Firms need innovative business models

IBM Business Consulting Services Korea general manager James Gordon says Korean firms need to focus on better management practices instead of investing only in product development. Korean pharmaceuticals, consumer products, and financial services firms all have tremendous opportunity abroad and should follow the lead of the electronics sector, Gordon says. "Many Korean companies try to do everything themselves and I would challenge them to look to their partners, so that they can focus on their core competencies and find partners that focus on different competencies," he says. "That's how they could create world class organisations together."

Gordon says creating a better business model involves making the company flexible to customer demand, resilient in its business processes, and able to withstand sudden market changes. IBM Business Consulting Services Korea is the largest consultancy in the country with 33 percent market share. The group recently won Level 3 CMMI certification for software and systems engineering -- a first-time achievement for Korea and a rare award for any consultancy worldwide. SK Telecom recently signed a two-year, $120 million contract with IBM Business Consulting Services Korea that involves implementing new business and marketing applications and processes.

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