Samsung has varied its portfolio in order to continue inventing and developing products that

meet the demands of its consumers. Samsung can explain that it takes a lot of risks to create
two new products category which are connected cameras and phablets. According to market
research, handwriting using a pen is easier, which creates a phablet as well.

Samsung has established an open innovation strategy emphasizing collaboration such as the
interchange of ideas, technology, and expertise between internal and external sources to
develop innovation. This strategy can help to reduce the technological life cycle and promote
convergence in the electronics industry. Hence, Samsung launched open innovation centers to
work on creative ideas such as generating eye-catching designs and user-friendly interfaces
for Samsung mobile phones.

Lastly, Samsung also manages its intellectual capital with fewer expenditures by sharing
proprietary technology with partners. For example, Samsung and IBM have worked together
on a variety of projects by sharing their patent with extra investment which allows Samsung
to utilize planting innovation with limited resources. This can result in a more durable
foundation for innovative activity.

In conclusion, portfolio variance, open innovation strategy, and management of intellectual capital
are the key practices of Samsung in innovation management.