POSCO is one of the largest and best steel producers in the world. Since the construction of Pohang Steelworks in 1973 Pohang Iron and Steel Company (“POSCO”) has continuously grown in the world steel industry. But in the late 1990s when the Asian financial crisis, the Korean economy hit hard, the company began to pay great attention to innovation as an important source of competitive advantage. Since then, POSCO strives to foster an innovation-friendly environment made: in 1999, there emb … Read more »

POSCO is one of the largest and best steel producers in the world. Since the construction of Pohang Steelworks in 1973 Pohang Iron and Steel Company (“POSCO”) has continuously grown in the world steel industry. But in the late 1990s when the Asian financial crisis, the Korean economy hit hard, the company began to pay great attention to innovation as an important source of competitive advantage. Since then, POSCO has made every effort made to promote a favorable environment for innovation: In 1999, she launched process innovation to its innovation to build hardware, and in 2002 he took Six Sigma, an infrastructure for innovation, and closed its manufacturing execution system (” MES “) for effective decision making. Although the hardware and infrastructure for innovation were able to require the company to internalize the innovation to maximize corporate performance effectively. In 2008, the global recession and the turbulent economic situation of America common and a serious blow to the company’s innovative initiatives addressed. Meanwhile, the employee exhibiting fatigue with the lengthy innovation campaign were. POSCO CEO Chung Joon-yang is to consider what the POSCO path of innovation has achieved since its start in earnest in 2006. He now has a hard decision, what additional measures the company must take to overcome the looming crisis.
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from
Bowon Kim,
Sanghyung Ahn,
Chulsoon Park
Source: University of Hong Kong
32 pages.
Release Date: 21 June 2011. Prod #: HKU943-PDF-ENG
The POSCO Way of Field Based Innovation HBR case solution

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