The Impact of AI on Korean Corporations: Insights from Thales Teixeira Interview - 더밀크

"Korean fast-following strategies will obsolete in GenAI era" [The Wave] Thales Teixeira, Author of "Decoupling" How Should Korean Companies Respond in the AI Era? "Executives Must Use AI to Identify Urgent Priorities" The business landscape is undergoing significant changes in the era of AI. Korean companies need to respond differently. If AI is only used as a means to cut costs, they will ultimately face survival challenges.Professor Thales Teixeira of UC San Diego In an exclusive interview with The Miilk, renowned global strategic marketing expert and bestselling author of "Decoupling," Professor Thales Teixeira of UC San Diego emphasized the pressing need for Korean conglomerates to adapt swiftly and strategically in the burgeoning era of artificial intelligence (AI). Having served as a professor at Harvard Business School, Professor Teixeira shared his insights on how Korean giants like Samsung Electronics, Naver, and Kakao are navigating the AI landscape. "For the past 25 years, Korean companies have achieved rapid success by identifying and addressing issues while mitigating risks," he stated. "However, the formula for future success must change." Professor Teixeira pointed out that Samsung Electronics, for instance, has excelled by keenly observing smartphone market changes and creating its own niches through a strategy of imitation, adaptation, and innovation in various sectors including electronics, transportation, and e-commerce. "While this approach has fueled growth in the past, it will be increasingly challenging to succeed by merely adapting global trends for the Korean market," he noted. Historically, Korea has thrived as a "fast follower" in industrial technology, rapidly implementing successful global models domestically. However, he cautioned that the AI revolution, characterized by real-time translation erasing language barriers and diminishing innovation time lags, necessitates a strategic overhaul. With Korea’s population declining and its market contracting, the strategy of quickly localizing global success models for Korean consumers is losing its effectiveness. He warned that the rapid advancement of technology and a lack of market regulation present significant challenges for Korean companies, particularly those in the information service industry like Naver and Kakao. "The importance of strategic decision-making on where to integrate AI tools is paramount," he stressed. "Introducing AI solely for cost-cutting purposes may lead to missed opportunities in new business ventures, enhanced customer satisfaction, and the development of innovative business lines." Professor Teixeira predicted that true success will come to companies that demonstrate high-value creativity in innovating new business models. "The companies that will thrive are those that leverage AI not just for efficiency, but to create novel offerings and improve customer experiences," he asserted. Dr. Teixeira will serve as a keynote speaker at "The Wave," an event to be held at COEX (Conference Room 401) on June 19th and 20th, where he will delve deeper into these themes. The following are excerpts from our interview with Professor Teixeira. "Decoupling: The Third Wave of Digital Transformation...Finding Business Models in the Customer Value Chain" What is the Concept of 'Decoupling'? "Decoupling is literally a strategy of dismantling, separating, and breaking away. It involves identifying and severing the weakest link between the different stages of a customer's consumption activities—such as product search, evaluation, purchase, and use—then dominating that specific point. As a marketing professor, I have always focused on the customer. I felt the need to explain the customer value chain. For instance, if a customer wants to buy a flat-screen TV, they first recognize the need, then search for available options. They compare these options on various dimensions, check prices, choose one, purchase and pay for it, bring it home or receive it via e-commerce, use it, and finally dispose of it when done. All these activities form part of the customer's value chain. The focus of our thinking should be on the customer, not the company or the technology. Decoupling can be seen as the third wave of digital disruptive innovation. The first was unbundling in the 1990s, the second was disintermediation in the 2000s, and the third wave is decoupling. Typically, startups analyze the customer value chain, identify activities where customers are dissatisfied, and create businesses that perform that single activity better than existing companies." You argued in your book that cutting-edge technology is not always necessary to be a game-changer. Is this still valid? "Absolutely. Innovative technology does not necessarily have to be a priority. At Harvard Business School, I studied over 30 cases and visited numerous startups. For example, when I visited Facebook in its early days before the IPO, they did not have disruptive technology. Th