LG initiates a massive corporate reorganization. LG Electronics (LG) has announced several organizational changes that should “strengthen its ability to respond to future changes”: the multinational reports that the intention is “to improve its ability to create value and differentiated experiences for people”, but the reorganization focuses not only on user experience, design and services, but also on the optimization of supplies, production and strategic planning.
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A key element of LG’s strategy is the creation of the Corporate Customer Experience (CX), which will report directly to LG’s headquarters. The CX Center will be led by Executive Vice President Lee Chul-bae, who previously headed the Corporate Design Management Center. The company reports that the primary role of the CX Center will be to “create an expanded and seamless consumer experience.” It will also develop “strategies and roadmaps to integrate more and more innovative elements into each stage of the customer journey, from product planning and customer service to future business models”.
The CX Center will also include the CX Strategy Division, which will have the task of identifying the company’s strategic objectives, and the LSR Customer Research Center, previously the Life Soft Research (LSR) Lab. Again, the LG Platform Business Center will carry out the role of integration and organization of LG ThinQ services, previously managed shared between corporate and business teams.
Established in July 2021, the Platform Business Center has spearheaded the creation of a data-driven culture. The Center will be led by LG Vice President Jung Ki-hyun, who joined the company in September this year after a significant career with senior roles at eBay Korea and Google, and served as CEO of Meta Korea.
As of 2023, LG reports that it will continue to focus on improving supply chain management (SCM) and boosting the Digital Transformation (DX) area. To this end, the company’s Procurement and SCM Management Center was renamed the Global Operation Center, to which the functions and roles of the Production Planning Division, previously headed by the Production Engineering Research Institute, also merged. The Global Operation Center – explains LG – “will create synergies between the company’s activities – production, purchasing and SCM – promoting improvements based on Digital Transformation”.
Lyu Jae-cheol, head of Home Appliance & Air Solution Company (H & A), was promoted to president in recognition of his success in improving H & A’s performance and product portfolio. Lyu has worked since 1989 in various areas of LG’s home appliance division, including R&D and manufacturing departments.
Eun Seok-hyun, head of Vehicle Solutions Company (VS), was promoted to vice president. The company reports that under his leadership, the division’s business has achieved operational stability with “an improved profit and loss structure” and has built “a robust product portfolio that includes several key technologies for future mobility.” ”.
Another change in the LG reorganization is the H&A Company’s Living Appliance Business and Kitchen Appliance Business which will become the Living Solution Business and Kitchen Solution Business, respectively. The idea is to underscore more emphasis the company is placing on expanding content and services.
Home Entertainment Company (HE) intends to increase its “ability to create value for customers” by establishing the Indonesia R&D Division which will report to the HE R&D Lab Institute to enhance the collaboration between the R&D and production bases abroad.
The Vehicle Solution Company (VS) aims to strengthen its purchasing, manufacturing and supply chain management capabilities through the creation of an operating group that will manage operations related to the electric vehicle components sector in an integrated manner.
The Business Solutions Company (BS) has created a new EV Charger Business division to accelerate the comprehensive development of the EV charging solutions business, which it launched last year. All nominations are effective December 1, and promotions will go into effect on New Year’s Day.
