.

In terms of its social responsibility policies, the company provides page on its environmental management where it details its vision, mission and strategies for compliance & corporate value, clean technology and sustainability. It incorporates a values system of ESH (Environment, safety and health).
On the corporate social responsibility page, the company itemizes four tasks:

• Matching grant system for all employees (matching employee donations for philanthropy);
• Providing student scholarships in science talents;
• Organizing environmental protection programs in demilitarized zone area;
• Global volunteer activities.

In order to improve its competitive edge so as to prevent Japanese and Taiwanese rivals from taking a larger share of the market, LG Display employed Oracle E-Business Suite R12 to not only increase business productivity and efficiency but also enhance risk management.

Company CEO

Young Soo Kwon

Director, President and Chief Executive Officer of LG Display Company Limited

52 years old, Young Soo Kwon has served as the Representative Director, President and Chief Executive Officer since February 2007. Prior to joining LG Display, Mr. Kwon served as the President and Chief Financial Officer of LG Electronics. He also served as head of the Globalization team at LG Electronics' headquarters in Korea, as well as a financial officer at LG Electronics' overseas subsidiary in New Jersey. Mr. Kwon holds a bachelor's degree in Business Administration from Seoul National University and a master's degree in Industrial Engineering from Korea Advanced Institute of Science and Technology.

History

LG Display was originally formed as a joint venture by the Korean electronics company, LG Electronics and the Dutch company, Koninklijke Philips Electronics in 1999 to manufacture active matrixLiquid Crystal Displays (LCDs). The company was formerly known as LG Philips LCD Company but Philips sold off all its shares in late 2008. In December 2008, LG Philips LCD announced its plan to change its corporate name to LG Display upon receiving approval at the company's annual general meeting of shareholders on February 29. The company claimed the name change reflects the company's business scope expansion and business model diversification, the change in corporate governance following the reduction of Philips' equity stake, and LG's commitment to enhanced responsible management. The company has eight manufacturing plants in Gumi and Paju, South Korea. It also has a module assembly plant in Nanjing and Guangzhou in China and Wroclaw in Poland. LG Display became an independent company in July 2004 when it was concurrently listed on the New York Stock Exchange (NYSE) and the Korea Exchange (KRX).