LG Electronics (LG) has announced a number of organizational commitments that are designed to faster transform the global consumer electronics and appliance brand into a company that will be able to better weather the coming year by turning challenges into opportunities. Initiatives such as promoting customer value innovation through LG’s digital transformation strategy, creating a cross-function Quality Management Center, establishing an Innovation Center in North America, bolstering each company’s R&D function and giving the nascent Robot Business Division a new home in the Business Solutions Company are just some of the changes in store for the new year and beyond.
A notable change will be the retirement of Dan Song, President and CEO of the Home Appliance & Air Solutions Company, who took on the role at the end of 2016 and leaves the company stronger than it has ever been. Under the 37-year veteran of LG Electronics’ leadership, the H&A Company recorded the highest sales figures in its history and is a key reason for LG’s strong performance this year despite the cloud of the pandemic. Taking over the reins of LG’s largest Company will be Lyu Jae-Cheol, a 32-year veteran of LG and head of its Living Appliance Business since 2016.
In addition to focusing on customer value, quality control, innovation, R&D and robots, LG will be creating more opportunities to reinforce its competitiveness, encourage disruptive thinking and better prepare for future uncertainties. To give management and employees direct responsibility for growing categories, separate divisions will be established for refrigerators and dryers under the H&A Living Appliance Business, while the Air Solutions Business will get a separate System Air Conditioner division. Other new initiatives include the launch of a Disruptive Technology Innovation Lab and Disruptive Product Innovation Lab, which combine elements of R&D with future product planning.
Under the CTO’s Materials & Devices Advanced Research Center will be the New Display Lab, which will focus on accelerating Micro LED technology for faster business development. The CTO will also set up iLab to develop creative technologies utilizing startup methods that can be commercialized relatively quickly. In addition to opening a North America Innovation Center to discover and promote new business opportunities, LG’s Chief Strategy Office will also set up a new Business Incubation Center to adopt new ideas and help transform them into business opportunities.
To better respond to changing consumer needs, LG will open a Customer eXperience (CX) Lab that reports directly to the CEO. The CX Lab will include aspects of the Advanced Design lab and will focus on studying how design affects the way consumers interact with products.
All appointments are effective December 1, 2020, with promotions taking effect from January 1, 2021.